/raid1/www/Hosts/bankrupt/TCRLA_Public/100506.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, May 6, 2010, Vol. 11, No. 088
Headlines
A R G E N T I N A
CARLOS A CAPPELLA: Creditors' Proofs of Debt Due on June 25
FLORIDA 122: Creditors' Proofs of Debt Due on June 9
INDEQUINO SRL: Creditors' Proofs of Debt Due on June 21
INTERCLIMA INSTALACIONES: Creditors' Proofs of Debt Due on July 1
MULTIFER SA: Creditors' Proofs of Debt Due on August 3
NIC LUC: Creditors' Proofs of Debt Due on May 19
OBJETIVOS PROMOCIONALES: Creditors' Proofs of Debt Due on June 8
CASA INO: Asks for Preventive Contest
YOCLE SA: Creditors' Proofs of Debt Due on May 21
CITY COL: Creditors' Proofs of Debt Due on May 20
MASSUH SA: Creditors' Proofs of Debt Due on May 27
JAC CONSTRUCCIONES: Creditors' Proofs of Debt Due on June 16
B E R M U D A
ASCENDANT REINSURANCE: Creditors' Proofs of Debt Due on May 25
KOCH CAL: Creditors' Proofs of Debt Due on May 28
KOCH CAL: Member to Receive Wind-Up Report on June 4
KOCH KIG: Creditors' Proofs of Debt Due on May 28
KOCH KIG: Member to Receive Wind-Up Report on June 4
KOCH TREASURY: Creditors' Proofs of Debt Due on May 28
KOCH TREASURY: Member to Receive Wind-Up Report on June 4
XL CAPITAL: Posts US$128.0MM Net Income in First Quarter
B R A Z I L
GERDAU AMERISTEEL: To Hold Special Shareholders Meeting on May 12
INDUSTRIAS METALURGICAS: S&P Affirms 'B-' Corporate Credit Rating
INDUSTRIAS METALURGICAS: S&P Changes Rating Outlook to Positive
TAM SA: To Pay US$122 Million in Dividends
C O L O M B I A
ISAGEN SA: First Qtr. Net Income Drops 38% to COP78 Billion
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: PDVSA to Finalize Refidomsa Acquisition
G R E N A D A
* GRENADA: Seeks Debt Relief From Libya
J A M A I C A
AIR JAMAICA: Finance Minister Defends Airline Divestment
MOBILE MUSIC: Closes as Piracy Booms
NAT'L WATER COMMISSION: Workers Demand Wage, Benefits Payment
UC RUSAL: Ewarton Alumina Refinery Re-Opens
* JAMAICA: Assigns Petrojam Majority Stake to PDV Caribe
M E X I C O
COMERCIAL MEXICANA: Completes MXN1.46 Billion Peso Bond Swap
ELEMENTIA SA: Fitch Puts Long-Term Issuer Default Rating at 'BB+'
ELEMENTIA SA: Moody's Assigns 'Ba2' Rating on US$400 Mil. Notes
TV AZTECA: First Quarter Net Sales Up 11% to Ps.1.9 Billion
P U E R T O R I C O
POPULAR INC: S&P Raises Counterparty Credit Rating to 'B/C'
V E N E Z U E L A
PETROLEOS DE VENEZUELA: To Finalize Refidomsa Stake Acquisition
PETROLEOS DE VENEZUELA: Gets 2% Petrojam Stake From Jamaica
X X X X X X X X
* LATAM: Fitch Lists Latin American Rating Actions for April 2010
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
CARLOS A CAPPELLA: Creditors' Proofs of Debt Due on June 25
-----------------------------------------------------------
The court-appointed trustee for Carlos A. Cappella S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until June 25, 2010.
FLORIDA 122: Creditors' Proofs of Debt Due on June 9
----------------------------------------------------
The court-appointed trustee for Florida 122 S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
June 9, 2010.
The trustee will present the validated claims in court as
individual reports on August 6, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
September 20, 2010.
INDEQUINO SRL: Creditors' Proofs of Debt Due on June 21
-------------------------------------------------------
The court-appointed trustee for Indequino S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
June 21, 2010.
The trustee will present the validated claims in court as
individual reports on August 17, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
September 28, 2010.
INTERCLIMA INSTALACIONES: Creditors' Proofs of Debt Due on July 1
-----------------------------------------------------------------
The court-appointed trustee for Interclima Instalaciones
Termomecanicas S.R.L.'s reorganization proceedings, will be
verifying creditors' proofs of claim until July 1, 2010.
The trustee will present the validated claims in court as
individual reports on August 25, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
October 6, 2010.
Creditors will vote to ratify the completed settlement plan
during the assembly on April 8, 2011.
MULTIFER SA: Creditors' Proofs of Debt Due on August 3
------------------------------------------------------
The court-appointed trustee for Multifer S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
August 3, 2010.
The trustee will present the validated claims in court as
individual reports on September 14, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
October 26, 2010.
NIC LUC: Creditors' Proofs of Debt Due on May 19
------------------------------------------------
The court-appointed trustee for Nic Luc S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
May 19, 2010.
OBJETIVOS PROMOCIONALES: Creditors' Proofs of Debt Due on June 8
----------------------------------------------------------------
The court-appointed trustee for Objetivos Promocionales S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until June 8, 2010.
The trustee will present the validated claims in court as
individual reports on August 4, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
September 16, 2010.
CASA INO: Asks for Preventive Contest
-------------------------------------
Casa Ino S.A. asked for preventive contest.
The company stopped making payments last November 20, 2009.
YOCLE SA: Creditors' Proofs of Debt Due on May 21
-------------------------------------------------
Jorge Tomas Byrne, the court-appointed trustee for Yocle S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until May 21, 2010.
Mr. Byrne will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 3 in
Buenos Aires, with the assistance of Clerk No. 6, will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will be
raised by the company and its creditors.
The Trustee can be reached at:
Jorge Tomas Byrne
Carlos Pellegrini 1055
Argentina
CITY COL: Creditors' Proofs of Debt Due on May 20
-------------------------------------------------
Ana Maria Lopez, the court-appointed trustee for City Col S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until May 20, 2010.
Ms. Lopez will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 2 in
Buenos Aires, with the assistance of Clerk No. 3, will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will be
raised by the company and its creditors.
The Trustee can be reached at:
Ana Maria Lopez
Jose Cubas 3680
Argentina
MASSUH SA: Creditors' Proofs of Debt Due on May 27
--------------------------------------------------
Estudio Palacio, the court-appointed trustee for Massuh S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until May 27, 2010.
Ms. Palacio will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 51, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Estudio Palacio
Finocchio y Asociados
Argentina
JAC CONSTRUCCIONES: Creditors' Proofs of Debt Due on June 16
------------------------------------------------------------
Maria Josefina Taboada, the court-appointed trustee for Jac
Construcciones SRL's bankruptcy proceedings, will be verifying
creditors' proofs of claim until June 16, 2010.
Ms. Taboada will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 13, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Maria Josefina Taboada
Ezeiza 2541
Argentina
=============
B E R M U D A
=============
ASCENDANT REINSURANCE: Creditors' Proofs of Debt Due on May 25
--------------------------------------------------------------
The creditors of Ascendant Reinsurance Ltd. are required to file
their proofs of debt by May 25, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 27, 2010.
