/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100521.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 21, 2010, Vol. 11, No. 099 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Owner's Rights Violated, Defense Lawyers Say A R G E N T I N A BRIANIS SA: Creditors' Proofs of Debt Due on July 7 CEREALERA LA: Creditors' Proofs of Debt Due on July 8 FONODOC SA: Creditors' Proofs of Debt Due on July 1 MANUEL FLORENCIO: Creditors' Proofs of Debt Due on July 12 OCEANAIRLINE SA: Creditors' Proofs of Debt Due on June 25 PAPEL 2.0 SA: Asks for Preventive Contest TEDESCO HERMANOS: Creditors' Proofs of Debt Due on July 2 TEXTIL MARCOS: Creditors' Proofs of Debt Due on June 22 B R A Z I L BRASKEM SA: Raises 2010 Capex to US$884 Million GOL LINHAS: S&P Puts 'BB' Rating on Corporate Credit TAM SA: Plans to Launch Bogota and Aeroparque Services C A Y M A N I S L A N D S BROOKLANDS EURO: Fitch Upgrades Ratings on Three Classes of Notes C O L O M B I A ECOPETROL SA: Gives Details on P$2-Trillion Bond Issuance ISAGEN SA: Congress Approves US$1.1 Billion Government Borrowing * COLOMBIA: Congress Approves US$1.1 Billion Government Borrowing D O M I N I C A N R E P U B L I C BANCO BHD: Gets US$20 Million Financing From IFC J A M A I C A PETROLEUM CORP: Public Accounts Committee to Probe Firm * JAMAICA: Manufacturing Sector Declines for 9th Consecutive Qtr. * JAMAICA: Passes International Monetary Fund Test M E X I C O CEMEX SAB: Gets Various Offers for North Coast Property GRUMA SAB: Fitch Affirms Long-Term IDR at 'B+'; Outlook Stable P U E R T O R I C O * PFIZER INC: To Trim 6,000 Jobs, Shut Eight Plants Worldwide V E N E Z U E L A PETROLEOS DE VENEZUELA: Citgo Petroleum to Sell US$1.5BB in Bonds - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Owner's Rights Violated, Defense Lawyers Say ------------------------------------------------------------ Former billionaire Robert Allen Stanford's lawyers, including consultant Alan Dershowitz, said in a court filing that their client has been deprived of his constitutional rights by being held without bail before trial in January, Andrew M. Harris at Bloomberg news reports. The report recalls that Mr. Stanford was denied bail by U.S. District Judge David Hittner pending trial as he was considered a "flight risk." "This court has not previously been asked to consider the issues as a constitutional matter involving detention of a predictable minimum of more than two years from arrest through trial," Mr. Dershowitz and lawyer Robert Bennett said in the filing obtained by the news agency. According to the report, Mr. Dershowitz, who joined the Stanford defense team as a consultant, said that he would work only on the issue of obtaining bail for the Texas financier. "He's presumed innocent, yet he is being treated worse than a convicted defendant," Dershowitz said. Bloomberg notes that Judge Hittner rejected Mr. Dershowitz's motion on technical grounds involving type size and the standing of the lawyers submitting it. Mr. Dershowitz and Mr. Bennett, the report notes, said that they are asking Judge Hittner to free Mr. Stanford so he can assist in his defense. Among other restrictions, Mr. Stanford would wear an electronic monitoring bracelet on his ankle while confined to the home of his fiancee's sister, except when meeting with his counsel, they added, the report relates. Otherwise, the case should be thrown out because Stanford is being deprived of his constitutional right to assist in the preparation of his defense, the lawyers said, the report adds. About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, 2009, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June 2009 before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money- laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57- page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). ================= A R G E N T I N A ================= BRIANIS SA: Creditors' Proofs of Debt Due on July 7 --------------------------------------------------- Sonia Scotti, the court-appointed trustee for Brianis SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 7, 2010. Ms. Scotti will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 40, 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: Sonia Scotti Bartolome Mitre 3419 Argentina CEREALERA LA: Creditors' Proofs of Debt Due on July 8 ----------------------------------------------------- Jose Scheinkopf, the court-appointed trustee for Cerealera La Juliana SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 8, 2010. Ms. Scheinkopf will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, 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: Jose Scheinkopf Avenida Pueyrred▋ 468 Argentina FONODOC SA: Creditors' Proofs of Debt Due on July 1 --------------------------------------------------- Ida Irene Nussenbaum, the court-appointed trustee for Fonodoc SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 1, 2010. Ms. Nussenbaum