/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100715.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, July 15, 2010, Vol. 11, No. 138 Headlines A R G E N T I N A ELWELL TRADE: Creditors' Proofs of Debt Due on September 16 SKY ARGENTINA: Creditors' Proofs of Debt Due on September 1 BANCO HIPOTECARIO: S&P Affirms 'B-' Counterparty Credit Rating BANCO HIPOTECARIO: S&P Affirms 'B-' Counterparty Credit Rating B E R M U D A TOTAL HOME: Court to Hear Wind-Up Petition on August 6 B R A Z I L BR MALLS: Raised to 'Buy' From 'Hold' at Banco Santander GOL LINHAS: Gol Finance Sells US$300-Million 10-Year Notes TAM SA: Plans to Buy Tam Milor for BRL169.9 Million C A Y M A N I S L A N D S BANCOLOMBIA SA: Fitch Assigns 'BB+' Rating on Subordinated Notes EAST ATLANTIC: Shareholders' Final Meeting Set for August 9 GENERAL LEASING: Shareholders' Final Meeting Set for August 12 GENERAL LEASING: Shareholders' Final Meeting Set for August 12 STARTS (CAYMAN): Shareholders' Final Meeting Set for August 12 TALA PARTNERS: Shareholders' Final Meeting Set for July 30 THARGELIA INVESTMENTS: Shareholders' Final Meeting Set for Aug. 12 WORLD MOMENTUM: Shareholders' Final Meeting Set for August 12 C O L O M B I A ECOPETROL SA: Inks Polymer Study Contract With Mustang BANCOLOMBIA SA: Readies Bond Sale for US$634 Million E C U A D O R * ECUADOR: Minister Confirms Talks With China on US$1 Billion Loan J A M A I C A JPSCO: Plans to Spend US$56 Million Into Plant Upgrades JPSCO: Adds 4,000 Tivoli Clients in Bid to Stem Losses M E X I C O CEMEX SAB: Invests US$300 Million in Panama Operations CORPORACION GEO: Expands Into Hidalgo State With MXN2.4BB Project GRUPO PAPELERO: Moody's Maintains 'Ba3' Rating with Stable Outlook GRUPO TMM: To Publish 2Q 2010 Earnings Release on July 28 VITRO SAB: Sada Group Holds 24.4% of Common Stock T R I N I D A D & T O B A G O CL FIN'L: T&T Government Denies Scaling Down CLICO Probe V E N E Z U E L A PETROLEOS DE VENEZUELA: Oil Delivery Joint Venture Formed X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= ELWELL TRADE: Creditors' Proofs of Debt Due on September 16 ----------------------------------------------------------- The court-appointed trustee for Elwell Trade S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until September 16, 2010. The trustee will present the validated claims in court as individual reports on October 29, 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 December 13, 2010. SKY ARGENTINA: Creditors' Proofs of Debt Due on September 1 ----------------------------------------------------------- The court-appointed trustee for Sky Argentina S.C.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until September 1, 2010. The trustee will present the validated claims in court as individual reports on October 14, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on November 25, 2010. BANCO HIPOTECARIO: S&P Affirms 'B-' Counterparty Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B-' counterparty credit rating on Banco Hipotecario S.A. The outlook remains stable. "The ratings on Banco Hipotecario reflect the risks inherent in operating in Argentina," said Standard & Poor's credit analyst Sebasti n Liutvinas. "They also incorporate the bank's relatively low profitability and the challenge to continue expanding the credit portfolio while maintaining adequate financial indicators and increasing market position amid less favorable economic conditions." Banco Hipotecario's strong capitalization and adequate liquidity mitigate these weaknesses. In accordance with its criteria, S&P classify Banco Hipotecario as a government-related entity with a low likelihood of extraordinary government support. S&P's assessment of Banco Hipotecario is based on:Limited importance due to the GRE's role as a profit- seeking enterprise in a competitive environment. Banco Hipotecario is one among other GREs and/or its activity could be undertaken by a private-sector entity or another GRE if it ceased to exist. Limited link with the Argentine government, as the government is a minority shareholder and doesn't interfere more than other minority shareholders do in the GRE's strategic decisions and operations. Because of its uncertainties about the Argentine economy, S&P believes the close link between the credit quality of the Republic of Argentina (B-/Stable/C) and that of the Argentine financial system directly affect the bank's business and prospects. BANCO HIPOTECARIO: S&P Affirms 'B-' Counterparty Credit Rating -------------------------------------------------------------- On July 13, 2010, Standard & Poor's Ratings Services affirmed its 'B-' counterparty credit rating on Banco Hipotecario S.A. The outlook remains stable. The ratings on Banco Hipotecario reflect the risks inherent in operating in Argentina. They also incorporate the bank's relatively low profitability and the challenge to continue expanding the credit portfolio while maintaining adequate financial indicators and increasing market position amid less favorable economic conditions. Banco Hipotecario's strong capitalization and adequate liquidity mitigate these weaknesses. In accordance with its criteria, S&P classify Banco Hipotecario as a government-related entity with a low likelihood of extraordinary