The company's liquidator is:
David R. Whiting
c/o P.O. Box HM 2592
Hamilton HM KX, Bermuda
KOCH CAL: Creditors' Proofs of Debt Due on May 28
-------------------------------------------------
The creditors of Koch CAL, Ltd. are required to file their proofs
of debt by May 28, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on April 15, 2010.
The company's liquidator is:
Kehinde A.L. George
Crawford House, 50 Cedar Avenue
Hamilton HM 11, Bermuda
KOCH CAL: Member to Receive Wind-Up Report on June 4
----------------------------------------------------
The member of Koch CAL, Ltd. will receive, on June 4, 2010, at
10:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced wind-up proceedings on April 15, 2010.
The company's liquidator is:
Kehinde A.L. George
Crawford House, 50 Cedar Avenue
Hamilton HM 11, Bermuda
KOCH KIG: Creditors' Proofs of Debt Due on May 28
-------------------------------------------------
The creditors of Koch KIG Treasury II GP, Ltd. are required to
file their proofs of debt by May 28, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 15, 2010.
The company's liquidator is:
Kehinde A.L. George
Crawford House, 50 Cedar Avenue
Hamilton HM 11, Bermuda
KOCH KIG: Member to Receive Wind-Up Report on June 4
----------------------------------------------------
The member of Koch KIG Treasury II GP, Ltd. will receive, on
June 4, 2010, at 10:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on April 15, 2010.
The company's liquidator is:
Kehinde A.L. George
Crawford House, 50 Cedar Avenue
Hamilton HM 11, Bermuda
KOCH TREASURY: Creditors' Proofs of Debt Due on May 28
------------------------------------------------------
The creditors of Koch Treasury GP, Ltd. are required to file their
proofs of debt by May 28, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on April 15, 2010.
The company's liquidator is:
Kehinde A.L. George
Crawford House, 50 Cedar Avenue
Hamilton HM 11, Bermuda
KOCH TREASURY: Member to Receive Wind-Up Report on June 4
---------------------------------------------------------
The member of Koch Treasury GP, Ltd. will receive, on June 4,
2010, at 11:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company commenced wind-up proceedings on April 15, 2010.
The company's liquidator is:
Kehinde A.L. George
Crawford House, 50 Cedar Avenue
Hamilton HM 11, Bermuda
XL CAPITAL: Posts US$128.0MM Net Income in First Quarter
--------------------------------------------------------
XL Capital Limited posted US$128.0 million net income attributable
to ordinary shareholders for the first quarter of 2010 compared to
US$178.4 million for the first quarter of 2009. Included in net
income attributable to ordinary shareholders in the first quarter
of 2009 was a gain of US$211.8 million on the repurchase of Series
C preference ordinary shares, compared to a gain to ordinary
shareholders in the current quarter of US$16.6 million on the
further repurchase of Series C preference ordinary shares.
Operating income was US$149.6 million from US$190.9 million in the
first quarter of 2009. The results of our P&C operations were
impacted by the current quarter's catastrophe activity which
contributed to a decrease in underwriting profit of US$110.5
million compared to the prior year quarter. This decrease was
partially offset by an increase in net income from operating and
investment affiliates of $57.0 million.
Net investment income for the quarter was US$308.3 million
compared to US$348.0 million in the prior year quarter. Net
investment income on the P&C and Corporate portfolio decreased
approximately 16% from the prior year quarter to US$228.0 million.
A full text copy of the company's first quarter results is
available free at http://ResearchArchives.com/t/s?6161
About XL Capital
Headquartered in Hamilton, Bermuda, XL Capital Ltd provides
insurance and reinsurance coverages through its operating
subsidiaries to industrial, commercial and professional
service firms, insurance companies and other enterprises on a
worldwide basis. As of December 31, 2008, XL Capital Ltd reported
total invested assets of US$34.3 billion and shareholders' equity
of US$6.6 billion.
* * *
As reported by the Troubled Company Reporter-Latin America on
Feb. 18, 2009, Moody's Investors Service affirmed XL Capital Ltd's
"Ba1" preferred stock rating.
===========
B R A Z I L
===========
GERDAU AMERISTEEL: To Hold Special Shareholders Meeting on May 12
-----------------------------------------------------------------
Gerdau Ameristeel Corporation's Annual and Special Meeting of
Shareholders will be held on May 12, 2010 at 9:30 a.m., Eastern
Time, at The St. Andrew's Club and Conference Centre, 150 King
Street West, 27th Floor, Toronto, Ontario.
The presentation will be webcast live. To access the webcast go
to http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3065920
or http://www.gerdauameristeel.com/
Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America. The company's products
are sold to steel service centers, steel fabricators, or directly
to original equipment manufactures for use in a variety of
industries, including construction, cellular and electrical
transmission, automotive, mining and equipment manufacturing.
* * *
As of January 12, 2010, the company continues to carry Moody's Ba1
LT Corp Family rating, Senior Unsecured Debt rating, and
probability of default rating. The company also continues to
carry Standard and Poor's BB+ Issuer Credit ratings.
INDUSTRIAS METALURGICAS: S&P Affirms 'B-' Corporate Credit Rating
-----------------------------------------------------------------
On May 4, 2010, Standard & Poor's Ratings Services revised its
outlook on Industrias Metalurgicas Pescarmona S.A.I.C. y F. to
positive from stable, while affirming the corporate credit rating
on the company at 'B-'.
The ratings on South American hydro and wind turbine producer
IMPSA reflect the company's expansionary business model, which
often limits free cash flow generation and causes leverage to
fluctuate. The ratings are also constrained by a somewhat
challenging debt payment schedule for the next three years,
especially when contrasted with the volatility that its
construction division adds to operating cash flow generation.
Partially counterbalancing these negative factors, IMPSA's growing
presence in Brazilian wind power generation markets exposes it to
a more predictable business environment while giving it access to
adequate financing for its investment plan. Furthermore, the
company's recent sale of 45% of its Brazilian wind power business
arm, Energimp S.A., for close to $277 million, is likely to
improve its short-term financial flexibility, in S&P's view, even
when its planned investments escalate in fiscal 2011 and 2012.
IMPSA is consolidating its wind generation division in Brazil, a
move which S&P believes strengthens its business risk profile.
S&P believes the company's credit quality will benefit from
growing exposure to Brazilian power markets, and that its
financial flexibility may improve following the recent equity
sales of some power generation projects.
IMPSA's ratings are somewhat isolated from the risks arising from
being incorporated in Argentina. Its strong base of foreign
operations will likely generate more than 90% of its revenues in
fiscal 2011.
S&P believes the firm's EBITDA may increase significantly in
fiscal 2011 and 2012 with the construction of the Santa Catarina
and Ceara II projects, scheduled for 2011 and 2012, respectively.
Financing for the former is already in place, while the latter's
is still under negotiation. Estimated incremental revenues from
Santa Catarina would be $670 million in the fiscal 2011 (ending
January 2011), and Ceara II would generate about $500 million in
fiscal 2012. This would bring IMPSA's EBITDA to greater than
$160 million in fiscal 2011 and at least $130 million in fiscal
2012, compared with $102 million in fiscal 2010.