will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 40, 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: Ida Irene Nussenbaum Lavalle 2024 Argentina MANUEL FLORENCIO: Creditors' Proofs of Debt Due on July 12 ---------------------------------------------------------- Mario Adrian Narisna, the court-appointed trustee for Manuel Florencio Blanco - Gabriel Omar Arias Sociedad de Hecho's reorganization proceedings, will be verifying creditors' proofs of claim until July 12, 2010. Mr. Narisna will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 40, 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: Mario Adrian Narisna Avenida Corrientes 1628 Argentina OCEANAIRLINE SA: Creditors' Proofs of Debt Due on June 25 --------------------------------------------------------- Sandra Rizzo, the court-appointed trustee for Oceanairline SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 25, 2010. Ms. Rizzo 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: Sandra Rizzo Alicia Moreau de Justo 2030 Argentina PAPEL 2.0 SA: Asks for Preventive Contest ----------------------------------------- Papel 2.0 SA asked for preventive contest. The company stopped making payments between the months of April and May 2010. TEDESCO HERMANOS: Creditors' Proofs of Debt Due on July 2 --------------------------------------------------------- Ana Maria Varela, the court-appointed trustee for Tedesco Hermanos y Cia's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 2, 2010. Ms. Varela will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 15, 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 Varela Talcahuano 768 Argentina TEXTIL MARCOS: Creditors' Proofs of Debt Due on June 22 ------------------------------------------------------- Maria Cristina Rodriguez, the court-appointed trustee for Textil Marcos SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 22, 2010. Ms. Rodriguez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 48, 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 Cristina Rodriguez Avenida Corrientes 3169 Argentina =========== B R A Z I L =========== BRASKEM SA: Raises 2010 Capex to US$884 Million ----------------------------------------------- Braskem SA Chief Executive Officer Bernardo Gradin said that the company raised its 2010 capex to BRL1.6 billion (US$884 million) from the BRL1.1 billion announced earlier this year, Business News Americas reports. The report relates Mr. Gradin said that in 2009, Braskem SA invested approximately BRL900 million. According to the report, Braskem SA's recently acquired compatriot petrochemical company Quattor will receive BRL360 million for the conclusion of ongoing projects for which some BRL2 billion has already been spent. Business News Americas notes that Braskem SA has earmarked BRL56 million for its polypropylene operations in the U.S. As reported in the Troubled Company Reporter-Latin America on April 5, 2010, Braskem S.A. completed its acquisition of the polypropylene business of Sunoco Chemicals for US$350 million. Business News Americas relates that Braskem SA has also set aside BRL254 million for its "green" polyethylene project, scheduled to come online in the third quarter. Braskem SA also plans to invest some BRL72 million in Mexico's Ethylene XXI project, a joint venture with Mexican company Idesa, and BRL35 million in the company's projects in Venezuela, which are being carried out in partnership with state petrochemical firm Pequiven, the Business News Americas says. Braskem SA, Business News Americas adds, will spend some BRL317 million on maintenance stoppages and BRL462 million on other operational investments. About Braskem S.A. Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As of May 20, 2010, the company continues to carry Moody's Ba1 rating. The company also continues to carry Fitch ratings' BB+ LT Issuer Default ratings and Senior Unsecured Debt rating GOL LINHAS: S&P Puts 'BB' Rating on Corporate Credit ---------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' global scale, and 'brA' national scale, corporate credit ratings to Brazilian airline Gol Linhas Areas Inteligentes S.A. (GOL). The outlook is stable. "The ratings reflect GOL's aggressive financial profile, characterized by high aircraft-financing debt," said Standard & Poor's credit analyst Marcelo Schwarz. "They also incorporate the company's exposure to the cyclical, price-competitive, and capital-intensive airline industry; dependence on economic conditions in its home market of Brazil; and exposure to volatile costs due to foreign-exchange and fuel price fluctuation." These negatives are partly offset by GOL's adequate liquidity, the company's improving position in the concentrated Brazilian airline industry, and efficient and cost-competitive operations. TAM SA: Plans to Launch Bogota and Aeroparque Services ------------------------------------------------------ Brendan Sobie at Air Transport Intelligence News reports that TAM SA is