/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110214.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 Monday, February 14, 2011, Vol. 12, No. 31 Headlines A R G E N T I N A BANCO COMAFI: Moody's Assigns 'Ba3' Rating to Long-Term Debt DYCAP ARGENTINA: Asks for Bankruptcy Proceedings NILUMAX SERVICE: Creditors' Proofs of Debt Due April 13 RODADOS FIORENZA: Applies for Reorganization Proceedings VIP-MOVIL SA: Creditors' Proofs of Debt Due May 13 B E R M U D A FAIRHOLME HOLDINGS: Creditors' Proofs of Debt Due February 21 FAIRHOLME HOLDINGS: Members to Receive Wind-Up Report on March 7 FORSYTH GLOBAL: Members to Receive Wind-Up Report on March 25 FORSYTH GLOBAL: Members to Receive Wind-Up Report on March 25 FORSYTH GLOBAL: Members to Receive Wind-Up Report on March 25 C A Y M A N I S L A N D S ALE97 LTD: Shareholder Receives Wind-Up Report APOLLO COMMODITIES: Shareholders to Hear Wind-Up Report on Feb. 18 BB INVESTMENT: Members Receive Wind-Up Report BLINK ASSET: Creditors' Proofs of Debt Due February 17 CENTRAL HOLDINGS: Sole Member Receives Wind-Up Report CHAP-CAP ACTIVIST: Members Receive Wind-Up Report CHAP-CAP PARTNERS: Members Receive Wind-Up Report CO-INVESTMENT LIMITED: Members to Hear Wind-Up Report on Feb. 14 D&S (CAYMAN ISLANDS): Creditors' Proofs of Debt Due February 17 GOLDMAN SACHS: Creditors' Proofs of Debt Due February 17 HERIOT AFRICAN: Appoints Whicker and Beighton as Liquidators ING CLARION: Placed Under Voluntary Wind-Up ING CLARION: Placed Under Voluntary Wind-Up KENMAR GLOBAL: Shareholders to Hear Wind-Up Report on February 18 KRISTAL LOW: Shareholders to Hear Wind-Up Report on February 18 KUROMATSU FUND: Creditors' Proofs of Debt Due February 17 LEANDRA INTERNATIONAL: Sole Member Receives Wind-Up Report LYSTER WATSON: Shareholders to Hear Wind-Up Report on February 18 MAJUBA NO. 2: Creditors' Proofs of Debt Due February 17 MUIRFIELD DOUBLE: Placed Under Voluntary Wind-Up MUIRFIELD EAGLE: Placed Under Voluntary Wind-Up NATSOURCE MANAGED: Placed Under Voluntary Wind-Up NEW LILY: Sole Member Receives Wind-Up Report NWN GLOBAL: Members to Hear Wind-Up Report on February 17 RAP-PI ASIA: Placed Under Voluntary Wind-Up RAB-PI ASIA: Placed Under Voluntary Wind-Up RANGE ASSETS: Members Receive Wind-Up Report SADUF TWO: Shareholder to Hear Wind-Up Report on February 14 UNIVERSAL ELECTRONICS: Commences Liquidation Proceedings WASHINGTON HOLDINGS: Sole Member Receives Wind-Up Report M E X I C O MEXICANA AIRLINES: May Resume Operations by Month-End P U E R T O R I C O JUNCO STEEL: Steel Products Maker in Chapter 11 X X X X X X X X * Moody's: Defaults and Recoveries Underscore Severity of Crisis * Moody's: Global Default Rate Falls to 2.8% in January * BOND PRICING: For the Week February 7, to February 11, 2011 - - - - - ================= A R G E N T I N A ================= BANCO COMAFI: Moody's Assigns 'Ba3' Rating to Long-Term Debt ------------------------------------------------------------ Moody's Investors Service assigned a Ba3 long term global local currency debt rating to Comafi's expected issuance of a maximum of US$125 million in senior unsecured Argentine peso-linked notes. The notes are due in 2016, and will be issued under the program already rated by Moody's. The outlook on the rating is stable. Moody's Latin America also assigned an Aa2.ar long term local- currency debt rating on the national scale to the aforementioned notes. These ratings were assigned to Banco Comafi S.A.: US$125 million senior notes: * Long term, global local-currency debt rating: Ba3, stable outlook * Long term, National Scale, local-currency debt rating: Aa2.ar DYCAP ARGENTINA: Asks for Bankruptcy Proceedings ------------------------------------------------ Dycap Argentina SRL asked for bankruptcy proceedings. NILUMAX SERVICE: Creditors' Proofs of Debt Due April 13 ------------------------------------------------------- Nelida Liliana Cunarro, the court-appointed trustee for Nilumax Service SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until April 13, 2011. Ms. Cunarro will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 39, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Nelida Liliana Cunarro Paraguay 1269 RODADOS FIORENZA: Applies for Reorganization Proceedings -------------------------------------------------------- Rodados Fiorenza SA applied for reorganization proceedings. The company has defaulted on its payments due December 31, 2010. VIP-MOVIL SA: Creditors' Proofs of Debt Due May 13 -------------------------------------------------- Silvia Ines Trombetta, the court-appointed trustee for Vip-Movil SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until May 13, 2011. Ms. Trombetta will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 35, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Silvia Ines Trombetta Viamonte 1337 Argentina ============= B E R M U D A ============= FAIRHOLME HOLDINGS: Creditors' Proofs of Debt Due February 21 ------------------------------------------------------------- The creditors of Fairholme Holdings, Ltd. are required to file their proofs of