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/raid1/www/Hosts/bankrupt/TCRLA_Public/100910.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 Friday, September 10, 2010, Vol. 11, No. 179 Headlines A R G E N T I N A FIJO PLAST: Creditors' Proofs of Debt Due on October 18 HIGH Q: Creditors' Proofs of Debt Due on November 30 PAMPA FUTBOL: Creditors' Proofs of Debt Due on October 15 PAPER RUSH: Creditors' Proofs of Debt Due on October 10 PASALTO SRL: Creditors' Proofs of Debt Due on October 8 TRANSMARITIMA CRUZ: Creditors' Proofs of Debt Due on October 27 B E R M U D A MAN ELN: Creditors' Proofs of Debt Due on September 22 MAN ELN: Members' Final Meeting Set for October 13 C A Y M A N I S L A N D S ARCTIC MCP: Members' Final Meeting Set for October 7 PICO FUND: Sole Shareholder Receives Wind-Up Report C O L O M B I A OSAGE EXPLORATION: Appoints Larry Ray to Board of Directors G U Y A N A BARAMA COMPANY: Government Closes Factory After Death of Worker M E X I C O CEMEX SAB: Renews Deal to Supply Concrete to Germany Power Plant MEXICANA AIRLINES: US Court Adjourns Hearing on Ch. 15 Recognition MEXICANA AIRLINES: Mexican Court Grants Protection from Creditors MEXICANA AIRLINES: Grounding May Be Permanent, UBS Analysts Say P U E R T O R I C O CARIBBEAN PETROLEUM: Judge Denies Transfer of Venue V E N E Z U E L A PETROLEOS DE VENEZUELA: Rosneft Continues Talks to Buy Refineries - - - - - ================= A R G E N T I N A ================= FIJO PLAST: Creditors' Proofs of Debt Due on October 18 ------------------------------------------------------- The court-appointed trustee for Fijo Plast S.R.L.'s reorganization proceedings will be verifying creditors' proofs of claim until October 18, 2010. The trustee will present the validated claims in court as individual reports on November 29, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on February 15, 2011. HIGH Q: Creditors' Proofs of Debt Due on November 30 ---------------------------------------------------- The court-appointed trustee for High Q Argentina S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until November 30, 2010. The trustee will present the validated claims in court as individual reports on February 18, 2011. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on April 11, 2011. PAMPA FUTBOL: Creditors' Proofs of Debt Due on October 15 --------------------------------------------------------- The court-appointed trustee for Pampa Futbol S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 15, 2010. The trustee will present the validated claims in court as individual reports on November 26, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on February 8, 2011. PAPER RUSH: Creditors' Proofs of Debt Due on October 10 ------------------------------------------------------- The court-appointed trustee for Paper Rush S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 10, 2010. The trustee will present the validated claims in court as individual reports on November 22, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on February 2, 2011. PASALTO SRL: Creditors' Proofs of Debt Due on October 8 ------------------------------------------------------- The court-appointed trustee for Pasalto S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 8, 2010. The trustee will present the validated claims in court as individual reports on November 22, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on February 4, 2011. TRANSMARITIMA CRUZ: Creditors' Proofs of Debt Due on October 27 --------------------------------------------------------------- The court-appointed trustee for Transmaritima Cruz del Sud S.A.'s reorganization proceedings will be verifying creditors' proofs of claim until October 27, 2010. The trustee will present the validated claims in court as individual reports on December 9, 2010. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on February 21, 2011. Creditors will vote to ratify the completed settlement plan during the assembly on October 26, 2011. ============= B E R M U D A ============= MAN ELN: Creditors' Proofs of Debt Due on September 22 ------------------------------------------------------ The creditors of Man ELN 2 Ltd are required to file their proofs of debt by September 22, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 7, 2010. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House 5 Park Road, Hamilton HM O9 Bermuda MAN ELN: Members' Final Meeting Set for October 13 -------------------------------------------------- The members of Man ELN 2 Ltd will hold their final meeting, on October 13, 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 September 7, 2010. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House 5 Park Road, Hamilton HM O9 Bermuda ========================== C A Y M A N I S L A N D S ========================== ARCTIC MCP: Members' Final Meeting Set for October 7 ---------------------------------------------------- The members of ARCTIC MCP will hold their final meeting, on October 7, 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: Marc Randall c/o Maples Finance Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands PICO FUND: Sole Shareholder Receives Wind-Up Report --------------------------------------------------- The sole shareholder of Pico Fund Limited received, on August 31, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Wilton McDonald Telephone: (345) 325-4040 =============== C O L O M B I A =============== OSAGE EXPLORATION: Appoints Larry Ray to Board of Directors ----------------------------------------------------------- Osage Exploration and Development Inc. said Larry Ray was appointed on Sept. 2, 2010, to the Board of Directors of the Company. Mr. Ray has over 35 years of experience in all phases of international and domestic oil and gas production with both public and private companies. Since September 2007 he has been an independent oil and gas investor and consultant. Mr. Ray's previous experience includes positions as President and Chief Operating Officer and interim Chief Financial Officer of Seven Seas Petroleum, an exploration and production company with primary operations in Colombia which was listed on both the Toronto and American Stock Exchanges, and President and Chief Operating Officer of The GHK Company, a large independent oil and gas company based in the Mid-continent. During his career Mr. Ray has been involved in drilling over 130 wells, constructing a 25,000 bopd production facility and 40 mile pipeline, evaluating and bidding on more than US$250 million in properties and securing over US$650 million in financing and farm- out agreements. Mr. Ray graduated with an MBA in Finance from Eastern New Mexico University in 1971 after receiving a Batchelor of Business Administration from the same institution in 1970. He is a member of the Association of International Petroleum Negotiators, the American Association of Professional Landmen, the American Association of Petroleum Geologist and the Society of Petroleum Engineers. Mr. Ray will receive 500,000 shares of the Company which shall vest as to 100% on September 2, 2010 On Sept. 2, 2010, the Company entered into an employment agreement with Greg Franklin to continue serving as Chief Geologist. Mr. Franklin has been employed as Chief Geologist by the Company since September 2007 under an employment agreement that ended Nov. 30, 2009. Mr. Franklin continued to be employed by the company since then but did not have an employment agreement. Mr. Frankin has also served on the board of the Company since May 2005. From March 1999 to February 2005 Mr. Franklin was a staff geologist for Barbour Energy. Mr. Franklin's previous experience includes positions as Vice President for Gulf Coast Exploration and Development Company and geologist with Conoco. Mr. Franklin graduated with a Bachelor of Science in Geology from Oklahoma State University in 1980. Mr. Franklin's employment agreement is for two years ending Nov. 30, 2012, with an annual base salary of US$240,000. Mr. Franklin will receive 1,000,000 shares of the Company which shall vest as to 100% on September 2, 2010. Mr. Franklin could be eligible for an annual bonus as determined by the Board of Directors. In the event that Mr. Franklin's employment is terminated for a Change of Control, then he shall be eligible to receive, in one lump payment, the greater of: i) annual base salary in effect immediately prior to the Change of Control and ii) the remaining base salary in effect immediately prior to the Change of control owed to Mr. Bradford until the end of the Employment Period. A full-text copy of the employment agreement is available for free at http://ResearchArchives.com/t/s?6afe A full-text copy of the restricted stock agreement is available for free at http://ResearchArchives.com/t/s?6aff About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. * * * GPKM LLP of Encino, California, expressed substantial doubt about Osage Exploration's ability to continue as a going concern following the Company's 2009 results. The firm reported that the Company has suffered recurring losses from operations and has an accumulated deficit as of December 31, 2009. =========== G U Y A N A =========== BARAMA COMPANY: Government Closes Factory After Death of Worker --------------------------------------------------------------- Guyana officials have ordered the closure of Barama Company Limited's timber factory after the death of a worker, Jason Fraser, on September 2, 2010, and two recent fatal accidents, The Associated Press reports. According to the report, Labor Minister Manzoor Nadir said that the Barama factory will remain closed until authorities determine how a worker found near a veneer-cutting machine died. "Too many young people are dying at the workplace," the report quoted Mr. Nadir as saying. "Barama has had three deaths in the past year. This is unsatisfactory," he added. Headquartered in Malaysia, Barama Company Limited owns a timber factory located in the western region of Guyana. The company has a concession of 1.6 million hectares. =========== M E X I C O =========== CEMEX SAB: Renews Deal to Supply Concrete