preparing to launch services to Bogota and move some of its Buenos Aires Ezeiza flights to Buenos Aires' downtown Aeroparque airport. According to the report, TAM SA Chief Executive Officer Libano Barroso said that Bogota will likely be the carrier's next international destination. The report relates that Colombia and Ecuador are the only major South American countries currently not served by TAM SA as it already serves Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay and Venezuela. "Noting the strong passenger demand in South America, we are analysing the Colombian market as a potential new destination," the report quoted Mr. Barroso as saying. "Our intention is to start a direct flight to Bogota in the second half of the year," he added, the report relates. TAM SA Vice President of Operations Ruy Amparo, the report notes, said that the carrier is also preparing to launch services to Buenos Aires Aeroparque, a downtown airport which previously only handled domestic and Uruguayan services. The report relates Mr. Amparo said that TAM SA is still waiting for final authorization from the Argentinean government to launch flights to Aeroparque and but he is confident the required approvals will be secured soon. 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 of May 20, 2010, the company continues to carry Standard and Poor's "B+" LT Issuer credit ratings. The company also continues to carry Fitch rating's "BB-" LT Issuer default ratings. ========================== C A Y M A N I S L A N D S ========================== BROOKLANDS EURO: Fitch Upgrades Ratings on Three Classes of Notes ----------------------------------------------------------------- Fitch Ratings today upgraded Brooklands Euro Referenced Linked Notes 2002-1 Ltd's ('Brooklands', or the 'issuer') class D, E1 and E2 notes to 'C' from 'D', as the notes have been fully written up to their original balances from zero. Fitch has simultaneously maintained all the transaction's note classes on Rating Watch Positive (RWP), except for the class E1 and E2 notes which have been removed from RWP. The rating actions are as follows: -- EUR100m class A+ (XS0238513344): 'B'; Loss Severity Rating 'LS- 3'; maintained on RWP; -- EUR75m class A (XS0148886913): 'CCC'; maintained on RWP; -- EUR16.7m class B1 (XS0148887481): 'C'; maintained on RWP; -- EUR1.3m class B2 (XS0148887721): 'C'; maintained on RWP; -- EUR31m class C (XS0148887994): 'C'; maintained on RWP; -- EUR10m class D (XS0148888372): upgraded to 'C' from 'D'; maintained on RWP -- EUR11m class E1 (XS0148888703): upgraded to 'C' from 'D'; removed from RWP -- EUR1m class E2 (XS0148889180): upgraded to 'C' from 'D'; removed from RWP -- EUR1.3m class G1 (XS0148948291): 'C'; maintained on RWP. In March 2010, the credit default swap (CDS) counterparty, UBS AG ('UBS', rated 'A+'/Stable Outlook/'F1+'), replaced a number of ineligible reference obligations in the portfolio, several of which had experienced a credit event. This action reversed the principal write-downs of Brookland's junior notes and caused the class D, E1 and E2 to be fully written back up. Fitch has maintained all the note classes, other than E1 and E2, on RWP because the agency has limited visibility on any replacement reference obligations for the matured reference obligations, which currently make up 24% of the portfolio. Most of the matured reference obligations were included in the portfolio as a result of the replacement of the ineligible reference obligations in March 2010. The resolution of the RWP will depend on the eventual substitution of the matured reference obligations and the resulting portfolio's credit profile. The CDS counterparty has indicated to Fitch that it does not have a specific timeframe in which to substitute the matured reference obligations. In Fitch's view, there is a potential conflict of interest in the transaction, as substitutions are decided by the CDS counterparty. Nevertheless, the agency has not observed any activity that shows the CDS counterparty is exploiting its position. Fitch has removed class E1 and E2 notes from RWP because the agency does not believe the credit enhancement levels for the two classes, of 0.1%, to be sufficient to support a rating higher than 'C', regardless of the portfolio's eventual credit profile. Fitch has also assigned an Issuer Report Grade (IRG) of "basic" (two stars) to Brooklands. The issuer's monthly reports do not list the collateral assets with identifiers and the reports are not considered user-friendly. These attributes have prevented the transaction from earning an IRG higher than two stars. The reports do provide a detailed portfolio list in an easily accessible excel format with common market identifiers. =============== C O L O M B I A =============== ECOPETROL SA: Gives Details on P$2-Trillion Bond Issuance --------------------------------------------------------- Ecopetrol S.A. issued a clarification with respect to certain information published