/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100819.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, August 19, 2010, Vol. 11, No. 163 Headlines B A R B A D O S AIC BARBADOS: CEO to Redeem US$19 Million Bonds B E R M U D A LONE STAR: Creditors' Proofs of Debt Due on August 20 LONE STAR: Members' Final Meeting Set for September 8 LSF6 IRISH: Creditors' Proofs of Debt Due on August 20 LSF6 IRISH: Members' Final Meeting Set for September 10 LSF6 LUX: Creditors' Proofs of Debt Due on August 20 LSF6 LUX: Members' Final Meeting Set for September 8 NORSK INVESTMENTS: Creditors' Proofs of Debt Due on August 20 NORSK INVESTMENTS: Members' Final Meeting Set for September 10 OZ DELTA: Creditors' Proofs of Debt Due on August 20 OZ DELTA: Members' Final Meeting Set for September 17 OZ EVEREST: Creditors' Proofs of Debt Due on August 20 OZ EVEREST: Members' Final Meeting Set for September 8 OZ GAMMA: Creditors' Proofs of Debt Due on August 20 OZ GAMMA: Members' Final Meeting Set for September 10 PRIMEX (BERMUDA): Creditors' Proofs of Debt Due on September 1 PRIMEX (BERMUDA): Members' Final Meeting Set for September 14 C A Y M A N I S L A N D S AGAM SPV: Creditors' Proofs of Debt Due on September 16 ANCHORAGE SHORT: Creditors' Proofs of Debt Due on September 16 CAP 17: Creditors' Proofs of Debt Due on September 16 CHILDREN'S INVESTMENT: Creditors' Proofs of Debt Due on Sept. 16 CLARIUM CAPITAL: Creditors' Proofs of Debt Due on September 16 CP BIDCO: Creditors' Proofs of Debt Due on September 16 CP HOLDCO1: Creditors' Proofs of Debt Due on September 16 CP HOLDCO2: Creditors' Proofs of Debt Due on September 16 CP HOLDCO3: Creditors' Proofs of Debt Due on September 16 CP HOLDCO4: Creditors' Proofs of Debt Due on September 16 CP HOLDCO5: Creditors' Proofs of Debt Due on September 16 FINSBURY ASSET: Creditors' Proofs of Debt Due on September 16 HERACLES FUND: Creditors' Proofs of Debt Due on September 6 HORSEMAN EMERGING: Creditors' Proofs of Debt Due on Sept. 16 IFIT VOLTA: Creditors' Proofs of Debt Due on September 30 KBC FP: Creditors' Proofs of Debt Due on September 16 KENMAR GLOBAL: Creditors' Proofs of Debt Due on September 16 ONSLOW GLOBAL: Creditors' Proofs of Debt Due on September 16 PACIFIC INSURANCE: Placed Under Voluntary Wind-Up SANDAKAN INVESTMENTS: Commences Wind-Up Proceedings J A M A I C A NROCC: Development Bank of Jamaica to Restructure Firm's Debt * JAMAICA: Banks Bad Debt Jumps Another JM$1-Billion in June Qtr. M E X I C O CEMEX SAB: Fitch Affirms Issuer Default Rating at 'B' T R I N I D A D & T O B A G O MOTOR & GENERAL: Suspended for 45 More Days Amid Funding Woes TRINIDAD CEMENT: Secures Forgiveness From Creditors X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =============== B A R B A D O S =============== AIC BARBADOS: CEO to Redeem US$19 Million Bonds ----------------------------------------------- AIC Barbados Limited intends to redeem another US$19 million owed to bondholders but is not disclosing the source of the cash for the payment, Jamaica Gleaner reports. The report relates that the final US$60 million should be redeemed within another 16 months. According to the report, the 20% principal payment will be made on the same date as the next interest payment, on September 11, three months ahead of the revised schedule agreed last year after AIC went into technical default on some of the bonds. Interest will be paid at 13.25%. The report relates that under the new schedule, 30% was paid out last December; another 20% was to have been paid on December 11, 2010 but will now be paid next month; and the final, 50% by December 11, 2011. AIC Barbados, the report says, will incur no penalty for the early redemption of the second installment, having given more than the required seven days' notice to trustee PanCaribbean. PanCaribbean advised bondholders of the payment by circular issued August 10, the report relates. Donovan Perkins, chief executive officer of Pan Caribbean Financial Services, said that the upcoming redemption would amount to US$19.27 million, narrowing the outstanding debt from US$79.42 million at August 1 to US$60.15 million, the report adds. About AIC Barbados AIC Barbados Limited, which is valued at more than US$1 billion, comprises several Caribbean holdings including Jamaica's largest deposit taking institution the National Commercial Bank. * * * As reported in the Troubled Company Reporter-Latin America on June 8, 2009, RadioJamica said AIC Barbados asked its creditors for another extension to make payments on maturing instruments as divestment of the sale of assets in its portfolio is taking longer than expected. The Jamaica Gleaner related Mr. Lee-Chin is selling his Pan Caribbean fibre optic cable business, Columbus Communications, to pay off the debt. According to Jamaica Gleaner, Mr. Chin failed to come up with the US$155 million (J$13.8 billion) that AIC Barbados owes bond holders. The Gleaner related that based on an internal document, about US$108 million of the debt is owed to Jamaican investors, of which US$47 million is due this year. Mr. Lee Chin, The