/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100825.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 Wednesday, August 25, 2010, Vol. 11, No. 167 Headlines A R G E N T I N A CICCONE CALCOGRAFICA: Creditors' Proofs of Debt Due on Sept. 29 GASTRONOMIC SRL: Creditors' Proofs of Debt Due on September 6 GRUPO CLARIN: Battle With Argentine Government Intensifies VICUNOL SACI: Creditors' Proofs of Debt Due on September 27 B E R M U D A MEGASLOT SHIPHOLDING: Creditors' Proofs of Debt Due on September 1 MEGASLOT SHIPHOLDING: Members' Final Meeting Set for September 22 RVI INVESTMENT: Creditors' Proofs of Debt Due on September 1 RVI INVESTMENT: Members' Final Meeting Set for September 22 C A Y M A N I S L A N D S ANTHRACITE BALANCED: Members' Final Meeting Set for September 6 ANTHRACITE BALANCED: Members' Final Meeting Set for September 6 ANTHRACITE CFO: Members' Final Meeting Set for September 6 ANTHRACITE MASTER: Members' Final Meeting Set for September 6 ASB OPPORTUNITY: Members' Final Meeting Set for September 10 CAPULA INVESTMENTS: Creditors' Proofs of Debt Due on September 16 CLOVERDALE LIMITED: Creditors' Proofs of Debt Due on September 6 COGO WOLF: Creditors' Proofs of Debt Due on September 16 CYCLONE INVESTMENTS: Creditors' Proofs of Debt Due on September 17 EMERSON REINSURANCE: Creditors' Proofs of Debt Due on September 13 FORTRINN VOLATILITY: Members' Final Meeting Set for September 30 FOUNDATION RE: Creditors' Proofs of Debt Due on September 16 JAVELIN RE: Creditors' Proofs of Debt Due on September 16 MONT GELE: Creditors' Proofs of Debt Due on September 13 MSIIUSD VEHICLE: Creditors' Proofs of Debt Due on September 16 PERITUS OFFSHORE: Creditors' Proofs of Debt Due on September 16 RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16 RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16 STARLIGHT HOLDINGS: Creditors' Proofs of Debt Due on September 17 SUNRISE VENTURES: Members' Final Meeting Set for September 23 C H I L E COMPANIA MINERA: Disaster Puts Firm at Risk of Bankruptcy M E X I C O MEXICANA AIRLINES: 6 Investor Groups Interested in Buying Airline MEXICANA AIRLINES: Obtains Preliminary Injunction Order in U.S. MEXICANA AIRLINES: Suspends Some Services, To Return Planes VITRO SAB: Postpones Bond Consent Solicitation P A R A G U A Y VISION BANCO: S&P Raises Counterparty Credit Rating to 'B+' P U E R T O R I C O CARIBBEAN PETROLEUM: Gets Interim Nod for US$10MM DIP Financing CARIBBEAN PETROLEUM: Puerto Rico Gov't Seeks Venue Transfer FIRST BANCORP: Reveals Relevant Price & Exchange Ratios for Offer V I R G I N I S L A N D S INNOVATIVE COMM: Last-Minute Court Ruling Delays Asset Sale - - - - - ================= A R G E N T I N A ================= CICCONE CALCOGRAFICA: Creditors' Proofs of Debt Due on Sept. 29 --------------------------------------------------------------- The court-appointed trustee for Ciccone Calcografica SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 29, 2010. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 15, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. GASTRONOMIC SRL: Creditors' Proofs of Debt Due on September 6 ------------------------------------------------------------- The court-appointed trustee for Gastronomic S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until September 6, 2010. GRUPO CLARIN: Battle With Argentine Government Intensifies ---------------------------------------------------------- Taos Turner at Dow Jones Newswires reports that a day after Argentina's government disclosed plans to deal a serious blow to Grupo Clarin S.A., their ongoing battle has intensified and may drag on through next year's presidential election. According to the report, Argentine President Cristina Fernandez has long bashed the media, accusing it of bias and abuse of power. To curb the influence of traditional media companies, Fernandez last year signed a law, now held up in court, reorganizing the media industry in general and forcing Grupo Clarin to sell key assets, the report relates. Dow Jones Newswires says that Clarin's flagship newspaper escalated the feud by publishing the personal e-mail address of Planning Minister Julio De Vido's wife. As reported in the Troubled Company Reporter-Latin America on August 23, 2010, Bloomberg News said that the Argentine government shut down the Internet service provided by Grupo Clarin SA's Fibertel unit, saying the company's merger with Cablevision SA was illegal. The report relates the Planning Minister Julio De Vido said that customers are free to find other service providers and the company will cease operations within 90 days. The government's decision is "illegal and arbitrary," and Cablevision will pursue all legal actions to continue with Fibertel's Internet service, the company said in an e-mailed statement obtained by the news agency. About the Company Grupo Clarin a media company in Argentina and a market leader in the cable television and Internet access, printing and publishing, and broadcasting and programming segments. Its cable television network is one of the largest in Latin America, with one of the largest broadband subscriber base in Argentina. Its flagship newspaper -- Diario Clarin -- is the highest circulation newspaper in Latin America and the second-highest circulation Spanish- language newspaper in the world. Grupo Clarin is the largest producer of media content in Argentina, including news, sports and entertainment and reaches substantially all segments of the Argentine population in terms of wealth, geography and age. VICUNOL SACI: Creditors' Proofs of Debt Due on September 27 ----------------------------------------------------------- Marcela Mazzoni, the court-appointed trustee for Vicunol SACI's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 27, 2010. Ms. Mazzoni will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of Clerk No. 7, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Marcela Mazzoni Tucuman 1545 Argentina ============= B E R M U D A ============= MEGASLOT SHIPHOLDING: Creditors' Proofs of Debt Due on September 1 ------------------------------------------------------------------ The creditors of Megaslot Shipholding Corporation 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 13, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda MEGASLOT SHIPHOLDING: Members' Final Meeting Set for September 22 ----------------------------------------------------------------- The members of Megaslot Shipholding Corporation Ltd. will hold their final meeting, on September 22, 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 13, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda RVI INVESTMENT: Creditors' Proofs of Debt Due on September 1 ------------------------------------------------------------ The creditors of