S&P foresees higher consolidated debt as future project
developments increase nonrecourse debt. However, nonrecourse debt
is aligned with long-term power purchase agreements with
creditworthy Brazilian counterparties. Consequently, IMPSA is
relatively isolated from nonrecourse debt at the projects level,
which amounted to $128 million as of January 2010. Consolidated
debt-to-EBITDA and FFO-to-debt ratios were 5.6x and 11%,
respectively, in fiscal 2010, compared with 4.2x and 12% in fiscal
2009.In S&P's opinion, as of January 2010 IMPSA's liquidity
remained somewhat tight.
The company's cash balances totaled $63 million, while short-term
debt amounted to $116 million, of which $17 million corresponded
to bond amortizations. S&P also believe medium-term debt
amortizations are somewhat challenging, at $93 million and
$81 million in 2011 and 2012, respectively. However, IMPSA's
short-term financial flexibility should improve with the proceeds
of the recent sale of Energimp's equity, for $277 million, with
proceeds expected to fund the company's bold investment plan in
2011.
Although IMPSA plans to make an IPO of its holding company, Venti
S.A., S&P is not factoring its potential impact on the company's
short-term financial flexibility into the rating.
The positive outlook reflects S&P's expectation that IMPSA's
financial flexibility will benefit from cash coming from the
recent asset sales and from likely enhanced performance. S&P
could raise the ratings by one notch if IMPSA reduces short-term
refinancing risk, either by reducing short-term debt concentration
or by keeping a cash position commensurate to short-term financing
needs. Conversely, given that beginning in 2012 the bulk of the
company's maturing debt is payments on its bonds, presenting
additional challenges for refinancing, S&P may return the outlook
to stable if financial flexibility improvements don't occur before
year-end.
Industrias Metalurgicas Pescarmona S.A.I.C.y.F.
Ratings Affirmed; Outlook Revised
Corporate Credit Rating
To From
-- ----
Global Scale B-/Positive/-- B-/Stable/--
Senior Unsecured
Rating
------
Global Scale B-
INDUSTRIAS METALURGICAS: S&P Changes Rating Outlook to Positive
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Industrias Metalurgicas Pescarmona S.A.I.C. y F.
(IMPSA) to positive from stable, while affirming the corporate
credit rating on the company at 'B-'.
"IMPSA is consolidating its wind generation division in Brazil, a
move which S&P believes strengthens its business risk profile,"
said Standard & Poor's credit analyst Diego Ocampo. "S&P believes
the company's credit quality will benefit from growing exposure to
Brazilian power markets, and that its financial flexibility may
improve following the recent equity sales of some power generation
projects."
The ratings on South American hydro and wind turbine producer
IMPSA reflect the company's expansionary business model, which
often limits free cash flow generation and causes leverage to
fluctuate. The ratings are also constrained by a somewhat
challenging debt payment schedule for the next three years,
especially when contrasted with the volatility that its
construction division adds to operating cash flow generation.
Partially counterbalancing these negative factors, IMPSA's growing
presence in Brazilian wind power generation markets exposes it to
a more predictable business environment while giving it access to
adequate financing for its investment plan. Furthermore, the
company's recent sale of 45% of its Brazilian wind power business
arm, Energimp S.A., for close to $277 million, is likely to
improve its short-term financial flexibility, in S&P's view, even
when its planned investments escalate in fiscal years ending
January 2011 and 2012.
IMPSA's ratings are somewhat isolated from the risks arising from
being incorporated in Argentina. Its strong base of foreign
operations will likely generate more than 90% of its revenues in
fiscal 2011.
The positive outlook reflects S&P's expectation that IMPSA's
financial flexibility will benefit from cash coming from the
recent asset sales and from likely enhanced performance.
TAM SA: To Pay US$122 Million in Dividends
------------------------------------------
TAM SA will pay a dividend of BRL211.7 million (US$122 million),
or BRL1.41 a share, in the form of interest on its own capital,
Rogerio Jelmayer at Dow Jones Newswires reports, citing a company
statement.
According to the report, the dividends' distribution will be based
in shareholders' position as of May 3 and will be paid starting
May 14.
Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/--
has business agreements with the regional airlines Pantanal,
Passaredo, Total and Trip. As of Jan. 14, the daily flight on the
Corumba -- Campo Grande route in Mato Grosso do Sul began to be
operated by a partnership with Trip. With the expansion of the
agreement with NHT, TAM will now be serving 82 destinations in
Brazil, 45 of which with its own flights. In addition, the
company is strengthening its presence in Rio Grande do Sul and
Santa Catarina.
* * *
As reported in the Troubled Company Reporter-Latin America on
October 20, 2009, Fitch Ratings has assigned a 'BB-' rating to TAM
S.A.'s US$300 million proposed senior guaranteed notes due 2019.
These notes will be issued through TAM's subsidiary, TAM Capital 2
Inc and will be unconditionally guaranteed by TAM and TAM Linhas
Aereas S.A. Proceeds from the proposed issuance will be used to
enhance the company's cash balance and for general corporate
purpose.
===============
C O L O M B I A
===============
ISAGEN SA: First Qtr. Net Income Drops 38% to COP78 Billion
-----------------------------------------------------------
Isagen SA's net income for the first quarter of 2010 fell 38% from
the same period in 2009 to COP78 billion (US$39 million), Inti
Landauro at Dow Jones Newswires reports.
According to the report, the company's operating revenues in the
first quarter fell 13% from the same period a year ago to COP337
billion. The report relates that the company's electricity
generation fell 33% in the first quarter compared with the same
period a year ago as a result of a drought related to the El Nino
warm current in the Pacific Ocean. The report notes that Isagen
SA mainly produces electricity from hydropower plants.
The company, the report says, had posted a net profit of COP386
billion in 2009. The Colombian government plans to sell its
controlling stake in Isagen later this year and expects to raise
COP3 trillion, the report adds.
About Isagen SA
Isagen SA is a Colombia-based company primarily engaged in the
energy sector. Its activities comprise the electric power
generation and distribution, as well as the operation of coal,
steam and gas distribution networks. The company has a total
installed capacity of 2,131 megawatts and its facilities include
four hydroelectric plants: Central San Carlos, Central Jaguas,
Central Calderas and Central Miel I, and one combined-cycle
thermal power station: Central Termocentro. The company is also
involved in such expansion projects as Proyecto Guarino, Proyecto
Manso, Proyecto Hidroelectrico del Rio Amoya and Proyecto
Hidroelectrico Sogamoso. Additionally, the Company holds a
minority interests in Gensa SA ESP and Electricaribe SA ESP.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 1, 2009, Fitch Ratings has downgraded ISAGEN's local currency
Issuer Default Rating to 'BB+' from 'BBB-' and has affirmed the
company's foreign currency IDR at 'BB+'. The Rating Outlook is
Stable.