government support. S&P's assessment of Banco Hipotecario is based on: Limited importance due to the GRE's role as a profit- seeking enterprise in a competitive environment. Banco Hipotecario is one among other GREs and/or its activity could be undertaken by a private-sector entity or another GRE if it ceased to exist. Limited link with the Argentine government, as the government is a minority shareholder and doesn't interfere more than other minority shareholders do in the GRE's strategic decisions and operations. Because of its uncertainties about the Argentine economy, S&P believes the close link between the credit quality of the Republic of Argentina (B-/Stable/C) and that of the Argentine financial system directly affect the bank's business and prospects. Banco Hipotecario is challenged to improve its market position. With consolidated assets of Argentine pesos (ARP)11.72 billion ($3.02 million at ARP3.8763 to $1) as of March 31, 2010, it ranks No. 13 in the local financial system in loans, with a 2.4% market share, and is the 11th-largest in total assets (about 2.7% of the Argentine banking industry). The bank has sought to increase the penetration of its banking products by expanding and diversifying its loan portfolio, while maintaining adequate asset quality. As of March 31, 2010, the bank's loans to the private sector decreased by 5.6% year-over-year, with the nonperforming loans-to- total loans ratio decreasing to 4.1%. Loans other than mortgages increased 9% during the period, to 59% of the total portfolio, from only 4% as of year-end 2002. Also, mortgage loans decreased 21.1% because of the securitization of approximately 33% of mortgage loan portfolio during second-half 2009. Lending to the private sector was strong for a long time but has started to slow in the recent years, creating more adverse conditions for generating new business and funding. Banco Hipotecario has a relatively low profitability. However, the bank has improving its profits after a reported loss in 2008. Results for first-quarter 2010 represent an average return on average assets of 1.4%, which, though less than the 2.3% average for the system, compare favorably with the 1.0% it reported for the same period of 2009. This increase is mainly explained by lower provisions and higher securities gains -- mainly on public bonds -- and net fee income. Despite this improvement in the bank's profitability, interest income on lending to the private sector decreased, mainly on a decline in mortgages and personal loans. S&P believes Banco Hipotecario will remain challenged to consolidate its income from intermediation activity and provision of services in an uncertain Argentine economy. Banco Hipotecario's capitalization has remained very high and is adequate to support medium-term growth in its loan portfolio. Equity to adjusted assets according to S&P's methodology was a robust 24.0%, higher than the average in the local financial system. The stable outlook on Banco Hipotecario reflects that on Argentina. S&P believes the bank will be able to keep expanding its loan portfolio while maintaining adequate asset quality. S&P could lower the ratings on Banco Hipotecario if economic and industry risk for Argentine banks rises or the bank's credit standing weakens. The rating on the sovereign limits rating upside on the bank. Ratings Affirmed Banco Hipotecario S.A. Counterparty Credit Rating Global Scale B-/Stable/-- National Scale raA+/Stable/-- Senior Unsecured Foreign Currency B- National Scale raA+/Stable Certificate Of Deposit National Scale raA+/Stable/raA-1+ ============= B E R M U D A ============= TOTAL HOME: Court to Hear Wind-Up Petition on August 6 ------------------------------------------------------ A petition to wind up the operations of Total Home Ltd will be heard before the Supreme Court of Bermuda, on August 6, 2010, at 9:30 a.m. The petition was presented by the Supreme Court on July 7, 2010. =========== B R A Z I L =========== BR MALLS: Raised to 'Buy' From 'Hold' at Banco Santander -------------------------------------------------------- Shiyin Chen at Bloomberg News reports that BR Malls Participacoes SA was raised to "buy" from "hold" by Banco Santander SA analysts led by Flavio Queiro. According to the report, Mr. Queiro cited the company's "strong" growth prospects, its "robust track record" in turning around acquired units and the growth in rental prices. The report relates the analysts said that the shares may rise to BRL32.50 next year, compared with this year's forecast of BRL28. Headquartered in Rio de Janeiro, Brazil, BR Malls Participacoes S.A. -- http://www.brmalls.com.br-- is the largest integrated shopping mall company in Brazil with a portfolio of 34 malls, representing 985.2 thousand square meters in total Gross Leasable Area (GLA) and 429.1 thousand square meters in owned GLA. * * * As reported in the Troubled Company Reporter-Latin America on October 14, 2009, Fitch Ratings affirmed the ratings of BRMALLS Participacoes S.A.: -- foreign currency issuer default rating at 'BB-'; -- local currency issuer default rating at 'BB-'; -- long-term national scale rating at 'A(Bra)'; -- US$175 million perpetual notes at 'BB-'. GOL LINHAS: Gol Finance Sells US$300-Million 10-Year Notes ---------------------------------------------------------- Gol Linhas Aereas Intelligentes SA's subsidiary, Gol Finance, sold US$300 million of senior notes in the 144a private placement market, Reuters reports, citing IFR, a Thomson Reuters service. According to the report, the size of the deal was increased from an originally planned US$200 million. Bank of America Merrill Lynch, Citi and Itau were the joint bookrunning managers for the sale. BORROWER: GOL FINANCE AMT $300 MLN COUPON 9.25 PCT MATURITY 7/20/2020 TYPE SR NTS ISS PRICE 98.409 FIRST PAY 1/20/2011 MOODY'S N/A YIELD 9.50 PCT SETTLEMENT 7/20/2010 S&P B-PLUS SPREAD N/A PAY FREQ SEMI-ANNUAL FITCH BB-MINUS MORE THAN TREAS NON-CALLABLE 5 YRS * MAKE-WHOLE CALL As reported in the Troubled Company Reporter-Latin America on July 14, 2010, Dow Jones Newswires said that Gol Finance plans to use the funds from an offering to pay of debts that come due over the next three years. 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., provide 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" long-term corp family rating. TAM SA: Plans to Buy Tam Milor for BRL169.9 Million --------------------------------------------------- Laura Price at Bloomberg News reports that Tam SA's board approved a plan to buy Tam Milor Taxi Aereo, Representacoes, Marcas e Patentes SA for BRL169.9 million. The report, citing a regulatory filing, relates that the acquisition will give the company control of the Tam brands. According to the report, the company will buy 257,000 shares for BRL661 each. The report relates that Tam SA said it will pay 15% in cash on the date the contract is signed and will pay the remaining 85% in promissory notes. 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+" long-term issuer credit ratings. The company also continues to carry Fitch Rating's "BB-" long-term issuer default ratings. ========================== C A Y M A N I S L A N D S ========================== BANCOLOMBIA SA: Fitch Assigns 'BB+' Rating on Subordinated Notes ---------------------------------------------------------------- Fitch Ratings has assigned Bancolombia's upcoming U.S. dollar subordinated notes an expected long-term foreign currency rating of 'BB+'. The notes - for an amount to be determined -- will mature in 10 years, and interest payments will be made semi-annually at a fixed interest rate to be set at time of issuance. The notes will be subordinated to Bancolombia's existing and future senior debt and rank pari-passu with Bancolombia's existing subordinated debt. The final rating is contingent upon the receipt of final documents conforming to information already received. Bancolombia has a long-term local currency Issuer Default Rating of 'BBB-' and a long-term foreign currency IDR of 'BBB-'. The bank has outstanding subordinated debt maturing in 2017 that Fitch rates 'BB+'. The expected rating of the subordinated notes is one notch below the bank's long-term foreign currency IDR of 'BBB-'. This reflects the notes subordinated status to Bancolombia's present or future senior debt. The securities, which will be recognized by Colombia's regulator as Tier II capital instruments for regulatory capital purposes, lack an interest deferral clause and thus will likely be considered as Fitch's class A securities and will not receive any equity-credit under the agency's guidelines. Bancolombia will use the proceeds from the planned issue to sustain its asset growth and better match the maturities of its assets and liabilities. Bancolombia is the country's largest universal bank (held about 20% of the banking system's assets as of June 2010) and in 2007 became a regional player through the acquisition of El Salvador's largest bank. Bancolombia is controlled by a conglomerate of companies; its main shareholders are Grupo Suramericana and Inversiones Argos. Fitch rates Bancolombia: -- Foreign currency long-term IDR 'BBB-'; -- Foreign currency short-term IDR 'F3'; -- Local currency long-term IDR 'BBB-'; -- Local currency short-term IDR 'F3'; -- Individual rating 'C'; -- Support rating '3'; -- Support floor 'BB'; -- Subordinated debt 'BB+' The Rating Outlook is Stable. EAST ATLANTIC: Shareholders' Final Meeting Set for August 9 ----------------------------------------------------------- The shareholders of East Atlantic Funding Corporation will hold their final general meeting, on August 9, 2010, at 9:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GENERAL LEASING: Shareholders' Final Meeting Set for August 12 -------------------------------------------------------------- The shareholders of General Leasing Company (Cayman Islands) II Ltd. will hold their final general meeting, on August 12, 2010, at 10:05 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands GENERAL LEASING: Shareholders' Final Meeting Set for August 12 -------------------------------------------------------------- The shareholders of General Leasing Company (Cayman Islands) Ltd. will hold their final general meeting, on August 12, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands STARTS (CAYMAN): Shareholders' Final Meeting Set for August 12 -------------------------------------------------------------- The shareholders of Starts (Cayman) Limited 2007-26 will hold their final general