by certain media outlets on May 14, 2010, concerning the commencement by Ecopetrol SA of procedures for issuing up to P$2 trillion in fixed-yield bonds in the Colombian public securities market: 1. Petroleum prices since the beginning of the year have substantially helped the Company generate income not only to address its operational needs but also its investment plan without the need to incur debt. 2. If current petroleum prices persist, it is possible that the Company would not have to incur any debt during the first half of the year. 3. Despite not having any short-term liquidity needs, the Company continues moving forward on keeping as many financing options available and approved so that such resources are immediately available if and when the Company needs to make use of them. 4. Authorizations for 2010 and subsequent years are being secured for the Company's general investment plan; however, these authorizations bear no direct relationship to timing of any financial transactions. 5. In the process of obtaining authorizations, a request is currently before the Colombian Financial Superintendency ( (Superintendencia Financiera de Colombia) for an eventual bond issuance of up to $2 trillion pesos in the Colombian public securities market. 6. In the event the Company requires financing during the second half of the year, the first option would be a drawdown of up to US$500 million, under a US$1 billion credit facility that is currently under negotiation with the U.S. Export-Import Bank. 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 of May 20, 2010, the company continues to carry Standard and Poor's "BB+" LT Issuer Credit ratings. The company also continues to carry Fitch rating's "BB+" LT FC Issuer Default ratings and "BB+" Senior Unsecured Debt rating. ISAGEN SA: Congress Approves US$1.1 Billion Government Borrowing ---------------------------------------------------------------- Inti Landauro at Dow Jones Newswires reports that the Colombian Congress authorized the government to borrow as much as US$1.1 billion in bonds and from multilateral lenders to give options to the next administration if it decides not to sell power company Isagen SA. According to the report, the Congressional committee in charge of government debt borrowing approved: -- an US$800 million bond sale over the period 2010-2011; -- a US$160 million loan from the Andean Development Corp; and -- a US$140 million loan from the French Development Agency. "This is to give the new government all the elements to make any decision on Isagen," the report quoted Finance Minister Oscar Ivan Zuluaga as saying. "If they decide to resort to borrowing, they will have the ability," he added, the report relates. As reported in the Troubled Company Reporter-Latin America on May 18, 2010, Bloomberg News said that Colombia won't sell power generator Isagen SA while President Alvaro Uribe is in office, allowing the next government to decide whether to sell its majority share in the company after taking power in August. The report related that the government was seeking at least COP3 trillion (US$1.5 billion) for its 57% stake in Isagen. Colombia will have its presidential election in May, and the new president will take power on August 7. Dow Jones Newswires says that since the process to approve new borrowing takes several weeks, the next administration might have run into trouble if it had to tap the capital markets. 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 of May 20, 2010, the company continues to carry Moody's "BB+" LT Issuer Default ratings. * * * Colombia continues to carry Moody's "Ba1" foreign-currency government bond rating that was assigned on June 20, 2008. * COLOMBIA: Congress Approves US$1.1 Billion Government Borrowing ------------------------------------------------------------------ Inti Landauro at Dow Jones Newswires reports that the Colombian Congress authorized the government to borrow as much as US$1.1 billion in bonds and from multilateral lenders to give options to the next administration if it decides not to sell power company Isagen SA. According to the report, the Congressional committee in charge of government debt borrowing approved: -- an US$800 million bond sale over the period 2010-2011; -- a US$160 million loan from the Andean Development Corp; and -- a US$140 million loan from the French Development Agency. "This is to give the new government all the elements to make any decision on Isagen," the report quoted Finance Minister Oscar Ivan Zuluaga as saying. "If they decide to resort to borrowing, they will have the ability," he added, the report relates. As reported in the Troubled Company Reporter-Latin America on May 18, 2010, Bloomberg News said that Colombia won't sell power generator Isagen SA while President Alvaro Uribe is in office, allowing the next government to decide whether to sell its majority share in the company after taking power in August. The report related that the government was seeking at least COP3 trillion (US$1.5 billion) for its 57% stake in Isagen. Colombia will have its presidential election in May, and the new president will take power on August 7. Dow Jones Newswires says that since the process to approve new borrowing takes several weeks, the next administration might have run into trouble if it had to tap the capital markets. 