==================================
D O M I N I C A N R E P U B L I C
==================================
* DOMINICAN REPUBLIC: PDVSA to Finalize Refidomsa Acquisition
-------------------------------------------------------------
Dan Molinski at Dow Jones Newswires reports that Venezuela
President Hugo Chavez said he will finalize a deal for Petroleos
de Venezuela to buy a 49% stake in the Dominican Republic's state-
owned oil refinery, Refidomsa.
"This is very important, not just for the Dominican Republic but
also for Venezuela, because it puts us in the heart of the
Caribbean," the report quoted President Chavez as saying. "It
will allow us to ship our petroleum for refining and distribution,
not just within the Dominican market, but also throughout the
Caribbean's central market," he added.
According to the report, the Venezuelan government said that the
refinery, which began operation in 1973, manages the supply of
about half of the Dominican Republic's fuel needs. The report
relates that Venezuela has been talking about purchasing the
minority stake in the 34,000 barrel-a-day refinery for nearly a
year. The value of the 49% stake has been reported at more than
$130 million, though Venezuelan officials say it will paid by
shaving off some of the debt the Dominican Republic owes Venezuela
from oil sales, the report notes.
President Chavez, the report adds, said that buying a stake in the
refinery will also allow Venezuela logistically to provide fuel to
Haiti as the earthquake-ravaged country rebuilds itself.
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
=============
G R E N A D A
=============
* GRENADA: Seeks Debt Relief From Libya
---------------------------------------
Grenada is seeking debt relief from Libya and assistance to repay
a number of loans to the Export-Import Bank of the Republic of
China in Taiwan, Jamaica Gleaner reports, citing Finance Minister
Nizam Burke.
According to the report, Mr. Burke said that negotiations have
begun between the Tillman Thomas administration and Muammar
Gaddafi's government in Tripoli. The report relates that the
Export-Import Bank issued a formal demand notice to the Thomas
government last year, threatening to pursue all legal avenues to
recover the outstanding US$26 million.
"We are presently in discussions with the government of Libya,
seeking some relief there. We are in some discussions with
respect to the Taiwanese debt," the report quoted Mr. Burke as
saying. "We have had very good discussions with them. Very good
discussions. I would say those negotiations are at a fairly
advanced stage," he added.
The report notes that a court in the United States had ordered the
Grenada government to repay the money after the previous
administration failed to service the loan. The report says that
the money owed includes loans taken to facilitate construction of
the national athletic stadium, which was severely damaged by
Hurricane Ivan in 2004, a complex to house government ministries,
road construction as well as to revive the agriculture sector.
Grenada still owes Libya for helping to fund the construction of
the Maurice Bishop International Airport, the report adds.
=============
J A M A I C A
=============
AIR JAMAICA: Finance Minister Defends Airline Divestment
--------------------------------------------------------
Jamaica Finance Minister Audley Shaw disclosed that Air Jamaica
Limited has left the government with a debt of close to US$940
million or just over JM$80 billion, Go-Jamaica reports.
According to the report, Mr. Shaw told the House of
Representatives that the airline's total debt comprises guaranteed
obligations of US$764 million and none guaranteed obligations of
US$176 million. Of the total debt owed, the government is
currently servicing US$407 million, he added.
The report says that in a statement to Parliament, Mr. Shaw
defended the divestment saying Air Jamaica was costing the central
Government JM$10 billion annually in subsidy.
On May 1, 2010, Go-Jamaica discloses, the Trinidad and Tobago
owned Caribbean Airlines took over financial responsibility for
Air Jamaica. The report relates that this marks the start of a
divestment process that could take up to a year to be completed.
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
January 27, 2010, Moody's Investors Service changed the ratings
outlook of Air Jamaica Limited to stable. The Corporate Family
and senior unsecured ratings of Air Jamaica are affirmed at Caa1.
The change in outlook mirrors the change of the outlook of the
foreign currency bond rating of The Government of Jamaica to
stable, which occurred on January 22, 2010. The ratings reflect
Jamaica's unconditional and irrevocable guarantee of the rated
debt obligations of Air Jamaica. The foreign currency bond rating
of Jamaica remains Caa1, notwithstanding the January 22, 2010
downgrade of Jamaica's local currency bond rating by Moody's to
Caa2.
As reported in 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.
MOBILE MUSIC: Closes as Piracy Booms
------------------------------------
Liguanea, St. Andrew-based record store, Mobile Music, will shut
down at the end of the month, Jamaica Observer reports. According
to the report, as a precursor to the closure the store is holding
a clearance sale, with 25% to 50% off all CDs, DVDs and video
games.
Jamaica Observer notes the Company will be the latest record store
to exit a market that has been downsized by a lucrative
bootlegging trade in CDs and DVDs. The report notes that a string
of local retailers have fell victim in recent years to piracy and
bootlegging. The report relates that widening access to broadband
Internet is enabling more persons to freely and illegally download
music, movies and other copyright-protected digital content, which
are often burnt onto CDs and DVDs and sold as bootlegs. The
upshot being that legitimate businesses that once thrived on the
sale of these products are now unable to compete on pricing and
are being forced to shut their doors, the report says.
"The situation is very bad now, it's like you holding onto a
string," the report quoted popular singer and record producer
Derrick Harriott, as saying. The report relates Mr. Harriott said
that sales are down by some 90% compared to the same point last
year; a crisis which he said has him leaning towards restructuring
his business going forward.
NAT'L WATER COMMISSION: Workers Demand Wage, Benefits Payment
-------------------------------------------------------------
Kimmo Matthews at Jamaica Observer reports representatives of the
National Workers Union had a meeting with National Water
Commission officials and the labor ministry to resolve a wage
dispute, which led to a strike by scores of workers at the water
company.
According to the report, the workers alleged they were owed more
than JM$200 million in wages and benefits dating back to 2008/09.
The report says the workers were on strike at the NWC's Marescaux
Road complex demanding an explanation from managers as to how the
funds would be paid.
The report notes Granville Valentine, Vice-president of the NWU,
said the union could not guarantee "business as usual", until it
gets "answers about the benefits due to the workers". The report
relates the NWC warned of "unplanned" disruptions should the
strike continue. "The public (should) expect possible unplanned
interruptions in their water supply services and other
difficulties in accessing some commercial offices and completing
transactions with the NWC," the company said in a release obtained
by the news agency.
UC RUSAL: Ewarton Alumina Refinery Re-Opens
-------------------------------------------
Prime Minister Hon. Bruce Golding has welcomed the news that
Russian alumina company, UC Rusal, will be re-opening the Ewarton
Alumina refinery by mid-year, Jamaica Information Service reports.
"We welcome that announcement and, especially, the jobs that will
be restored to the bauxite workers. We provided special
concessions under the existing fiscal regime to enable the plant
to be reopened," the report quoted Mr. Golding as saying. The
report relates Mr. Golding said that the future of Alumina
Partners of Jamaica (Alpart) and Kirkvine remains less certain,
but noted that if the global market for alumina continues to
improve, "we expect to see the re-opening of Alpart, but it is not
possible to say how soon that will be."