debt by February 21, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on February 2, 2011. The company's liquidator is: Roderick M. Forrest Victoria Place, 31 Victoria Street Hamilton Bermuda FAIRHOLME HOLDINGS: Members to Receive Wind-Up Report on March 7 ---------------------------------------------------------------- The members of Fairholme Holdings, Ltd. will receive on March 7, 2011, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on February 2, 2011. The company's liquidator is: Roderick M. Forrest Victoria Place, 31 Victoria Street Hamilton Bermuda FORSYTH GLOBAL: Members to Receive Wind-Up Report on March 25 ------------------------------------------------------------- The members of Forsyth Global Property Fund Ltd will receive on March 25, 2011, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nigel Chatterjee PricewaterhouseCoopers Dorchester House 7 Church Street, Hamilton, HM 11 Bermuda FORSYTH GLOBAL: Members to Receive Wind-Up Report on March 25 ------------------------------------------------------------- The members of Forsyth Global Commodity Fund Ltd will receive on March 25, 2011, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nigel Chatterjee PricewaterhouseCoopers Dorchester House 7 Church Street, Hamilton, HM 11 Bermuda FORSYTH GLOBAL: Members to Receive Wind-Up Report on March 25 ------------------------------------------------------------- The members of Forsyth Global Private Equity Fund Ltd will receive on March 25, 2011, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nigel Chatterjee PricewaterhouseCoopers Dorchester House 7 Church Street, Hamilton, HM 11 Bermuda =========================== C A Y M A N I S L A N D S =========================== ALE97 LTD: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of ALE97 Ltd. received on February 1, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands APOLLO COMMODITIES: Shareholders to Hear Wind-Up Report on Feb. 18 ------------------------------------------------------------------ The shareholders of Apollo Commodities Trading Offshore Fund SPC, Ltd. will receive on February 18, 2011, at 8:45 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands BB INVESTMENT: Members Receive Wind-Up Report --------------------------------------------- The members of BB Investment Holding Ltd. received on February 1, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands BLINK ASSET: Creditors' Proofs of Debt Due February 17 ------------------------------------------------------ The creditors of Blink Asset Management are required to file their proofs of debt by February 17, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 22, 2010. The company's liquidator is: Rainer Hok Chung Lam c/o Jodi Jones Telephone: (345) 949 7000 Facsimile: (345) 945 4237 P.O. Box 258, Grand Cayman KY1-1104 Cayman Islands CENTRAL HOLDINGS: Sole Member Receives Wind-Up Report ----------------------------------------------------- The sole member of Central Holdings Ltd. received on January 31, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town Tortola VG1-110 British Virgin Islands CHAP-CAP ACTIVIST: Members Receive Wind-Up Report ------------------------------------------------- The members of Chap-Cap Activist Partners Offshore, Ltd. received on February 7, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands CHAP-CAP PARTNERS: Members Receive Wind-Up Report ------------------------------------------------- The members of Chap-Cap Partners II Offshore, Ltd. received on February 7, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands CO-INVESTMENT LIMITED: Members to Hear Wind-Up Report on Feb. 14 ---------------------------------------------------------------- The members of Co-Investment Limited III (Schoeller) will receive on February 14, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. D&S (CAYMAN ISLANDS): Creditors' Proofs of Debt Due February 17 --------------------------------------------------------------- The creditors of D&S (Cayman Islands) Limited are required to file their proofs of debt by February 17, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 29, 2010. The company's liquidator is: Linburgh Martin c/o Neil Gray Telephone: (345) 949 8455 Facsimile: (345) 949 8499 Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 Cayman Islands GOLDMAN SACHS: Creditors' Proofs of Debt Due February 17 -------------------------------------------------------- The creditors of Goldman Sachs U.S. Large Cap Equity Alpha Transport Fund, Ltd. are required to file their proofs of debt by February 17, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 5, 2011. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street George Town, Grand Cayman KY1-9005 Cayman Islands HERIOT AFRICAN: Appoints Whicker and Beighton as Liquidators ------------------------------------------------------------ On January 4, 2011, the Grand Court of Cayman Islands appointed S.L.C. Whicker and K. Beighton as the liquidators of Heriot African Trade Finance Fund Limited. The Liquidators can be reached at: K. Beighton P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands c/o Robert Arthur Telephone: 345-815-2637 / 345-949-4800 Facsimile: 345-949-7164 / 345-949-7164 ING CLARION: Placed Under Voluntary Wind-Up ------------------------------------------- On December 22, 2010, the sole shareholder of ING Clarion Asia, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by February 7, 2011, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Jennifer Parsons Telephone: (345) 815-1820 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands ING CLARION: Placed Under Voluntary Wind-Up ------------------------------------------- On January 5, 2011, the sole shareholder of ING Clarion Market Neutral, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by February 7, 2011, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Jennifer Parsons Telephone: (345) 815-1820 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands KENMAR GLOBAL: Shareholders to Hear Wind-Up Report on February 18 ----------------------------------------------------------------- The shareholders of Kenmar Global Balanced Fund SPC Limited will receive on February 18, 2011, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands KRISTAL LOW: Shareholders to Hear Wind-Up Report on February 18 --------------------------------------------------------------- The shareholders of Kristal Low Volatility will receive on February 18, 2011, at 8:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands KUROMATSU FUND: Creditors' Proofs of Debt Due February 17 --------------------------------------------------------- The creditors of Kuromatsu Fund are required to file their proofs of debt by February 17, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 7, 2011. 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 LEANDRA INTERNATIONAL: Sole Member Receives Wind-Up Report ---------------------------------------------------------- The sole member of Leandra International Limited received on January 31, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town Tortola VG1-110 British Virgin Islands LYSTER WATSON: Shareholders to Hear Wind-Up Report on February 18 ----------------------------------------------------------------- The shareholders of Lyster Watson US Equity Beta, Ltd. will receive on February 18, 2011, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre, 42 North Church Street George Town P.O. Box 1348, Grand Cayman KY1-1108 Cayman Islands MAJUBA NO. 2: Creditors' Proofs of Debt Due February 17 ------------------------------------------------------- The creditors of Majuba No. 2 are required to file their proofs of debt by February 17, 2011, to be included in the company's dividend distribution. The company's liquidator is: Bernard McGrath 69 Dr. Roy's Drive P.O. Box 1043, George Town Grand Cayman KY1-1102 Cayman Islands MUIRFIELD DOUBLE: Placed Under Voluntary Wind-Up ------------------------------------------------ On December 30, 2010, the sole shareholder of Muirfield Double Eagle Fund, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by February 7, 2011, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Danielle Walker Telephone: (345) 815-1880 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands MUIRFIELD EAGLE: Placed Under Voluntary Wind-Up ----------------------------------------------- On December 30, 2010, the sole shareholder of Muirfield Eagle Fund SPC, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by February 7, 2011, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Danielle Walker Telephone: (345) 815-1880 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands NATSOURCE MANAGED: Placed Under Voluntary Wind-Up ------------------------------------------------- On December 31, 2010, the sole shareholder of Natsource Managed Holdings Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by February 7, 2011, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Danielle Walker Telephone: (345) 815-1880 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands NEW LILY: Sole Member Receives Wind-Up Report --------------------------------------------- The sole member of New Lily Company Limited received on January 31, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: William Wong Flat 1, 6/F, Block B Fairland Gardens 7-10 Homantin Hill Road Ho Man Tin, Kowloon Hong Kong NWN GLOBAL: Members to Hear Wind-Up Report on February 17 --------------------------------------------------------- The members of NWN Global Club Ltd. will receive on February 17, 2011, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mordechai Shein 7 Rav Ashi Street Tel Aviv, Israel RAP-PI ASIA: Placed Under Voluntary Wind-Up ------------------------------------------- On December 31, 2010, the sole shareholder of Rap-Pi Asia Fund Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by February 7, 2011, will be included in the company's dividend distribution. The company's liquidator is: Avalon Management Limited c/o GL Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 c/o Landmark Square 64 Earth Close, 1st Floor West Bay Beach, P.O. Box 715, George Town Grand Cayman KY1-1107 