to Germany Power Plant ---------------------------------------------------------------- Jonathan Roeder at Bloomberg News reports that CEMEX, S.A.B. de C.V. said a contract to supply ready-mix concrete for a new power plant in Hamburg-Moorburg, Germany, has been renewed. According to the report, the company was originally hired by Wayss & Freytag Ingenieurbau AG to supply 350,000 cubic meters of ready- mix concrete for the new coal-fired plant. CEMEX, S.A.B. de C.V. is a Mexican corporation, a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As reported in the Troubled Company Reporter-Latin America on July 12, 2010, CEMEX, S.A.B. de C.V. reached an agreement to sell some non-core assets in Kentucky for US$90 million in order to pay down some of its debt, Paul Kiernan at Dow Jones Newswires reports. According to the report, Cemex acquired the assets in 2007 as part of its US$15.5 billion buyout of Australia's Rinker, which left the company with a huge debt load, almost in default, and high exposure to the U.S. home construction market which withered soon after. As of May 20, 2010, the company continues to carry Standard and Poor's "B" long-term issuer credit ratings. MEXICANA AIRLINES: US Court Adjourns Hearing on Ch. 15 Recognition ------------------------------------------------------------------ Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York has adjourned the hearing on the motion for recognition of Mexicana Airlines' insolvency case as a foreign main proceeding. Judge Glenn was supposed to hold the hearing September 8, 2010, but Mexicana Airlines asked the Court to adjourn the hearing for one to two weeks in light of a pending appointment of a conciliator in its insolvency case in Mexico. The Mexican court, which oversees the insolvency case, issued an order on September 7, 2010, approving Mexicana Airlines' petition and moving its case into the "conciliation" or reorganization phase. In connection with this, the Mexican court ordered that a conciliator be appointed by the Mexican Ministry of Transport and Communications within the next few days. Mexicana Airlines also expects a possible appointment of an administrator by the Mexican government, who will work with the conciliator to effect the restructuring since the company operates under a "concession title" from the transportation ministry, according to its foreign representative, Maru Johansen. Ms. Johansen says Mexicana Airlines will spend the next few days meeting with the conciliator and administrator to talk about the status of operations and legal proceedings in the U.S., and to determine if they would like her to continue serving as the company's foreign representative or they would appoint another person. In lieu of the hearing, Judge Glenn scheduled a status conference, Sept. 8, at 11:00 a.m., on Mexicana Airlines' Chapter 15 case. The bankruptcy judge has not yet fixed a date for the next hearing on the motion. Earlier, Mara Trager, Esq., assistant attorney of the U.S. government, filed an objection with the Bankruptcy Court, seeking a ruling that would protect any funds held in trust for government agencies. Mexicana Airlines has reportedly been collecting fees from passengers that are held in trust by the company for government agencies, which include fees for the Customs and Border Protection, Department of Agriculture and the Transportation Safety Administration. Currently, no remittances of funds held in trust by Mexicana Airlines for the agencies are due but the company will be required to remit trust funds it has collected in the coming weeks or months, according to Ms. Trager. Since the filing of Mexicana Airlines' motion, a number of objections have been filed by various groups including the U.S Trustee and a consortium of airports and airport authorities represented by New York-based Edwards Angell Palmer & Dodge LLP. Ms. Johansen says that all but the objection of Banco Mercantil del Norte S.A. had been or will be resolved by the inclusion of additional language in the proposed order granting recognition. RBS Aerospace Limited, she says, has already dropped its objection. Banco Mercantil, a secured lender of the company, has complained over a recent ruling handed down by the Mexican court which the bank perceives is contradictory to the August 18 order issued by the Bankruptcy Court, which exempts the bank from the preliminary injunction. The Mexican Court's ruling enjoins Banco Mercantil from enforcing its rights on two bank accounts where Mexicana Airlines' cash collateral is held. The ruling came just two days after the Bankruptcy Court issued its August 18 order. Ms. Johansen says Mexicana Airlines' lawyers have already inserted additional language in the proposed order that was requested by the U.S. Trustee to address her objection. The company has also reached an agreement with the consortium to include provisions in the proposed order, with the consortium reserving its rights to seek relief with respect to issues not resolved by the order, according to the foreign representative. Meanwhile, Mexicana Airlines will provide "carve-outs" from injunctive relief in the proposed order in favor of the leasing companies, Ms. Johansen further says. 