"Kirkvine faces two major challenges. It is the oldest of our
plants and will require significant investment in new technology
before it can achieve the desired levels of efficiency. Secondly,
the type of bauxite reserves that remain, although in abundance,
requires considerably more energy to process," Mr. Golding said,
the report notes. The future growth of the bauxite/alumina
industry, and not just Kirkvine, depends heavily on our ability to
provide a cheaper source of energy, he added.
* JAMAICA: Assigns Petrojam Majority Stake to PDV Caribe
--------------------------------------------------------
Mark Titus at Jamaica Gleaner reports Jamaica has agreed to give
PDV Caribe SA majority ownership of Petrojam Limited.
According to the report, Jamaica has signed off on the transfer of
a 2% to PDV Caribe, an affiliate company to Petroleos de Venezuela
SA, giving the Venezuelan energy company 51% ownership of the
Petrojam refinery, while Jamaica will retain a 49% stake. The
report relates Prime Minister Bruce Golding said that the deal on
April 20, but not its terms. Mr. Golding, the report notes,
linked it to Petrojam's need for capital to complete the
US$1.2-billion improvement project under way.
The Gleaner says that the refinery upgrade needs at least another
US$663 million of investment to finalize the job.
The report recalls that the FEED analysis that establishes the
design and engineering parameters for the upgraded facility was
completed last year, but the project has stalled since December
because Jamaica had run out of cash.
In the past three years, the report notes, Petrojam has spent JM$4
billion on the project, but it will take another JM$60 billion to
finalize.
The Gleaner discloses that PDV Caribe first invested in Petrojam
in 2006, acquiring a 49% stake months after Venezuela and Jamaica
signed off on the Venezuelan-backed PetroCaribe oil facility and a
cooperation agreement for the improvement of the refinery in two
phases.
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.
* * *
According to the TCRLA on January 18, 2010, Fitch Ratings
downgraded Jamaica's long-term local currency rating
to 'C' from 'CCC'. In addition, Fitch has affirmed Jamaica's
long-term and short-term foreign currency ratings at 'CCC' and 'C'
respectively, and affirmed the Country Ceiling at 'B-'. Jamaica's
sovereign ratings Outlook remains Negative.
===========
M E X I C O
===========
COMERCIAL MEXICANA: Completes MXN1.46 Billion Peso Bond Swap
------------------------------------------------------------
Controladora Comercial Mexicana SAB de CV (Comerci) said that it
took a step closer toward a debt restructuring by completing a
swap of five series of peso bonds, Anthony Harrup at Dow Jones
Newswires reports. The report relates that Comercial Mexicana
said holders of MXN1.46 billion (US$117 million), or 97% of the
peso bonds, exchanged them for new seven-year guaranteed notes.
According to the report, the bond swap is part of a broader debt
restructuring being negotiated by the company, which defaulted in
October 2008 after experiencing heavy losses on foreign-exchange
derivatives. The report says that the local bondholders secured
the deal, which repays them in full, after suing Comercial
Mexicana over tentative accords it had reached with other
creditors, including derivatives counterparties.
The preliminary agreement set at US$1.54 billion the total amount
of debt that the retailer can handle and remain viable, although
details of how that would be divided up among creditors weren't
worked out, the report adds.
About Comerci
Controladora Comercial Mexicana SAB de CV a.k.a Comerci
(MXK:COMERCIUBC) -- http://www.comerci.com.mx/-- is a Mexican
holding company that, through its subsidiaries, operates several
chains of retail stores, as well as a chain of family restaurants
under the Restaurantes California brand name. In addition, CCM
owns a 50% interest in the Costco de Mexico, a joint venture with
Costco Wholesale Corporation, which operates a chain of membership
warehouses in Mexico. The company's store chains include
Comercial Mexicana, City Market, Mega, Bodega CM, Sumesa and
Alprecio, among others. As of December 31, 2007, CCM operated 214
commercial units and 71 restaurants across Mexico. The company's
retail outlets sell a variety of food items, including basic
groceries and perishables, and non-food items, which include
electronics, home furnishings, personal hygiene products and
clothing. CCM is a parent of Tiendas Comercial Mexicana SA de CV,
Tiendas Sumesa SA de CV, Restaurantes California SA de CV and
Costco de Mexico SA de CV, among others.
* * *
As of June 19, 2009, the company continues to carry Moody's "D" LT
Issuer Credit ratings. The company also continues to carry Fitch
Ratings' "D" LT Issuer Default ratings.
ELEMENTIA SA: Fitch Puts Long-Term Issuer Default Rating at 'BB+'
-----------------------------------------------------------------
Fitch Ratings has assigned Elementia, S.A. a Long-term Issuer
Default Rating of 'BB+' and a Local Currency IDR of 'BB+'. The
Rating Outlook is Stable.
Fitch also assigned Elementia's proposed US$400 million senior
notes issuance a rating of 'BB+'.
Elementia's ratings reflect the company's business line
diversification, leading market positions in the countries where
it has a presence supported by highly recognized brands and a well
developed distribution network and a positive pro forma cash
generation. Balanced against these factors is the recent
acquisition of the metal division as well as the challenges
associated to its integration, industry cyclicality, input costs
volatility, environmental regulations and moderate leverage.
Revenues Driven By Construction And Infrastructure Dynamics:
The company's operations are highly correlated to the construction
and infrastructure industries since more than 90% of its revenues
and EBITDA are directed to these sectors. Fitch believes that
Elementia is well position to take advantage of the industry
dynamics in North, Central and South America, where growth
prospects are attractive. The remaining proportion of sales comes
from industrial segments. The company's geographic
diversification allows it to mitigate in certain degree regional
volatility; the largest pro forma revenue contribution comes from
North America with approximately 86% of sales (the majority of
which are from Mexico), followed by South America 10% and Central
America 4%.
Cash Generation Underpinned By Cost-Plus Pricing:
Elementia's cash flow is supported by its pricing strategy,
especially in the metal segment which represents more than 60% of
revenues and EBITDA, where the company applies a cost-plus margin
formula, allowing it to pass-through metal price variations to end
customers. In addition, since the integration in 2009 of the
metal division, the company has implemented efficiency initiatives
in order to improve operating results. In this sense, Elementia
increased the use of scrap metal versus cathode, allowing it to
optimize raw material costs. The initiatives also allowed the
company to reduce headcount and invest in improvements to
manufacturing and logistics processes. Internally generated cash
has been used through the years to finance working capital and
capex.
Historic pro forma combined operating EBITDA and margins present
volatility associated to input cost variations that resulted in
adjustments to inventory values in the metal division, decline in
volumes across business segments due to the recent global economic
downturn and to plant shutdowns related to capacity expansions in
the fiber-cement division. Starting Jan. 1, 2010, the company
changed its inventory valuation method to average cost from Last-
In-First-Out (LIFO), which is expected to moderate non-recurring
charges. In Fitch's view, stable operating results provide
visibility on the company's future performance and a less volatile
cash flow generation.
Financial Strategy: Long-Term Total Debt To Ebitda Target Of 2.5x:
The company has historically experienced growth both organically
and through acquisitions. This growth has been financed with
debt, internally generated cash and capital infusions. The
ratings incorporate the strength of Elementia's shareholders which
enhances its financial flexibility. Fitch expects that
Elementia's management will maintain an active growth-through-
acquisitions strategy, with a long-term target of total Debt to
EBITDA of 2.5x.
