/raid1/www/Hosts/bankrupt/TCRLA_Public/100617.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, June 17, 2010, Vol. 11, No. 118
Headlines
A R G E N T I N A
CONTROL AND: Creditors' Proofs of Debt Due on August 3
GUNTHER HERMANOS: Creditors' Proofs of Debt Due on July 12
MAHAKALI SRL: Creditors' Proofs of Debt Due on September 6
PRONAOS CONSTRUCCIONES: Creditors' Proofs of Debt Due on Aug. 10
TRADICO SAICIFA: Creditors' Proofs of Debt Due on August 20
B R A Z I L
BP PLC: Brazil Reviews Firm's Purchase of Devon Energy Assets
COSAN SA: Seeks License to Build BRL3-Billion Pipeline
COSAN SA: Trades Like Investment Grade on Shell Deal Rumors
C O L O M B I A
ECOPETROL SA: Gives OK for Pacific Rubiales to Expand Field
PACIFIC RUBIALES: Ecopetrol SA Gives OK for Firm to Expand Field
E C U A D O R
PETROECUADOR: May Oil Exports Rise 56% on Year to US$542 Mln
M E X I C O
CEMEX SAB: Updates Guidance for This Year
CEMEX SAB: Ireland Unit Wins GBP500,000 Flooring Contract
P U E R T O R I C O
MEDICAL EDUCATIONAL: Section 341(a) Meeting Scheduled for July 12
MEDICAL EDUCATIONAL: Wants Rafael Gonzalez Velez as Bankr. Counsel
MEDSCI DIAGNOSTICS: Section 341(a) Meeting Scheduled for July 15
MEDSCI DIAGNOSTICS: Taps Edgardo Munoz as Bankruptcy Counsel
MEDSCI DIAGNOSTICS: Wants Rafael Gonzalez Velez as Special Counsel
V E N E Z U E L A
BANCO FEDERAL: Authorities Reject Criticism of Seizure of Bank
GLOBOVISION: Future in Doubt After Owner Flees to Avoid Arrest
PETROLEOS DE VENEZUELA: 2009 Preliminary Revenues Drop 42%
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
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=================
A R G E N T I N A
=================
CONTROL AND: Creditors' Proofs of Debt Due on August 3
------------------------------------------------------
The court-appointed trustee for Control and Security in the Word
S.A.'s bankruptcy proceeding, will be verifying creditors' proofs
of claim until August 3, 2010.
The trustee will present the validated claims in court as
individual reports on September 15, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
October 27, 2010.
GUNTHER HERMANOS: Creditors' Proofs of Debt Due on July 12
----------------------------------------------------------
The court-appointed trustee for Gunther Hermanos S.H.'s
reorganization proceedings, will be verifying creditors' proofs of
claim until July 12, 2010.
The trustee will present the validated claims in court as
individual reports on September 9, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
October 21, 2010.
MAHAKALI SRL: Creditors' Proofs of Debt Due on September 6
----------------------------------------------------------
The court-appointed trustee for Mahakali S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
September 6, 2010.
The trustee will present the validated claims in court as
individual reports on October 18, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
November 29, 2010.
PRONAOS CONSTRUCCIONES: Creditors' Proofs of Debt Due on Aug. 10
----------------------------------------------------------------
The court-appointed trustee for Pronaos Construcciones S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until August 10, 2010.
The trustee will present the validated claims in court as
individual reports on September 24, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
November 26, 2010.
TRADICO SAICIFA: Creditors' Proofs of Debt Due on August 20
-----------------------------------------------------------
The court-appointed trustee for Pronaos Construcciones S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until August 20, 2010.
The trustee will present the validated claims in court as
individual reports on October 1, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
November 15, 2010.
===========
B R A Z I L
===========
BP PLC: Brazil Reviews Firm's Purchase of Devon Energy Assets
-------------------------------------------------------------
Brazil's oil-industry regulator Agencia Nacional do Petroleo is
reviewing BP Plc's US$7 billion agreement to buy Devon Energy
Corp.'s deep-water assets, Alan Purkiss at Bloomberg News reports
citing London-based Times. The report relates the local regulator
told the newspaper that the transaction is being examined and no
decision has yet been taken on whether to approve it.
Agencia Nacional do Petroleo grants licenses and supervises safety
in the Brazilian oil industry.
