/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100514.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, May 14, 2010, Vol. 11, No. 094 Headlines A R G E N T I N A RAIT CRE: Fitch Downgrades Ratings on All Classes of Notes B R A Z I L BRASIL FOODS: Records BRL Million Profit on Sadia SA Acquisition BRASIL FOODS: Sees Brazil Sales Topping Europe, U.S. Rebound COMPANHIA ENERGETICA: To Pay US$14 Million in Dividends JBS SA: USA Unit to Host 1Q Earnings Conference Call on May 17 GOL LINHAS: Bond Beats Tam SA in Brazilian Market TAM SA: Gol Linhas' Bonds Beat Firm's in Brazilian Market TAM SA: S&P Downgrades Corporate Credit Rating to 'B+' C A Y M A N I S L A N D S ALPHAGEN AVIOR: Creditors' Proofs of Debt Due on June 10 ALPHAGEN VELAS: Creditors' Proofs of Debt Due on June 10 BELLEPLAIN LIMITED: Members to Receive Wind-Up Report on May 3 ERICA LIMITED: Members to Receive Wind-Up Report on May 3 HORIZON INTERNATIONAL: Creditors' Proofs of Debt Due on June 10 HUAXIN MINING: Creditors' Proofs of Debt Due on May 31 KASPA INTERNATIONAL: Members to Receive Wind-Up Report on May 3 KERANA LIMITED: Creditors' Proofs of Debt Due on June 10 LEONIA HOLDINGS: Creditors' Proofs of Debt Due on June 10 LEWIS BAY: Creditors' Proofs of Debt Due on June 10 LEWIS BAY: Creditors' Proofs of Debt Due on June 10 MAMF INVESTMENT: Creditors' Proofs of Debt Due on May 31 MSK INVESTOR: Grand Court Enters Wind-Up Order PELICAN FINANCE: Creditors' Proofs of Debt Due on June 10 POLARIS CAPITAL: Creditors' Proofs of Debt Due on June 9 PORT CAPITAL: Members to Receive Wind-Up Report on June 10 RED PINE: Members to Receive Wind-Up Report on May 3 REDROCK LIMITED: Placed Under Voluntary Wind-Up TERRA LNR I: Creditors' Proofs of Debt Due on June 10 C O L O M B I A ECOPETROL SA: To Invest Up to US$7.5 Billion Annually TRANSGAS DE OCCIDENTE: Fitch Affirms 'BB+' Rating on Senior Notes E C U A D O R * ECUADOR: To Sell US$1.5 Billion of Bonds to Finance Gap J A M A I C A JAMAICA URBAN TRANSIT: To Get 50 News Buses ST. ANN BAUXITE: Capital Spending, Job Cuts to Save US$13MM a Year M E X I C O GRUMA SAB: UBS Upgrades Firm to Neutral HIPOTECARIA SU: S&P Downgrades Counterparty Credit Rating to 'B-' * Moody's Upgrades Issuer Rating on State of Mexico to 'Ba2' V E N E Z U E L A PETROLEOS DE VENEZUELA: Signs US$30BB Ventures W/ Chevron & Repsol PETROLEOS DE VENEZUELA: Completes Drilling & Evaluation at DR 6 V I R G I N I S L A N D S BORETS INTERNATIONAL: S&P Affirms 'BB-' Corporate Credit Rating - - - - - ================= A R G E N T I N A ================= RAIT CRE: Fitch Downgrades Ratings on All Classes of Notes ---------------------------------------------------------- Fitch Ratings has downgraded all classes of RAIT CRE CDO I Ltd. reflecting Fitch's base case loss expectation of 49.6%. Fitch's performance expectation incorporates prospective views regarding commercial real estate market value and cash flow declines. A detailed list of rating actions follows at the end of this release. RAIT CDO is collateralized by both senior and subordinate commercial real estate debt: 64.2% are either whole loans or A- notes, and 32.1% are either mezzanine loans (24.3%) or equity participations (7.8%) as of the April 2010 trustee report. Approximately 3.7% of the portfolio is cash. Fitch expects significant losses upon default for the subordinate positions, since they are generally highly leveraged debt classes. Further, 17 loans (9.1%) are currently defaulted or delinquent while Fitch considers nine loans (20.3%) to be Fitch Loans of Concern. Fitch expects partial to complete losses on the defaulted assets and Loans of Concern. RAIT CDO is a $1 billion CRE collateralized debt obligation managed by RAIT Financial Trust. The transaction has a five-year reinvestment period during which principal proceeds may be used to invest in substitute collateral. The reinvestment period ends in November 2011. As of the April 2010 trustee report, all overcollateralization and interest coverage (IC) ratios remained above their covenants. The Class F/G/H OC test has the tightest cushion at 3.9%. Under Fitch's updated methodology, approximately 75.2% of the portfolio is modeled to default in the base case stress scenario, defined as the 'B' stress. In this scenario, the modeled average cash flow decline is 10.9% from the most recent available cash flows. Fitch estimates that recoveries will average 34.0%. The largest component of Fitch's base case loss expectation is an A-note (3.4%) secured by a recently constructed 255,572 square foot office property located in Scottsdale, Arizona. The property has been slow to stabilize and cash flow does not support the loan. The sponsor is coming out-of-pocket to cover debt service. Fitch modeled a term default with a significant loss in its base case scenario. The next largest component of Fitch's base case loss expectation is a whole loan (3.6%) secured by a 360 unit multifamily property located in Glendale, Arizona. The property is a failed condo conversion that is currently being used as rental apartments. Performance has lagged the market with respect to both rent and occupancy, and cash flow declined by over 20% during 2009 as vacancy spiked to 35% from 12%. The current property cash flow is insufficient to cover debt service and the borrower is covering the shortfall out-of-pocket. Fitch modeled a term default with a significant loss in its base case scenario. The third largest component of Fitch's base case loss expectation is an A-note (2.8%) secured by a 638,000 sf regional mall located in Houston, Texas. The property suffers from low in-line occupancy (41%) and two of the three anchors are dark. Cash flow at the property is insufficient to cover debt service payments and the borrower is using the operating reserve to support the loan. Fitch modeled a term default with a significant loss in its base case scenario. This transaction was analyzed according to the 'Surveillance Criteria for U.S. Commercial Real Estate Loan CDOs,' which applies stresses to property cash flows and uses debt service coverage ratio (DSCR) tests to project future default levels for the underlying portfolio. Recoveries are based on stressed cash flows and Fitch's long-term capitalization rates. The default levels were then compared to the breakeven levels generated by Fitch's cash flow