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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, July 27, 2011, Vol. 12, No. 147
Headlines
A N T I G U A & B A R B U D A
ABI BANK: ECCB Takes Control Over Bank to Prevent Collapse
A R G E N T I N A
CATERPILLAR FINANCIAL: Moody's Assigns 'Ba1' LC Senior Debt Rating
FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at 'Ba1(sf)'
B E R M U D A
CHARTIS BERMUDA: Closes Penthouse, Holds Furniture Auction
B R A Z I L
GOL LINHAS: S&P Affirms 'BB-' Global Scale Credit Rating
J A M A I C A
CARIBBEAN CEMENT: Jamaican Cement Passes Digenor's Quality Test
M E X I C O
VITRO SAB: Chapter 15 Petition Granted by U.S. Court
T R I N I D A D & T O B A G O
PETROTRIN: Workers Protest Over Board's Refusal to Remove Managers
- - - - -
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A N T I G U A & B A R B U D A
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ABI BANK: ECCB Takes Control Over Bank to Prevent Collapse
----------------------------------------------------------
Caribbean360.com reports that the Eastern Caribbean Central Bank
(ECCB) has taken over Antigua and Barbuda Investment Bank (ABI) to
prevent it from collapse after it failed to meet certain statutory
and other obligations.
ECCB and the government disclosed that the indigenous Antigua and
Barbuda Investment Bank is under its control effective July 22,
according to Caribbean360.com.
Caribbean360.com notes that Finance Minister Harold Lovell said
that ABI Bank's ability to meet its statutory obligations and to
carry out normal banking functions has been challenged because of
insufficient liquid assets.
"The affairs of ABI Bank will now be carried out by ECCB staff,
with the support of a dedicated group of banking specialists and
the current staff of ABI Bank. Together, they will resolve the
issues that led to this action, and ensure the continued
operations of the bank," Caribbean360.com quoted Mr. Lovell as
saying.
Caribbean360.com discloses that Mr. Lovell sought to assure that
the Government of Antigua and Barbuda will continue to work with
the ECCB to ensure that all steps are taken to protect the
interests of depositors and creditors of the bank.
ECCB Governor Sir Dwight Venner said that normal banking
operations will continue at the three branches of ABI and no
disruption of activities is contemplated, the report discloses.
Caribbean360.com relays that both officials explained that in
agreeing to the ECCB takeover of ABI Bank, the current economic
conditions in Antigua and Barbuda, the lingering effects of the
global recession, the CLICO/BAICO issue, and the best interests of
depositors were taken into consideration.
Prime Minister Baldwin Spencer pledged his Government's full
support to the Central Bank in its efforts to resolve the
challenges facing ABI Bank, Caribbean360.com says.
About ABI
Antigua and Barbuda Investment Bank, the flagship of the ABI
Financial Group, has been in operation for just over 21 years,
having opened on March 1, 1990, when it acquired the collapsed
Fidelity Trust Bank.
=================
A R G E N T I N A
=================
CATERPILLAR FINANCIAL: Moody's Assigns 'Ba1' LC Senior Debt Rating
------------------------------------------------------------------
Moody's Investors Service assigned a Ba1 global local currency
senior debt rating to Caterpillar Financial Services Argentina's
third bond issuance for an amount up to AR$40 million, which will
be due in 270 days, as well as to the fourth issuance for an
amount of AR$120 million, which will be due in 2 years.
At the same time, on the National Scale, Moody's assigned Aaa.ar
local currency debt rating to both issuances.
The outlook on all ratings is stable.
The ratings were based on the full, unconditional and irrevocable
guarantee, given by its parent Caterpillar Financial Services
Corporation globally rated A2.
The following ratings were assigned to Caterpillar Financial
Services Argentina S.A.:
AR$40 million senior unsecured debt issuance:
Ba1 Global Local Currency Debt Rating
Aaa.ar Argentina National Scale Local Currency Debt Rating
AR$120 million senior unsecured debt issuance:
Ba1 Global Local Currency Debt Rating
Aaa.ar Argentina National Scale Local Currency Debt Rating
Ratings Rationale
Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated
by a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.
Caterpillar Financial Services Argentina S.A. is headquartered in
Buenos Aires, Argentina, with assets of AR$79.3 million and equity
of AR$13.5 million as of March 2011.
FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at 'Ba1(sf)'
------------------------------------------------------------------
Moody's Latin America has rated the debt securities and
certificates of Fideicomiso Financiero Supervielle Creditos Banex
48 issued by Equity Trust Company (Argentina) S.A., acting solely
in its capacity as Issuer and Trustee.