Cayman Islands RAB-PI ASIA: Placed Under Voluntary Wind-Up ------------------------------------------- On December 31, 2010, the sole shareholder of Rab-Pi Asia (Master) Fund Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by February 7, 2011, will be included in the company's dividend distribution. The company's liquidator is: Avalon Management Limited c/o GL Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 c/o Landmark Square 64 Earth Close, 1st Floor West Bay Beach, P.O. Box 715, George Town Grand Cayman KY1-1107 Cayman Islands RANGE ASSETS: Members Receive Wind-Up Report -------------------------------------------- The members of Range Assets Ltd. received on February 1, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands SADUF TWO: Shareholder to Hear Wind-Up Report on February 14 ------------------------------------------------------------ The shareholder of Saduf Two Limited will receive on February 14, 2011, at 10:30 a.m., the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: David Preston Beverly Bernard c/o Isabel Mason Telephone: 949-7755 Facsimile: 949-7634 UNIVERSAL ELECTRONICS: Commences Liquidation Proceedings -------------------------------------------------------- At an extraordinary meeting held on January 1, 2011, the members of Universal Electronics Holding Co., Ltd. resolved to voluntarily liquidate company's business. Only creditors who were able to file their proofs of debt by January 31, 2011, will be included in the company's dividend distribution. The company's liquidator is: Portcullis Trustnet (Cayman) Limited c/o Michelle R. Bodden-Moxam Telephone: 345-946-6145 Facsimile: 345-946-6146 The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052, Grand Cayman KY1-1208 Cayman Islands WASHINGTON HOLDINGS: Sole Member Receives Wind-Up Report -------------------------------------------------------- The sole member of Washington Holdings Ltd. received on January 31, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town Tortola VG1-110 British Virgin Islands =========== M E X I C O =========== MEXICANA AIRLINES: May Resume Operations by Month-End ----------------------------------------------------- Adriana Lopez Caraveo at Bloomberg News reports that Labor Minister Javier Lozano said Compania Mexicana de Aviacion or Mexicana Airlines may resume operations by the end of the month with 40 planes and 40 routes. An agreement with new investors may be reached in the coming days to rescue bankrupt airline operator, Mr. Lozano said in an interview with Mexico City-based Radio Formula, according to Bloomberg. Foreign investment will be part of Mexicana's new capital structure, Mr. Lozano added, according to the report. 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 did not affect the operations of Click Mexicana and Mexicana Link, which are independent companies from Mexicana de Aviacion. ===================== P U E R T O R I C O ===================== JUNCO STEEL: Steel Products Maker in Chapter 11 ----------------------------------------------- Carla Main at Bloomberg News reports that Junco Steel Corp., a Bayamon, Puerto Rico-based steel products maker, has commenced a Chapter 11 case. According to the report, Banco Popular de Puerto Rico holds a US$6.1 million secured claim against the Company. Junco Steel filed for Chapter 11 protection (Bankr. D. P.R. Case No. 11-00827) on Feb. 2, 2011, estimating assets of less than US$50,000 and debts of up to $50,000,000. Carmen D. Conde Torres, Esq., in San Juan, Puerto, Rico, represents the Debtor. =============== X X X X X X X X =============== * Moody's: Defaults and Recoveries Underscore Severity of Crisis ---------------------------------------------------------------- The incidents of defaults among financial institutions during the recent financial crisis were unprecedented, according to Moody's latest annual analysis of defaults and recoveries. The period 2008 to 2010 saw 111 financial companies default, including 72 debt issuers holding US$318 billion of bonds and loans in the 2008-2010 period. By comparison, there were only 96 defaults, affecting US$46 billion of debt, of Moody's-rated financial companies in the period 1983 to 2007. Of these, 36 defaults took place during the U.S. Savings and Loans Crisis of 1989-1991, affecting $6 billion of debt. "Historically, defaults in the financial sector were fairly low except during the Savings and Loan crisis," says Sharon Ou, Assistant Vice President at Moody's Investors Service who authored the report. "Financial institution defaults during the recent crisis were unprecedented both in number and volume." The default rate for all Moody's-rated financial institutions rose sharply during 2008-2009 and reached its cyclical peak of 2.7% in August 2009, according to the Moody's report. It surpassed the previous record of 2.3% set during the Savings & Loan Crisis. While relatively fewer financial institutions are speculative grade, among those firms the default rate topped out at 11.5% during the recent crisis, below the 1989-1991 peak of 19.5% when there were far fewer