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: Mexican Court Grants Protection from Creditors ----------------------------------------------------------------- The Mexican court has granted airline company Grupo Mexicana protection from creditors, according to a September 7, 2010 report by Dow Jones. Grupo Mexicana, otherwise known as Nuevo Grupo Aeronautico, is the holding company for Mexicana Airlines and domestic subsidiaries, Mexicana Click and Mexicana Link. Mexico's Communications and Transport Minister Juan Molinar said the order gives the Communications and Transport Ministry or SCT a go signal to appoint an administrator for the company and an arbitrator in the restructuring process, Dow Jones reported. "Starting tomorrow, we'll be able to have the story much clearer, because the SCT will be in charge of administration," Mr. Molinar said, notes the report. The court order issued by Judge Felipe Consuelo Soto also gives Grupo Mexicana one year to restructure and avoid bankruptcy, according to a report by the Agence France-Presse. The ruling came more than two weeks after Grupo Mexicana was sold to an investors group, Tenedora K. The investor group acquired 95% of the company's shares while pilots union ASPA owns the remaining 5%. Mr. Molinar said the investor group, together with Advent International, injected "several million dollars," possibly a lost investment, to keep Grupo Mexicana's subsidiaries operating until August 28, 2010. "What did Tenedora K do? Acquire a company with negative value in hopes of restructuring it and making it work," Dow Jones quoted Mr. Molinar as saying during a meeting with reporters. The official said the government is not planning to put funds into the company. When asked how investing in the company could be preferable to simply starting a new airline, Mr. Molinar said the company has a series of assets including intangible assets that "are very valuable." "It's very likely that in putting together a new company, none of those intangible assets would be had," Dow Jones quoted him as saying. A more tangible asset of the company are the take-off and landing slots that it has at the Mexico City International Airport, which Mr. Molinar said will be temporarily assigned to other airlines so as not to lose connectivity. He pointed out, however, that the slots continue belonging to Grupo Mexicana. Eduardo Perez Motta, president of Federal Commission on Competition, stressed the importance of assigning the slots fairly so as not to favor any company such as Aeromexico, Grupo Mexicana's rival carrier. "If that happens, what will occur is that they'll increase the prices for these services, there will be a drop in the quality of service, and I think that's what we have to avoid," Dow Jones quoted him as saying. He said competition must be maintained in the interest of passengers. Details on how much debt has accumulated on Mexicana's books since its Aug. 3 bankruptcy petition are unavailable, as Tenedora K and the government remained quiet while awaiting the outcome of Mexicana's local filing, says the report. Mr. Molinar declined to say how much capital would likely be required to save Mexicana from liquidation. Delta Air Lines Inc. had said it does not have any imminent plans to add flights or frequencies to Mexico as a result of Grupo Mexicana's suspension. American Airlines likewise disclosed it is closely monitoring the situation in terms of demand for travel between the U.S. and Mexico but it has not made a decision regarding adding additional capacity. Aeromexico Rejects Possibility of Taking Over Mexicana Aeromexico said its shareholders are not considering buying or investing in Nuevo Grupo Aeronautico or any of its subsidiaries, according to September 9, 2010 report by Air Transport Intelligence. Recent moves by Aeromexico showed that it is more interested in strengthening its position in the markets it currently serves. Since Mexicana Airlines ceased its operations, Aeromexico has opened new routes and has implemented a new program that offers special fares for ticket holders affected by the cancellation of flights by the company, says the report. Aeromexico is also looking to expand its mainline fleet and is considering expanding its charter unit, Aeromexico Travel, into the scheduled domestic market, ATI reported. In an e-mailed statement to Bloomberg News, Aeromexico said it is evaluating investments to reinforce its position in the national and international travel markets, even as it waits for "greater certainty" in the regulatory framework. The Mexican government has indicated that it would not oppose Aeromexico taking ownership of Mexicana Airlines, according to ATI. The Mexican government and the unions representing pilots and flight attendants have been looking for new investors to replace Tenedora K or help in providing additional funding for Mexicana Airlines, ATI reports. They aim to re-launch the carrier