Elementia's management pretends to improve the company's debt
maturity profile through a senior notes issuance, which will be
used to refinance existing indebtedness of approximately
US$308 million and maintain a cash reserve for future growth
opportunities. Fitch estimates Elementia's Net Debt to EBITDA
could be in the 2.4x range without considering acquisitions. In
Fitch's opinion, an increase in this leverage ratio could affect
the company's credit quality.
Moderate Regulation Risk:
The company uses chrysotile fibers (the sole form of asbestos
still in use) for part of its production of fiber-cement products,
which are sold locally where permitted in the North and South
American regions. Products that are exported to the United States
are manufactured using other fibers such as cellulose fiber and
polyvinyl alcohol. Products with chrysotile content represented
during 2009 18.2% of combined sales. The use of this fiber is in
line with international standards and local environmental
regulations. However, if authorities (labor, health or
environmental) limit the use of this raw material in the future,
or restrictions to the transport and/or imports of chrysotile are
imposed, Elementia could face supply disruptions affecting selling
volumes. Even though Elementia has not been subject to legal
claims regarding the use of chrysotile in its products, future
claims cannot be ruled out, resulting in uncertain litigation
risk.
Elementia is a Mexican company with three business divisions:
fiber-cement, metals (copper and aluminum) and plastics. It is
owned by private Grupo Kaluz, S.A. de C.V. (51%), controlled by
the Del Valle family, and Mexican conglomerate Grupo Carso, S.A.B.
de C.V. (49%) (rated 'AA+(mex)' by Fitch).
ELEMENTIA SA: Moody's Assigns 'Ba2' Rating on US$400 Mil. Notes
---------------------------------------------------------------
Moody's has assigned a provisional (P)Ba2 rating to Elementia,
S.A.'s proposed US$400 million in senior unsecured global notes
due in 2020. At the same time, Moody's assigned a provisional
(P)Ba2 Corporate Family Rating to Elementia. The rating outlook
is stable. Moody's has assigned the ratings on a provisional
basis pending the successful issuance of the proposed notes. This
is the first time Moody's has rated Elementia, a major
manufacturer of semi-finished copper and aluminum products and
various types of fiber cement and concrete products.
Net issuance proceeds will be used to refinance all of Elementia's
existing debt of around MXN4.1 billion (US$310 million). Moody's
expects the remaining funds to be used to bolster liquidity ahead
of upcoming investment outlays and for general corporate purposes.
Elementia is controlled by Grupo Empresarial Kaluz (not rated) and
Kaluz's owners, the Del Valle family, which together own a 51%
equity interest in the company. Main shareholders also include
Carlos Slim's Grupo Carso (not rated) with a 49% interest, which
Carso obtained when Elementia bought the copper and aluminum
products business of its Nacobre unit in June 2009. Elementia
operates in Mexico and six Central and South American countries.
In 2009, it generated MXN8.8 billion (US$646 million) in revenues,
of which about a fifth was from exports to the U.S.
Elementia's (P)Ba2 ratings reflect the company's leading market
positions for manufactured fiber cement, copper and aluminum
products in Mexico and its various Central and South American
markets. They also take into account its modest financial
leverage, solid profit margins, the expectation of fairly stable
earnings based on the ability to pass on volatile metal input
costs to customers, and its clean debt maturity profile pro forma
for the notes issuance. Other credit positives include the
industry experience of the company's senior management and the
financial strength and reputation of its two principal
shareholders, Carso and Kaluz.
The ratings are constrained by Elementia's modest operating scale
and business diversification relative to its rated peers,
exposures to potentially cyclical end markets, and its dependence
on base metal cycles which at times could cause significant
working capital swings and squeeze liquidity.
Elementia also has a fairly aggressive investment plan, which over
the coming years will likely weigh on free cash flow despite
expected earnings growth. The ratings also factor in the
company's short track record in its current business configuration
(as it only acquired its key metals operation in June 2009) and
its exposure to chrysotile, a form of asbestos, in its fiber
cement segment.
The proposed notes are rated at the same level as the (P)Ba2
Corporate Family Rating because of their preponderance in
Elementia's debt structure post issuance. The notes will be
unconditionally guaranteed by operating subsidiaries accounting
for around 90% of the company's consolidated revenues.
The stable rating outlook reflects Moody's expectation that
Elementia will successfully conclude the issuance in line with
proposed terms and will be able to grow earnings as envisaged over
the near term based on its various efficiency and commercial
initiatives.
Elementia, S.A., headquartered in Mexico City, Mexico, is a major
manufacturer of semi-finished copper and aluminum products and
various types of fiber cement products. In 2009 the company
generated MXN8.8 billion (US$646 million) of revenues.
TV AZTECA: First Quarter Net Sales Up 11% to Ps.1.9 Billion
-----------------------------------------------------------
TV Azteca SA de CV's net sales were Ps.2.221 billion, 11% above
the Ps. 1.995 billion of the same quarter of 2009. Total costs
and expenses were Ps. 1.460 billion, compared to Ps. 1.389 billion
in the same period of the previous year.
As a result, TV Azteca reported EBITDA of Ps.761 million, 26%
above the Ps.606 million in the first quarter of 2009. The EBITDA
margin was 34%, four percentage points above the 30% margin of a
year ago. The company registered net majority income of Ps.132
million, compared to a loss of Ps.213 million in the prior year's
quarter.
A full text copy of the company's first quarter results is
available free at http://ResearchArchives.com/t/s?6164
About TV Azteca
TV Azteca SA de CV is one of the two largest producers of Spanish-
language television programming in the world, operating two
national television networks in Mexico -- Azteca 13 and Azteca 7
-- through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing US
Hispanic market, and Todito, an Internet portal for North American
Spanish speakers.
* * *
As of December 17, 2009, the company continues to carry Moody's B1
senior unsecured debt rating.
====================
P U E R T O R I C O
====================
POPULAR INC: S&P Raises Counterparty Credit Rating to 'B/C'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its counterparty credit
ratings on Puerto Rico-based financial company Popular Inc. to
'B/C' from 'B-/C', with a positive outlook. S&P's 'B+/B' ratings
on the company's primary subsidiary, Banco Popular de Puerto Rico,
are unchanged, but S&P revised the outlook to positive from
negative.
The rating action results from S&P's view that Popular's
competitive position in Puerto Rico will gain limited additional
benefits from its acquisition of certain assets and liabilities of
Westernbank Puerto Rico through the FDIC. "S&P estimates that the
company's deposit market share will rise to just over 40%,
excluding brokered deposits," said Standard & Poor's credit
analyst Robert Hansen. "S&P also recognize that the financial
risks associated with the acquisition are limited given the
company's 80% loss sharing agreement with the FDIC. S&P believes
Popular will likely successfully integrate Westernbank and could
subsequently realize large synergies over time given the
geographic overlap with Popular's existing franchise and
experienced management team."