-- ARS 47,000,000 in Class A Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos Banex 48", rated
Aaa.ar (sf) (Argentine National Scale) and Ba1 (sf) (Global
Scale, Local Currency)
-- ARS 41,000,000 in Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos Banex 48", rated
Aaa.ar (sf) (Argentine National Scale) and Ba1 (sf) (Global
Scale, Local Currency)
-- ARS 8,000,000 in Class C Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos Banex 48", rated
A2.ar (sf) (Argentine National Scale) and B3 (sf) (Global
Scale, Local Currency)
-- ARS 4,000,000 in Certificates of "Fideicomiso Financiero
Supervielle Creditos Banex 48", rated Ba1.ar (sf) (Argentine
National Scale) and Caa1 (sf) (Global Scale, Local Currency)
Ratings Rationale
The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 24,478 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banco
Supervielle, in an aggregate amount of ARS100,003,448.
These personal loans are granted to pensioners that receive their
monthly pensions from ANSES (Argentina's National Governmental
Agency of Social Security -- Administracion Nacional de la
Seguridad Social). The pool is also constituted by loans granted
to government employees of the Province of San Luis. Banco
Supervielle is the payment agent entity and automatically deducts
the monthly loan installment directly from the employee's paycheck
and pensioner's payment.
The Class A Fixed Rate Debt Securities will bear a fixed interest
rate of 13.50%. The Floating Rate Debt Securities will bear a
BADLAR interest rate plus a spread of 336 bp. The Floating Rate
Debt Securities' interest rate will never be higher than 21% or
lower than 13%. The Class C Fixed Rate Securities will bear a
fixed interest rate of 21%.
Overall credit enhancement is comprised of subordination: 53% for
the Class A Fixed Rate Debt Securities, 12% for the Floating Rate
Securities and 4% for the Class C Fixed Rate Securities. In
addition the transaction has various reserve funds and excess
spread.
Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of
Supervielle's portfolio. In addition, Moody's considered factors
common to consumer loans securitizations such as delinquencies,
prepayments and losses; as well as specific factors related to the
Argentine market, such as the probability of an increase in losses
if there are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.
Moody's considered factors common to consumer loans
securitizations such as delinquencies, prepayments and losses; as
well as specific factors related to the Argentine market. These
factors were incorporated in a cash flow model in order to
determine the expected loss for the rated securities. Finally,
Moody's also evaluated the back-up servicing arrangements in the
transaction.
The principal methodology used in rating the transaction is
summarized below: In assigning the rating to this transaction,
Moody's assumed a triangular distribution for defaults on the main
pool centered around a most likely scenario of 10%, a minimum of
5% and a maximum of 20%. Also, Moody's assumed a triangular
distribution for prepayments centered around a most likely
scenario of 20%, a minimum of 15% and a maximum of 35%. These
assumptions are derived from the historical performance to date of
the Banex's pools.
The model results showed 0.00% expected loss for Class A Fixed
Rate Debt Securities and Floating Rate Debt Securities, 0.15%
expected loss for Class C Fixed Rate Debt Securities and 7.11% for
the Certificates.
Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 5% from
the base case scenario for the pool (i.e., most likely scenario of
15%, a minimum of 10% and a maximum of 25%), the ratings of the
Classes A, Floating Rate and Class C Fixed Rate debt securities
would be unchanged. The ratings for Certificates would be
downgraded to Ca (sf).
Moody's also considered the risk that a disruption in the flow of
payments from ANSES or the Government of San Luis to pensioners
and employees respectively, could severely affect the performance
of the pool. Moody's believes that the ratings assigned are
consistent with this risk.
Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. If Banco Supervielle is removed as servicer,
Equity Trust Company (Argentina) S.A. will be appointed as the
back-up servicer.
The main source of uncertainty for this transaction is the
regulatory and legal framework for the automatic deduction loans
in Argentina.
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B E R M U D A
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CHARTIS BERMUDA: Closes Penthouse, Holds Furniture Auction
----------------------------------------------------------
Alex Wright at The Royal Gazette Online reports that American
International Group (AIG)'s Bermuda unit, Chartis Bermuda, closed
and placed its penthouse apartment on auction over the weekend.
Beds, upholstered chairs and ottoman couches used by AIG Chief
Executive Officer Maurice (Hank) Greenberg and Martin Sullivan
were sold, The Royal Gazette Online notes. Furniture from
Chartis' penthouse apartment was also included in the auction, the
report cites.
Auctioneers Hammers Ltd facilitated a cash and carry system on the
auction day. Another sale is planned for the sale of the contents
of two additional floors of office furniture, fixtures and
equipment, The Royal Gazette Online adds.