According to the report, the purchase of Devon Energy assets in
Brazil's Campos and Camamu-Almada basins as well as two onshore
licenses in the Parnaiba basin was announced on March 11. The
report relates the newspaper said that regulator head Magda
Chambriard and Raphael Moura, the official responsible for safety
issues, will meet with BP in Houston for talks on the Deepwater
Horizon catastrophe in the Gulf of Mexico.
The report notes the Times said that spokesmen for both BP and
Devon said there's no indication that permission for the
transaction, which also includes assets in the Gulf of Mexico and
Azerbaijan, will be withheld.
About BP Plc
BP Plc -- http://www.bp.com/-- is one of the world's largest
energy companies, providing its customers with fuel for
transportation, energy for heat and light, retail services and
petrochemicals products for everyday items.
* * *
As reported by the Troubled Company Reporter on June 10, 2010,
Tennille Tracy at Dow Jones Newswires said energy specialist Matt
Simmons, founder and chairman emeritus of Simmons & Co., has told
Fortune magazine that BP Plc has "about a month before they
declare Chapter 11."
COSAN SA: Seeks License to Build BRL3-Billion Pipeline
------------------------------------------------------
Lucia Kassai at Bloomberg News reports that Cosan SA Industria &
Comercio and 84 more Brazilian ethanol makers will seek
authorization to build a BRL3 billion (US$1.7 billion) pipeline to
ship fuel to a southeastern port from producing areas in Sao Paulo
state, Brazil. Uniduto Logistica SA Chief Executive Officer
Sergio van Klaveren told the news agency that the joint venture
will request an environmental license to build an ethanol pipeline
spanning 600 kilometers (373 miles). It will transport the fuel
to a port in Guaruja, in Sao Paulo's southeastern coast, from
Serrana, in the north of state, he added.
According to the report, Mr. Klaveren said that Sao Paulo-based
Uniduto Logistica plans to start the pipeline's construction in
the first quarter of next year and to begin operations by 2013,
when it may sell shares in Brazil. The Brazilian government's
BNDES development bank will finance 70% of the project, he added.
Bloomberg News notes that Cosan SA and Copersucar SA each own 30%
of Uniduto Logistica.
About Cosan S.A.
Cosan S.A. Industria e Comercio is a low-cost Brazilian sugar and
ethanol producer with a leading position in the global sugar and
ethanol industry. Cosan is also the fourth largest fuel
distributor in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 3, 2010, Moody's Investors Service placed the Ba3 corporate
family rating for Cosan S.A. Industria e Comercio and its
guaranteed senior unsecured debt ratings on review for possible
upgrade, following the announcement that the company has entered
into a memorandum of understanding with Shell for the formation of
two joint ventures to combine the majority of Cosan's businesses
with several of Shell's assets in Brazil, including its fuel
distribution business.
COSAN SA: Trades Like Investment Grade on Shell Deal Rumors
-----------------------------------------------------------
Ye Xie and Gabrielle Coppola at Bloomberg News report that Cosan
SA Industria & Comercio's bonds are trading like investment-grade
assets on speculation that it will complete a US$12 billion joint
venture with Royal Dutch Shell Plc. The report relates that the
yield on Cosan's dollar bonds due 2014 was 14 basis points less
than the average for BBB-rated corporate securities in Latin
America, according to data compiled by Trace and Credit Suisse
Group AG. On Jan. 29, 2010, the last trading day before Barra
Bonita, Brazil-based Cosan SA disclosed it was planning a
partnership with Shell.
According to the report, Cornel Bruhin, who oversees US$400
million of emerging-market assets at Clariden Leu AG, said that
the bonds will keep rallying because the agreement to combine
ethanol, sugar and fuel distribution assets with Shell may earn
Cosan SA an investment-grade rating by cutting debt ratios.
"For Cosan, the deal is a game changer," Mr. Bruhin told Bloomberg
in a telephone interview. "There's an opportunity for the company
to be a major energy player in Brazil. There's more upside for
the bonds," he added.
Bloomberg News, citing JPMorgan Chase & Co.'s CEMBI index, notes
that yields on Cosan SA's US$350 million of 9.5% notes due 2014
declined 177 basis points, or 1.77 percentage points, since Jan.