The rating action also results from S&P's view that the company's
liquidity position has improved significantly, most notably at the
parent holding company. Popular raised just more than
$1.1 billion in convertible preferred shares in April, which S&P
expects to convert to common equity soon. In conjunction with the
transaction, the company acquired around $2.5 billion in retail
customer deposits and will issue a senior note to the FDIC at what
S&P regards to be a very attractive interest rate. S&P thinks the
parent holding company now has sufficient cash balances to meet
required payments for the next two years, comparable with many
other rated large regional bank peers.
The positive outlook reflects S&P's belief that the rating could
see additional upside should the company demonstrate further
improvement in operating performance. "Specifically, if net
losses moderate significantly, if credit quality stabilizes, or if
capital ratios further improve, S&P could raise the rating again.
However, if net losses persist, if credit quality deteriorates
materially, or if capital ratios decline, then S&P could lower the
ratings, which S&P view as less likely," Mr. Hansen added.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: To Finalize Refidomsa Stake Acquisition
---------------------------------------------------------------
Dan Molinski at Dow Jones Newswires reports that Venezuela
President Hugo Chavez said he will finalize a deal for Petroleos
de Venezuela to buy a 49% stake in the Dominican Republic's state-
owned oil refinery, Refidomsa.
"This is very important, not just for the Dominican Republic but
also for Venezuela, because it puts us in the heart of the
Caribbean," the report quoted President Chavez as saying. "It
will allow us to ship our petroleum for refining and distribution,
not just within the Dominican market, but also throughout the
Caribbean's central market," he added.
According to the report, the Venezuelan government said that the
refinery, which began operation in 1973, manages the supply of
about half of the Dominican Republic's fuel needs. The report
relates that Venezuela has been talking about purchasing the
minority stake in the 34,000 barrel-a-day refinery for nearly a
year. The value of the 49% stake has been reported at more than
$130 million, though Venezuelan officials say it will paid by
shaving off some of the debt the Dominican Republic owes Venezuela
from oil sales, the report notes.
President Chavez, the report adds, said that buying a stake in the
refinery will also allow Venezuela logistically to provide fuel to
Haiti as the earthquake-ravaged country rebuilds itself.
About PDVSA
Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's
state oil company in charge of the development of the petroleum,
petrochemical, and coal industry, as well as planning,
coordinating, supervising, and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to
Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon
notes due in 2011. These notes will be registered at Euroclear
or Clearstream. Proceeds from the issuance are expected to be
used to fund capital expenditures and for other general corporate
purposes. Fitch also has these ratings on PDVSA:
-- Foreign currency Issuer Default Rating 'B+'
-- Local currency IDR 'B+'
-- US$3 billion outstanding senior notes (due 2017) 'B+/RR4'
-- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4'
-- US$1.5 billion outstanding senior notes (due 2037) 'B+/R
PETROLEOS DE VENEZUELA: Gets 2% Petrojam Stake From Jamaica
-----------------------------------------------------------
Mark Titus at Jamaica Gleaner reports Jamaica has agreed to give
PDV Caribe SA majority ownership of Petrojam Limited.
According to the report, Jamaica has signed off on the transfer of
a 2% to PDV Caribe, an affiliate company to Petroleos de Venezuela
SA, giving the Venezuelan energy company 51% ownership of the
Petrojam refinery, while Jamaica will retain a 49% stake. The
report relates Prime Minister Bruce Golding said that the deal on
April 20, but not its terms. Mr. Golding, the report notes,
linked it to Petrojam's need for capital to complete the
US$1.2-billion improvement project under way.
The Gleaner says that the refinery upgrade needs at least another
US$663 million of investment to finalize the job.
The report recalls that the FEED analysis that establishes the
design and engineering parameters for the upgraded facility was
completed last year, but the project has stalled since December
because Jamaica had run out of cash.
In the past three years, the report notes, Petrojam has spent JM$4
billion on the project, but it will take another JM$60 billion to
finalize.
The Gleaner discloses that PDV Caribe first invested in Petrojam
in 2006, acquiring a 49% stake months after Venezuela and Jamaica
signed off on the Venezuelan-backed PetroCaribe oil facility and a
cooperation agreement for the improvement of the refinery in two
phases.
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.
* * *
According to the TCRLA on January 18, 2010, Fitch Ratings
downgraded Jamaica's long-term local currency rating
to 'C' from 'CCC'. In addition, Fitch has affirmed Jamaica's
long-term and short-term foreign currency ratings at 'CCC' and 'C'
respectively, and affirmed the Country Ceiling at 'B-'. Jamaica's
sovereign ratings Outlook remains Negative.
===============
X X X X X X X X
===============
* LATAM: Fitch Lists Latin American Rating Actions for April 2010
-----------------------------------------------------------------
This is a comprehensive list of Fitch Ratings 53 Latin America
National scale rating changes for the month of April 2010, which
include: upgrades, downgrades, Rating Outlook and Rating Watch
revisions, and withdrawn ratings. These rating actions were
previously announced via separate press releases in Spanish or
Portuguese.
Fitch has upgraded these National ratings:
Renting Colombia S.A. (Colombia)
-- National long-term rating to 'AAA (col)' from 'AA+ (col)';
-- Rating Outlook is Stable;
* (Rating action took place on April 7, 2010).
Alupar Investimento S.A. (Brazil)
-- National long-term rating to 'AA- (bra)' from 'A (bra)';
-- Rating Outlook is Stable;
* (Rating action took place on April 7, 2010).
Titularizadora UVR E-1 (Colombia)
-- TIPS B E-1 rating to 'AA (col)' from 'C (col)';
-- Rating Outlook is Stable;
* (Rating action took place on April 8, 2010).
Companhia de Telecomunicacoes do Brasil Central (Brazil)
-- National long-term rating to 'A+ (bra)' from 'A (bra)';
-- Rating Outlook is Stable;
* (Rating action took place on April 9, 2010).
Belsaco S.A. (Chile)
-- National long-term rating to 'A- (chl)' from 'BBB+ (chl)';
-- Rating Outlook is Stable;
* (Rating action took place on April 13, 2010).
Banco Nacional de Panama (Colombia)
-- National long-term rating to 'AA+ (pan)' from 'AA (pan)'
-- Rating Outlook is Stable;
* (Rating action took place on April 14, 2010).
Banco nacional de Panama (Panama)
-- National long-term rating to 'AA+ (pan)' from 'AA (pan)';
-- Rating Outlook is Stable;
* (Rating action took place on April 15, 2010).
Papel Bursatil de la Hipotecaria S.A. (El Salvador)
-- National short-term rating to 'F1+ (slv)' from 'F1 (slv)';
* (Rating action took place on April 16, 2010).
Multibank's (Panama)
-- National long-term rating to 'A+ (pan)' from 'A (pan)';
-- Rating Outlook is Stable;
* (Rating action took place on April 16, 2010).
Compania de Seguros de Vida Camara S.A. (Chile)
-- National long-term rating to 'A+ (chl)' from 'A- (chl)';
-- Rating Outlook is Stable;
* (Rating action took place on April 20, 2010).
Caja de Ahorros (Panama)
-- National long-term rating to 'AA+ (pan)' from 'AA (pan)';
-- Rating Outlook is Stable;
* (Rating action took place on April 21, 2010).