About AIG
American International Group, Inc. -- http://www.aig.com/-- is an
international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies are leading providers of life insurance
and retirement services around the world. AIG common stock is
listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. AIG almost
collapsed under the weight of bad bets it made insuring mortgage-
backed securities. The Company, however, was bailed out by the
Federal Reserve, but even after an initial infusion of
$85 billion, losses continued to grow. The later rescue packages
brought the total to $182 billion, making it the biggest federal
bailout in U.S. history.
AIG has been working to protect and enhance the value of its key
businesses, execute an orderly asset disposition plan, and
position itself for the future. AIG has sold a number of its
subsidiaries and other assets to pay down loans received from the
U.S. government, and continues to seek buyers of its assets.
===========
B R A Z I L
===========
GOL LINHAS: S&P Affirms 'BB-' Global Scale Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' global scale
and 'brA' national scale corporate credit ratings on Brazil-based
airline Gol Linhas Aereas Inteligentes S.A. (GOL). The outlook
remained stable.
"The ratings reflect GOL's aggressive financial profile,
characterized by increasing aircraft-financing debt to sustain its
aircraft fleet expansion program; exposure to the industry's
intrinsic risks of cyclicality, price competitiveness, and capital
intensity; high correlation of demand with GDP; and exposure to
volatile costs because of foreign-exchange and fuel price
fluctuations," said Standard & Poor's credit analyst Leopoldo
Oliveira. GOL's adequate liquidity position, solid market
position in the Brazilian airline industry, and efficient and
cost-competitive operations partially offset these negatives.
"We see GOL's business profile as weak. The company relies on
strong demand, a significant domestic market share as the second-
largest player in the country, its low-cost business model marked
by a young and standardized Boeing B737 Next Generation (NG)
fleet, and efficient yield and route management," S&P stated.
However, adverse market conditions in 2011, stemming from booming
fuel costs and persistent low fares because of strong competition
in the domestic market have been hurting profitability and cash
flows. Even so, GOL has approved an aggressive fleet expansion
plan that will add, on a net basis, five new aircraft in 2011 and
another four in 2012 to its existing operating fleet of 110
aircraft. The airline has based its expansion on the positive
market fundamentals for the Brazilian domestic airline industry,
in which demand is growing faster than capacity.
"The stable outlook reflects our opinion that, despite an expected
worsening in airline industry markets, GOL will be able to sustain
its efficient operations and aggressive fleet expansion plan,
underpinned by its solid market position in the Brazilian domestic
airline industry; its leading position as a low-cost carrier; and
its recently tested capacity to manage its robust capital
structure," S&P stated.
"We will closely monitor management's ability to conduct business
prudently during the challenging conditions we expect for 2011,
and the pace of its fleet expansion plans and resulting impacts on
debt and financial covenants. Deterioration in liquidity and an
OLA total-debt-to-EBITDA ratio of more than the 7x we expect could
trigger a negative rating action. We don't see room for an
upgrade in the medium term," S&P related.
=============
J A M A I C A
=============
CARIBBEAN CEMENT: Jamaican Cement Passes Digenor's Quality Test
---------------------------------------------------------------
Dominican Today reports that the Norms and Quality Systems Agency
(Digenor) revealed stress tests conducted on cement imported from
Jamaica resulted positive for resistance, for which it can be
marketed freely in the country.
Digenor said the tests were conducted in labs of the CTL Group in
Chicago, according to Dominican Today.
As reported in the Troubled Company Reporter-Latin America on
June 21, 2011, RJR News related that Caribbean Cement Company is
admitting that it still has lingering concerns about its exports
to the Dominican Republic. RJR News noted that a shipment of
Caribbean Cement to the Dominican Republic in April was detained
for 49 days resulting in significant financial losses for the
company and its distributor in the Spanish speaking country. RJR
News related that this occurred despite certification from the
Bureau of Standards Jamaica and confirmation by independent and
internationally recognized laboratories that the cement met all
the standards required. The company said that while the shipment
was eventually released, there has been no clarity as to whether
future shipments will be subjected to similar non-tariff barriers,
RJR News said. The company added that it will continue to feel
the pinch if its future shipments to the Dominican Republic are
held at the port for an unnecessarily long time, RJR News related.
RJR News notes that Dominican Republic's cement makers accused the
Carib Cement of having little regard for the rules in their
country. RJR News relates that they warned consumers that the
Carib Cement is being marketed "irregularly" and it does not have
the quality certificate or the required permit from the Public
Works Ministry.