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 of May 20, 2010, the company continues to carry Moody's "BB+" LT Issuer Default ratings. * * * Colombia continues to carry Moody's "Ba1" foreign-currency government bond rating that was assigned on June 20, 2008. ================================== D O M I N I C A N R E P U B L I C ================================== BANCO BHD: Gets US$20 Million Financing From IFC ------------------------------------------------ IFC, a member of the World Bank Group, signed a US$20 million financing to launch Banco BHD's innovative new energy efficiency finance program, The Dominican Today reports. The report relates that the bank's program will help Dominican firms decrease their energy costs and consumption, implement cleaner production projects, and reduce greenhouse gas emissions. According to the report, this is IFC's third financing to BHD. In 2003, the report recalls, IFC committed US$20 million to Banco BHD and in 2008 IFC purchased a stake of shares in Centro Financiero BHD, Banco BHD's holding, becoming Centro's fourth largest shareholder, currently holding a stake of 8.5%. The report relates that with IFC's support, BHD will finance energy efficiency projects in the industrial and tourism sectors in the Dominican Republic. In addition to financing, the report notes, IFC will also provide advisory services to help Banco BHD create a new energy efficiency unit that will develop a project pipeline, conduct energy audits for clients and identify new energy efficiency investments. About Banco BHD Banco BHD is a privately owned commercial bank in the Dominican Republic and part of the BHD Group. Having operated for over 30 years, it is a financial institution focused on serving individuals and corporations of the Dominican Republic. Banco BHD deals in multiple currencies and has an international department that handles large money transfers. In 1998 it acquired the insurance provider Compania de Seguros Palic and has an alliance with Spanish Banco Sabadell. The company has 60 branches located in the Dominican Republic, New York and the Cayman Islands. * * * As of May 20, 2010, the comapny continues to carry Fitch Rating's "B" LT Issuer default ratings and ST Issuer Default ratings. The company also continues to carry Fitch rating's "D" Individual Rating. ============= J A M A I C A ============= PETROLEUM CORP: Public Accounts Committee to Probe Firm ------------------------------------------------------- The Jamaican House of Representatives has cleared the way for the special audit report into the operations of the Petroleum Corporation of Jamaica to be probed by the Public Accounts Committee, RadioJamaica reports. According to the report, Energy Minister James Robertson brought a motion to Parliament for approval for the report to be sent to the Dr. Omar Davies-chaired House Committee. The report relates that the special audit was completed in October 2009. The auditors, RadioJamaica notes, found a raft of irregularities in the financial operations of the PCJ, with millions of dollars paid out under questionable circumstances. The report relates that the audit reportedly revealed a lax system which allowed money to be paid out without following basic accounting or government guidelines. Dr. Ruth Potopsingh, Managing Director of the PCJ, was eventually sacked by the PCJ board, the report says. * JAMAICA: Manufacturing Sector Declines for 9th Consecutive Qtr. ----------------------------------------------------------------- Jamaica's manufacturing sector continues to be hit hard by the recession suffering its ninth consecutive quarter of decline, RadioJamaica reports. The report relates that the Bank of Jamaica said that the sector continued to be affected by weak external and domestic demand during the January to March quarter. However, the report notes, the rate of decline were less than the average quarterly contraction of 4.9% for 2009. RadioJamaica says that the food and beverages and the other manufacturing sub- sectors both fell in the review quarter. According to the report, within food and beverages, lower output was estimated for alcoholic as well as food products, while the reduction in other manufacturing reflected lower production of chemical supplies due to the downturn in the construction and mining industries. * * * 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 * JAMAICA: Passes International Monetary Fund Test -------------------------------------------------- Trevor Alleyne, chief of the Caribbean division of the International Monetary Fund and head of the