meeting, on August 12, 2010, at 9:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands TALA PARTNERS: Shareholders' Final Meeting Set for July 30 ---------------------------------------------------------- The shareholders of Tala Partners Offshore Ltd. will hold their final general meeting, on July 30, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tala Investments LP Kalyan Kotamraju 9720 Wilshire Blvd, Suite 205 Beverly Hills CA 90212 United States of America Telephone: + 1 310 550 7270 Facsimile: + 1 310 550 7199 e-mail: info@jeereddi.com THARGELIA INVESTMENTS: Shareholders' Final Meeting Set for Aug. 12 ------------------------------------------------------------------ The shareholders of Thargelia Investments Limited will hold their final general meeting, on August 12, 2010, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands WORLD MOMENTUM: Shareholders' Final Meeting Set for August 12 ------------------------------------------------------------- The shareholders of World Momentum Equity Fund will hold their final general meeting, on August 12, 2010, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102, Cayman Islands =============== C O L O M B I A =============== ECOPETROL SA: Inks Polymer Study Contract With Mustang ------------------------------------------------------ Ecopetrol SA has entered into a contract with Mustang for conceptual engineering and technology evaluation to optimize polymer production at a planned petrochemical complex, Oil and Gas Journal reports. According to the report, Mustang, part of the Wood Group, will study ways to generate revenue from production of polyethylene, polyethylene, and aromatics from ethane, LPG, and naphtha produced at Ecopetrol's 205,000-b/d Barrancabermeja and 75,000-b/d Cartagena refineries and the Cusiana gas fields. The report notes that the grassroots petrochemical complex will be located at Cusiana in the southern part of the country or Cartagena on the northern coast. 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 13, 2010, Standard & Poor's Ratings Services affirmed its 'BB+' corporate credit rating on Ecopetrol SA. BANCOLOMBIA SA: Readies Bond Sale for US$634 Million ---------------------------------------------------- Bancolombia SA is readying an international bond sale for US$634 million, Darcy Crowe at Dow Jones Newswires reports, citing local brokerage firm Alianza Valores. The bonds are expected to yield between 5.9% and 6.1%, and will mature in 2020, Alianza Valores said in a research note obtained by the news agency. As reported in the Troubled Company Reporter Latin America on July 9, 2010, Dow Jones Newswires said that Bancolombia S.A's board authorized the company's management to sell up to COP1.2 trillion (US$637 million) in bonds on the domestic or international market. According to the report, the bank will offer the bonds, which will carry a 10-year maturity, in one or several sales in Colombia or abroad depending on market conditions. The report related the bank said that it will use the proceeds from the bond sales for "general corporate purposes," which include all the activities financial companies are allowed to carry out in Colombia. According to Dow Jones Newswires, Armando Mejia said that the bank was working with its underwriters to finalize this week the terms of the issue. The report relates Mejia confirmed that the debt issue will be in international, dollar-denominated bonds. About Bancolombia S.A. Bancolombia S.A. is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As of March 14, 2010, the bank continues to carry Fitch ratings "BB+" long-term issuer default ratings and subordinate debt rating. The company also continues to carry short-term foreign currency issuer default ratings. ============= E C U A D O R ============= * ECUADOR: Minister Confirms Talks With China on US$1 Billion Loan ------------------------------------------------------------------ Ecuador's Non-renewable Natural Resources Minister Wilson Pastor said that Ecuador is negotiating a loan with China, which could be repaid with oil, Mercedes Alvaro at Dow Jones Newswires reports. According to the report, the loan will likely be repaid with the sale of 36,000 barrels per day of oil or fuel oil from state-run Petroecuador to China's state-owned PetroChina International Co., a unit of PetroChina Co. The report notes that Ecuador is turning to China for financing after a market-unfriendly sovereign debt buyback last year and relations soured with multilateral lenders such as the World Bank and the International Monetary Fund, badly hampering its access to overseas private capital. According the minutes of the meetings, signed on June 12 and reviewed recently by Dow Jones Newswires, a loan tranche of US$200 million will be used for financing investment projects in Ecuador, selected from Ecuador's Planning Secretary's priority list of projects in the infrastructure and energy sectors, and in which Chinese companies are involved. The report notes that the remaining US$800 million will be freely available for use by the Andean nation's finance ministry. The loan will have a fixed interest rate of 6.5%, the report adds. * * * As of June 28, 2010, the country continues to carry Moody's "Caa2" CC long-term foreign bank