RVI Investment Holdings Limited 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 16, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda RVI INVESTMENT: Members' Final Meeting Set for September 22 ----------------------------------------------------------- The members of RVI Investment Holdings Limited will hold their final meeting, on September 22, 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 16, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda ========================== C A Y M A N I S L A N D S ========================== ANTHRACITE BALANCED: Members' Final Meeting Set for September 6 --------------------------------------------------------------- The members of Anthracite Balanced Company (JR-50) Limited will hold their final meeting, on September 6, 2010, at 12:00 noon to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian D. Stokoe c/o Aaron Gardner Telephone: (345) 914-8655 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands ANTHRACITE BALANCED: Members' Final Meeting Set for September 6 --------------------------------------------------------------- The members of Anthracite Balanced Company (JR-57) Limited will hold their final meeting, on September 6, 2010, at 1:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian D. Stokoe c/o Aaron Gardner Telephone: (345) 914-8655 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands ANTHRACITE CFO: Members' Final Meeting Set for September 6 ---------------------------------------------------------- The members of Anthracite CFO Issuer No. 1 Limited will hold their final meeting, on September 6, 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: Ian D. Stokoe c/o Aaron Gardner Telephone: (345) 914-8655 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands ANTHRACITE MASTER: Members' Final Meeting Set for September 6 ------------------------------------------------------------- The members of Anthracite Master Company (2) Limited will hold their final meeting, on September 6, 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: Ian D. Stokoe c/o Aaron Gardner Telephone: (345) 914-8655 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands ASB OPPORTUNITY: Members' Final Meeting Set for September 10 ------------------------------------------------------------ The members of ASB Opportunity Fund Limited will hold their final meeting, on September 10, 2010, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Krysten Lumsden Telephone: (345) 814-7366 Facsimile: (345) 945-3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands CAPULA INVESTMENTS: Creditors' Proofs of Debt Due on September 16 ----------------------------------------------------------------- The creditors of Capula Investments 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 wind-up proceedings on August 2, 2010. The company's liquidator is: Ogier Employee Benefit Services Limited Whiteley Chambers Don Street St Helier, Jersey JE4 Ogier Fiduciary Services (Cayman) Limited 89 Nexus Way, Camana Bay Grand Cayman KY1-9007, Cayman Islands CLOVERDALE LIMITED: Creditors' Proofs of Debt Due on September 6 ---------------------------------------------------------------- The creditors of Cloverdale Limited 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 29, 2010. The company's liquidator is: Alan Johnson Wilmington Trust Corporate Services (Cayman) Limited c/o Carl Gosselin, Agent P.O. Box 32322, Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 814-6712 COGO WOLF: Creditors' Proofs of Debt Due on September 16 -------------------------------------------------------- The creditors of Cogo Wolf Trimaran Liquidity 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 August 3, 2010. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946-7665 Facsimile: (345) 946-7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 CYCLONE INVESTMENTS: Creditors' Proofs of Debt Due on September 17 ------------------------------------------------------------------ The creditors of Cyclone Investments Limited are required to file their proofs of debt by September 17, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 20, 2010. The company's liquidator is: Charles Pitter c/o Prue Lawson Telephone: (345) 914-8662 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands EMERSON REINSURANCE: Creditors' Proofs of Debt Due on September 13 ------------------------------------------------------------------ The creditors of Emerson Reinsurance Ltd. are required to file their proofs of debt by September 13, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2010. The company's liquidators are: Katherine Chiazza Damien Austin P.O. Box 1109, HSBC House 68 West Bay Road, Grand Cayman Cayman Islands c/o Shane Delaney Telephone: 914-7582/ 949-7755 Facsimile: 949-6021/ 949-6021 FORTRINN VOLATILITY: Members' Final Meeting Set for September 30 ---------------------------------------------------------------- The members of Fortrinn Volatility Fund Ltd. will hold their final meeting, on September 30, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 FOUNDATION RE: Creditors' Proofs of Debt Due on September 16 ------------------------------------------------------------ The creditors of Foundation Re 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 August 3, 2010. The company's liquidators are: Katherine Chiazza Damien Austin P.O. Box 1109, HSBC House 68 West Bay Road, Grand Cayman Cayman Islands c/o Shane Delaney Telephone: 914-7582/ 949-7755 Facsimile: 949-6021/ 949-6021 JAVELIN RE: Creditors' Proofs of Debt Due on September 16 --------------------------------------------------------- The creditors of Javelin Re 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 August 3, 2010. The company's liquidators are: Katherine Chiazza Damien Austin P.O. Box 1109, HSBC House 68 West Bay Road, Grand Cayman Cayman Islands c/o Shane Delaney Telephone: 914-7582/ 949-7755 Facsimile: 949-6021/ 949-6021 MONT GELE: Creditors' Proofs of Debt Due on September 13 -------------------------------------------------------- The creditors of Mont Gele Re are required to file their proofs of debt by September 13, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 3, 2010. The company's liquidators are: Katherine Chiazza Damien Austin P.O. Box 1109, HSBC House 68 West Bay Road, Grand Cayman Cayman Islands c/o Shane Delaney Telephone: 914-7582/ 949-7755 Facsimile: 949-6021/ 949-6021 MSIIUSD VEHICLE: Creditors' Proofs of Debt Due on September 16 -------------------------------------------------------------- The creditors of MSIIUSD Vehicle 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 3, 2010. The company's liquidator is: Roger Anscher Ramius Alternative Solutions LLC Telephone: +1 212 845 7964 Facsimile: +1 212 845 7998 e-mail: ranscher@ramius.com 599 Lexington