mission to Jamaica, issued a statement in Kingston: "An IMF team visited Kingston during May 4-18 to conduct the first review of the economic program under the Stand-By Arrangement approved by the Fund's Executive Board on February 4, 2010. The team met with the Minister of Finance Hon. Audley Shaw, Bank of Jamaica Governor Brian Wynter, and senior officials including Dr. Wesley Hughes, Financial Secretary, Mr. Rohan Barnett, Executive Director of the Financial Services Commission, and Mrs. Audrey Anderson, Senior Deputy Governor of the Bank of Jamaica. The team thanks the authorities and technical staff for their excellent cooperation. "As part of the SBA, a number of quarterly performance criteria have been established to gauge the performance of the economic program. These relate to the pillars of the program, namely fiscal consolidation and institutional reform, public debt restructuring, and financial sector reform. Given the high debt stock and interest payments, a prior action required a reduction in interest rates and an extension of maturities through the Jamaica Debt Exchange. Quantitative criteria include quarterly targets for the central government primary surplus, the balance of the public bodies, central government direct and guaranteed debt, net domestic assets of the Bank of Jamaica, and the net international reserves. "All quantitative performance criteria for the end-March 2010 test date were met, without the need for waivers, and substantial progress was made on the structural reform agenda. Stepped up tax administration measures and expenditure restraint were responsible for meeting the fiscal targets. Improved economic prospects following the approval of the SBA and the Jamaica debt exchange have resulted in substantially better financial market conditions: risk premia on Jamaican sovereign bonds have declined as have domestic interest rates, and the exchange rate has stabilized. In this environment, the NIR floor was exceeded by a comfortable margin. On structural reforms, the mission commends the authorities for passage of the new fiscal responsibility framework that will significantly improve the public expenditure management system; the divestment of Air Jamaica; and the notable progress in preparing reforms to improve tax administration and treasury management, and further strengthen the supervisory and regulatory framework of the financial system. "The mission and the authorities have agreed on an updated draft Letter of Intent, which will still need to be approved by the Cabinet and IMF's management. Based on the performance of the economic program, the mission will recommend that at the IMF Executive Board completes the First Review of the SBA, which will result in the disbursement of SDR63.7 million. The Board is expected to meet before the end of June. "The mission has been impressed by the level of commitment by the authorities to the economic program and by the broad social consensus that was crucial to making the JDX a success. Going forward, this partnership between the public and private sectors will be vital to the program's continued success. Risks to the program remain high, including from external and domestic shocks. Growth and employment are expected to remain weak during the current year as the economy transitions to an improved, fundamentally stronger basis. However, the mission is confident that continued implementation of the program will help boost investor confidence, and establish the conditions that will permit an increase in growth and employment, and improved living standards for all Jamaicans." * * * 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 =========== CEMEX SAB: Gets Various Offers for North Coast Property ------------------------------------------------------- Kurtis Alexander at MercuryNews.com reports that CEMEX, S.A.B. de C.V. has received various offers from local businessmen and politicians for lease or sale of its nearly 10,000-acre North Coast property. As reported in the Troubled Company Reporter-Latin America on January 26, 2010, MercuryNews.com said that CEMEX SAB will permanently shut down its Davenport cement plant and quarry on Santa Cruz County's North Coast. The report related that the factory, which has been in operation for 133 years, had closed temporarily in March because of the weak national economy. The report noted that company officials said that the plant would re- open when the demand for cement improved, but notice given to employees indicated otherwise. According to MercuryNews.com, some of the interested parties that have contacted the company for the property are: -- Los Altos-based Sempervirens Fund made a cash offer for much of the timberland surrounding the production facility for preservation and public recreation; -- Brent Constantz, the founder of Moss Landing's, has expressed interest in using the plant to make environmentally friendly cement; and -- Bonny Doon engineer JoeBen Bevirt has spoken