Caribbean Cement Company Limited manufactures and sells cement.
===========
M E X I C O
===========
VITRO SAB: Chapter 15 Petition Granted by U.S. Court
----------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Vitro SAB won a round on July 21 in the continuing
battle with bondholders that the bankruptcy judge in Dallas called
a "knock down, drag out," where "every matter filed by one party
is objected by the other." The issue before the court was whether
the U.S. would recognize Vitro's Mexican reorganization as the
"foreign main proceeding." In a four-page opinion, U.S.
Bankruptcy Judge Harlin DeWayne Hale came down on the side of
Vitro and granted the company's petition for protection under
Chapter 15 of the U.S. Bankruptcy Code.
The dispute was over whether Vitro could select the person to
serve as the foreign representative in the U.S. case. Judge Hale
said that six companies previously had their Mexican bankruptcies
recognized as the foreign main proceeding. He listed four where
the Mexican company had Chapter 15 approval after selecting its
own foreign representative.
Vitro, Mr. Rochelle relates, argued that Chapter 15 allows a
foreign company to be its own foreign representative, just as U.S.
companies retain control over their own operations as debtors-in-
possession. Vitro said that Mexican law is the same in terms of
allowing companies to remain in the driver's seat during
bankruptcy.
The Chapter 15 petition was opposed by holders of some of the
$1.2 billion of bonds in default for more than two years. The
bondholders said Judge Hale could rule later on whether to enforce
a Mexican reorganization plan in the U.S. if it was approved using
insider votes to cram down on bondholders opposed to the plan.
Vitro and the bondholders are scheduled to clash again in
bankruptcy court on July 25. The bondholders want the judge to
declare that they are free to attach assets of Vitro subsidiaries
not in bankruptcy in either the U.S. or Mexico.
Mr. Rochelle relates that the bankruptcy judge refused to put
several Vitro subsidiaries into bankruptcy involuntarily in the
U.S. The bondholders want Judge Hale to declare that the so-
called automatic stay from the involuntary filings disappeared
when the petitions were denied.
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 the
largest manufacturer of glass containers and flat glass in Mexico,
with consolidated net sales in 2009 of MXN23,991 million (US$1.837
billion).
Vitro defaulted on its debt in 2009 and sought to restructure
around US$1.5 billion in debt, including US$1.2 billion in notes.
Vitro launched an offer to buy back or swap US$1.2 billion in debt
from bondholders. The tender offer would be consummated with a
bankruptcy filing in Mexico and Chapter 15 filing in the United
States. Vitro said noteholders would recover as much as 73% by
exchanging existing debt for cash, new debt or convertible bonds.
Concurso Mercantil & Chapter 15 Proceedings
Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a
pre-packaged Concurso Plan in the Federal District Court for Civil
and Labor Matters for the State of Nuevo Leon, commencing its
voluntary concurso mercantil proceedings -- the Mexican equivalent
of a prepackaged Chapter 11 reorganization. Vitro SAB also
commenced parallel proceedings under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan
on Dec. 13, 2010, to seek U.S. recognition and deference to its
bankruptcy proceedings in Mexico.
Early in January 2011, the Mexican Court dismissed the Concurso
Mercantil proceedings. The judge said Vitro couldn't push through
a plan to buy back or swap US$1.2 billion in debt from bondholders
based on the vote of US$1.9 billion of intercompany debt when
third-party creditors were opposed. Vitro as a result dismissed
the first Chapter 15 petition following the ruling by the Mexican
court.
On April 12, 2011, an appellate court in Mexico reinstated the
reorganization. Accordingly, Vitro SAB on April 14 re-filed a
petition for recognition of its Mexican reorganization in U.S.
Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754).
In the present Chapter 15 case, the Debtor seeks to block any
creditor suits in the U.S. pending the reorganization in Mexico.
On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced
a voluntary judicial reorganization proceeding under the Ley de
Concursos Mercantiles before the Federal District Court for Civil
and Labor Matters for the State of Nuevo Leon, the United Mexican
States. On June 30, 2011, Vitro Packaging filed a chapter 15
petition (Bankr. N.D. Tex. Case No. 11-34224).
Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos
serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro
Packaging de Mexico S.A. de C.V. The Foreign Representatives are
represented by David M. Bennett, Esq., Katharine E. Battaia, Esq.,
and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and
Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz,
Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley &
McCloy LLP.
Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P.
Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok,
LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq.,
Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert
LLP.