Gleaner said, was already granted one extension to June 11, 2009, to repay the bonds, however, he asked investors again to extend the wait to November. ============= B E R M U D A ============= LONE STAR: Creditors' Proofs of Debt Due on August 20 ----------------------------------------------------- The creditors of Lone Star Investment Holdings, Ltd. are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 2, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda LONE STAR: Members' Final Meeting Set for September 8 ----------------------------------------------------- The members of Lone Star Investment Holdings, Ltd. will hold their final meeting, on September 8, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 2, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda LSF6 IRISH: Creditors' Proofs of Debt Due on August 20 ------------------------------------------------------ The creditors of LSF6 Irish Holdings, Ltd. are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda LSF6 IRISH: Members' Final Meeting Set for September 10 ------------------------------------------------------- The members of LSF6 Irish Holdings, Ltd. will hold their final meeting, on September 10, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda LSF6 LUX: Creditors' Proofs of Debt Due on August 20 ---------------------------------------------------- The creditors of LSF6 Lux Holdings, Ltd. are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda LSF6 LUX: Members' Final Meeting Set for September 8 ---------------------------------------------------- The members of LSF6 Lux Holdings, Ltd. will hold their final meeting, on September 8, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda NORSK INVESTMENTS: Creditors' Proofs of Debt Due on August 20 ------------------------------------------------------------- The creditors of Norsk Investments Ltd. are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda NORSK INVESTMENTS: Members' Final Meeting Set for September 10 -------------------------------------------------------------- The members of Norsk Investments Ltd. will hold their final meeting, on September 10, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda OZ DELTA: Creditors' Proofs of Debt Due on August 20 ---------------------------------------------------- The creditors of OZ Delta Leasing Ltd. are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda OZ DELTA: Members' Final Meeting Set for September 17 ----------------------------------------------------- The members of Oz Delta Leasing Ltd. will hold their final meeting, on September 17, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda OZ EVEREST: Creditors' Proofs of Debt Due on August 20 ------------------------------------------------------ The creditors of Oz Everest Leasing Ltd. are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 2, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda OZ EVEREST: Members' Final Meeting Set for September 8 ------------------------------------------------------ The members of Oz Everest Leasing Ltd. will hold their final meeting, on September 8, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 2, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda OZ GAMMA: Creditors' Proofs of Debt Due on August 20 ---------------------------------------------------- The creditors of Oz Gamma Leasing Ltd. are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda OZ GAMMA: Members' Final Meeting Set for September 10 ----------------------------------------------------- The members of Oz Gamma Leasing Ltd. will hold their final meeting, on September 10, 2010, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 3, 2010. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda PRIMEX (BERMUDA): Creditors' Proofs of Debt Due on September 1 -------------------------------------------------------------- The creditors of Primex (Bermuda) Ltd. are required to file their proofs of debt by September 1, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 5, 2010. Nicholas J. Hoskins is the company's liquidator. PRIMEX (BERMUDA): Members' Final Meeting Set for September 14 ------------------------------------------------------------- The members of Primex (Bermuda) Ltd. will hold their final meeting, on September 14, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 5, 2010. Nicholas J. Hoskins is the company's liquidator. ========================== C A Y M A N I S L A N D S ========================== AGAM SPV: Creditors' Proofs of Debt Due on September 16 ------------------------------------------------------- The creditors of Agam SPV Four Limited (Cayman) are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 27, 2010. The company's liquidator is: Christopher P. Meyering Charles Lee Telephone: +44 (0)1534 700 864 Facsimile: +44 (0)1534 700 800 Walkers, Walker House 28 - 34 Hill Street St Helier Channel Islands, JE4 8PN Sciens Hedge Fund Management LLC 667 Madison Avenue New York NY 10065 USA ANCHORAGE SHORT: Creditors' Proofs of Debt Due on September 16 -------------------------------------------------------------- The creditors of Anchorage Short Credit Offshore Fund II, Ltd. are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 4, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands CAP 17: Creditors' Proofs of Debt Due on September 16 ----------------------------------------------------- The creditors of CAP 17 SPC, Ltd. are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 27, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands CHILDREN'S INVESTMENT: Creditors' Proofs of Debt Due on Sept. 16 ---------------------------------------------------------------- The creditors of The Children's Investment Segregated Fund are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 4, 2010. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 CLARIUM CAPITAL: Creditors' Proofs of Debt Due on September 16 -------------------------------------------------------------- The creditors of Clarium Capital (Cayman) Ltd. are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 28, 2010. The company's liquidator is: Richard Finlay Tania Dons Telephone: (345) 814-7766 Facsimile: (345) 945-3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands CP BIDCO: Creditors' Proofs of Debt Due on September 16 ------------------------------------------------------- The creditors of CP Bidco Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 27, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands CP HOLDCO1: Creditors' Proofs of Debt Due on September 16 --------------------------------------------------------- The creditors of CP HOLDCO1 Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 27, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands CP HOLDCO2: Creditors' Proofs of Debt Due on September 16 --------------------------------------------------------- The creditors of CP HOLDCO2 Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 27, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands CP HOLDCO3: Creditors' Proofs of Debt Due on September 16 --------------------------------------------------------- The creditors of CP HOLDCO3 Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 27, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands CP HOLDCO4: Creditors' Proofs of Debt Due on September 16 --------------------------------------------------------- The creditors of CP HOLDCO4 Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 27, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands CP HOLDCO5: Creditors' Proofs of Debt Due on September 16 --------------------------------------------------------- The creditors of CP HOLDCO5 Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 27, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands FINSBURY ASSET: Creditors' Proofs of Debt Due on September 16 ------------------------------------------------------------- The creditors of Finsbury Asset Funding Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 2, 2010. The company's liquidator is: Darren Riley Ellen J. Christian Telephone: 345 945 9208 Facsimile: 345 945 9210 c/o BNP Paribas Bank & Trust Cayman Limited Royal Bank House, 3rd Floor Shedden Road George Town, Grand Cayman Cayman Islands HERACLES FUND: Creditors' Proofs of Debt Due on September 6 ----------------------------------------------------------- The creditors of Heracles Fund are required to file their proofs of debt by September 6, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 30, 2010. The company's liquidator is: Admiral Administration Ltd. Admiral Financial Center 90 Fort Street, PO Box 32021 Grand Cayman KY1-1208 Cayman Islands HORSEMAN EMERGING: Creditors' Proofs of Debt Due on Sept. 16 ------------------------------------------------------------ The creditors of Horseman Emerging Market Opportunities Fund Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 3, 2010. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 IFIT VOLTA: Creditors' Proofs of Debt Due on September 30 --------------------------------------------------------- The creditors of Ifit Volta Fund are required to file their proofs of debt by September 30, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 31, 2010. The company's liquidator is: Philip Mosely PO Box 1569, George Town Grand Cayman KY1-1110 Cayman Islands Telephone: (345) 949 4018 Facsimile: (345) 949 7891 e-mail: general@caymanmanagement.ky KBC FP: Creditors' Proofs of Debt Due on September 16 ----------------------------------------------------- The creditors of KBC FP International VI Ltd. are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 9, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands KENMAR GLOBAL: Creditors' Proofs of Debt Due on September 16 ------------------------------------------------------------ The creditors of Kenmar Global Opportunities Fund SPC Limited are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 3, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands ONSLOW GLOBAL: Creditors' Proofs of Debt Due on September 16 ------------------------------------------------------------ The creditors of Onslow Global Fund, Ltd. are required to file their proofs of debt by September 16, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 12, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town Grand Cayman KY1-9005 Cayman Islands PACIFIC INSURANCE: Placed Under Voluntary Wind-Up ------------------------------------------------- On April 23, 2009, the sole member of Trans Pacific Insurance Corporation resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Brian Raymond Silivia c/o Mark Goodman Turner & Roulstone Attorneys-At-Law Strathvale House, 3rd Floor George Town P.O. Box 2636, Grand Cayman KY1-1102 Cayman Islands Telephone: 345-943-5555 Facsimile: 345-943-9999 SANDAKAN INVESTMENTS: Commences Wind-Up Proceedings --------------------------------------------------- On July 21, 2010, the sole shareholder of Sandakan Investments Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: C.I. Directors Ltd. Telephone: (345) 943-2237 Facsimile: (345) 949-6096 P.O. Box 1110, Grand Cayman KY1-1102 Cayman Islands ============= J A M A I C A ============= NROCC: Development Bank of Jamaica to Restructure Firm's Debt ------------------------------------------------------------- The Jamaican Cabinet has approved measures that will allow the Development Bank of Jamaica to restructure debt owed by the National Road Operating and Constructing Company, which is involved in building Highway 2000, RadioJamaica reports. According to the report, citing a statement from the Office of the Prime Minister, the measures include the purchase of Highway 2000 bonds issued by Venezuala's financial institution BANDES. The report relates that the new long-term Government of Jamaica bonds in local and international financial markets will then be issued. The statement, the report notes, said that the approval is a variation on an earlier Cabinet decision to purchase the BANDES bonds. The National Road Operating and Construction Company is a wholly owned Government Company formed under the Companies Act, and has responsibility for ensuring the implementation of Highway 2000. * JAMAICA: Banks Bad Debt Jumps Another JM$1-Billion in June Qtr. ----------------------------------------------------------------- Non-performing loans at Jamaican commercial banks jumped by another billion dollars during June 2010 quarter, while loans to the private sector continued to decline, Jamaica Observer reports. According to the Observer, in its quarterly monetary policy report for the three months ending June 30, 2010, the Bank of Jamaica said that the quality of the private sector loan portfolio, measured by the ratio of NPLs -- loans that have been unserviced for more than three months -- to total private sector loans was 6.4% at end-June 2010 from the ratio of 6.0% at end-March 2010 and 4.2% at end-June 2009. The Observer relates that calculations showed that the nominal figure increased from JM$13 billion at end-March 2010 to JM$14 billion at end-June 2010, or by 7.7%. "There was also an increase in the ratio of past due loans (three months and over) to total loans to 5.6 per cent at end-June 2010 from 5.1 per cent at end-March 2010 and 3.6 per cent at end-June 2009," Bank of Jamaica's report said, the Observer notes. The Observer says that the ratio measures the quality of loan portfolios at banks are still below the central bank's benchmark of 10%, by the rise in bad debt comes at a time when size of loan portfolios continue to decline. "There was a reduction of JM$656.6 million, or 0.3%, in loans and advances during the review quarter, from a decline of 0.1% in the June 2009 quarter," said the BOJ's report, the Observer notes. "This was also the fifth consecutive quarter of contraction," the report added, the Observer says. * * * As reported in the Troubled Company Reporter-Latin America on January 18, 2010, Moody's Investors Service disclosed that it considers Jamaica's debt exchange proposal for domestic creditors as an event of default. As reflected in the nation's current sovereign ratings of Caa1, with a negative outlook, on both domestic and foreign currency debt, Moody's had anticipated that Jamaica's long-standing commitment to honor its obligations in full and on schedule might finally break this year. According to the TCRLA on January 18, 2010, Fitch Ratings downgraded Jamaica's long-term local currency rating to 'C' from 'CCC'. In addition, Fitch has affirmed Jamaica's long-term and short-term foreign currency ratings at 'CCC' and 'C' respectively, and affirmed the Country Ceiling at 'B-'. Jamaica's sovereign ratings Outlook remains Negative. =========== M E X I C O =========== CEMEX SAB: Fitch Affirms Issuer Default Rating at 'B' ------------------------------------------------------- Fitch Ratings has affirmed the IDR's of CEMEX, S.A.B. de C.V. and its subsidiary, Cemex Espana S.A. at 'B'. In conjunction with this rating action, Fitch has affirmed the company's long-term national scale rating at 'BB-(mex)' and its short-term national scale rating at 'B(mex)'. The Rating Outlooks for CEMEX and CEMEX Espana have been revised to Positive from Stable. The change in the Rating Outlooks to Positive is a result of an improvement in the company's credit profile due to multiple transactions initiated by CEMEX since signing a Financing Agreement with creditors on Aug. 14, 2009. These efforts have lowered CEMEX's net debt to US$17.2 billion as of June 30, 2010, from US$21.2 billion as of June 30, 2009. They have given the company a manageable short-term liquidity position with US$752 million of cash and marketable securities as of June 30, 2010 versus debt maturities of US$485 million during the second half of 2010 and US$382 million during 2011. They also have improved its prospects for refinancing the US$1.3 billion and US$2.4 billion of debt that fall due in 2012 and 2013, respectively. CEMEX's leverage relative to cash flow is projected to remain high through the end of 2011 despite the drop in net debt due to the extreme downturn in many of the company's key markets. Cost reductions implemented by the company should result in a gradually deleveraging and could lead to a potential ratings upgrade, as could the sale of non-core assets or an equity issuance. During 2010, Fitch projects an EBITDA of US$2.550 billion for CEMEX. This figure is then expected to grow to US$2.950 million during 2011. These EBITDA figures compare with US$2.678 billion during 2009 and US$4.367 billion during 2008. The drop in EBITDA during 2010 is due to weaker prices in the U.S. and declining demand in Mexico and Spain. CEMEX should end 2010 with approximately US$17.9 billion of total debt and US$17.2 billion of net debt. As a result, the company's projected total debt-to-EBITDA ratio should be approximately 7.0 times during 2010, while its net debt-to-EBITDA ratio should be about 6.8x. These credit protection measures reflect the trough conditions for many of the company's markets, especially the U.S. Fitch expects CEMEX to seek and obtain an amendment to its Aug. 14, 2009 Financing Agreement if necessary within the next couple of months to alleviate potential covenant pressure. According to the Financing Agreement, the financial covenant for the maximum funded debt to EBITDA ratio declines from 7.75x as of June 30, 2010, to 6.75x as of Dec. 31, 2010, to 5.75x as of June 30, 2011 and to 5.25x as of Dec. 31, 2012. Excluded from the definition of debt for this calculation is US$614 million of convertible subordinated notes issued by the company during March 2010. Fitch's projections indicate the company could exceed the covenant at the end of 2010 (6.78x projected by Fitch). CEMEX's credit ratings continue to reflect the company's strong business position in several markets and its ability to generate free cash flow despite the sharp contraction in the demand for cement. The company's operating and free cash flow should increase sharply once underlying business conditions in the United States improve as a result of CEMEX's operating leverage. A rebound that would be substantial enough to accelerate debt reduction and lead to a multiple-notch upgrade is not expected to occur until at least 2012. Further constraining the scope for future upgrades is the need for CEMEX to accelerate capital expenditures once its cash flow rebounds. The level of reinvestment has been extremely low during 2009 and 2010 due to cash flow constraints and restrictions imposed by covenants. The transactions completed by CEMEX in the past year include the issuance of US$1.9 billion of equity (September 2009); the sale of assets in Australia for US$1.7 billion (October 2009); the exchange of US$320 million of Certificados Bursatiles for mandatory convertible notes; the issuance of approximately US$2.2 billion of U.S. dollars and EURO notes (December 2009-January 2010); the issuance of US$614 million of subordinated convertible notes (March 2010); and the exchange of US$1.660 billion of perpetual bonds for US$1.223 billion of fixed notes (May 2010). Fitch has affirmed these ratings: CEMEX S.A.B. de C.V. -- Foreign currency Issuer Default Rating at 'B'; -- Local currency IDR at 'B'; -- Senior unsecured debt obligations at 'B+/RR3'; -- Senior secured debt obligations at 'B+/RR3'; -- Long-term national scale rating at 'BB-(mex)'; -- Short-term national scale rating at 'B(mex)'; -- MXN10 billion Programa Dual Revolvente de Certificados Bursatiles program at 'BB-(mex)'; -- MXN2.5 billion short-term portion of Programa Dual Revolvente de Certificados Bursatiles program at 'B(mex)'; -- Unsecured debt issued through the Certificados Bursatiles program at 'BB-(mex)'. Cemex Espana S.A. -- IDR at 'B'; -- Senior unsecured debt obligations at 'B+/RR3'. CEMEX Materials Corporation -- US$150 million senior unsecured notes due 2025 at 'B+/RR3'. =============================== T R I N I D A D & T O B A G O =============================== MOTOR & GENERAL: Suspended for 45 More Days Amid Funding Woes ------------------------------------------------------------- Curtis Rampersad at the Trinidad Express reports that central bank directors have ordered that St. Clair-based Motor and General Insurance Company's operations remain suspended for 45 days. The report