29 to 5.81%, outpacing the 22 basis-point average drop in
Brazilian corporate dollar debt over that time. The report
relates that the price on the Cosan SA bonds climbed six cents to
113 cents on the dollar even as sugar, the company's biggest
product, sank 46% from its 21-year high in January.
According to the report, a February 1 statement said the accord
calls for Cosan SA and Shell to each contribute US$4.9 billion in
assets to the joint venture. The companies have until the end of
July to complete the accord, the statement added.
About Cosan S.A.
Cosan S.A. Industria e Comercio is a low-cost Brazilian sugar and
ethanol producer with a leading position in the global sugar and
ethanol industry. Cosan is also the fourth largest fuel
distributor in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 3, 2010, Moody's Investors Service placed the Ba3 corporate
family rating for Cosan S.A. Industria e Comercio and its
guaranteed senior unsecured debt ratings on review for possible
upgrade, following the announcement that the company has entered
into a memorandum of understanding with Shell for the formation of
two joint ventures to combine the majority of Cosan's businesses
with several of Shell's assets in Brazil, including its fuel
distribution business.
===============
C O L O M B I A
===============
ECOPETROL SA: Gives OK for Pacific Rubiales to Expand Field
-----------------------------------------------------------
Pacific Rubiales Energy Corporation has received approval from its
state-owned partner Ecopetrol SA to expand the commercial area of
their Rubiales field in Colombia, The Canadian Press reports. The
report relates that the expansion will increase the field's
commercial area to 29,447 hectares, by adding 7,135 hectares.
According to the report, the field, which is jointly owned by the
two firms, currently produces approximately 122,500 barrels per
day.
"We are very pleased with this approval, which gives the company
all it requires to grow production and reach our stated production
goal at Rubiales of 170,000 barrels per day by the end of 2010,"
the report quoted PRE Chief Executive Ronald Pantin as saying.
Pacific Rubiales has current net production of about 56,700
barrels of oil equivalent per day, after royalties, with working
interests in 32 blocks in Colombia and Peru.
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 Ratings' "BB+" LT FC Issuer Default ratings and
"BB+" Senior Unsecured Debt rating.
About Pacific Rubiales
Pacific Rubiales Energy Corporation produces heavy crude oil. The
company focuses on the exploration, development, and production of
heavy crude oil in the Llanos Basin of Colombia.
* * *
As of December 21, 2009, the company continues to carry Standard
and Poor's B+ LT Issuer Credit ratings.
PACIFIC RUBIALES: Ecopetrol SA Gives OK for Firm to Expand Field
----------------------------------------------------------------
Pacific Rubiales Energy Corporation has received approval from its
state-owned partner Ecopetrol SA to expand the commercial area of
their Rubiales field in Colombia, The Canadian Press reports. The
report relates that the expansion will increase the field's
commercial area to 29,447 hectares, by adding 7,135 hectares.
According to the report, the field, which is jointly owned by the
two firms, currently produces approximately 122,500 barrels per
day.
"We are very pleased with this approval, which gives the company
all it requires to grow production and reach our stated production
goal at Rubiales of 170,000 barrels per day by the end of 2010,"
the report quoted PRE Chief Executive Ronald Pantin as saying.
Pacific Rubiales has current net production of about 56,700
barrels of oil equivalent per day, after royalties, with working
interests in 32 blocks in Colombia and Peru.
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 Ratings' "BB+" LT FC Issuer Default ratings and
"BB+" Senior Unsecured Debt rating.
About Pacific Rubiales
Pacific Rubiales Energy Corporation produces heavy crude oil. The
company focuses on the exploration, development, and production of
heavy crude oil in the Llanos Basin of Colombia.
* * *
As of December 21, 2009, the company continues to carry Standard
and Poor's B+ LT Issuer Credit ratings.
=============
E C U A D O R
=============
PETROECUADOR: May Oil Exports Rise 56% on Year to US$542 Mln
------------------------------------------------------------
Petroecuador reported oil export revenue of US$542 million in May,
a 56% increase from the US$348 million it pulled in during May
2009, Mercedes Alvaro at Dow Jones Newswires reports.
Petroecuador exported 8.31 million barrels of crude oil in May, a
20% increase from the 6.9 million barrels registered in the same
month of 2009, according to Petroecuador's official data, reviewed
Tuesday by Dow Jones Newswires.