Madeco S.A. (Chile)
-- National long-term rating to 'A- (chl)' from 'BBB+ (chl)';
-- Rating Outlook is Stable;
* (Rating action took place on April 23, 2010).
Fitch has downgraded these ratings:
Seguros y Reaseguros Generales 24 de Septiembre S.A. (Bolivia)
-- National long-term rating to 'C (bol)' from 'BBB+ (bol)';
-- Rating Outlook revised to Negative;
* (Rating action took place on April 6, 2010).
Municipio de Puerto Penasco, Sonora (Mexico)
-- National long-term rating to 'D (mex)' from 'BB+ (mex)';
-- Rating Outlook is Negative;
* (Rating action took place on April 6, 2010).
Emgasud S.A. (Argentina)
-- National long-term rating to 'BB+ (arg)' from 'BBB (arg)';
-- Rating Watch revised to Negative;
* (Rating action took place on April 23, 2010).
Compania de Alumbrado Electrico de San Salvador (El Salvador)
-- National long-term rating to 'AA-(pan)' from 'AA(pan)';
-- Rating Outlook is Stable;
* (Rating action took place on April 29, 2010).
Suzano Papel e Celulose S.A. (Brazil)
-- National long-term rating to 'A+ (bra)' from 'AA- (bra)';
-- Rating Outlook is Stable;
* (Rating action took place on April 30, 2010).
NZFSU I (Uruguay)
-- National long-term rating to 'BBB (ury)' from 'A (ury)';
-- Rating Watch revised to Negative;
* (Rating action took place on April 30, 2010).
Fitch has made these Outlook and Rating Watch revisions:
Bebidas Argentinas (Argentina)
-- Stable Rating Outlook assigned;
* (Rating action took place on April 8, 2010).
Camuzzi Gas Pampeana S.A. (Argentina)
-- National long-term rating at 'A-(arg)';
-- Rating Outlook revised to Negative;
* (Rating action took place on April 9, 2010).
Gravetal S.A. (Bolivia)
-- Rating Outlook revised to Positive from Stable;
* (Rating action took place on April 12, 2010).
CrediQ, S.A. (El Salvador)
-- Rating Outlook revised to Stable from Negative;
* (Rating action took place on April 28, 2010).
Companhia de Bebidas das Americas (Brazil)
-- National long-term rating at 'AAA(bra)';
-- Rating Outlook revised to Stable from Negative;
* (Rating action took place on April 29, 2010).
Quickfood S.A. (Argentina)
-- Rating Watch revised to Negative
* (Rating action took place on April 30, 2010).
Fitch has affirmed and withdrawn these ratings:
Fava XIX (Argentina)
-- ARP5.39 million certificates of participation at 'CCC (arg)';
* (Rating action took place on April 6, 2010).
Fidebica IX (Argentina)
-- ARP19.95 million class A notes at 'AAA (arg)';
* (Rating action took place on April 8, 2010).
Secubono XXXIX (Argentina)
-- ARP2.78 million class B notes at 'AA- (arg)';
* (Rating action took place on April 8, 2010).
Secubono XL (Argentina)
-- ARP26.59 million class A notes at 'AAA (arg)';
* (Rating action took place on April 8, 2010).
Secubono XLI (Argentina)
-- ARP23.89 million notes at 'AAA (arg)';
* (Rating action took place on April 8, 2010).
Secubono XLIII (Argentina)
-- ARP20.89 million class A notes at 'AAA (arg)';
* (Rating action took place on April 8, 2010).
Consubono XXXII (Argentina)
-- ARP3.76 million class B notes at 'A (arg)';
* (Rating action took place on April 8, 2010).
Consubono XXXIII (Argentina)
-- ARP2.46 million class B notes at 'A- (arg)';
* (Rating action took place on April 8, 2010).
Consubono XXXVII (Argentina)
-- ARP3.09 million class B notes at 'A- (arg)';
* (Rating action took place on April 8, 2010).
CFA V (Argentina)
-- ARP28.34million certificates of participation at 'CCC (arg)';
* (Rating action took place on April 8, 2010).
Consubond LXX (Argentina)
-- ARP27.04 million class A notes at 'AAA (arg)';
* (Rating action took place on April 8, 2010).
Titularizadora UVR E-1 (Colombia)
-- TIPS E-1 rating at 'A-2 (col)';
* (Rating action took place on April 8, 2010).
Patrimonio Autonomo IC Norte - NAFIBO 005 (Bolivia)
-- Class E at 'A+ (bol)';
* (Rating action took place on April 9, 2010).
Patrimonio Autonomo CONCORDIA - NAFIBO 004 (Bolivia)
-- Class B and C at 'BBB+ (bol)';
* (Rating action took place on April 9, 2010).
Patrimonio Autonomo COBOCE - NAFIBO 003 (Bolivia)
-- Class E at 'A (bol)';
* (Rating action took place on April 9, 2010).
Papeles Comerciales EPSA (Colombia)
-- $150.00 million notes at 'AAA(col)' Outlook Stable;
* (Rating action took place on April 9, 2010).
Banesco Banco Universal (Venezuela)
-- National long-term rating at 'A- (ven)';
-- National short-term rating at 'F2 (ven)';
* (Rating action took place on April 9, 2010).
Banco Lafise Panama S.A. (Panama)
-- National long-term rating at 'BB- (pan)';
-- National short-term rating at 'B (pan)';
* (Rating action took place on April 14, 2010).
BAC Honduras S.A. (Honduras)
-- National long-term rating at 'AA+ (hnd)';
-- National short-term rating at 'F1+ (hnd)';
* (Rating action took place on April 14, 2010).
Credilogros Cia. Financiera S.A. (Argentina)
-- National long-term rating at 'BBB- (arg)';
-- National short-term rating at 'A3 (arg)';
* (Rating action took place on April 14, 2010).
Secubono XLIV (Argentina)
-- ARP21.72 million class A notes at 'AAA (arg)';
* (Rating action took place on April 15, 2010).
Secubono XL (Argentina)
-- ARP2.26 million class B notes at 'AA- (arg)';
* (Rating action took place on April 15, 2010).
Ribeiro XXXII (Argentina)
-- ARP22.14 million class A notes at 'AAA (arg)';
* (Rating action took place on April 16, 2010).
Secubono XLIII (Argentina)
-- ARP2.61 million class B notes at 'AAA (arg)';
* (Rating action took place on April 16, 2010).
Banco Cetelem I (Argentina)
-- ARP34.51 million class A notes at 'AAA (arg)';
* (Rating action took place on April 16, 2010).
Megabono XXXIII (Argentina)
-- ARP6.29 million class C notes at 'BBB+ (arg)';
* (Rating action took place on April 20, 2010).
Columbia IX (Argentina)
-- ARP26.84 million class A notes at 'AA+ (arg)';
* (Rating action took place on April 20, 2010).
Fidebica VIII (Argentina)
-- ARP3.83 million class B notes at 'A (arg)';
* (Rating action took place on April 20, 2010).
Uniao de Industrias Petroquimicas S.A (Brazil)
-- National long-term rating at 'A (bra)';
* (Rating action took place on April 30, 2010).
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.
Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C.
Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 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 * * *