deposit ratings, and "Caa3" foreign currency issuer rating and foreign currency long-term debt rating. ============= J A M A I C A ============= JPSCO: Plans to Spend US$56 Million Into Plant Upgrades ------------------------------------------------------- Jamaica Public Service Company plans to spend US$56 million (US$4.8 billion) to upgrade its plant and equipment in 2010, which will include a windfarm, Steven Jackson at Jamaica Observer reports. The firm also noted that the future introduction of liquefied natural gas will slash energy costs for Jamaicans, the report adds. According to the report, the investment is flat compared with previous years, but will see JPS reduce its reliance on oil via renewables. However, the report relates JPSCO Chairman Tomofumi Fukuda was anxious about the savings that could result from the introduction of LNG or coal. "It is very important to bring gas or coal to Jamaica immediately because gas prices are down, so it is very good timing. Coal is the most competitive fuel but it has issues," the report quoted Mr. Fukuda as saying. "Definitely we have to take immediate action. And from that perspective I appreciate the government's strong initiative to bring LNG," he added, Jamaica Observer relates. According to the report, the company's quarter ending March 2010 earnings results was affected by fluctuations in the global price of oil used to produce electricity. The report relates that JPSCO fuel cost rose to a whopping US$139.9 million in the review quarter from US$76.4 million in the similar 2009 quarter. The JPS is also benefiting from an energy charge that the Office of Utilities Regulations approved last year which represented an increase in rates of 23 to 29%, the report adds. About JPSCO Headquartered in Kingston, Jamaica -- https://www.jpsco.com/ -- Jamaica Public Service Company Limited is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has roughly 582,000 customers who are served by a workforce of over 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and roughly 14,000 kilometers of distribution and transmission lines. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2010, RadioJamaica said that the multi-billion dollar show down between the Jamaica Public Service and the three unions -- BITU, NWU, and UCASE -- representing workers at the company has entered the penultimate stage before the Industrial Disputes Tribunal. The report related that the IDT heard testimony from the Chairman of JPSCO, Tommy Fukuda who was called as the last witness. According to the report, Mr. Fukuda maintained that JPSCO has paid the US$2.3 billion it owed the workers following the 2001 job reclassification exercise. However, the report related, the three unions argued that the company still owed the workers an additional JM$500 million to JM$600 million in retroactive, overtime and redundancy payments. JPSCO: Adds 4,000 Tivoli Clients in Bid to Stem Losses ------------------------------------------------------ Jamaica Public Service Company has added 4,000 new customers from Tivoli Gardens and other surrounding communities since January in a bid to stem the billions lost in electricity theft, Jamaica Observer reports. The report relates that the threat of violence prevented JPSCO from entering these troubled communities prior to mounted operations by the security forces. According to the report, since January the company has connected the communities of Seaview Gardens, Retirement Road, Portmore Villa, Tivoli Gardens, Denham Town and Rose Town. JPS told the news agency that 620 of the 4,000 were residents of Tivoli Gardens, who were added following the Labour Day incursion by the security forces. In 2009, the report notes, the JPS Anti-Theft Task Force which was dispatched to western urban centres and the corporate area uncovered some 9,300 cases of irregularities. The report relates that this led to the recovery of about six million kilowatt hours of electricity valued at US$1.2 million (JM$103 million). Several arrests were made and the team investigated 24,000 customers supplied by major distribution feeders, the report says. The JPSCO, the report adds, said it is working with the Rural Electrification Program to execute this build out of infrastructure within communities. About JPSCO Headquartered in Kingston, Jamaica -- https://www.jpsco.com/ -- Jamaica Public Service Company Limited is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has roughly 582,000 customers who are served by a workforce of over 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and roughly 14,000 kilometers of distribution and transmission lines. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2010, RadioJamaica said that the multi-billion dollar show down between the Jamaica Public Service and the three unions -- BITU, NWU, and UCASE -- representing workers at the company has entered the penultimate stage before the Industrial Disputes Tribunal. The report related that the IDT heard testimony from the Chairman of JPSCO, Tommy Fukuda who was called as the last witness. According to the report, Mr. Fukuda maintained that JPSCO has paid the US$2.3 billion it owed the workers following the 2001 job reclassification exercise. However, the report related, the three unions argued that the company still owed the workers an additional JM$500 million to JM$600 million in retroactive, overtime and redundancy payments. =========== M E X I C O =========== CEMEX SAB: Invests US$300 Million in Panama Operations ------------------------------------------------------ CEMEX, S.A.B. de C.V. said it has invested about US$300 million in its Panama operations over the last two years, The Associated Press reports. The report relates that the company has tripled its cement production capacity in the country. According to the report, Cemex SAB said that it has recently signed a contract to supply 500,000 tons of cement for the Panama Canal expansion project. The report relates that the cement will be destined for the construction of a third set of locks on the waterway. 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" long-term issuer credit ratings. The company also continues to carry Fitch rating's "B" long-term issuer default ratings and "B+" currency long-term debt ratings. CORPORACION GEO: Expands Into Hidalgo State With MXN2.4BB Project ----------------------------------------------------------------- Corporacion GEO Sab de CV said it's expanding into central Hidalgo state with a MXN2.4 billion (US$189 million) housing project, Anthony Harrup at Dow Jones Newswires reports. According to the report, Geo SAB said the Hacienda Margarita development will extend its presence to 56 cities in 17 Mexican states. The report relates that the development calls for the construction of 9,000 homes and will generate 35,000 jobs, Geo said in a press release. The project also includes the construction of a sewage-treatment plant, a cycle track, a primary school, and shops, the report notes. Geo sold 56,537 homes in 2009, generating revenue of MXN19.21 billion, the report discloses. About Corp Geo Corporacion GEO Sab de CV, through its subsidiaries, designs and constructs entry-level housing communities in Mexico and Chile. GEO acquires land, obtains permits, installs infrastructure improvements, and builds and markets housing developments. * * * As reported in the Troubled Company Reporter-Latin America on June 29, 2010, Standard & Poor's Ratings Services said that it has affirmed its 'BB-' long-term corporate credit rating on Corporacion Geo S.A.B. de C.V. with a negative outlook. At the same time, S&P assigned its 'BB-' senior unsecured long-term debt rating to Geo's proposed up to US$250 million fixed-rate notes, to which S&P has also assigned a recovery rating of '4', indicating S&P's expectation of average (30%-50%) recovery in the event of a payment default. Geo will use proceeds of the issuance mainly to refinance short-term notes. GRUPO PAPELERO: Moody's Maintains 'Ba3' Rating with Stable Outlook ------------------------------------------------------------------ Moody's said that it continues to maintain a stable rating outlook for Grupo Papelero Scribe, S.A. de C.V.'s Ba3 ratings despite the significant run-up of global pulp prices since early 2010. The outlook is based on the rating agency's current view that credit metrics, while under pressure compared to 2009, are likely to remain in line with levels acceptable for the Ba3 rating category in 2010. The last rating action on Scribe was on March 23, 2010, when Moody's assigned a Ba3 corporate family rating to Scribe and also rated the company's US$300 million 8.875% senior unsecured notes at Ba3. Grupo Papelero Scribe, S.A. de C.V., headquartered in Mexico City, emerged in 2006 as a result of the buyout of Kimberly-Clark de Mexico's (not rated) Industrial Products division. Scribe is Mexico's largest producer of printing and writing paper and notebooks based on sales volume. For the 12 months ended March 31, 2010, the company reported MXN5.81 billion (US$443 million) in revenues. GRUPO TMM: To Publish 2Q 2010 Earnings Release on July 28 --------------------------------------------------------- Grupo TMM, S.A.B., will publish its second-quarter 2010 financial results on Wednesday, July 28, 2010. TMM's management will host a conference call and webcast to review financial and operational highlights on Thursday, July 29, 2010, at 11:00 a.m. Eastern time. To participate in the conference call, please dial (888) 857-6932 (domestic) or (719) 457-2665 (international) at least five minutes prior to the start of the event. Accompanying visuals and a simultaneous webcast of the meeting will be available at: http://www.visualwebcaster.com/event.asp?id=70471 A replay of the conference call will be available through August 29 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820, and entering passcode 1156408. On the Internet a replay will be available for 30 days at: http://www.visualwebcaster.com/event.asp?id=70471 About Grupo TMM Headquartered in Mexico City, Grupo TMM, S.A.B. (NYSE: TMM and BMV: TMM A) -- http://www.grupotmm.com/-- is one of the largest integrated logistics and transportation companies in Mexico providing specialized maritime services and integrated logistics services, including trucking services and ports and terminals management services, to premium clients throughout Mexico. * * * As reported in the Troubled Company Reporter-Latin America on July 6, 2010, Grupo TMM, S.A.B., filed on June 30, 2010, its annual