in December which is the start of the winter season in the Mexican market. Several years ago, the Mexican government opted to pursue separate privatizations for Aeromexico and Mexicana Airlines rather than sell them as one airline group. But in 2008, the government said it would no longer object to a merger of the two companies in light of the rapid growth of low-cost carriers in Mexico, discloses ATI. Grupo Posadas, previous owners of Mexicana Airlines, also continued to express interest as recently as last year in a merger but Aeromexico's owners rejected the idea, says the report. The judge overseeing Mexicana Airlines' case said Mexico's Transportation Department will appoint later this week a new administrator for the company, which could indicate that Tenedora K is no longer involved in rescuing the company as the investor group appointed earlier an initial administrator, ATI reported. 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: Grounding May Be Permanent, UBS Analysts Say --------------------------------------------------------------- UBS AG said Mexicana Airlines is unlikely to resume operations after grounding all its flights over the weekend, according to an August 31 report by Bloomberg News. In an e-mailed note, UBS analysts Tomas Lajous and Luis Galvez said that it will initially curb air traffic and hurt airport operators including Grupo Aeroportuario del Sureste SAB, Grupo Aeroportuario del Pacifico SAB and Grupo Aeroportuario del Centro Norte SAB. "We expect this should be permanent," the analysts said, adding that traffic is set to suffer "a material supply-side hit until a way out is found." They further said they expect traffic to recover fairly rapidly given that the drop is supply-side driven. In a news conference in Mexico City, Juan Molinar Horcasitas, Mexico's communications and transportation minister said he does not agree with the UBS analysts' opinion. "Meetings are continuing with a diverse group of investors that have shown a very clear interest in restructuring the companies," Bloomberg News quoted Mr. Molinar as saying. The official further said Mexico is a market best suited to have one domestically owned international airline, with several competing for routes within the country. 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). ==================== P U E R T O R I C O ==================== CARIBBEAN PETROLEUM: Judge Denies Transfer of Venue --------------------------------------------------- Bankruptcy Law360 reports that Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware on Wednesday rejected an attempt by the Puerto Rico Treasury Department to transfer Caribbean Petroleum Inc.'s bankruptcy case to a court in its jurisdiction, clearing the way for the company to begin arranging for the sale of its assets. Meanwhile, American Bankruptcy Institute reports that unsecured creditors are protesting Caribbean Petroleum Corp.'s request for a bankruptcy loan, saying that the deal is designed to benefit the lender at the expense of unsecured creditors. 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 assets at US$100 million to US$500 million and 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. The Debtors' lead 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. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Rosneft Continues Talks to Buy Refineries ----------------------------------------------------------------- OAO Rosneft is continuing talks with Petroleos de Venezuela SA about buying its stake in Germany's Ruhr Oel GmbH to gain access to European refineries, Bloomberg News reports. Rosneft hasn't made a final decision on PDVSA's stake and hasn't held talks with BP Plc its half of Ruhr Oel, Peter O'Brien, the Russian oil producer's vice president for strategy, said, the report relates According to the report, Russian oil producers are seeking access to refining assets in Europe and Asia to boost the value of their crude supplies. PDVSA, the report notes, held talks about six years ago on selling its stake in Ruhr Oel to Russia's Alfa Group, one of BP's partners in the TNK-BP venture, BP Plc said at the time. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical, and coal industry, as well as planning, coordinating, supervising, and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported in the Troubled Company Reporter-Latin America on January 25, 2010, Reuters said that Petroleos de Venezuela's total debt jumped 42% in 2009 after it borrowed heavily to pay off service company debts and intervene in currency markets. The report related that PDVSA said total outstanding debt rose to US$21.4 billion from US$15.1 billion the year before. According to the report, PDVSA built up billions of dollars in debts to service companies after the 2008 collapse of oil prices. As of August 11, 2010, the company continues to carry Moody's "Ba1" local currency issuer rating. The company also continues to carry Standard and Poor's "B+" long-term issuer credit ratings. *********** 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 * * *