According to the report, the data translates into exports of
268,064 barrels a day in May from 222,582 barrels a day in the
same month a year earlier. The report relates that exports of
Oriente crude were 6.5 million barrels in May, while exports of
Napo crude were 1.8 million barrels.
The report says that the average price of Oriente crude in May was
US$66.57 per barrel, while the price of Napo crude was US$59.83
per barrel.
Petroecuador reported oil export revenue of US$637 million in
April, the report adds.
About Petroecuador
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
As reported in the Troubled Company Reporter-Latin America on
December 28, 2009, Dow Jones Newswires said that Ecuadorian
President Rafael Correa authorized naval forces to extend its
control of Petroecuador until March as more time was needed for an
orderly handover of the company to a new management structure.
The report recalled that Petroecuador was declared in a state of
emergency two years ago, and the navy has been put in charge of
its restructuring.
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
===========
M E X I C O
===========
CEMEX SAB: Updates Guidance for This Year
-----------------------------------------
CEMEX, S.A.B. de C.V. has updated its full-year 2010 guidance.
The company confirmed that expectations for key 2010 metrics, such
as EBITDA, remain unchanged in local currency terms, AggNet News
reports.
According to the report, as a result of exchange rate
fluctuations, primarily the decline of the euro and the Mexican
peso relative to the US dollar since 27 April 2010, CEMEX SAB now
expect EBITDA for the full year 2010 to be approximately US$2.75
billion, while free cash flow after maintenance capital
expenditures is expected to be approximately US$800 million (based
on currently prevailing exchange rates).
CEMEX SAB, the report relates, said that it expect to use
approximately US$450 million from their free cash flow to reduce
debt.
The report notes that the currency composition of CEMEX SAB's
total debt, the US dollar's appreciation in relation to other
currencies, has resulted in a favorable translation impact on the
company's total indebtedness. The report relates that at
currently prevailing exchange rates, total indebtedness has
declined by approximately US$550 million relative to the balance
as of March 31, 2010.
Moreover, the report says, CEMEX SAB's total indebtedness has been
further reduced by approximately US$437 million during the current
quarter, as a result of the recently completed exchange of the
company's outstanding perpetual debentures for US dollar-
denominated and euro-denominated notes. Overall, the report
discloses, total debt, including outstanding perpetual debentures,
has declined by nearly US$1 billion since March 31, 2010.
For the full year 2010, the report says, CEMEX SAB continues to
expect consolidated domestic cement volumes to increase by
approximately 3%, ready-mixed concrete volumes to decline
slightly, and aggregates volumes to increase by approximately 1%.
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.
CEMEX SAB: Ireland Unit Wins GBP500,000 Flooring Contract
---------------------------------------------------------
CEMEX, S.A.B. de C.V.'s Northern Ireland unit has won a flooring
contract worth GBP500,000 at a new school in Co Antrim, Belfast
Telegraph reports. The report relates that Cemex is supplying a
flowing screed product for Our Lady and St Patrick's School in
Belfast, which is being built by O'Hare and McGovern.
According to the report, Paul Connolly, Cemex regional director,
said that the contract was their biggest ever and that it had
helped secure the jobs of the company's 150-strong workforce in
Northern Ireland. "It's a cutting edge product and a major step
forward in the green agenda," the report quoted Mr. Connolly as
saying.
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.
====================
P U E R T O R I C O
====================
MEDICAL EDUCATIONAL: Section 341(a) Meeting Scheduled for July 12
-----------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Medical
Educational and Health Services Inc's creditors on July 12, 2010,
at 9:00 p.m. The meeting will be held at 341 Meeting Room, Ochoa
Building, 500 Tanca Street, First Floor, San Juan.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Mayaguez, Puerto-Rico-based Medical Educational and Health
Services Inc filed for Chapter 11 bankruptcy protection on June 3,
2010 (Bankr. D. P.R. Case No. 10-04905). Rafael Gonzalez Velez,
Esq., who has an office in San Juan, Puerto Rico, assists the
Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000
in liabilities.
MEDICAL EDUCATIONAL: Wants Rafael Gonzalez Velez as Bankr. Counsel
------------------------------------------------------------------
Medical Educational & Health Service has sought permission from
the U.S. Bankruptcy Court for the District of Puerto Rico to
employ the law firm of Rafael Gonzalez Velez as bankruptcy
counsel.