report on Form 20-F for the fiscal year ended December 31, 2009. Salles, Sainz - Grant Thornton, S.C., in Mexico City, Mexico, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that the Company has sustained substantial losses from continuing operations during the past five years. VITRO SAB: Sada Group Holds 24.4% of Common Stock ------------------------------------------------- Adrian Sada Gonzalez, Esther Cueva de Sada, Adrian Sada Cueva, and Alejandra Sada Gonzalez disclosed holding American Depositary Shares of VITRO, S.A.B. de C.V. -- evidenced by American Depositary Receipts -- each of which represents 3 Ordinary Participation Certificates (Certificados de Participacion Ordinarios), which each represents one Common Share, without par value. According to their regulatory filing on July 8, the Sada group may be deemed to hold in the aggregate 94,287,630 shares or roughly 24.4% of Vitro common stock. Mr. Sada has been a member of the Board of Directors of Vitro since 1984. Mr. Sada is currently the Chairman of the Board of Directors of Vitro, a member of the Boards of Alfa, S.A.B. de C.V., Gruma, S.A.B. de C.V., Cydsa, S.A.B. de C.V., Regio Empresas, S.A.B. de C.V., the Latin American Executive Board for the Wharton School of Finance, the Mexican Businessmen Council and the Consejo de Industriales de Nuevo Leon. In addition, Mr. Sada is also President of Vitro's Finance and Planning Committee. Mrs. Sada has no present occupation; Mr. Sada Jr. is the Chief Financial Officer of Vitro's Glass Containers business unit. According to the filing, Mr. Sada beneficially owns 14,358,722 Shares consisting of 13,855,822 Shares he owns directly and 502,900 vested options held by Mr. Sada pursuant to Vitro's stock option plan. Mrs. Sada directly beneficially owns 3,257,651 Shares and, jointly with Mr. Sada Jr., indirectly beneficially owns the 9,878,494 Shares held in the Family Trust. Mr. Sada Jr. directly beneficially owns 2,558,519 Shares and jointly with Mrs. Sada indirectly beneficially owns the 9,878,494 Shares held in the Family Trust. Ms. Alejandra Sada Gonzalez (Mr. Sada's sister), directly owns 26,062,963 Shares, representing 6.7% of the total outstanding Shares. Mr. Sada, Mrs. Sada, Mr. Sada Jr. and Ms. Alejandra Sada Gonzalez have a voting agreement to exercise their voting rights as a unit. Mr. Sada, Mrs. Sada, Mr. Sada Jr. and Ms. Alejandra Sada Gonzalez beneficially own, as a group, an aggregate of 55,613,449 shares, which represents 14.4% of the total outstanding Shares. 502,900 vested options held by Mr. Sada pursuant to Vitro's stock option plan are not included in the agreement. Alfredo Harp Helu beneficially owns 38,171,281 through a trust, representing 9.9% of the total outstanding shares. Mr. Harp has entered into a voting agreement with Mr. Sada, Mrs. Sada, Mr. Sada Jr. and Ms. Alejandra Sada Gonzalez that became effective as of April 28, 2010 upon approval of the agreement by Vitro's board of directors. Pursuant to the voting agreement, Mr. Harp agrees to vote his shares in the same manner as the Sada Group votes in any ordinary or extraordinary shareholders meeting of Vitro and that the member of the Board appointed by Mr. Harp will vote in the same way the majority of the members of the Board of Directors appointed by the Sada Group vote. In addition, certain transfers of the shares of common stock to third parties are subject to certain restrictions, including rights of first offer. Mr. Sada's other siblings, Mr. Federico Sada Gonzalez, and Mrs. Maria Nelly Sada de Yarte, their spouses and children own an aggregate of 46,907,202 Shares, representing 12.1% of the total outstanding Shares. The members of the Reporting Group disclaim beneficial ownership of the Shares owned by Mr. Sada's other siblings and their spouses and children. Mr. Sada is a member of the technical committee of Vitro's stock option trust, which owns 39,777,907 Shares, representing 10.3% of the total outstanding Shares. The members of the technical committee share the right to vote and the right to sell the shares held by Vitro's stock option trust with the other member of the technical committee. The members of the Reporting Group disclaim beneficial ownership of the Shares owned by Vitro's stock option trust. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. * * * In June 2010, Fitch Ratings withdrew all ratings of Vitro, S.A.B. de C.V., given the lack of information following the company's default on Feb. 2, 2009, and consistent with Fitch's policies. Fitch will no longer provide ratings or credit research on the Company. Andres R. Martinez at Bloomberg News said in June that Vitro was suspended from trading in Mexico City after failing to file its fourth-quarter earnings report. The company missed June 2's deadline for the results, Mexico's stock exchange said in an e-mailed statement obtained by the news agency. Vitro plans to file the report once its debt restructuring is complete or if ordered by a judge. Vitro said that the suspension won't affect company operations. In June 30, 2009, Galaz, Yamazaki, Ruiz Urquiza, S.C., member of Deloitte Touche Tohmatsu and C.P.C. Jorge Alberto Villarreal in Monterrey, N.L., Mexico raised substantial doubt about the Company's ability to continue as a going concern