Avenue 19th Floor New York, New York 10022 PERITUS OFFSHORE: Creditors' Proofs of Debt Due on September 16 --------------------------------------------------------------- The creditors of The Peritus Offshore 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 wind-up proceedings on June 30, 2010. The company's liquidator is: David J. Desmond 26 West Anapamu Street 3rd Floor Santa Barbara CA 93101 USA RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16 ------------------------------------------------------------------ The creditors of Residential Reinsurance 2006 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 wind-up proceedings on August 3, 2010. The company's liquidators are: Katherine Chiazza Damien Austin P.O. Box 1109, HSBC House 68 West Bay Road, Grand Cayman Cayman Islands c/o Shane Delaney Telephone: 914-7582/ 949-7755 Facsimile: 949-6021/ 949-6021 RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due on Sept. 16 ------------------------------------------------------------------ The creditors of Residential Reinsurance 2007 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 wind-up proceedings on August 3, 2010. The company's liquidators are: Katherine Chiazza Damien Austin P.O. Box 1109, HSBC House 68 West Bay Road, Grand Cayman Cayman Islands c/o Shane Delaney Telephone: 914-7582/ 949-7755 Facsimile: 949-6021/ 949-6021 STARLIGHT HOLDINGS: Creditors' Proofs of Debt Due on September 17 ----------------------------------------------------------------- The creditors of Starlight Holdings Limited are required to file their proofs of debt by September 17, 2010, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 28, 2010. The company's liquidator is: Charles Pitter c/o Prue Lawson Telephone: (345) 914-8662 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands SUNRISE VENTURES: Members' Final Meeting Set for September 23 ------------------------------------------------------------- The members of Sunrise Ventures Limited will hold their final meeting, on September 23, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 ========= C H I L E ========= COMPANIA MINERA: Disaster Puts Firm at Risk of Bankruptcy --------------------------------------------------------- The owners of Compania Minera San Esteban Primera's San Jose mine in Chile said that the recent accident that resulted to the entrapment of 33 miners at the local mine might place the company at risk of bankruptcy, Agence France-Presse reports. The report relates that the owners told a Chilean radio station that they might not be able to pay the miners once they have been rescued. According to Buenos Aires Herald, rescue workers said it could take 120 days to dig a new tunnel to reach the miners after the main mine ramp collapsed on August 5. The report notes that the government said earlier this month that the likelihood of finding the miners alive was low. AFP relates that the engineer in charge of the rescue mission at the mine, Andres Sougarret, said he was plotting where to drill a hole large enough to lift the miners out one by one from a gallery nearly 700 meters (2,300 feet) below ground. The Herald says that serious mining accidents are rare in Chile, but the government said that the San Jose mine has suffered a series of mishaps and 16 workers were killed in recent years. About Compania Minera Compania Minera San Esteban Primera is engaged in the production of both copper and gold concentrates. =========== M E X I C O =========== MEXICANA AIRLINES: 6 Investor Groups Interested in Buying Airline ----------------------------------------------------------------- Lizette Clavel Sanchez, head of the Mexican Aviation Stewards Union Association, said Wednesday at least six investor groups had expressed interest in buying Mexicana Airlines, reports Xinhua News Agency. However, Ms. Sanchez said in a press conference Mexicana had scared some investors away by producing unreliable information, saying the company has accumulated a debt of 5.5 billion dollars in the first quarter of this year, not its published figure of 1.25 million dollars, notes the report. "It is not that they are not reporting information, but they are not giving information with the speed and transparency needed," Xinhua quoted Mr. Sanchez as saying. These statements came one day after the Mexican Airline Pilots Association said it received a concrete offer from venture capital firm Advent International for US$49 million. ASPA's purported deal with Advent International provides that the cash Advent would invest in Mexicana would depend on government willingness to temporarily supply free fuel and allow a deferral on payments due for using the country's airspace, Reuter said. The potential investment was about half of what the airline's management says is needed to keep it operating, Reuters added. But ASPA spokesman Antonio Vargas Echegoyen subsequently disclosed in a press conference that Advent only wants to fly 30 airliners, 39 planes less than those at present, according to Xinhua. Ms. Sanchez also pointed out in a separate radio interview the offer would be helpful, yet 100 million dollars are needed for Mexicana to survive in the long term. Ms. Sanchez told Radio Formula that other financial institutions would be welcomed into the talks, but so far Advent is the only one that has committed cash, Reuters says. "This is a first step, by showing there are serious investors looking at the airline," Ms. Sanchez said, notes the report. Mr. Vargas said the unions are optimistic that Mexicana Airlines will emerge from bankruptcy under the same brand name but new management. He further added that reductions in operations, fleet size and crew staff will be necessary as the company "owes more or less six times its value," Dow Jones reported. Goldman Sachs Group Inc. and Credit Suisse Group AG have been cited by media as potential investors in the airline. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MEXICANA AIRLINES: Obtains Preliminary Injunction Order in U.S. --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has granted a preliminary injunction barring anyone from taking legal actions against Compania Mexicana de Aviacion, S.A. de C.V. Mexicana Airlines sought preliminary injunction to prevent creditors and leasing companies from seizing its assets or terminating their contracts while it is awaiting the Bankruptcy Court's recognition of its insolvency case in Concurso, Mexico, as the main proceeding. In a 10-page order issued August 18, 2010, Judge Martin Glenn said that Mexicana Airlines "may suffer immediate and irreparable injury" without the injunction, pointing out that its assets could be subject to potential actions by creditors in the U.S. "Such acts could interfere with and cause harm to Mexicana's efforts to administer its estate pursuant to the Concurso proceeding and the Mexican Court's administration of the Concurso proceeding," Judge Glenn said. A copy of the preliminary injunction order is available for free at http://bankrupt.com/misc/Mexicana_Orderpreliminjunction.pdf Mexicana Airlines has already received several notices of default under its various aircraft and spare engine leases as well as notices to terminate those leases and ground the aircraft. Many of its aircraft were also seized in Canada and there were similar attempts made in other areas. Pursuant to the August 18 order, creditors or any concerned party in the U.S. may only be allowed to take actions against the company or its U.S.