The Firm will:
a. give the Debtor legal advice with respect to its Chapter
11 case;
b. represent the Debtor in the adversary proceeding, index or
contested matters filed by or against the Debtor; and
c. represent the Debtor in any other matter requested by the
Debtor.
The Firm will be paid $150 per hour for its services.
Rafael Gonzales Velez, an attorney at the Firm, assures the Court
that the Firm is "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.
Mayaguez, Puerto-Rico-based Medical Educational and Health
Services Inc filed for Chapter 11 bankruptcy protection on June 3,
2010 (Bankr. D. P.R. Case No. 10-04905). The Company listed
$10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000
in liabilities.
MEDSCI DIAGNOSTICS: Section 341(a) Meeting Scheduled for July 15
----------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Medsci
Diagnostics Inc's creditors on July 15, 2010, at 2:00 p.m. The
meeting will be held at Ochoa Building, 500 Tanca Street, First
Floor, San Juan, PR 00901.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
San Juan, Puerto Rico-based Medsci Diagnostics, Inc, filed for
Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. D.P.R.
Case No. 10-04961). Edgardo Munoz, Esq., at Edgardo Munoz, PSC,
assists the Company in its restructuring effort. The Company
listed $50,000,001 to $100,000,000 in assets and $1,000,001 to
$10,000,000 in liabilities.
MEDSCI DIAGNOSTICS: Taps Edgardo Munoz as Bankruptcy Counsel
------------------------------------------------------------
Medsci Diagnostics Inc sought and obtained authorization from the
Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for
the District of Puerto Rico to employ Edgardo Munoz, PSC, as
bankruptcy counsel.
Edgardo Munoz will, among other things:
a. assist the Debtor with respect to negotiations with
creditors for the purpose of achieving a reorganization or
an orderly liquidation;
b. prepare complaints, answers, orders, reports, memoranda of
law and/or any other legal paper or document required in
the above captioned case;
c. appear before the Court or any other court in which the
Debtor asserts a claim, interest or defense related to
the bankruptcy case;
d. perform other legal services for debtor as may be required
in this proceeding or in connection with the operation of
the Debtor's business including, but not limited to,
notarial services.
Edgardo Munoz will be paid $275 per hour for its services.
Edgardo Munoz, Esq., an attorney at Edgardo Munoz, PSC, assures
the Court that the firm is a "disinterested person," as that term
is defined in section 101(14) of the Bankruptcy Code, as modified
by section 1107(b) of the Bankruptcy Code.
San Juan, Puerto Rico-based Medsci Diagnostics, Inc, filed for
Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. D.P.R.
Case No. 10-04961). The Company listed $50,000,001 to
$100,000,000 in assets and $1,000,001 to $10,000,000 in
liabilities.
MEDSCI DIAGNOSTICS: Wants Rafael Gonzalez Velez as Special Counsel
------------------------------------------------------------------
Medsci Diagnostics, Inc., has asked for authorization from the
U.S. Bankruptcy Court for the District of Puerto Rico to employ
Rafael Gonzalez Velez as special counsel.
The Debtor needs the services of a special counsel to prosecute a
civil action against the State Insurance Fund Corporation.
Mr. Velez will, among other things:
a. represent and advise the Debtor with respect to its
duties, as plaintiff in Adv. Proc. No. 10-00094;
b. prepare complaints, answers, orders, reports, memoranda of
law and/or any other legal paper or document required in
the case;
c. appear before the Court or any other court in which the
Debtor asserts a claim, interest or defense related to its
contract with SIF; and
d. perform other legal services for the Debtor as may be
required in the proceeding or in connection with the
aforesaid litigation including negotiation of settlements
and other activities related to the action(s) versus SIF.
Mr. Velez has received from the Debtor a retainer in the amount of
$5,000. Contingent fees have been agreed upon at these
percentages: 10% of the outstanding and liquidated amount owed by,
and collected from SIF; plus 15% of any other recovery from SIF as
set forth in Adv. Proc. 10-00094.
To the best of the Debtor's knowledge, Mr. Velez is "disinterested
person," as that term is defined in section 101(14) of the
Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy
Code.
San Juan, Puerto Rico-based Medsci Diagnostics, Inc, filed for
Chapter 11 bankruptcy protection on June 6, 2010 (Bankr. D.P.R.