after auditing financial results for the period ended Dec. 31, 2007, and 2008. The auditors pointed out to the Company's net loss and its non- compliance with covenants related to its long-term debt obligations. =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: T&T Government Denies Scaling Down CLICO Probe -------------------------------------------------------- The Trinidad and Tobago government has denied media reports that legal teams in six separate jurisdictions investigating allegations relating to CL Financial Group had been terminated because of mounting financial bills, Jamaica Gleaner reports. The report relates that a statement issued by the Office of the Attorney General said there was need to streamline the investigative efforts to "ensure that the state gets the best legal value for its dollar." According to the report, the statement said that there was no truth in the allegation that teams of lawyers working in at least six separate jurisdictions on the international criminal investigation against CL Financial have all been terminated. As reported in the Troubled Company Reporter-Latin America on July 13, 2010, Trinidad Express said that Trinidad and Tobago Attorney General Anand Ramlogan has fired teams of lawyers working in at least six separate jurisdictions on the international criminal investigation against CL Financial Limited on concern whether the government will continue to pursue the expensive probe. According to the report, among the lawyers whose briefs were terminated were: -- Ed Davis of Florida, United States; -- Marlene Davidge of Canada; -- Queen's Counsel James Lewis of the United Kingdom; -- Senior Counsel Douglas Mendes; -- Frederick Gilkes; -- Michael Quamina and Stuart Young in Trinidad and Tobago; and -- lawyers in Barbados, Cayman Islands, Turks and Caicos and Guernsey in the Channel Islands of the United Kingdom. The report said that unnamed sources said that close to TT$20 million had been budgeted to pay legal and expert fees for the probe but as the investigation moved into a higher gear it was evident the cost would have escalated. The Gleaner notes that the Central Authority Unit of the Ministry of the Attorney General has been in contact with British Queen Counsel James Lewis, and that Attorney General Anand Ramlogan has also been in regular contact with the forensic specialist, Robert Lindquist. The report relates that a number of local lawyers had offered to return their briefs in this matter and the decision to accept them was necessary "after a critical review was undertaken with a view to determining the nature of and necessity for the work done by the local team and the overall cost implications". The AG's office, the report adds, said that Mr. Ramlogan has "given no instructions" for terminating the services of any foreign advisers, but that there was a need to streamline the efforts of the various state agencies involved in the CLICO investigation to "ensure that the state gets the best legal value for its dollar, lest the candle cost more than the funeral." About CL Financial CL Financial Limited is the largest privately held conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the entire Caribbean. Founded as an insurance company, Colonial Life Insurance Company (CLICO) by Cyril Duprey, it was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2009, the Trinidad and Tobago Express said Central Bank Governor Ewart Williams disclosed that an examination of insurance company CLICO, dissolved finance house CLICO Investment Bank and other CL Financial companies showed a deficit between US$6 billion and US$8 billion. Tobago President George Maxwell Richards, The Express related, signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Oil Delivery Joint Venture Formed --------------------------------------------------------- Belarus and Venezuela have launched a joint venture to organize the delivery of Venezuelan oil to Belarus, RIA Novosti news reports, citing an unnamed source from the Belarusian Oil Company. According to the report, the source said that Belarusian Oil Company and Petroleos de Venezuela organized the venture. Belarus owns 25% and Venezuela 75%. According to the report, Minsk and Caracas agreed on the supplies of Venezuelan oil to Belarus in March, shortly after Belarus's brief dispute over oil supplies with Russia. Venezuelan oil is delivered by tankers to the Ukrainian port of Odessa and is transported by railroad through Ukraine to Belarus, the report notes. 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+" long-term issuer credit ratings. As reported in the Troubled Company Reporter-Latin America on January 25, 2010, Reuters said that Petroleos de Venezuela's total debt jumped 42% in 2009 after it borrowed heavily to pay off service company debts and intervene in currency markets. The\ report related that PDVSA said that total outstanding debt rose to US$21.4 billion from US$15.1 billion the year before. According to the report, PDVSA built up billions of dollars in debts to service companies after the 2008 collapse of oil prices. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 6-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ October 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *