/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/100901.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, September 1, 2010, Vol. 11, No. 172 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Owner Didn't Lead Ponzi Scheme, Ex-Prosecutor Says B E R M U D A ESG RE: Court to Hear Wind-Up Petition on September 17 INDOLUX DERIVATIVES: Creditors' Proofs of Debt Due on September 10 INDOLUX DERIVATIVES: Members' Final Meeting Set for October 4 LSF3 INDONESIA: Creditors' Proofs of Debt Due on September 10 LSF3 INDONESIA: Members' Final Meeting Set for October 4 NIPPON III: Creditors' Proofs of Debt Due on September 10 NIPPON III: Members' Final Meeting Set for October 4 PROTOSTAR LTD: Seeks U.S. Plan Exclusivity Until November 29 B R A Z I L PARANA BANCO: S&P Raises Counterparty Credit Ratings to 'BB-/B' C A Y M A N I S L A N D S BALVENIE LIMITED: Members' Final Meeting Set for September 22 CLOVERDALE LIMITED: Shareholder to Hear Wind-Up Report on Sept. 8 COGO WOLF: Shareholders' Final Meeting Set for September 16 EMERSON REINSURANCE: Shareholder Receives Wind-Up Report FIRST HOSPITAL: Shareholder Receives Wind-Up Report FOUNDATION RE: Shareholders' Final Meeting Set for September 16 JAVELIN RE: Shareholder to Hear Wind-Up Report on September 16 MODULUS EUROPE: Shareholders' Final Meeting Set for September 7 MODULUS EUROPE: Shareholders' Final Meeting Set for September 7 MONT GELE: Shareholder Receives Wind-Up Report PERITUS OFFSHORE: Shareholders' Final Meeting Set for September 16 RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16 RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16 SOUTH COAST: Members' Final Meeting Set for September 27 SUMITOMO FINANCE: Members' Final Meeting Set for September 27 ZURICH PREMIER: Members' Final Meeting Set for September 27 C H I L E COMPANIA SUD: S&P Raises Ratings to 'B'; Gives Positive Outlook C O S T A R I C A INSTITUTO NACIONAL: Fitch Affirms 'BB+' Insurer Strength Rating D O M I N I C A N R E P U B L I C BANCO DE RESERVAS: Fitch Affirms 'B' Issuer Default Ratings LISTIN DIARIO: Investors Acquire Firm J A M A I C A * JAMAICA: At Risk of US$100MM Annual Loss From Hurricanes M E X I C O METROFINANCIERA SA: Seeks Bankruptcy Protection in U.S. VITRO SAB: Bond Rally Shows Creditors See Sweetened Offer VITRO SAB: Concludes Sale of REIT Assets for US$63 Million P U E R T O R I C O VASSALLO INDUSTRIES: Scales Back Under New Corporation - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Owner Didn't Lead Ponzi Scheme, Ex-Prosecutor Says ------------------------------------------------------------------ Securities lawyer Christopher Bebel told United States District Judge Nancy Atlas that financier Robert Allen Stanford did not lead a multi-billion Ponzi scheme, Laurel Brubaker Calkins and Andrew Harris at Bloomberg News report. "I haven't seen any evidence that links Mr. Stanford to any particular criminal act and establishes a knowing intention" to break any laws, the report quoted Mr. Bebel as saying. Mr. Bebel, who previously prosecuted white-collar crimes at the US Attorney's office in Minneapolis, presented his conclusions in the fourth day of the Stanford vs. Lloyd's of London trial. As reported in the Troubled Company Reporter-Latin America on August 27, 2010, Bloomberg News said that Lloyd's of London underwriters are attempting to convince Judge Atlas that Mr. Stanford conspired to steal money so they can avoid paying attorneys to defend him on criminal fraud charges, Ellen Rosen at Bloomberg News reports. According to a separate Bloomberg report, Lloyd's of London witness forensic accountant Alan Westheimer testified that the US$1.6 billion that Mr. Stanford allegedly skimmed from investors was borrowed from Stanford International Bank Limited as loans to startup entities and other businesses Mr. Stanford controlled. The report noted Mr. Westheimer said that Mr. Lopez and comptroller Mark Kuhrt, who hired him after they were indicted in June 2009, told him this year they thought the borrowing should have been publicly disclosed. According to the report, Mr. Bebel said that he found no incriminating evidence against Mr. Stanford in reviewing materials presented in the insurance case. The report relates Mr. Bebel said that the indictment against Mr. Stanford and his colleagues "mischaracterises" his enterprises as a Ponzi scheme, which is defined as using money from new investors to pay off earlier investors. Mr. Bebel, the report notes, also testified that he reviewed documents in which Mr. Stanford, in late 2008, contemplated rolling more than 100 related businesses under his control into a single corporate entity that would have had assets worth US$9 billion to US$11 billion and a US$2 billion profit. "That US$2 billion in profits could've been used right there to wipe away" the US$1.7 billion borrowed from investor assets at the Stanford bank to fund the financier's other business ventures, loans for which he later assumed personal responsibility," Mr. Bebel added. Meanwhile, the report relates, Lloyd's of London lawyer Barry Chasnoff told Judge Atlas in closing arguments that: "No matter how distant the lawyers say Mr. Stanford was at the very least he was aiding and abetting the commission of acts that were designed to obtain criminal property." About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, 2009, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June 2009, before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money- laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57- page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342 (S.D. Tex.). The civil case is SEC v. Stanford International Bank, 09-cv-00298 (N.D. Tex.). ============= B E R M U D A ============= ESG RE: Court to Hear Wind-Up Petition on September 17 ------------------------------------------------------ A petition to wind up the operations of ESG Re Limited will be heard before the Supreme Court of Bermuda, on September 17, 2010, at 9:30 a.m. INDOLUX DERIVATIVES: Creditors' Proofs of Debt Due on September 10 ------------------------------------------------------------------ The creditors of Indolux Derivatives, Ltd. are required to file their proofs of debt by September 10, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 25, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda INDOLUX DERIVATIVES: Members' Final Meeting Set for October 4 ------------------------------------------------------------- The members of Indolux Derivatives, Ltd. will hold their final meeting, on October 4, 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 25, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda LSF3 INDONESIA: Creditors' Proofs of Debt Due on September 10 ------------------------------------------------------------- The creditors of LSF3 Indonesia Capital I, Ltd. are required to file their proofs of debt by September 10, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 25, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda LSF3 INDONESIA: Members' Final Meeting Set for October 4 -------------------------------------------------------- The members of LSF3 Indonesia Capital I, Ltd. will hold their final meeting, on October 4, 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 25, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda NIPPON III: Creditors' Proofs of Debt Due on September 10 --------------------------------------------------------- The creditors of Nippon III Investments, Ltd. are required to file their proofs of debt by September 10, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 25, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda NIPPON III: Members' Final Meeting Set for October 4 ---------------------------------------------------- The members of Nippon III Investments, Ltd. will hold their final meeting, on October 4, 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 25, 2010. The company's liquidator is: Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda PROTOSTAR LTD: Seeks U.S. Plan Exclusivity Until November 29 ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that ProtoStar Ltd. for the fourth time is pursuing an extension of the exclusive right to propose a Chapter 11 plan. If granted by the judge at a Sept. 30 hearing, the deadline would be pushed out three months to Nov. 29. According to the report, conclusion of the case is being held up by a lawsuit the Official Committee of Unsecured Creditors is prosecuting against secured lenders to invalidate their liens on the ProtoStar I satellite. The Committee believes the lenders filed notices of the security interests in the wrong place. About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. The Debtors have tapped UBS Securities LLC as investment banker and financial advisor. Also on July 29, 2009, ProtoStar and its affiliates, including ProtoStar Development Ltd., commenced a coordinated proceeding in the Supreme Court of Bermuda. John C. McKenna of Finance & Risk Services Ltd. as liquidator of the Bermuda Group. In their Chapter 11 petitions, the Debtors each estimated assets and debts of $100 million and US$500 million. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. =========== B R A Z I L =========== PARANA BANCO: S&P Raises Counterparty Credit Ratings to 'BB-/B' --------------------------------------------------------------- Standard & Poor's Ratings Services that it raised its ratings on Parana Banco S.A., including raising the counterparty credit ratings to 'BB-/B' from 'B+/B' on the global scale and to 'brA-' from 'brBBB+' on the Brazilian national scale. The outlook is stable. "The upgrade primarily reflects Parana Banco's solid operating performance over the past two years, during an economic downcycle," said Standard & Poor's credit analyst Ricardo Brito. S&P takes into account the earnings stability afforded by the bank's payroll-lending business and the insurance business managed by fully owned subsidiary J. Malucelli Seguradora S.A. (national scale: brA-/Stable/--). Very high capital and adequate liquidity management, which S&P trust offer significant protection during periods of stress, also support the ratings. The severe competition the bank faces somewhat offset these positives. The larger banks in Brazil are currently targeting payroll lending, and this could lead to portfolio growth challenges for Parana Banco. The stable outlook reflects S&P's expectation that the bank will be able to maintain its core competencies in the medium term with an adequate financial profile. However, the bank's business profile limits ratings upside. ========================== C A Y M A N I S L A N D S ========================== BALVENIE LIMITED: Members' Final Meeting Set for September 22 ------------------------------------------------------------- The members of Balvenie Limited will hold their final meeting, on September 22, 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: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands CLOVERDALE LIMITED: Shareholder to Hear Wind-Up Report on Sept. 8 ----------------------------------------------------------------- The shareholder of Cloverdale Limited will receive, on September 8, 2010, the liquidators' report on the company's wind- up proceedings and property disposal. 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: Shareholders' Final Meeting Set for September 16 ----------------------------------------------------------- The shareholders of Cogo Wolf Trimaran Liquidity Fund, Ltd will hold their final meeting, on September 16, 2010, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 Cayman Islands EMERSON REINSURANCE: Shareholder Receives Wind-Up Report -------------------------------------------------------- The shareholder of Emerson Reinsurance Ltd. received, on August 3, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553/ 914-7580 / 949-7755 Facsimile: 949-6021 / 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands FIRST HOSPITAL: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of The First Hospital Insurance Company, Ltd. received, on August 3, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553/ 914-7580 / 949-7755 Facsimile: 949-6021 / 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands FOUNDATION RE: Shareholders' Final Meeting Set for September 16 --------------------------------------------------------------- The shareholders of Foundation Re Ltd. will hold their final meeting, on September 16, 2010, at 9:00 a.m., to receive the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553/ 914-7580 / 949-7755 Facsimile: 949-6021 / 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands JAVELIN RE: Shareholder to Hear Wind-Up Report on September 16 -------------------------------------------------------------- The shareholder of Javelin Re Ltd. will receive, on September 16, 2010, at 9:00 a.m., the liquidators' report on the company's wind- up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553/ 914-7580 / 949-7755 Facsimile: 949-6021 / 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands MODULUS EUROPE: Shareholders' Final Meeting Set for September 7 --------------------------------------------------------------- The shareholders of Modulus Europe (Master) Limited will hold their final meeting, on September 7, 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: David A.K. Walker Prue Lawson Telephone: (345) 914-8662 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands MODULUS EUROPE: Shareholders' Final Meeting Set for September 7 --------------------------------------------------------------- The shareholders of Modulus Europe Limited will hold their final meeting, on September 7, 2010, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David A.K. Walker Prue Lawson Telephone: (345) 914-8662 Facsimile: (345) 945-4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands MONT GELE: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of Mont Gele Re received, on August 3, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553/ 914-7580 / 949-7755 Facsimile: 949-6021 / 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands PERITUS OFFSHORE: Shareholders' Final Meeting Set for September 16 ------------------------------------------------------------------ The shareholders of The Peritus Offshore Fund Ltd. will hold their final meeting, on September 16, 2010, at 10:00 a.m., to receive the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidator is: David J. Desmond 26 West Anapamu Street 3rd Floor Santa Barbara CA 93101 USA RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16 ------------------------------------------------------------------ The shareholder of Residential Reinsurance 2006 Limited will receive, on September 16, 2010, at 9:00 a.m., the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553/ 914-7580 / 949-7755 Facsimile: 949-6021 / 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16 ------------------------------------------------------------------ The shareholder of Residential Reinsurance 2007 Limited will receive, on September 16, 2010, at 9:00 a.m., the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553/ 914-7580 / 949-7755 Facsimile: 949-6021 / 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands SOUTH COAST: Members' Final Meeting Set for September 27 -------------------------------------------------------- The members of South Coast Funding IX Ltd will hold their final meeting, on September 27, 2010, at 10:05 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands SUMITOMO FINANCE: Members' Final Meeting Set for September 27 ------------------------------------------------------------- The members of Sumitomo Finance (Asia) Limited will hold their final meeting, on September 27, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands ZURICH PREMIER: Members' Final Meeting Set for September 27 ----------------------------------------------------------- The members of Zurich Premier Series Ltd. will hold their final meeting, on September 27, 2010, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jess Shakespeare c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands ========= C H I L E ========= COMPANIA SUD: S&P Raises Ratings to 'B'; Gives Positive Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Chilean shipping company Compania Sud Americana de Vapores S.A. to 'B' from 'B-' and revised the outlook to positive from stable. After three capital increases for a total of US$773 million since mid-2009, shareholders committed to a new capital increase of US$400 million. CSAV will likely implement this increase during first-quarter 2011. In addition, CSAV's operating performance continues to improve due to increasing tariff levels, significantly better trade flows in its core routes, and reduced chartering costs. The positive outlook reflects S&P's expectation that CSAV's credit quality will continue to improve as a result of better market conditions, with support from its more efficient cost base. S&P also consider the company's efforts to obtain a larger share of owned vessels as beneficial, as a larger share would increase stability and enhance profit margins. "S&P could raise the ratings if CSAV can maintain minimum cash levels of US$250 million (minimum levels under current covenant package are US$100 million) and adjusted funds from operations to total debt ratios higher than 20%," said Standard & Poor's credit analyst Diego Ocampo. "On the other hand, S&P could revise the outlook to stable if CSAV attains adjusted debt to EBITDA ratios higher than 5x in the upcoming quarters, and if a milder industry outlook develops," he continued. ================== C O S T A R I C A ================== INSTITUTO NACIONAL: Fitch Affirms 'BB+' Insurer Strength Rating --------------------------------------------------------------- Fitch Ratings has affirmed the international local currency Insurer financial Strength ratings of Instituto Nacional de Seguros at 'BB+'. The Rating Outlook is Stable. Fitch has also affirmed INS' National IFS rating at 'AAA(cri)' with a Stable Outlook. INS' ratings reflect the company's very strong capital and profitability levels, dominant market position, adequate reinsurance protection and risk exposure, high liquidity ratios, and the explicit support the company receives from the government of Costa Rica (local currency Issuer Default Rating 'BB+'). Despite these strengths, INS' need to enhance its operating platform and diversify its investment portfolio are some of the main challenges that the company should address in order to preserve its adequate financial results and dominant position in a market recently open to competition. The Rating Outlook is Stable. INS' rating is highly tied to the rating of its shareholder, the Costa Rican government. Changes in the rating of the latter could result in changes to INS' ratings. INS is the largest insurance company in Central America and one of the largest insurance companies in Latin America. Benefited by its monopolistic nature until mid 2008, INS has been able to post strong profits sustained by the sizable returns of its ample investment portfolio and improving combined ratio; with an average Return of Average Assets ratio above 7% in the last five years. Despite the inception of new insurance players in Costa Rica in the recent past, INS' market dominance and strong franchise remains unchanged, a trend that should persist in the short and medium term. Despite the former, significant improvements in terms of its underwriting skills and claim cost controls have been achieved, providing the company with better tools to cope with expected competition although finer tuning is required and expected. Capital ratios remain strong, not only thanks to its ample pre- existing capital base and good profitability, but also given its current 100% retained earnings policy, expected to last at least until year 2012. As such, the liabilities to equity ratio has steadily decreased since 2002 (2009: 1.7 times [x]; 2002: 3.6x); while technical reserves represent around 77% of its liabilities and cover more than 175% of its net premiums. INS capital is not encumbered. In part given the limitations of the local capital market and also due to the state owned nature of the company, its investment portfolio is highly concentrated on government counterparties (central government, central bank and publicly owned banks with sovereign guarantee); a trend that may persist in the future. Those investments represented 1.1x company's equity as of December 2009; a level viewed as high by Fitch, given the current 'BB+' Sovereign rating. Despite the concentration of the investment portfolio, liabilities are adequately match in terms of maturities and yield, and mostly considering the short-term nature of the both sides of the balance sheet, due the minor participation of life insurance commitments and other long-term risks. INS was founded in 1924. According to the Insurance Law of 2008, the company's insurance operations in Costa Rica are guaranteed by the full faith of the government but not its financial debt or insurance operations held abroad. ================================== D O M I N I C A N R E P U B L I C ================================== BANCO DE RESERVAS: Fitch Affirms 'B' Issuer Default Ratings ----------------------------------------------------------- Fitch Ratings has affirmed Banco de Reservas de la Republica Dominicana, Banco de Servicios Multiples' ratings: -- Foreign Currency Issuer Default Rating at 'B'; -- Local Currency IDR at 'B'; -- Short-Term Foreign Currency IDR at 'B'; -- Short-Term Local Currency IDR at 'B'; -- Individual Rating at 'D'; -- Support Rating at '4'; -- Support Floor at 'B'; -- National Long-Term Rating at 'A+(dom)'; -- National Short-Term Rating at 'F-1(dom)'. The Rating Outlook is Stable. Banreservas' Issuer Default Ratings reflect the support provided by its shareholder, the Dominican government. In addition, the bank's Individual Rating is supported by its ample market share, the stability of its deposit base, and adequate liquidity. However, decreasing profitability levels, a tight capital base and deteriorating asset quality metrics limit the bank's individual rating. Also, Bareservas' above average exposure of its balance sheet to the government (proper of most state-owned banks) is also considered. Changes in the IDRs will be contingent upon changes in the sovereign's creditworthiness. Further deterioration of its asset quality ratios and/or capital levels will trigger a downgrade of its Individual Rating. Increasing funding costs and a stagnated yield on its loan portfolio resulted in a decrease of Banreservas' net interest margin, while higher operating costs and the pressure of larger loan loss reserves, resulted in a significant contraction of the bank's operating profit to just 1.1%, well below its historic average and banks of similar size in the region; while its return on average assets ratio was benefited by an increase on non recurring income to 1.4%; still below the market average. Weak asset quality on its private sector portfolio, a heavy structure of operating costs and its narrower margin will keep pressuring the bank's operating profits in the short term. The stagnation of the private sector portfolio and the ramping past due loans on such portfolio increased the past due loan ratio for private sector loans to 11.4% as of December 2009 (FY08: 7.4%); while loan loss coverage was just 92%; metrics that compare unfavorably with the peer average. Public sector exposure (loans and securities) increased to 7.7 times as of December 2009, a level considered high due the relatively low sovereign rating of the Dominican Republic (IDR of 'B'). Banreserva's capital ratios remain challenged. As such, the equity to assets ratio came down to 7.3% as of May 2010 (FY06: 9%), while the Fitch eligible capital to risk weighted assets stood at 17.6% (10.3% if government loans are weighted at 100%), a level considered tight given the current level of profitability and tight loan loss coverage; while fixed assets represent 46% of total equity. As of May 2010, Banreservas ranked first out of 13 commercial and multiple service banks, with 26% of total system assets. The bank is the main government paying agent and also has an important participation in the consumer and corporate markets. LISTIN DIARIO: Investors Acquire Firm ------------------------------------- The Dominican Republic's Central Bank formalized the sale of Listin Diario to a group of 20 wealthy investors, The Associated Press reports. According to the report, officials said the total cost includes the roughly US$51.8 million the media company owes to the government, which temporarily seized and ran the newspaper after a severe banking crisis in 2003. The report notes that the investors, including Juan Bautista Vicini Lluberes of the Dominican sugar giant Vicini and media mogul Jose Luis "Pepin" Corripio, met with President Leonel Fernandez on Monday to vow that the debt will be paid. The report notes that Listin Diario was owned by the prominent Pellerano family from its founding in 1889 until 2000, when it was bought by Ramon Baez Figueroa, head of Banco Intercontinental. The report relates that the government took over the newspaper temporarily after the bank collapsed in May 2003 after losing some US$2.2 billion through embezzlement, fraud and bad deals. Listin Diario is one of the leading newspapers in the Dominican Republic, and the oldest still being published. ============= J A M A I C A ============= * JAMAICA: At Risk of US$100MM Annual Loss From Hurricanes ---------------------------------------------------------- An Inter-American Development Bank Report revealed that the country is at risk of average annual losses of US$105 million due to hurricanes and US$30 million from earthquakes, Caribbean Press Releases reports. The report relates that the study estimates the current exposure value of physical assets to earthquakes and hurricanes at approximately US$19 billion. According to the report, the study said that these assets mostly include transportation and communication infrastructure such as roads, bridges; residential commercial and industrial buildings and plants; and public utilities among others. The report says that the study further outlined that four parishes with the highest population density are more at risk -- St. Andrew, St. Catherine, Kingston and Clarendon respectively -- from hurricane hazards. * * * According to the TCR-LA on January 18, 2010, Fitch Ratings downgraded Jamaica's long-term local currency rating to 'C' from 'CCC'. In addition, Fitch has affirmed Jamaica's long-term and short-term foreign currency ratings at 'CCC' and 'C' respectively, and affirmed the Country Ceiling at 'B-'. Jamaica's sovereign ratings Outlook remains Negative =========== M E X I C O =========== METROFINANCIERA SA: Seeks Bankruptcy Protection in U.S. ------------------------------------------------------- Metrofinanciera SA de CV sought bankruptcy protection in the U.S. so it can wrap up its reorganization, Dawn McCarty and David McLaughlin at Bloomberg News report. The report relates that in a Chapter 15 petition filed Monday in Corpus Christi, Texas, the company said it has negotiated a debt restructuring deal with creditors and filed for bankruptcy in the U.S. to complete the plan. According to the report, without court protection in the U.S., the company said it faces "a substantial risk" that holders of US$100 million in notes issued in 2006 could sue the company in New York. Chapter 15 protects foreign companies from U.S. lawsuits and creditor claims while a company reorganizes abroad. "Such actions will seriously disturb Metrofinanciera's near-complete reorganization and force Metrofinanciera to litigate such actions at great cost," the company said in court papers, the report relates. Bloomberg News notes that Metrofinanciera filed for bankruptcy in Mexico last year after negotiating a restructuring with creditors. It was the first prepackaged bankruptcy in Mexican history. The report notes that the plan was approved by a Mexican court in June. Metrofinanciera listed both debt and assets of between US$500 million and US$1 billion in its U.S. bankruptcy petition, the report says. Metrofinanciera, Bloomberg News notes, needs approval of the Chapter 15 petition in order to make its bankruptcy plan effective in the U.S. and make distributions to the noteholders under the plan . The company's only U.S. creditors are holders of the notes, according to court documents, the report relates. At a hearing, U.S. Bankruptcy Judge Richard Schmidt granted the company's request for an order blocking collection actions by creditors. Judge Schmidt scheduled a September 24 hearing to consider Metrofinanciera's Chapter 15 petition, the report adds. The U.S. case is In re Metrofinanciera SA, 10-20666, U.S. Bankruptcy Court, Southern District of Texas (Corpus Christi). About Metrofinanciera SA Headquartered in Monterrey, Mexico, Metrofinanciera, S. A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad no Regulada -- http://www.metrofinanciera.com.mx/-- specializes in real estate credit and housing development in Mexico. Founded in 1996 in Monterrey, it offers financial services and consulting for all phases of real estate projects: housing construction, advance sales, public works and commercialization. The company also offers products in life, damage and unemployment insurance. VITRO SAB: Bond Rally Shows Creditors See Sweetened Offer --------------------------------------------------------- Thomas Black at Bloomberg News reports that Vitro, S.A.B. de C.V.'s defaulted bonds have climbed to a 23-month high on speculation that the company will sweeten an offer to restructure US$1.2 billion in debt that was rejected by creditors last month. According to the report, Vitro SAB's 9.125% bonds maturing in 2017 have more than doubled in price to 50 cents on August 30, 2010, on the dollar from a low of 21.25 cents on March 11, 2009. The report relates that they reached 51 cents on Aug. 2, the highest since Oct. 3, 2008. As reported in the Troubled Company Reporter-Latin America on August 25, 2010, The Financial Online said that Vitro SAB 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. 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 related 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. Meanwhile, the report notes, Vitro's creditors said that they hired a Mexican law firm after saying two weeks earlier they may "be forced to exercise remedies against Vitro." "Pushing the company into bankruptcy is still an option that is being considered, and that's why they went out and hired these litigators," the report quoted Alexander Monroy, a debt analyst with Barclays Capital Inc., as saying. 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. VITRO SAB: Concludes Sale of REIT Assets for US$63 Million ---------------------------------------------------------- Vitro S.A.B. de C.V. said that the Bancomext Trust, signed on November 3, 2008, has concluded the sale of non-productive real estate assets for US$63.8 million. The proceeds of such sale, plus US$5.5 million of the Company's available cash, were applied to liquidate the Trust. As of August 4, 2010, the Trust had an outstanding balance of US$69.3 million, including accrued interest. The sale included unused ancillary property surrounding the corporate headquarters. As a result of such sale, the Company has regained title of its two corporate headquarters office buildings, and their respective land, which were part of the original assets contributed to the Trust. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. * * * In June 2010, Fitch Ratings withdrew all ratings of Vitro, S.A.B. de C.V., given the lack of information following the company's default on Feb. 2, 2009, and consistent with Fitch's policies. Fitch will no longer provide ratings or credit research on the Company. Andres R. Martinez at Bloomberg News said in June that Vitro was suspended from trading in Mexico City after failing to file its fourth-quarter earnings report. The company missed 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 U E R T O R I C O ==================== VASSALLO INDUSTRIES: Scales Back Under New Corporation ------------------------------------------------------ Vassallo Industries President Rafael Vassallo Collazo said that the company will scale back operations through a newly created corporation, Vassallo International Group, under its Chapter 11 bankruptcy reorganization plan, caribbeanbusinesspr.com reports. The report relates Mr. Collazo said that the new corporation would utilize roughly half of the space that the company has operated in for the past decades in the Cotto Laurel sector of Ponce. According to the report, Mr. Collazo said that the new corporation would continue to export plastic products and would start operations on November 1 after securing financing from Banco Popular and the island government's Economic Development Bank. The report notes that the company's old administrative offices are being remodeled and will be leased to National College & University. The report relates Mr. Collazo said that scaling back the footprint will result in lower costs for power, insurance and maintenance among, other expenses. Mr. Collazo said that the company would do everything possible to keep its current staff of 145 at the Ponce plant, the report adds. Headquartered in Puerto Rico, Vassallo Industries Inc. is a private company that pioneers in the manufacture and distribution of plastic pipe and its accessories for sanitary and electrical applications. The company has diversified into resin furniture and accessories for household uses, honoring the excellence that has distinguished them since the beginning. *********** 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 * * *