Chapter 11 Proceedings
A group of noteholders, namely Knighthead Master Fund, L.P., Lord
Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed
Opportunities Fund LP, and Brookville Horizons Fund, L.P., opposed
the exchange. Together, they held US$75 million, or approximately
6% of the outstanding bond debt. The Noteholder group commenced
involuntary bankruptcy cases under Chapter 11 of the U.S.
Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case
No. 10-47470) and 15 other affiliates on Nov. 17, 2010.
Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation
counsel to analyze the potential rights that Vitro may exercise in
the United States against the ad hoc group of dissident
bondholders and its advisors.
A larger group of noteholders known as the Ad Hoc Group of Vitro
Noteholders -- comprised of holders, or investment advisors to
holders, which represent approximately US$650 million of the
Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not
among the Chapter 11 petitioners, although the group has expressed
concerns over the exchange offer. The group says the exchange
offer exposes Noteholders who consent to potential adverse
consequences that have not been disclosed by Vitro. The group is
represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at
White & Case LLP.
The U.S. affiliates subject to the involuntary petitions are Vitro
Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10-
47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473);
Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super
Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky
International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP
Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco
Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O.
Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger
Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa
Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance
Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass,
Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC
(Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC
(Bankr. N.D. Tex. Case No. 10-47485).
A bankruptcy judge in Fort Worth, Texas, denied involuntary
Chapter 11 petitions filed against four U.S. subsidiaries.
On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro
America LLC and three other U.S. subsidiaries -- that were subject
to the involuntary petitions into voluntary Chapter 11. The Texas
Court on April 21 denied involuntary petitions against the eight
U.S. subsidiaries that didn't consent to being in Chapter 11.
Kurtzman Carson Consultants is the claims and notice agent to
Vitro America, et al. Alvarez & Marsal North America LLC is the
Debtors' operations and financial advisor.
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Vitro America, et al., has selected Sarah Link
Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas,
Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis
Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York,
as counsel.
===============================
T R I N I D A D & T O B A G O
===============================
PETROTRIN: Workers Protest Over Board's Refusal to Remove Managers
------------------------------------------------------------------
Carolyn Kissoon at Trinidad Express reports that the failure of
the board of directors of state-owned Petrotrin to remove its top
two managers sparked a protest by some workers on July 25.
The workers argued that the managers were responsible for the
"poor operations" at the Pointe-a-Pierre refinery, according to
Trinidad Express.
"These people are contributing to the demise of the refinery and
we are demanding that they are removed. We have been calling for
their removal for almost five years and we got word this morning
that nothing was being done about it," Trinidad Express quoted
Anil Bhagoutie, Oilfields Workers' Trade Union (OWTU) branch
president at Petrotrin, as saying.
Trinidad Express notes that Mr. Bhagoutie denied claims that the
union was seeking the removal of the managers because they refused
to help the relatives of union executive members.
Mr. Bhagoutie, the report relates, said: "The workers staged a
protest to highlight their disgust. These people have not been
performing and we are insisting that the Board take action against
them".
The union is also demanding a meeting with the Board to discuss
its concerns, Trinidad Express adds.
About Petrotrin
Petroleum Company of Trinidad and Tobago is the major state-owned
oil company in Trinidad and Tobago. The company was established
in 1993 by the merger of Trintopec and Trintoc, two state-owned
oil companies. Petrotrin's main holdings are extensive, mature
onshore fields located across southern Trinidad. Large areas have
been leased out to small private producers who are able to make a
profit on wells that are unprofitable for Petrotrin, giving it
higher labor costs. The company operates a refinery at Pointe-
Pierre, just north of San Fernando in south Trinidad. Most crude
petroleum produced in Trinidad is exported without being refined.
The refinery depends on imported crude (mostly from Venezuela),
which is either used domestically or exported.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 9, 2010, Trinidad Express said that four members of Petrotrin
submitted their resignation letters. According to the report,
Malcom Jones resigned as chairman of Petrotrin and from the State
boards. The report related board members Lawford Dupres, who
chaired the National Petroleum board, attorney Kerwin Garcia and
Andrew McIntosh had also resigned. Prime Minister Kamla Persad-
Bissessar, the report noted, said that Cabinet had ordered a
forensic audit of Petrotrin as there were "grounds for suspicion
of misconduct" at Petrotrin similar to what may have transpired at
special-purpose State enterprise UDeCOTT. The report said that
the company was experiencing serious financial difficulties
resulting in high cost overruns of its refinery upgrade. The
situation was exacerbated by a US$12 billion lawsuit by World GTL
Inc. against Petrotrin, the report added.
***********
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
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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. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Psyche A. Castillon, Ivy B.
Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors.
Copyright 2011. 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.
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