-based assets if there is an approval from the Bankruptcy Court or the Mexican Court and if there is consent from Maru Johansen, the company's foreign representative. The court order, however, does not enjoin anyone from commencing or continuing any action outside of the U.S. involving the company or its assets. If any person obtains judicial relief from a foreign court and wants to obtain the same from the Bankruptcy Court, that relief may only be granted upon prior notice to the foreign representative. The order also established Ms. Johansen as the representative of Mexicana Airlines and gave her authority to administer the company's assets in the U.S. Both the company and its representative were granted full protections and rights available under Section 1519(a)(1)-(3) of the Bankruptcy Code. Ms. Johansen and Mexicana Airlines were authorized to perform their obligations in accordance with the Industry Agreements, pursuant to which they are required to (i) honor and pay outstanding claims arising in the ordinary course of business, and (ii) to process customary payments or transfers and to honor customary transfer requests made by Mexicana Airlines and other participants. The Industry Agreements include interline agreements, clearinghouse agreements and billing and settlement agreements administered by the International Air Transport Association, the IATA Clearing House, the Airlines Clearing House Inc. and Universal Air Travel Plan Inc. The injunction will remain in effect until Mexicana Airlines' insolvency case is recognized by the Bankruptcy Court as foreign main proceeding. Prior to the Court's entry of its Order, various groups including leasing companies and lenders filed objections and motions for relief from preliminary injunction. These groups include: A. C.I.T. Leasing, et al. C.I.T. Leasing Corporation and CIT Aerospace International earlier blocked the approval of Mexicana Airlines' application for preliminary injunction in a bid to seize the aircraft it leased out to the company. Mexicana Airlines allegedly breached its lease contracts with the CIT entities after it failed to pay as much as US$5.1 million for its use of the aircraft. The contracts had either expired or had been terminated by the CIT entities after the company defaulted under the contracts. The CIT entities argued that the company "had no continuing possessory interest" in the aircraft when it filed its petitions, and, thus, would not be harmed if forced to return the aircraft. Only two of the eight aircraft being leased are expected to be returned soon to the CIT entities in accordance with the lease termination agreements the group reached with Mexicana Airlines. B. Allied Aviation Allied Aviation Fueling Company of San Antonio Inc. filed a motion for relief from the temporary restraining order so that it could suspend or discontinue its "fuel storage and into-plane fuel services" to Mexicana Airlines. Allied Aviation expressed concern that Mexicana Airlines may not be able to meet its postpetition payment obligations in light of the filing of its insolvency case. C. Banco Mercantil Banco Mercantil del Norte S.A. filed an objection seeking relief from the preliminary injunction and demanding protection in exchange for Mexicana Airlines' continued use of its cash collateral. Banco Mercantil is a lender of the company and is one of those lenders exempted from the injunction granted earlier by the Mexican Court. In its objection, Banco Mercantil demanded the company to account for the use of its cash collateral held in the bank's two deposit accounts during the pendency of its insolvency case; to use the cash in accordance with a budget agreeable to the bank; grant the bank replacement liens and superpriority administrative priority claims, among other things. Mexicana Airlines owes Banco Mercantil about US$123.6 million under an April 17, 2008 credit agreement. Its obligations to the bank are secured by the deposit accounts pledged in favor of its collateral agent, Inter National Bank, as well as by their proceeds. Federico Santos Cernuda, legal director of Banco Mercantil, said that Mexicana Airlines does not have equity in the funds since the value of the cash collateral is well below what is owed by the company to the bank. D. Flying Food Flying Food Catering Inc. sought a court ruling holding that the injunction does not bar it from either discontinuing its postpetition services to Mexicana Airlines or requiring the company to pay cash in advance for those services. Flying Food provides the company catering and garbage removal services at the O'Hare International Airport in Illinois. E. GE Capital Aviation GE Capital Aviation Services Limited and its affiliates objected to the scope of the TRO and the preliminary injunction, saying it is "too broad" and exceed the purpose of Chapter 15 of the Bankruptcy Code. GE Capital is particularly opposed to the application of the injunction to actions taken pursuant to orders of the Mexican Courts that do not affect the U.S.-based assets of Mexicana Airlines, and are not lawfully enjoined in its insolvency case. F. Menzies Aviation Menzies Aviation (USA) Inc. filed a motion seeking relief from the TRO and demanding Mexicana Airlines to either assume or reject their standard ground handling agreements or to provide adequate assurance of future performance like changed terms for payment. Menzies Vice-President for Commercial and Corporate Services Philip Harnden said Mexicana Airlines has failed and refused to make payments due under the SGHA, and is in default under the agreement. G. Integrated Airline Integrated Airline Services Inc. objected to the imposition of the injunction because it does not require Mexicana Airlines to pay its ramp and passenger services under an agreement dated October 1, 2009. IAS asked the Bankruptcy Court to issue a ruling that the TRO or any injunction does not prevent IAS from exercising its rights under an agreement with Mexicana Airline. H. Aviation Port Aviation Port Services LLC, another supplier of Mexicana Airlines, expressed