with Cemex officials about manufacturing wind turbines there. The report notes that county leaders, including Supervisor Neal Coonerty and Treasurer-Tax Collector Fred Keeley, have engaged Cemex and some of the parties interested in the plant but have gotten few answers so far. The report relates Cemex SAB said that it is evaluating the offers but declined to discuss specifics. About CEMEX SAB CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As of May 20, 2010, the company continues to carry Standard and Poor's "B" LT Issuer credit ratings. The company also continues to carry Fitch rating's "B" LT Issuer Default ratings and "B+" Currency LT Debt ratings. Cemex is seeking US$1.3 billion in compensation for the seizure of its assets. The government of President Hugo Chavez has offered about a third of that. GRUMA SAB: Fitch Affirms Long-Term IDR at 'B+'; Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Gruma, S.A.B. de C.V.'s (Gruma) ratings following the forced sale of its Venezuelan assets to the government of Venezuela. The ratings have been affirmed as follows: --Foreign Currency Long-Term Issuer Default Rating (IDR) at 'B+'; --Local Currency Long -Term IDR at 'B+'; --US$300 million perpetual bonds at 'BB-/RR3'. The Outlook for all ratings is Stable. The rating affirmation takes into consideration the expected effects on Gruma's credit quality of the forced acquisition of Molinos Nacionales C.A. (Monaca), Gruma's Venezuelan subsidiary, by the Venezuelan Government. During 2009 revenues from Venezuela represented 18% of consolidated revenues while EBITDA represented 21% of total EBITDA. For the first three months of 2010, these represented 10% and 12% of consolidated revenues and EBITDA, respectively, with the decline mainly due to the effect of the devaluation of the Venezuelan Bolivar. While the negative financial impact of the nationalization is considerable, Gruma's 'B+' IDR already factored in the high uncertainty and volatility of the cash flows coming from Venezuela. On a pro forma basis, leverage at March 31, 2010, as measured by total debt to last 12 months (LTM) EBITDA excluding the operations in Venezuela, increases to 5.0 times (x) versus 4.1x actual, including Venezuela. Total net debt to LTM EBITDA excluding Venezuela also increases to 4.5x from 3.7x. These pro forma ratios remain consistent with the current rating category. Going forward for the remainder of 2010, operating EBITDA is projected to be lower than 2009 and leverage as measured by total debt to EBITDA should remain close to 5.0x at year end 2010 and begin to decline after that. While the nationalization does have a negative effect on our recovery expectations, the impact is small given the low valuation assigned to these assets prior to the nationalization. Based on our analysis, recovery prospects remain above average even when not considering any remuneration from the Venezuelan government for these assets, which supports a 'BB-/RR3' rating for the US$300 million perpetual note. After Gruma receives funds related to the forced sale, if any, Fitch would review the terms and conditions of the transaction, the destination of the funds and evaluate its effect on Gruma's credit profile. The company's liquidity position is adequate with MXN2.1 billion in cash and marketable securities versus short-term debt of MXN1.9 billion. Although the company's debt burden remains high, its maturity profile is manageable, with no debt amortizations higher than MXN2.5 billion in any particular year. Funds from operations and EBITDA have averaged more than MXN4 billion and MXN5 billion, respectively, during the past two years. Going forward FFO should remain above MXN3 billion and EBITDA above MXN4 billion after excluding the Venezuela operations and considering a more challenging operating environment in 2010, which would be enough to face maturing debt. In addition to that, capital expenditures and dividends have also been significantly reduced from historical levels and are expected to remain at more conservative levels, which should help free up cash flow to be used towards debt service. During 2009, Gruma's operating results were strong, driven by stable volumes, good pricing levels and strict cost cutting measures. The company generated MXN5.5 billion of EBITDA and MXN4.4 billion of FFO in the year. For 2010, results should trend downward, as lower demand has affected volumes and pricing in the U.S. during the first half of the year. Fitch's estimates include lower EBITDA generation from U.S. operations, combined with stable generation in Mexico during the year. The ratings for Gruma are supported by its solid business profile as one of the leading producers of corn flour and tortillas in the United States and corn flour in Mexico and Central America. The ratings are limited by limited pricing flexibility in some of its markets, such as Mexico, continued competitive pressures and the high volatility in the prices of corn and wheat, and high leverage. The company's competitive advantages include strong brand equity, broad distribution systems, proprietary technology, economies of scale and diversified product lines. The ratings also consider its geographic diversification of revenues and cash flows and hard currency generation from the company's U.S. subsidiary, Gruma Corp. Gruma is one of the world's largest producers of corn flour and tortillas. The company has operations in Mexico, the U.S., Europe, Central America, China and Australia. Gruma also produces and sells wheat flour in Mexico. The company's U.S. subsidiary Gruma Corp. is the most important contributor to total revenues and EBITDA, accounting for 56% and 64%, respectively. For the LTM ended March 31, 2010, the company had revenues of US$3.9 billion and EBITDA of US$406 million. Gruma owns an 8.8% stake in Grupo Financiero Banorte S.A. de C.V. (Banorte), one of the largest financial groups in Mexico and one of the few listed retail banks in Mexico. ==================== P U E R T O R I C O ==================== * PFIZER INC: To Trim 6,000 Jobs, Shut Eight Plants Worldwide ------------------------------------------------------------- Pfizer Inc. plans to make 6,000 jobs redundant as it trims its manufacturing capacity worldwide after acquiring smaller rival Wyeth in 2009, Jamaica Gleaner reports. The report relates that the company said it will cease operations at eight plants in Ireland, Puerto Rico and the United States by the end of 2015, and reduce operations at six other plants over the next several years. According to the report, overall, the company operates 78 plants internationally and employs about 116,000 workers. The report relates that Pfizer Inc. said in April that it would cut 20,000 jobs as part of the Wyeth integration. "The restructuring of our global plant network is critical to our efforts to remain competitive so that we can continue to meet patient needs and expand the access and affordability of our medicines," Pfizer Global Manufacturing President Nat Ricciardi said in a statement obtained by the news agency. Carribbean Net News notes that the company's restructuring includes the shuttering of two Puerto Rico plants in Caguas and Carolina as well as the downsizing of a third plant, in Guayama, over the next 30 months. According to Carribbean Net News, the company's moves will result to a loss of some 1,500 jobs from Pfizer's 4,000 staff in Puerto Rico. "This is an industry trend hitting Puerto Rico," the report quoted economist Vicente Feliciano, president of San Juan-based Advantage Business Consulting, as saying. "It's not a reflection of our competitiveness, but it will hurt," he added, the report relates. In Puerto Rico, Carribbean Net News says, the Pfizer closures reflect a decade-old trend, which had reduced the island's manufacturing sector from 157,000 jobs to 90,400. "The good news is that Pfizer is retaining three plants here, so the private sector and the government need to make sure those plants are as competitive as ever," the report quoted William Reifkohl, executive vice president of the Puerto Rico Manufacturers Association, as saying. About Pfizer Inc. Pfizer Inc. is a research-based, global pharmaceutical company that discovers, develops, manufactures, and markets medicines for humans and animals. The Company's products include prescription pharmaceuticals, non-prescription self-medications, and animal health products such as anti-infective medicines and vaccines. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Citgo Petroleum to Sell US$1.5BB in Bonds ----------------------------------------------------------------- Citgo Petroleum Corp., a US-based subsidiary of Venezuelan state oil company Petroleos de Venezuela, intends to issue bonds worth up to US$1.5 billion, Mayela Armas H. at El Universal reports, citing a draft memorandum the company delivered to financial institutions. According to the report, in the proposal, funds obtained from the operation would be used to refinance a loan and two credit lines. The report relates that based on the draft memorandum, at the end of the first quarter of 2010, Citgo Petroleum failed to meet commitments. In this context, the report says, the company reported that the outstanding amounts of the two lines of credit were US$515 million and US$609 million, respectively. EL Universal disclosed that the date of the transaction is not specified in the proposal. About Citgo Petroleum Headquartered in Houston, Texas, Citgo Petroleum Corp. -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. * * * As of May 20, 2010, the company continues to carry Moody's "Ba2" Long term and LT Corp family ratings. The company also continues to carry Standard and Poor's BB- LT Issuer Credit ratings. 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 TCR-LA 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. *********** 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 * * *