Case No. 10-04961). The Company listed $50,000,001 to
$100,000,000 in assets and $1,000,001 to $10,000,000 in
liabilities.
=================
V E N E Z U E L A
=================
BANCO FEDERAL: Authorities Reject Criticism of Seizure of Bank
--------------------------------------------------------------
President of the Bank Deposit Guarantee and Protection Fund
(Fogade) David Alastre rejected the mindset Nelson Mezerhane, the
owner of Banco Federal, is trying to create to "circumvent" the
real technical reasons behind the government's decision to seize
the bank, El Universal reports.
According to the report, Mr. Alastre said that the intervention
behind closed doors of Banco Federal is consistent with the law,
as the bank violated the General Law on Banks and the measures
ordered by the National Superintendence of Banks and other
Financial Institutions (Sudeban).
Mr. Alastre, the report notes, reminded that Banco Federal
liabilities are larger than quick assets, which led to a US$590
million imbalance. On the other hand, the report relates, Banco
Federal did not have the minimum legal reserve required by the
Central Bank of Venezuela.
GLOBOVISION: Future in Doubt After Owner Flees to Avoid Arrest
--------------------------------------------------------------
Fabiola Sanchez at The Associated Press reports that the majority
owner of Venezuela's only opposition-aligned TV station
Globovision, Guillermo Zuloaga, has left Venezuela to avoid an
arrest warrant as multiple cases brought by authorities leave the
company facing an uncertain future. The report relates that Mr.
Zuloaga departure means that two of the company's owners are out
of the country.
According to the report, a Globovision minority shareholder,
Nelson Mezerhane, is in Florida, where he happened to be when the
government announced it was taking over his bank for alleged
financial problems. The report relates that Mr. Mezerhane told CNN
he would not return to Venezuela for now.
The AP notes that another minority shareholder, former station
director Alberto Ravell, insisted Globovision will survive what he
called the government's effort to strangle the station. The
report relates Mr. Ravell confirmed that Mr. Zuloaga was in exile
and said that in the meantime the channel will be headed by Maria
Fernanda Flores, a member of the board of directors, along with
Carlos Zuloaga, a son of the owner.
Mr. Ravell, the report adds, said that Globovision is in no way
financially dependent on Mezerhane's bank.
As reported in the Troubled Company Reporter-Latin America on
September 7, 2009, The Associated Press said that Venezuela
Telecommunications Chief Diosdado Cabello said there is a new
probe into a television station opposed to President Hugo Chavez's
government. The report related that Mr. Cabello said the recent
investigation into Globovision was opened because the channel
allegedly broadcast a ticker strip of text messages from viewers
calling for a coup. The report said that the series of
investigations into Globovision, the only fiercely anti-Chavez
channel remaining on the open airwaves, could lead to its closure.
PETROLEOS DE VENEZUELA: 2009 Preliminary Revenues Drop 42%
----------------------------------------------------------
Petroleos de Venezuela's annual report and accounts for year 2009
depicts an industry with lower income due to volatile oil prices,
and with reduced social contribution, Mayela Armas H. at EL
Universal reports. The report relates that Pdvsa's project
execution was undermined by debts with suppliers.
According to the report, PDVSA's preliminary figures show that in
the past year total revenues amounted to US$72.9 billion, a 42%
decline compared to US$126.3 billion in 2008. The report relates
that this result was affected by the behavior of prices, as the
domestic oil basket averaged US$57, while in the previous fiscal
year it averaged US$86.
EL Universal notes that after expenses and taxes, the preliminary
results show that PDVSA's net profits in 2009 amounted to US$6.1
billion, 35% lower than in 2008, when they were US$9.4 billion.
In 2009, the report recalls Venezuelan President Hugo Chavez said
that PDVSA's social spending would not be affected by the decline
in oil revenues. However, the report says, PDVSA's funds allocated
to social programs actually dropped. The holding's social
contribution, without including the National Development Fund, was
US$1.8 billion, a 34% decline compared to US$2.7 billion in 2008,
the report adds.
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"
local currency issuer rating. The company also continues to carry
Standard and Poor's "B+" LT Issuer credit ratings.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
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Aug. 5-7, 2010
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Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
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Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
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Mar. 31-Apr. 3, 2011
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Annual Spring Meeting
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June 9-12, 2011
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Traverse City, Michigan
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October 25-27, 2011
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Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
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***********
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 * * *