concern that the injunction would require it to continue performing under a 2009 standard ground handling agreement without receiving advance payment or adequate assurance of payment for its services. I. Aircraft Service Aircraft Service International Inc. complained that its interest is not sufficiently protected as required under bankruptcy law. Aircraft Service asked the Bankruptcy Court either to deny Mexicana Airlines' request for preliminary injunction or to require the company to provide a US$300,000 security deposit or cash-in-advance payment terms. J. The Greater Orlando Aviation Authority, et al. The Greater Orlando Aviation Authority, and a consortium of airport authorities represented by New York-based Edwards Angell Palmer & Dodge LLP, complained over the lack of notification about Mexicana Airlines' request to insert provisions with respect to the treatment of postpetition claims against the company or the treatment of passenger facility charge trust funds. They sought a court ruling providing them postpetition protections and benefits provided to other service providers and counterparties to the contracts. K. Servisair Mexicana and Servisair LLC, Servisair USA Inc, Servisair & Shell Fuel Services LLC are parties to several International Air Transportation Association Standard Ground Handling Agreements. However, Servisair clarifies that no agreement has been negotiated or signed and thus, this service has been provided as an accommodation only. Servisair notes that the cancellation of Mexicana flights has adversely affected its ability to continue to meet the cost of its labor forces and equipment expenses. Servisair is doubtful that Mexicana will have enough money to pay it and similar service providers who remain obligated under Court Order to continue providing services. Servisair, hence, filed a motion for relief from the TRO and ask the Court to hold that it is allowed to discontinue the services or in the alternative, for the Court to compel Mexicana to provide adequate assurance of future performance like pre- payment, or deposits for the benefit of the creditor. John R. Guest, Servisair vice president and general counsel, filed a declaration in support of the request. L. EAST Trust EAST Trust-Sub 12 filed a motion for relief from the TRO arguing that a lease agreement between it and Mexicana was validly terminated prior to Mexicana's Concurso Proceeding, and therefore, any automatic stay is inapplicable to it. L. Others International Lease Finance Corp., Whitney Ireland Leasing Limited and Calliope Limited filed a supplemental memorandum and a declaration in support of their motion for relief from the TRO. Both documents further address the issues over whether Mexicana Airlines' possession of the aircraft makes the aircraft property of its bankruptcy estate; whether the aircraft is property of the estate under Mexican law, among other issues. Court Addresses Objections Pursuant to the August 18 court order, the Court held that Allied Aviation, Flying Food, Menzies, Integrated Airline, Aviation Port, Aircraft Service and the Servisair entities can discontinue their services unless Mexicana Airlines meets certain conditions that will provide sufficient protection to its suppliers. These conditions include maintaining the company's insurance coverage, payment for postpetition goods and services, among other things. In response to GE Capital's objection, the Bankruptcy Court inserted a provision stating that the order does not enjoin anyone from commencing or continuing any judicial, administrative or other action outside of the U.S. involving Mexicana or its assets. The Bankruptcy Court, meanwhile, denied the motion by East Trust-Sub 12 for relief from preliminary injunction. The injunction does not apply to or does not enjoin Banco Mercantil from exercising its rights and remedies against Mexicana Airlines' U.S.-based assets arising under their agreements, which include (i) the Credit Agreement dated April 17, 2008, among Banorte, Mexicana, as an obligor, and certain non-debtor affiliates of Mexicana parties (ii) Deposit Account Security Agreement dated June 16, 2008, among Inter National Bank, as collateral agent, Mexicana and Aerovias Caribe, S.A. de C.V., as grantors, and (iii) the Collateral Agency Agreement dated June 16, 2008, between Banorte and INB, the order stated. INB will remain subject to the court order, except to the extent acting on instructions given to it by Banorte Mercantil consistent with those agreements. The court order does not relieve any party's obligation to perform under the (i) June 12, 2002 agreement between U.S. Bank N.A. and Mexicana Airlines, and (ii) the Terms and Conditions for Worldwide Acceptance of the American Express Card By Airlines among Mexicana Airlines and Aerovias Caribe S.A. de C.V., Grupo Mexicana de Aviacion S.A. de C.V. and American Express Travel Related Services Company Inc. dated May 10, 2006. Nothing in the Bankruptcy Court's August 2 and 18 orders to Show Cause with TRO, or in Section 362 of the Bankruptcy Code enjoins or prevents Marco Aircraft Leasing Ltd., Wells Fargo Bank Northwest N.A., AFT Trust-Sub I, Celestial Aviation Trading 43 Ltd., Celestial Aviation Trading 68 Ltd., Celestial Aviation Trading 69 Ltd., International Lease Finance Corp., Calloipe Ltd., Sierra Leasing Ltd. and Whitney Ireland Leasing Ltd. from exercising their rights or remedies with respect to certain assets. A list of these assets is available for free at: http://bankrupt.com/misc/Mexicana_ListAssets.pdf With respect to the objection of the airport authorities, the Court held that the order does not prohibit Mexicana Airlines from remitting fees and taxes that are not property of the estate. Mexicana has already confirmed to the Bankruptcy Court that it recognizes and will fulfill all of its obligations including its obligations to remit fees and taxes, and to segregate and remit passenger facility charges to U.S. airports. The hearing to consider the objection of Wells Fargo Bank, Marco Aircraft and AeroTurbine with respect to certain spare parts and engines owned by Aeroturbine as well as the objection of the CIT entities was adjourned per agreement with Mexicana Airlines. The date of the hearing has not yet been determined. Meanwhile, Pacific Fuel Trading Corp. withdrew its motion for relief from the temporary restraining order after it reached an agreement with Mexicana Airlines to resolve the motion. Recognition of Concurso Proceeding The hearing to consider Mexicana Airlines' motion for recognition of its insolvency case as foreign main proceeding has been set for September 8, 2010, at 11:00 a.m. Deadline for filing objections or responses is September 1, 2010, at 4:00 p.m. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MEXICANA AIRLINES: Suspends Some Services, To Return Planes ----------------------------------------------------------- Mexicana Airlines said it is returning some aircraft and is suspending some services offered by its low-cost and regional units, according to an August 18, 2010, report by Dow Jones. Adolfo Crespo, senior vice-president of customer service and corporate communications, said the company is set to return eight aircraft to leasing companies by the end of the week. Mexicana Airlines had already handed back seven aircraft, Dow Jones reported. An earlier report by Aviation Week, a trade publication, said that Mexicana Airlines had agreed to return 27 Airbus aircraft to leasing companies, including 12 to the General Electric Co.'s aircraft leasing arm. Mexicana has an operational fleet of 64 planes, but three had already been grounded by their owners. In another development, Grupo Mexicana, which controls the company, said in a statement that flights operated by all three of the group's airlines would be subject to changes from midnight on August 18, 2010. No destinations, however, would be canceled as a result of the changes although fewer flights would be available on certain routes, according to the statement. Passengers are advised to visit www.cmainforms.com, www.mexicana.com or contact Mexicana Airlines through twitter @mexicanaair for further information. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/-- is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings Bankruptcy Creditors' Service, Inc., publishes Mexicana Airlines Bankruptcy News. The newsletter tracks the chapter 11 proceedings and the ancillary proceedings undertaken by Compania Mexicana de Aviacion and its units. (http://bankrupt.com/newsstand/or 215/945-7000). VITRO SAB: Postpones Bond Consent Solicitation ---------------------------------------------- Vitro SAB de CV has postponed the launch of an application consent, previously disclosed to be launched in early August, in relation to its bonds with a rate of 8.625% interest due 2012, 11.75% in 2013 and 9.125% in 2017, The Financial Online reports. According to the report, the company postponed the launch of the application for consent until September 2010 because it is in discussions with relevant creditors in both ends with the revision of the terms and conditions of the same application. The report relates Vitro SAB said that it remains committed to deliver a package, which includes cash and new tools, representing a significant increase in the recovery of the creditors of the level of historical price of the bonds. In addition, the report says, the proposed structure was developed in order to ensure financial sustainability and competitiveness of Vitro in the long term, which should have a positive impact on the future value of structured debt. 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 the June 2 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. On 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. =============== P A R A G U A Y =============== VISION BANCO: S&P Raises Counterparty Credit Rating to 'B+' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its counterparty credit rating on Vision Banco S.A.E.C.A. to 'B+' from 'B', in tandem with the sovereign upgrade on the Republic of Paraguay. S&P also revised the outlook to positive from stable. The sovereign upgrade on Paraguay reflects the gradual strengthening of Paraguay's economic fundamentals, as well as its greater political stability over the past three years. The sovereign upgrade, along with the upgrade on Vision, reflects the close linkage between the sovereign and financial system credit quality in Paraguay. "The positive outlook reflects S&P's expectation that despite Paraguay's still-high operating and sovereign risks, its recent measures to consolidate its strategic position among banks will enable Vision to continue to improve its present competitive position," said Standard & Poor's credit analyst Delfina Cavanagh. "S&P believes Vision will be able to achieve this without its credit portfolio significantly deteriorating," she continued. Potential for a higher rating is limited due to the close linkage between the sovereign and financial system credit quality. A sovereign upgrade would positively affect S&P's rating on Vision. Alternatively, if Paraguay's economy experienced a major decline or if Vision's capitalization level or asset quality deteriorated, S&P could lower the rating. ==================== P U E R T O R I C O ==================== CARIBBEAN PETROLEUM: Gets Interim Nod for US$10MM DIP Financing --------------------------------------------------------------- Caribbean Petroleum Corp., et al., sought and obtained interim authorization from the U.S. Bankruptcy Court for the District of Delaware to obtain postpetition secured financing from Banco Popular de Puerto Rico and to use cash collateral. The DIP Lender has committed to provide up to US$10,000,000 non- revolving, multi-draw credit sub-facility. A copy of the DIP term sheet is available for free at: http://bankrupt.com/misc/CARIBBEAN_PETROLEUM_diptermsheet.pdf Mark D. Collins, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., explain that the Debtors need the DIP financing to fund the marketing for a sale of all or substantially all assets of the Debtors, rehabilitation, the DIP Lender's monthly interest, out-of-pocket costs, fees, and expenses related to the DIP Facility, employee wages and general corporate purposes, payment of professional fees of counsel and financial advisors to the Debtors and the statutory committee of unsecured creditors appointed in the Chapter 11 cases, adequate protection payments, adequate assurance deposit for the Debtors' utility providers, and payment of quarterly fees to the U.S. Trustee. The DIP facility will mature (i) 25 days after entry of interim order if the final dip order have not been entered by the court and the amendment have not been executed and delivered by the DIP borrowers to the postpetition lender; (ii) consummation of any consensual or nonconsensual chapter 11 plan or liquidation of or for the dip borrowers; or (iii) 180 days after the dip closing date. The DIP Facility will incur interest at 8.00% per annum, payable monthly in arrears not later than the first day of each calendar month and will be calculated on the basis of a 360-day year and actual days elapsed. In the event of default, the Debtors will pay an additional 2% default interest per annum. The DIP Facility will be afforded certain liens and claims, including limited priming liens and superpriority claims on property of the estate. The Debtors are authorized to use cash collateral, in addition to obtaining DIP financing. As adequate protection, the Debtors will grant the prepetition lender, among other things, additional replacement liens, superpriority claims, repayment from unencumbered assets, payment of all reasonable professional fees and expenses incurred by the prepetition lender in connection with the administration of the Chapter 11 cases, and the right to credit bid, payment of insurance proceeds. The Court has set a final hearing for September 8, 2010, at 12:30 p.m., Eastern Daylight Time, on the Debtors' request to be allowed to obtain DIP financing. About Caribbean Petroleum San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka CAPECO, owns and operates certain facilities in Bayomon, Puerto Rico for the import, offloading, storage and distribution of petroleum products. Cribbean Petroleum filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-12553) on August 12, 2010, nearly 10 months after a massive explosion at its major Puerto Rican fuel storage depot virtually shut down the company's operations. The Debtor estimated its assets at US$100 million to US$500 million and its debts at US$500 million to US$1 billion as of the Petition Date. Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum Refining (Puerto Rico) Corporation filed separate Chapter 11 petitions on August 12, 2010. Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., serves as counsel to the Debtors. The Debtors' co-counsel is Cadwalader, Wickersham & Taft LLP. The Debtors' financial advisor is FTI Consulting Inc. The Debtors' chief restructuring officer is Kevin Lavin of FTI Consulting Inc. CARIBBEAN PETROLEUM: Puerto Rico Gov't Seeks Venue Transfer ---------------------------------------------------------- Patrick Fitzgerald at Dow Jones Daily Bankruptcy Review reports that Puerto Rican officials want Caribbean Petroleum Corp.'s bankruptcy case moved from Delaware to San Juan, claiming the cleanup of environmental damage caused by a massive explosion at the company's storage facility is of the "highest public interest" to the island's citizens. According to Dow Jones, Puerto Rico's treasury secretary said Thursday that "the interests of justice and the convenience of the parties" support the transfer of the privately held oil-and-gas distributor's Chapter 11 case to Puerto Rico. "The healthy completion of the cleanup of the devastating effects of the explosions is a matter of the highest public interest in Puerto Rico," lawyers for the secretary of the Treasury said in a court filing Thursday, according to Dow Jones. Dow Jones notes a catastrophic explosion on Oct. 23, 2009, destroyed much of the company's Bayamon storage facility and rocked the San Juan area. According to the company's finance chief, the explosions dealt the company a blow from which it never recovered. The explosions also had a dramatic impact on Puerto Rico, leaving behind significant environmental damage and cleanup costs. The Environmental Protection Agency has barred the company from using its surviving facilities pending an inspection. Dow Jones says prior to the explosions, Caribbean Petroleum's pipelines delivered more than two-thirds of the jet fuel used at San Juan International airport as well as supplying the Puerto Rico Electric Power Authority, the government entity that provides electricity to the island's people. Moreover, more than 90% of the company's creditors are in Puerto Rico, according to court papers. Dow Jones notes the Debtor is also facing more than two dozen lawsuits in Puerto Rico for, among other claims, property damage and injuries. Caribbean Petroleum estimates that plaintiffs in these suits are seeking more than US$455 million. "There is significant local interest in having such disputes resolved by a bankruptcy court in Puerto Rico," the officials said, according to Dow Jones. Dow Jones notes a lawyer for Caribbean Petroleum couldn't immediately be reached for comment. Dow Jones says Judge Kevin Gross will consider the request to move the case to Puerto Rico at a hearing Sept. 8. The Debtor is selling such assets as a network of Gulf-branded service stations, six pipelines and a deepwater dock in San Juan Harbor. The sales are being conducted without the benefit of a stalking horse, a lead bidder that sets a floor price for the assets on the block. Dow Jones notes the Debtor owes Banco Popular de Puerto Rico US$137 million, and the bank holds a lien on virtually all the company's assets. Caribbean Petroleum said it will allow the bank to "credit bid" its secured debt, meaning the bank debt could serve as a de facto stalking-horse bid. About Caribbean Petroleum San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka CAPECO, owns and operates certain facilities in Bayomon, Puerto Rico for the import, offloading, storage and distribution of petroleum products. Cribbean Petroleum filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-12553) on August 12, 2010, nearly 10 months after a massive explosion at its major Puerto Rican fuel storage depot virtually shut down the company's operations. The Debtor estimated its assets at US$100 million to US$500 million and its debts at US$500 million to US$1 billion as of the Petition Date. Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum Refining (Puerto Rico) Corporation filed separate Chapter 11 petitions on August 12, 2010. Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., serves as counsel to the Debtors. The Debtors' co-counsel is Cadwalader, Wickersham & Taft LLP. The Debtors' financial advisor is FTI Consulting Inc. The Debtors' chief restructuring officer is Kevin Lavin of FTI Consulting Inc. FIRST BANCORP: Reveals Relevant Price & Exchange Ratios for Offer ----------------------------------------------------------------- First BanCorp. has determined the Relevant Price and Exchange Ratios in connection with its previously communicated offer to exchange up to 256,401,610 newly issued shares of its common stock, par value US$1.00 per share, for any and all of the issued and outstanding shares of Non-Cumulative Perpetual Monthly Income Preferred Stock, Series A through E. In accordance with the terms of the Exchange Offer, as set forth in the Corporation's Preliminary Prospectus, dated August 18, 2010, and related letter of transmittal, the Corporation has determined the Relevant Price and Exchange Ratios for the Preferred Stock referred to below. The Relevant Price is US$1.18, which is the Minimum Share Price. The expiration date for the Exchange Offer is 11:59 p.m., New York City time, on Tuesday, August 24, 2010, unless the Corporation extends the Exchange Offer or terminates it prior to that date. For each share of Preferred Stock accepted in accordance with the terms of the Exchange Offer, the Corporation will issue a number of shares of its Common Stock equal to the "Exchange