relates that the order started on August 14, 2010, and follows an initial suspension of the company's business for 60 days on June 15, 2010, by Inspector of Financial Institutions at the Central Bank, Carl Hiralal. According to the report, Mr. Hiralal said that the suspension was put in place to protect policyholders as the company was struggling to maintain the required quantity of money in its statutory fund. All new business has been suspended but existing insurance policies remain in force, he added. The report notes the Central Bank, citing a published statement, said that the Motor and General's offices will remain closed "until further advised". "During this extended period of suspension the Inspector of Financial Institutions is directed to take charge of all the books, records and other documents (of the company) and to take such means to prevent the continuation in business during the extended period of suspension and to preserve the assets," the report quoted the Central Bank as saying. Brian Hackett of PricewaterhouseCoopers was engaged by the Central Bank in June to assist in the process. The central bank, the report notes, said that during the suspension period Motor and General cannot write any insurance business, including new and renewal business, cannot advertise or market its company or solicit business. The company said it has more than 31,000 policyholders. TRINIDAD CEMENT: Secures Forgiveness From Creditors --------------------------------------------------- Lavern Clarke at Jamaica Gleaner reports that Trinidad Cement Limited has overshot by more than US$10 million agreed limits on its short term borrowings, but has secured the forgiveness of its creditors in anticipation of the cement maker getting back on track with its financing plan by next month. The report relates that the company's debt plan had called for the issue of a long- term bond valued at US$20 million (TT$127 million), which TCL said was delayed to secure the approval of lenders. According to the report, the bond is to be marketed to institutional investors, Alan Nobie, company secretary and manager of Investor Relations and Corporate Communications for TCL group, told Wednesday Business. The report notes that at half-year, June 30, 2010, TCL said its net short term borrowings -- debt less cash -- stood at TT$51.6 million while total debt was US$260 million, the same position it was at December 2009. However, "due to the delay in the issue of a new US$20 million bond, which is part of the funding plan for the year", the report quoted the company as saying in a market disclosures. Short term borrowings that previous loan agreements have restricted to US$45 million are now 22.7% or US$10.2 million (TT$64.8 million) over the limit, it added. "Waivers were received from lenders after the balance sheet date allowing the higher borrowings until the new bond is issued, now expected by September 30," said the cement maker's chairman Andy Bhajan and group chief executive officer Dr Rollin Bertrand in a joint statement to shareholders, the report notes. "In accordance with IAS 1, long-term debt should have been reclassified as short term as at June 30, 2010. In view of the waivers received this was not followed," the report relates. The terms of the bond are still being worked on, but it will have a life of three to seven years for different tranches, marketed to institutional investors, and be placed largely inside Trinidad, Nobie said. Citibank Trinidad and Tobago Limited is the arranger of the issue. The report says that Trinidad Cement's current level of indebtedness is directly linked to its backing of the US$177 million expansion and modernization project by its 74% owned Jamaican subsidiary Caribbean Cement Company Limited. The report relates that both companies are struggling with falling sales and huge debts: TCL's total liabilities now amount to TT$2.4 billion; while Carib Cement's hit J$5.7 billion -- a figure contained by the conversion of J$1.33 billion of debt to parent TCL into preference shares. Meanwhile, the report says that TCL took on an additional US$105 million of debt to cover the Caribbean Cement project as well as upgrades and improvements at its own base at Claxton Bay in Trinidad. The report relates that the company's debt and other financing charges at half-year were 77% of operating profit, which itself was under pressure because of dampened sales in the period. Like its Jamaican subsidiary, TCL remains in a negative cash position, which in its case has close to quadrupled in six months from TT$21 million at yearend December 2009 to TT$77 million at June 2010, the report adds. Trinidad Cement Limited -- http://www.tcl.co.tt/Default.aspx/-- was incorporated in Trinidad in 1951 and commenced production in 1954. Its primary activity is the manufacture of Ordinary Portland Cement, as well as Class G High Sulphate Resistant (HSR) Oilwell Cement. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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. 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