model of the CDO under the various default timing and interest rate stress scenarios, as described in the report 'Global Criteria for Cash Flow Analysis in CDOs'. Based on this analysis, the credit characteristics for classes A-1A and A-1B are generally consistent with the 'BB' rating category. The credit characteristics for class A-2 are generally consistent with the 'B' rating category. The ratings for classes B through J are based on a deterministic analysis, which considers Fitch's base case loss expectation for the pool, and the current percentage of defaulted and delinquent assets and Fitch Loans of Concern factoring in anticipated recoveries relative to each class' credit enhancement. Based on this analysis, classes B through G are consistent with the 'CCC' rating category, meaning default is a real possibility. Fitch's base case loss expectation of 49.6% exceeds these classes' respective current credit enhancement levels. The rating for classes H and J are deemed to be consistent with the 'CC' rating category, meaning default appears probable given losses expected on the currently defaulted/delinquent assets and Loans of Concern in the pool generally exceed these classes' respective credit enhancement levels. Classes A-1A through A-2 were each assigned a Negative Outlook reflecting Fitch's expectation of further negative credit migration of the underlying collateral. These classes were also assigned Loss Severity ratings ranging from 'LS4' to 'LS5' indicating each tranche's potential loss severity given default, as evidenced by the ratio of tranche size to the expected loss for the collateral under the 'B' stress. LS ratings should always be considered in conjunction with probability of default indicated by a class's long-term credit rating. Fitch does not assign Outlooks or LS ratings to classes rated 'CCC' or lower. Classes B through J were assigned Recovery Ratings to provide a forward-looking estimate of recoveries on currently distressed or defaulted structured finance securities. Recovery Ratings are calculated using Fitch's cash flow model and incorporate Fitch's current 'B' stress expectation for default and recovery rates (75.2% and 34.0%, respectively), the 'B' stress US$ LIBOR up- stress, and a 24-month recovery lag. All modeled distributions are discounted at 10% to arrive at a present value and compared to the class's tranche size to determine a Recovery Rating. The assignment of 'RR4' to class B reflects modeled recoveries of 34% of its outstanding balance. The expected recovery proceeds are broken down: -- Present value of expected principal recoveries ($0); -- Present value of expected interest payments ($37.2 million); -- Total present value of recoveries ($37.2 million); -- Sum of undiscounted recoveries ($60.7 million). Classes C through J are assigned a Recovery Rating of 'RR6' as the present value of the recoveries in each case is less than 10% of each class's principal balance. Fitch has downgraded, assigned LS and RR ratings and Outlooks to these classes as indicated: -- $200,000,000 class A-1A to 'BB/LS4' from 'AAA'; Outlook Negative; -- $275,000,000 class A-1B to 'BB/LS4' from 'AAA'; Outlook Negative; -- $90,000,000 class A-2 to 'B/LS5' from 'AAA'; Outlook Negative; -- $110,000,000 class B to 'CCC/RR4' from 'AA'; -- $41,500,000 class C to 'CCC/RR6' from 'A+' -- $25,000,000 class D to 'CCC/RR6' from 'A'; -- $16,000,000 class E to 'CCC/RR6' from 'A-'; -- $22,000,000 class F to 'CCC/RR6' from 'BBB+'; -- $20,500,000 class G to 'CCC/RR6' from 'B'; -- $18,000,000 class H to 'CC/RR6' from 'B'; -- $35,000,000 class J to 'CC/RR6' from 'B'. Additionally, all classes are removed from Rating Watch Negative. =========== B R A Z I L =========== BRASIL FOODS: Records BRL Million Profit on Sadia SA Acquisition ---------------------------------------------------------------- Lucia Kassai at Bloomberg News reports that BRF Brasil Foods SA reported a profit in the first quarter after it acquired its biggest Brazilian rival and margins rose. According to the report, citing a Brasil Foods statement, the company recorded net income of BRL53 million (US$30 million), or 6 centavos a share, from a year-earlier net loss of BRL226 million, or BRL1.09 a share. Perdigao was expected to post a profit of 12.5 centavos a share on an adjusted basis, the average estimate of seven analysts in a Bloomberg survey. The report relates that the company's net sales almost doubled to BRL5.05 billion from BRL2.6 billion following Perdigao's acquisition last year of rival Sadia, which booked more that BRL3 billion in losses related to currency bets. Brasil Foods, the report notes, said that Ebitda margins rose to 8.9% from 4.5%. Brasil Foods and Sadia, the report says, are still waiting for approval from Brazil's antitrust regulator to fully merge assets and operations. The companies expect to cut costs by BRL500 million by 2012, Bloomberg News adds. About BRF-Brasil Foods BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil foods also processes frozen pasta, soybeans, and their derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of April 12, 2010, the company continues to carry Moody's Ba1 LT Corp Family rating. The company also continues to carry Standard and Poor's BB+ LT Issuer Credit Ratings. BRASIL FOODS: Sees Brazil Sales Topping Europe, U.S. Rebound ------------------------------------------------------------ Lucia Kassai a Bloomberg News reports that BRF Brasil Foods SA said that sales growth in the Latin American country will continue to outpace Europe and the U.S. The report relates that the company's sales almost doubled to BRL5.05 billion from BRL2.6 billion. According to the report, BRF Brasil Chief Executive Officer Jose Antonio do Prado Fay said that demand in Brazil for the company's products will expand by as much as 10% this year, outpacing export growth of as much as 5%. "Domestic demand is good and will stay strong throughout 2010," the report quoted Mr. Fay as saying. "Demand from international markets is gradually recovering," he added. BRF Brasil Foods, the report notes, said that the Brazilian market, where margins are higher, accounted for about 63% of sales in the first quarter. "We continue to view a strong earnings momentum over the next two years," the report quoted Alexandre Pizano, an analyst at Bank of America in Sao Paulo, as saying. "The antitrust regulator's approval, expected by mid-year, is one of the company's relevant short- term drivers," he added. Mr. Pizano rated the company a "buy." About BRF-Brasil Foods BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil foods also processes frozen pasta, soybeans, and their derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of April 12, 2010, the company continues to carry Moody's Ba1 LT Corp Family rating. The company also continues to carry Standard and Poor's BB+ LT Issuer Credit Ratings. COMPANHIA ENERGETICA: To Pay US$14 Million in Dividends ------------------------------------------------------- Companhia Energetica de Sao Paulo (CESP) said that it will pay out BRL25 million (US$14 million) in dividends, in the form of interest on its own equity, Rogerio Jelmayer at Dow Jones Newswires reports. According to the report, the company will pay BRL1.82 per preferred share of class A, BRL0.03 per each preferred share of Class B and BRL0.03 per common share. The payment, the report relates, will be based on shareholders' positions as of May 11, however, it didn't disclose the payment date. Companhia Energetica de Sao Paulo plans, constructs, and operates electricity generation and distribution systems in the State of Sao Paulo, Brazil. The company generates electricity through hydroelectric plants located on the rivers of Panama, tiete, paraibuna, and Jaguari. * * * As of December 21, 2009, the company continues to carry Moody's Ba2 LT Corp Family rating and Senior Unsecured Debt rating. The company also continues to carry Standard and Poors' "B" LT Issuer credit rating. JBS SA: USA Unit to Host 1Q Earnings Conference Call on May 17 -------------------------------------------------------------- JBS USA, LLC will hold its first quarter 2010 earnings conference call Monday, May 17, at 10:30 a.m. Eastern (8:30 a.m. Mountain). The call will be open to holders of the company's 11.625% Senior Notes due 2014 as well as prospective investors, securities analysts and market makers. For more information about the call, visit http://www.jbsswift.com/and refer to the "JBS USA Bond Investors" link under the Investor Relations tab. Financial statements for the first quarter 2010 will also be available to investors on the Company's Web site on May 14, 2010. JBS USA, LLC is a leading processor of beef and pork in the United States and the number one processor of beef in Australia in terms of daily slaughtering capacity. The company processes, prepares, packages and delivers fresh, processed and value-added beef and pork products for sale to customers in over 60 countries on six continents. The Company is an indirect wholly owned subsidiary of JBS S.A., the world's largest beef producer. About JBS SA JBS SA is one of the world's largest beef producers with operations in Brazil, the United States, Argentina, Australia and Italy. The company is the largest producer and exporter of fresh meat and meat by-products in Brazil, Argentina and Australian and the third largest in the USA. * * * As of April 28, 2010, the company continues to carry Moody's B1 long term rating, LT Corp Family rating, and senior unsecured debt rating. The company also continues to carry Standard and Poor's B+ Issuer Credit ratings. GOL LINHAS: Bond Beats Tam SA in Brazilian Market ------------------------------------------------- Veronica Navarro Espinosa and Gabrielle Coppola at Bloomberg News report that Gol Linhas Aereas Inteligentes is beating its biggest rival, Tam SA, in the bond market as Brazil's economic growth accelerates amid a four-month rally in the real. Gol's 7.5% bonds due in 2017 yield 7.72%, or 82 basis points less than Tam SA's similar-maturity notes, after yielding 476 basis points more a year ago, according to data compiled by Bloomberg. According to the report, citing April figures, the relationship between the nation's two largest airlines reversed because Gol gets 89% of its paid passenger miles from domestic business while Tam receives 41% of its miles from international business. The report relates that the real's 6.8% gain since Feb. 1 has reduced fuel and debt-servicing costs for Gol while hampering Tam's revenue growth. "Right now Gol is doing better because more of its revenues are in reais," the report quoted Roger King, an analyst at CreditSights Inc. who has covered airlines for 20 years, as saying. "Many of their costs are in dollars. When the real gets stronger, those costs become lower in Brazilian terms," he added. The yield on Gol's US$221 million of 2017 bonds has tumbled 45 basis points since the end of January; while the yield on Tam's US$298 million of 2017 notes dropped 29 basis points over that time to 8.54% on May 12, 2010, according to Bloomberg data. The report relates that the gap between the two securities reached 99 basis points last week, the biggest since March 22. Tam bonds last yielded less than Gol debt on Oct. 21, the report says. Mr. King, Bloomberg News discloses, said that Gol Linhas bonds will likely keep outperforming Tam SA securities over the next year. The real will advance 3.1% more to US$1.72 per dollar by year-end as the expansion lures investment, according to the median estimate from 19 analysts surveyed by Bloomberg. Gol Linhas, the report adds, has also held up better than Tam in the equity market as the company's shares are down 14% this year, compared with a 25% slide for Tam SA. 