Ratio," which is the Exchange Value set forth in the table below divided by the Relevant Price of US$1.18. The closing sale price for a share of Common Stock on the New York Stock Exchange on August 20, 2010 was US$0.51, which is less than the Relevant Price. To receive the consideration in the Exchange Offer, holders must validly tender and not withdraw their shares of Preferred Stock prior to the expiration date, and such shares must be accepted for exchange. The Corporation intends to deliver the consideration for the shares that are tendered and accepted in the Exchange Offer on or about August 27, 2010. The dealer manager for the Exchange Offer is UBS Investment Bank, which can be contacted at (888) 719-4210. The Corporation has filed a registration statement, a preliminary prospectus and related exchange offer materials with the Securities and Exchange Commission for the exchange offer to which this communication relates. About First BanCorp First BanCorp is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida, and of FirstBank Insurance Agency. First BanCorp and FirstBank Puerto Rico operate under U.S. banking laws and regulations. The Corporation operates a total of 175 branches, stand-alone offices and in-branch service centers throughout Puerto Rico, the U.S. and British Virgin Islands, and Florida. Among the subsidiaries of FirstBank Puerto Rico are First Federal Finance Corp., a small loan company; First Leasing and Rental Corp., a leasing company; FirstBank Puerto Rico Securities, a broker-dealer subsidiary; First Management of Puerto Rico; and FirstMortgage, Inc., a mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Insurance VI, an insurance agency, and First Express, a small loan company. First BanCorp's common and publicly-held preferred shares trade on the New York Stock Exchange under the symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE. * * * As of June 18, 2010, the bank continues to carry Standard & Poor's "CCC+" long-term issuer credit ratings. As reported by the Troubled Company Reporter on June 21, 2010, FirstBank Puerto Rico agreed to a Consent Order with the Federal Deposit Insurance Corporation and the Office of the Commissioner of Financial Institutions of Puerto Rico and that First BanCorp agreed to enter into a written agreement with the Federal Reserve Bank of New York. FirstBank and the Corporation have agreed to take certain actions intended to address various matters, including among others, the development and adoption of a plan to attain certain capital levels, and the reduction of non-performing and classified assets that have impacted FirstBank's financial condition and performance. ========================== V I R G I N I S L A N D S ========================== INNOVATIVE COMM: Last-Minute Court Ruling Delays Asset Sale ----------------------------------------------------------- Joy Blackburn at Virgin Islands Daily News reports that on August 17, 2010, a federal bankruptcy court judge issued an order clearing the way for the sale of Innovative Communication Corp.'s telephone and cable companies, and on the same day a Virgin Islands Superior Court judge granted a stay on the V.I. Public Services Commission order that authorized the transfer. According to the report, PSC Chairman Joseph Boschulte said that he was not sure what the next step would be -- although it would involve lawyers. "I expect to meet with our council to understand the potential impact of each order and the orders together," the report quoted Mr. Boschulte as saying. The report notes U.S. Bankruptcy Judge Judith Fitzgerald issued an order giving final approval for the National Rural Utilities Cooperative Finance Corporation to take over the phone and cable companies. In her ruling, Judge Fitzgerald found that former ICC owner and chief executive Jeffrey Prosser, who filed an objection to the motion for the sale, did not have the legal standing to do so because any ownership interest he had in the corporation is now the property of his bankruptcy estate, the report relates. Nonetheless, after his objection was filed, Mr. Prosser was allowed to participate in the proceedings and in a hearing that was conducted in July, Judge Fitzgerald said, the report notes. The report says that Mr. Prosser's objection made multiple allegations about the impropriety of the sale. In her ruling, Judge Fitzgerald said that despite her determination that Mr. Prosser was without legal standing to object, she considered the arguments his attorneys raised and the testimony at the hearing, the report relates. "The Court has analyzed each allegation raised by Jeffrey Prosser as though he had standing and finds that his objections are without merit and there is no basis on which to deny the sale motion. Due process was satisfied," Judge Fitzgerald wrote in a footnote of the ruling, the report says. On May 5, the report notes, PSC, the regulatory agency for public utilities in the territory, approved National Rural Utilities Cooperative Finance Corporation's bid to take over the telephone and cable companies. In June, attorney Jeffrey Moorhead, Mr. Prosser, and his wife, Dawn Prosser, asked the PSC to reconsider its decision, contending that major irregularities had occurred in the PSC transfer of control process, as well as in the bankruptcy proceedings. The PSC did not take any action on the request. On July 7, the report relates, the Prossers and Mr. Moorhead petitioned the V.I. Superior Court, appealing the PSC order. On August 17, 2010, the report says, the same day that Judge Fitzgerald entered her order -- V.I. Superior Court Judge Harold Willocks granted an emergency request by the Prossers and Mr. Moorhead for an immediate stay of the PSC's May 5 order authorizing the transfer of control. Judge Willocks scheduled a status conference on the matter for September 17. The timing of the two orders, in the two separate proceedings, in two separate courts, was not completely clear from the documents Virgin Islands Daily News had available. However, the report relates, in her 30-page ruling, Judge Fitzgerald notes that she is not aware of any stay of the PSC order. Judge Fitzgerald said that while local law allows for a stay of the commission's order between the time a hearing on the appeal is scheduled and the actual date of the hearing, there is no provision to stay the order simply because a petition is filed, the report adds. About Innovative Communications Innovative Communications Corporation provides landline and mobile telephone, DSL and cable television services in the United States Virgin Islands. It also operates cable TV services in Sint Maarten, Martinique, Guadeloupe, the British Virgin Islands, and France. *********** 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 * * *