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. About TAM SA Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * As reported in the Troubled Company Reporter-Latin America on October 20, 2009, Fitch Ratings has assigned a 'BB-' rating to TAM S.A.'s US$300 million proposed senior guaranteed notes due 2019. These notes will be issued through TAM's subsidiary, TAM Capital 2 Inc and will be unconditionally guaranteed by TAM and TAM Linhas Aereas S.A. Proceeds from the proposed issuance will be used to enhance the company's cash balance and for general corporate purpose. TAM SA: Gol Linhas' Bonds Beat Firm's in Brazilian Market --------------------------------------------------------- Veronica Navarro Espinosa and Gabrielle Coppola at Bloomberg News report that Gol Linhas Aereas Inteligentes is beating its biggest rival, Tam SA, in the bond market as Brazil's economic growth accelerates amid a four-month rally in the real. Gol's 7.5% bonds due in 2017 yield 7.72%, or 82 basis points less than Tam SA's similar-maturity notes, after yielding 476 basis points more a year ago, according to data compiled by Bloomberg. According to the report, citing April figures, the relationship between the nation's two largest airlines reversed because Gol gets 89% of its paid passenger miles from domestic business while Tam receives 41% of its miles from international business. The report relates that the real's 6.8% gain since Feb. 1 has reduced fuel and debt-servicing costs for Gol while hampering Tam's revenue growth. "Right now Gol is doing better because more of its revenues are in reais," the report quoted Roger King, an analyst at CreditSights Inc. who has covered airlines for 20 years, as saying. "Many of their costs are in dollars. When the real gets stronger, those costs become lower in Brazilian terms," he added. The yield on Gol's US$221 million of 2017 bonds has tumbled 45 basis points since the end of January; while the yield on Tam's US$298 million of 2017 notes dropped 29 basis points over that time to 8.54% on May 12, 2010, according to Bloomberg data. The report relates that the gap between the two securities reached 99 basis points last week, the biggest since March 22. Tam bonds last yielded less than Gol debt on Oct. 21, the report says. Mr. King, Bloomberg News discloses, said that Gol Linhas bonds will likely keep outperforming Tam SA securities over the next year. The real will advance 3.1% more to US$1.72 per dollar by year-end as the expansion lures investment, according to the median estimate from 19 analysts surveyed by Bloomberg. Gol Linhas, the report adds, has also held up better than Tam in the equity market as the company's shares are down 14% this year, compared with a 25% slide for Tam SA. 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. About TAM SA Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * As reported in the Troubled Company Reporter-Latin America on October 20, 2009, Fitch Ratings has assigned a 'BB-' rating to TAM S.A.'s US$300 million proposed senior guaranteed notes due 2019. These notes will be issued through TAM's subsidiary, TAM Capital 2 Inc and will be unconditionally guaranteed by TAM and TAM Linhas Aereas S.A. Proceeds from the proposed issuance will be used to enhance the company's cash balance and for general corporate purpose. TAM SA: S&P Downgrades Corporate Credit Rating to 'B+' ------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered its corporate credit rating on Brazil-based airline TAM S.A. to 'B+' from 'BB-' and its national scale rating to 'brBBB+' from 'brA'. The outlook is stable. "The rating action reflects S&P's expectation that TAM's credit metrics will remain aggressive in the next years, despite improving market conditions in Brazil," said Standard & Poor's credit analyst Reginaldo Takara. "S&P's main assumption is that yields will not increase enough to strengthen profitability and cash flows significantly in the medium term. In addition, fleet expansion will continue adding new aircraft financing to the company's total debt. Finally, S&P believes load factors and aircraft utilization may be affected by TAM's fleet strategy, which help explain the company's having a weaker cost position than its main domestic competitor. TAM's liquidity will remain a relevant mitigating factor for its leveraged capital structure and high short-term debt." TAM's business profile is weak. The company benefits from a strong, leading position in the fairly concentrated air transportation market in Brazil, with a market share of 42.3% through April 2010. However, this has not prevented TAM from facing fierce price competition, which has significantly affected its profitability and cash flows in 2009. TAM's aggressive capacity expansion (resulting in lower aircraft utilization and lower load factors) has also contributed for its weaker results. The stable outlook reflects S&P's expectation that TAM's credit metrics will remain aggressive despite stronger market conditions projected for the next years. S&P believes the company's liquidity will allow it to face competition and manage its fleet expansion in the next years, but cash flow will remain limited by relatively weak yields. "The ratings could be revised upwards if TAM is able to reduce total debt and improve cash generation, for example, reaching a total adjusted debt to EBITDA of less than 5.0x. S&P could lower the ratings further if liquidity deteriorates, exposing the company to higher refinancing risks, with cash reserves of less than R$1 billion," Mr. Takara added. ========================== C A Y M A N I S L A N D S ========================== ALPHAGEN AVIOR: Creditors' Proofs of Debt Due on June 10 -------------------------------------------------------- The creditors of The Alphagen Avior Fund Limited are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 26, 2010. The company's liquidator is: Marc Randall c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands ALPHAGEN VELAS: Creditors' Proofs of Debt Due on June 10 -------------------------------------------------------- The creditors of The Alphagen Velas Fund Limited are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 26, 2010. The company's liquidator is: Marc Randall c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands BELLEPLAIN LIMITED: Members to Receive Wind-Up Report on May 3 -------------------------------------------------------------- The members of Belleplain Limited will receive, on May 3, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman ERICA LIMITED: Members to Receive Wind-Up Report on May 3 --------------------------------------------------------- The members of Erica Limited will receive, on May 3, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman HORIZON INTERNATIONAL: Creditors' Proofs of Debt Due on June 10 --------------------------------------------------------------- The creditors of Horizon International Limited are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 26, 2010. The company's liquidators are: Scott Aitken Connan Hill P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands c/o Sylvia Lewis Telephone: 949-7755 Facsimile: 949-7634 P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands HUAXIN MINING: Creditors' Proofs of Debt Due on May 31 ------------------------------------------------------ The creditors of Huaxin Mining (Holdings) Limited are required to file their proofs of debt by May 31, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 19, 2010. The company's liquidator is: Richard, Wai Hung Poon Room 1410, Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong Telephone: (852) 2887 8621 Facsimile: (852) 2887 8631 KASPA INTERNATIONAL: Members to Receive Wind-Up Report on May 3 --------------------------------------------------------------- The members of Kaspa International Investments Limited will receive, on May 3, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman KERANA LIMITED: Creditors' Proofs of Debt Due on June 10 -------------------------------------------------------- The creditors of Kerana Limited are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 3, 2010. The company's liquidator is: Marc Randall c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands LEONIA HOLDINGS: Creditors' Proofs of Debt Due on June 10 --------------------------------------------------------- The creditors of Leonia Holdings Ltd. are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 21, 2010. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands LEWIS BAY: Creditors' Proofs of Debt Due on June 10 --------------------------------------------------- The creditors of Lewis Bay Macro Offshore Fund, Ltd. are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 27, 2010. The company's liquidators are: Brendan Dolan Alfredo D'Onofrio c/o Lewis Bay Capital LLC 2 Overhill Road, Suite 400 Scarsdale, New York 10583, USA LEWIS BAY: Creditors' Proofs of Debt Due on June 10 --------------------------------------------------- The creditors of Lewis Bay Macro Master Fund, Ltd. are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 16, 2010. The company's liquidators are: Brendan Dolan Alfredo D'Onofrio c/o Lewis Bay Capital LLC 2 Overhill Road, Suite 400 Scarsdale, New York 10583, USA MAMF INVESTMENT: Creditors' Proofs of Debt Due on May 31 -------------------------------------------------------- The creditors of MAMF Investment Corporation are required to file their proofs of debt by May 31, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 12, 2010. The company's liquidator is: Robert Bigelow III c/o Bigelow & Hart Capital Management LLC 7 North Willow Street Suite 8A, Montclair, NJ 07042, USA MSK INVESTOR: Grand Court Enters Wind-Up Order ---------------------------------------------- On April 22, 2010, the Grand Court of Cayman Islands entered an order that voluntarily winds up the operations of MSK Investor, Inc. The company's liquidator is: Ian Stokoe PricewaterhouseCoopers P.O. Box 258, Strathvale House, George Town Grand Cayman KY1-1104, Cayman Islands PELICAN FINANCE: Creditors' Proofs of Debt Due on June 10 --------------------------------------------------------- The creditors of Pelican Finance Ltd. are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 29, 2010. The company's liquidator is: Darren Riley c/o Ellen J. Christian Telephone: 345 945 9208 Facsimile: 345 945 9210 c/o BNP Paribas Bank & Trust Cayman Limited 3rd Floor Royal Bank House, Shedden Road George Town, Grand Cayman POLARIS CAPITAL: Creditors' Proofs of Debt Due on June 9 -------------------------------------------------------- The creditors of Polaris Capital Limited are required to file their proofs of debt by June 9, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 20, 2010. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited 4th Floor, FirstCaribbean House P.O. Box 487, Grand Cayman KY1-1106 Cayman Islands Telephone: 345 949-7128 PORT CAPITAL: Members to Receive Wind-Up Report on June 10 ---------------------------------------------------------- The members of Port Capital International Limited will receive, on June 10, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 RED PINE: Members to Receive Wind-Up Report on May 3 ---------------------------------------------------- The members of Red Pine Investments Ltd. will receive, on May 3, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman REDROCK LIMITED: Placed Under Voluntary Wind-Up ----------------------------------------------- On April 6, 2010, the shareholder of Redrock Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman KY1-1107 Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 TERRA LNR I: Creditors' Proofs of Debt Due on June 10 ----------------------------------------------------- The creditors of Terra LNR I Ltd. are required to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 19, 2010. The company's liquidator is: Victor Murray c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands =============== C O L O M B I A =============== ECOPETROL SA: To Invest Up to US$7.5 Billion Annually ----------------------------------------------------- Ecopetrol SA will increase investments to an average of US$7 billion to US$7.5 billion annually in coming years, Carlos Manuel Rodriguez at Bloomberg News reports, citing Maria Victoria Riano, Ecopetrol's director of mergers and acquisitions. The projected investments don't include potential acquisition expenditures, Ms. Riano told the news agency in an interview. According to the report, Ecopetrol SA plans to spend US$6.9 billion this year as it seeks to almost double crude oil output to 1 million barrels per day in 2015. The report relates that the company will increase production by 15% this year. Ecopetrol produced 521,000 barrels a day in 2009. Ms. Riano, the report notes, said that Ecopetrol SA is purchasing assets and forming ventures "mainly" on the U.S. side of the Gulf of Mexico and in Brazil as part of its long-term expansion plan,. The Colombian company may consider investments on the Mexican side of the Gulf, if "Mexico opens a door," she added. Ecopetrol said in February it will borrow as much as US$3.5 billion this year to help fund investment, the report adds. About Ecopetrol S.A. Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. under the symbol ECOPETROL. Colombia owns 90% of Ecopetrol. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined- products. * * * As reported in the Troubled Company Reporter-Latin America on July 15, 2009, Fitch Ratings assigned a 'BB+' rating to Ecopetrol S.A.'s proposed issuance of at least US$1 billion senior unsecured notes due 2019. Proceeds will be used for investments and general corporate purposes. According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. As reported in the Troubled Company Reporter-Latin America on September 7, 2009, Fitch Ratings affirmed Colombia's sovereign ratings: -- Long-term foreign currency Issuer Default Rating at 'BB+'; -- Short-term foreign currency IDR at 'B'; -- Outstanding senior unsecured debt at 'BB+'; TRANSGAS DE OCCIDENTE: Fitch Affirms 'BB+' Rating on Senior Notes ----------------------------------------------------------------- Fitch Ratings has affirmed the 'BB+' debt rating of TransGas de Occidente's 9.79% senior secured notes due 2010. The Rating Outlook is Stable. The affirmation is based on the rationale that the notes are solely supported by the tariff payments from Ecopetrol, tied to throughput of the natural gas pipeline, under the Transportation Service Agreement which has a 20-year tenure starting from project operations. It is worth noting that the debt associated with the project will fully amortize in Nov. 1, 2010. The total outstanding debt amount (principal and interest) is completely reserved in a Bank New York Mellon trust account. Since inception, the project's operating and financial performance has been in line generally with Fitch's expectations. Although the project economics supports a higher level of ratings, it is constrained mainly by the Issuer Default Rating of Ecopetrol (IDR of 'BB+' with a stable Outlook by Fitch), which is further constrained by Colombia's country rating (long-term foreign currency rating of 'BB+' with a Stable Outlook). Additionally, the total resources to pay the outstanding debt are completely reserved ensuring the timely payment of capital and interest until maturity in November 2010. The scheduled investments needed to maintain the gas pipeline in good conditions have been completed in a satisfactory manner, in particular a major maintenance completed in 2008. For YTD 2009, the availability rate has been close to 100% and Ecopetrol has paid the full tariff payments, i.e. no penalty was assessed against TransGas. The financial performance of the company was more in line with the sponsor base and is expected to remain stable throughout the term of the debt. For the year 2010, the outstanding debt is US$$10.56 million. The total amount reserved to pay capital and interest was deposited in two short-term deposits with April 2010 and October 2010 maturity dates, dates that match with the maturity date of the notes. As such, the full repayment of the project's debt is expected to be met as scheduled. TransGas was incorporated under Colombian law in 1995 to create, build, own, operate, maintain and transfer a natural gas pipeline. The project consists of a 206-mile, 20-inch diameter trunk line and 47 lateral lines totaling approximately 275 miles with metering stations to connect with distribution networks. The three largest equity holders of TransGas are TCPL Marcali Company Ltd. (44%), BP Colombia Pipeline Ltd. (20%), and Gas Natural del Oriente ESP (14%). ============= E C U A D O R ============= * ECUADOR: To Sell US$1.5 Billion of Bonds to Finance Gap --------------------------------------------------------- Nathan Gill at Bloomberg News reports that Ecuador will sell US$1.5 billion of bonds in its first offerings in the local market in 17 months to help finance its budget deficit. The government, which has had limited access to financing since defaulting on international bonds in 2008, will use proceeds from the sales to help fund infrastructure projects, the securities regulator said in a statement published in Quito-based newspaper El Comercio obtained by Bloomberg. Ecuador will sell bonds with maturities ranging from one to 12 years and start offering the debt on May 13, 2010, Nathalie Suikouski, an economist at the securities regulator in Quito, told Bloomberg News in a telephone interview. According to the report, President Rafael Correa is seeking to raise cash to cover a deficit the Finance Ministry estimates will reach US$4.2 billion this year. The report relates Finance Minister Maria Elsa Viteri said before she resigned last month that the country's Social Security Institute (IESS) plans to buy $1.1 billion of government bonds this year. Ms. Suikouski, the report discloses, said that the Finance ministry will sell US$959 million in 10-year bonds at an interest rate of 6.5%. The government will issue $465 million of 12-year bonds at 7% and US$91.3 million in one- and three-year bonds at an interest rate between 4% and 4.5%, Ms. Suikouski added. * * * 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-'. ============= J A M A I C A ============= JAMAICA URBAN TRANSIT: To Get 50 News Buses ------------------------------------------- State-run Jamaica Urban Transit Company will receive 50 new buses from the public transportation sector, RadioJamaica reports. The report relates that the buses will be cleared from the wharf on May 18, 2010. According to the report, Reginald Allen, Corporate Communications Manager at the JUTC, said a second fleet is scheduled to arrive in a matter of weeks. The report relates Mr. Allen said that the new buses will improve the JUTC's ability to provide service to the public. "In terms of both numbers and reliability, it puts us in better position to more adequately service the needs of the commuting public in the Kingston Metropolitan Area. We're looking forward to another 50 to 53 (buses) in July which is part of an overall 200 unit arrangement that is extending into next year," the report quoted Mr. Allen as saying. About JUTC Jamaica Urban Transit Company was established in 1998 to provide a centrally managed state-of-the-art public bus service. The government invested US$6 billion aiming to have an efficient transport system and for the Jamaican people. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2009, RadioJamaica said JUTC has defaulted on loan obligations with RBTT Bank and Petrocaribe Development Fund, among others, due to cash flow problems. The Ministry of Information, as cited by Radio Jamaica, stated that the JUTC operates an overdraft facility of US$520 million at the National Commercial Bank which expired in February. The report noted that the Ministry said this facility is consistently utilized at the upper limit and, on occasions, exceeds the limit giving rise to the imposition of penalty charges above 43%. ST. ANN BAUXITE: Capital Spending, Job Cuts to Save US$13MM a Year ------------------------------------------------------------------ St. Ann Bauxite plans to reduce its employee headcount by 160 persons and outsource its mining operations to a third party aimed to save JM$4 million (US$356 million) to JM$5 million (US$445 million) annually, Jamaica Observer reports. The report relates that the company has also cut capital expenditure by US$7 million to US$8 million. According to the report, Noranda Aluminum -- which owns 49% of St Ann Bauxite Bauxite -- in a filing to the U.S. Securities and Exchange Commission said that the "the substantial portion of our bauxite mining to third party contractors" was contracted out on April 21, 2010. The report relates that the termination "through a combination of voluntary retirement packages and involuntary terminations", according to Noranda, will result in pre-tax charges of US$3 million to US$4 million in the second quarter of 2010. The report recalls that in 2009, Noranda "received a claim from the UAWU in Jamaica which alleges that (it) failed to properly negotiate with the union in advance of declaring approximately 150 UAWU members redundant". The report says that Noranda said it was contesting the claim "vigorously". St. Ann Bauxite, the report notes, has a special mining lease with the Government for the supply of bauxite. The report relates that the lease ensures access to sufficient reserves to allow St Ann to ship annually 4.5 million dry metric tonnes of bauxite from mining operations in a specified concession area through September 30, 2030. In return for these rights, St. Ann is required to pay fees called for in the establishment agreement totaling in excess of US$2 million, the report adds. =========== M E X I C O =========== GRUMA SAB: UBS Upgrades Firm to Neutral --------------------------------------- UBS upgraded has upgraded Gruma, S.A.B. de C.V. to neutral from sell, Anthony Harrup at Dow Jones Newswires reports. The report relates that UBS cited recent price weakness and potential benefits of currency depreciation in upgrading the firm. According to the report, the investment bank kept its price target for Gruma SAB at MXN24. The report notes that Gruma SAB's shares were gaining 3.2% to MXN22.30. Headquartered in Monterrey, Mexico, Gruma, S.A.B. de C.V. -- http://www.gruma.com-- is a corn flour and tortilla producer and distributor. The company conducts its U.S. and European operations principally through its subsidiary, Gruma Corporation, which manufactures and distributes corn flour, packaged tortillas, corn chips and related products. As of Dec. 31, 2007, Gruma held approximately 8.62 % of the capital stock of Grupo Financiero Banorte, S.A.B. de C.V. * * * As reported in the Troubled Company Reporter-Latin America on July 30, 2009, Standard & Poor's Ratings Services said that its ratings on GRUMA S.A.B. de C.V., including its 'B+' corporate credit rating, remain on CreditWatch with negative implications, where they were placed on Oct. 13, 2008. S&P based that action on its perception of GRUMA's more aggressive financial policy, including the use of derivative instruments. HIPOTECARIA SU: S&P Downgrades Counterparty Credit Rating to 'B-' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its ratings on Mexico-based mortgage and construction lender Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R., including lowering the global and Mexican national scale counterparty credit ratings to 'B-' from 'B' and 'mxBB-/mxB' from 'mxBBB-/mxA-3', respectively. The outlooks are negative. The downgrade followed the company's weaker-than-expected first- quarter 2010 results, which revealed a significant rise in nonperforming assets (nonperforming loans plus foreclosed assets) that resulted in a large net loss, in spite of a net interest margin improvement. These results have caused further deterioration in the company's financial profile. "Although the company recently announced a large capital injection and the signing of a credit line with Sociedad Hipotecaria Federal to restore its mortgage and construction loan origination, in S&P's view, these steps are still not sufficient to enable HSC to face its most immediate short-term challenges to asset quality and capital," said Standard & Poor's credit analyst Arturo S�nchez. * Moody's Upgrades Issuer Rating on State of Mexico to 'Ba2' ------------------------------------------------------------ Moody's de Mexico upgraded the issuer rating of the State of Mexico to A2.mx (Mexico National Scale) from A3.mx. Moody's Investors Service upgraded the issuer rating of the State of Mexico to Ba2 (Global Scale, local currency) from Ba3. The rating outlook is stable. The rating action reflects long-term improvements in the State of Mexico's financial and debt metrics, in conjunction with the resilience of the state's fiscal framework during the recent economic slowdown. The State of Mexico's financial performance has strengthened in recent years, reflecting the alignment of revenue and expenditure growth. Between 2005 and 2009, the state recorded roughly balanced consolidated financial results that averaged -0.6% of total revenues. These results have led to easing debt metrics and improving liquidity levels. Net direct and indirect debt declined to 24.2% of total revenue in 2009, from 40.8% in 2005, while net working capital (current assets less current liabilities) increased to 5.2% in 2009, from -2.7% of total revenues in 2005. Going forward, Moody's expects that the state's strong governance and management practices will support the maintenance of balanced fiscal results over the medium-term. Likewise, over this period, Moody's expect debt ratios to remain relatively stable, as modest debt increases are matched by revenue increases. The last rating action with respect the issuer rating of the State of Mexico was taken on April 9, 2008, when Moody's upgraded the state's issuer rating (Mexico National Scale) to A3.mx from Baa1.mx and the rating outlook was changed to positive from stable. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Signs US$30BB Ventures W/ Chevron & Repsol ------------------------------------------------------------------ Daniel Cancel at Bloomberg News reports that Petroleos de Venezuela SA signed final contracts worth at least US$30 billion to develop crude reserves in the Carabobo blocks of the Orinoco Belt with groups led by Chevron Corp. and Repsol YPF SA. According to the report, Venezuela Oil Minister Rafael Ramirez said that PDVSA will hold a 60% stake in the joint ventures and oversee the production of as many as 880,000 barrels of oil a day in the two blocks. The partners also plan to construct upgraders that convert heavy tar-like crude into lighter oil for export, he added. Mr. Ramirez, the report relates, said that the Carabobo projects are central to Venezuela's plans to boost waning oil output by 2.9 million barrels a day by 2017. The report notes that the foreign companies get the opportunity to stake a claim in one of the world's biggest oil deposits. Bloomberg News says that Chevron, Mitsubishi Corp., Inpex Corp. and Suelopetrol CA will take a combined 40% stake in the Carabobo 3 area. The report relates that output is scheduled to start in 2013 and increase to 400,000 barrels a day in 2016. Meanwhile, Bloomberg News, citing the Official Gazette, discloses that the companies are required to pay a signing bonus of US$500 million to access the reserves and provide a US$1 billion loan to PDVSA to begin operations. 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. PETROLEOS DE VENEZUELA: Completes Drilling & Evaluation at DR 6 --------------------------------------------------------------- Petroleos de Venezuela Exploration and Production Offshore adds another successful operational achievement with the completion of drilling and productivity evaluation of the well DR 6, located at Camp Dragon Northeast Coast of Paria. This is the second of the eight-well gas field contained in the plan of exploitation of this field, as part of the first phase of the project Mariscal Sucre, drilled through the semi-submersible Unit Aban Pearl and the valuable efforts of the New PDVSA workers. With the results of drilling the well, the teams of geosciences, engineering and operations of the Company may update the geological model previously developed for wells Mariscal Sucre Project, to optimize various plans to capture information, to bring new information to the engineering of wells, in order to improve operational practices in offshore areas, where PDVSA had no historical precedent. Once the final completion of the well DR 6 is made, it is estimated an output of 75 million cubic feet of gas per day (MMPCGD), in which together with the seven planned wells for the operation of the Dragon Field, will provide the first 600 MMPCGD with the aim of meeting the target for delivery by November 2012. Once the evaluations of the well DR 6 are completed, Aban Pearl unit will carry out the shelling process and evaluation of DR 5A Well, after having completed its drilling on April 11, 2010 by Saudi Petro Discoverer drill ship. Petroleos de Venezuela promotes thus the Oil Sowing Plan, set in the Plan for Economic Development and Social Welfare 2007-2013, and it continues to work for the benefit of gas development and industrial country, committed in its efforts to bring gas to the inhabitants of Sucre and Venezuelan people and to sustain the domestic market and the National Domestic Gas Plan. 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. ========================== V I R G I N I S L A N D S ========================== BORETS INTERNATIONAL: S&P Affirms 'BB-' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on British Virgin Islands-headquartered electrical submersible pumps manufacturer Borets International Ltd. to negative from stable. The 'BB-' long-term corporate credit rating and the 'ruAA-' Russia national scale rating were affirmed. The outlook revision follows a report by Borets that the Russian tax authorities have imposed an additional backdated tax demand on the company for 2006-2008. Borets disputes the demands. "S&P believes Borets' financial flexibility could narrow should these claims be approved by the relevant authorities," said Standard & Poor's credit analyst Varvara Nikanorava. "Given Borets' free operating cash flow generation for 2009 of about $50 million, still limited visibility on earnings improvements, and Borets' asset expansion and modernization program, S&P think that any additional calls on the company's cash will limit its financial flexibility." In addition, S&P sees a risk that the expected recovery in Borets' operational performance might not be strong enough for it to sustain adequate headroom under covenants in its main loan agreements. The potential final amount Borets may have to pay is still unclear and S&P understands that it could be covered to a large extent by Borets' access to external funding. S&P thinks that should no agreement be reached in the course of the appeal process, the company would be subject to court proceedings, which would take time and could change the amount claimed significantly given Russia's evolving tax legislation and relatively weak institutions. As of year-end 2009, the company reported debt of $127 million, which is a substantial reduction from about $270 million a year ago. This reduction is attributable to about $119 million of shareholder loans, including accrued interest being converted into equity and about $57 million being paid out in cash. This debt reduction led to a considerable improvement in Borets' credit ratios, offsetting the effect of lower earnings. Borets' debt-to- capital ratio in 2009 improved to about 25% and leverage to 1.6x, from 56% and 2.6x, respectively, in 2008, which S&P considers commensurate with the current rating. "S&P sees the possibility of a downgrade in the near term if the ultimate amount of the payment of the backdated taxes increases from the levels currently disclosed and if this amount is not covered by the company's internal sources and through its access to external funding," said Ms. Nikanorava- "S&P may also lower the rating if S&P sees deterioration in the company's access to financing as a result of the tax claims. S&P will monitor the development closely, and expect to review the rating within the next three to six months." *********** 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 * * *