speculative-grade-rated financial issuers. In addition to being at unprecedented levels, defaults during the recent crisis have also been more globally distributed. During the crisis, more than half of the financial institutions that defaulted were located in Europe, a region that historically had seen very few financial institution defaults. Specifically, during the past three years 56% of defaults have been located in Europe, compared to only 6% before 2008. About half the recent defaults were Ukrainian banks, which imposed deposit freezes in October 2008. In contrast to Europe, North America saw its share drop to only 37% in this cycle relative to 79% before 2008. The recent financial crisis also saw a unique phenomenon in credit differentiation among various classes of debt, which was in part due to different levels of support governments offered to senior debt liabilities versus junior ones. Recovery rates on defaulted bonds during the crisis have held up surprisingly well, boosted by 15 distressed exchanges. For example, the average recovery rate for senior unsecured bonds has been 35.2% during 2008-2010, which is just slightly off the 1983- 2007 average of 39.4%. Financial institutions engaged in distressed exchanges during the recent crisis, which propped up the recovery rate. Looking into 2011, Moody's Credit Transition Model (CTM), which forecasts rating transitions, predicts that the default rate among speculative-grade financial institutions which issue debt will stabilize under the baseline economic scenario to a range of 1.5% - 3.0%. Under a more pessimistic scenario, CTM forecasts the default rate rebounding from its current 3.0% level to 6.5%. Available on Moodys.com, "Defaults and Recoveries for Financial Institution Debt Issuers, 1983-2010" documents the default, recovery and rating transitions of Moody's-rated financial institutions since 1983. * Moody's: Global Default Rate Falls to 2.8% in January ------------------------------------------------------- The trailing 12-month global declined to 2.8% in January, down from its revised 3.2% level in December, according to Moody's Investors Service in its monthly default report. A year ago, the global default rate stood dramatically higher at 12.6%. No Moody's-rated corporate debt issuer defaulted in January, the first time there has been no default during a month since June 2007. By comparison, there were eight defaults in January 2010. "We continue to expect stable, low default rates for the near future," said Albert Metz, Moody's Director of Credit Policy Research. "Default rates would move upwards, however, should financing become scarce, particularly in Europe." Moody's forecasting model predicts that the global speculative- grade default rate will decline to 1.5% by January 2012. The model did a satisfactory job in projecting the rise and fall in default rates during the most recent credit cycle. For example, the model anticipated at the beginning of last year that the global default rate would fall sharply to 3.3% by year end and the actual rate came in at 3.2%. By region the model says the default rate will decline to 1.7% among U.S. speculative-grade issuers and to 1.1% among European speculative-grade issuers. By industry, Moody's expects default rates to be highest in the Hotel, Gaming, & Leisure sector in the U.S. and the Media: Advertising, Printing & Publishing sector in Europe. In the U.S., the speculative-grade default rate edged lower in January, to 3.0% from the revised December level of 3.4%. At this time a year ago, the U.S. default rate stood 13.7%. In Europe, the default rate among speculative-grade issuers was 2.3% in January, unchanged from the revised level for December. A year ago, the European default rate was at 10.5%. When measured on dollar volume basis, the global speculative-grade bond default rate remained unchanged at 1.6% from December to January. A year ago, the global dollar-weighted default rate stood at 16.4%. In the U.S., the dollar-weighted speculative-grade bond default rate ended January at 1.5%, down slightly from 1.6% in December. The same rate was 16.8% in January 2010. In Europe, the dollar-weighted speculative-grade bond default rate was 1.9% in January, unchanged from its revised level for December. At this time last year, the rate was 12.2%. Moody's speculative-grade corporate distress index -- a measure of the percentage of high-yield issuers that have debt trading at distressed levels-fell from December's level of 10.5% to 8.6% in January. A year ago, the index was higher at 19.4%. Among U.S. leveraged loans, the trailing 12-month default rate fell from 2.8% in December to 2.5% in January. A year ago, the loan default rate was 11.5%. Moody's "January Default Report" is now available, as are Moody's other default research reports, in the Rating Analytics section of http://Moodys.com/ * BOND PRICING: For the Week February 7, to February 11, 2011 ------------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Argentina ARGENT-PAR 1.18 12/31/2038 ARS 68.6 ARGENT- DIS 7.82 12/31/2033 EUR 74 ARGENT- DIS 7.82 12/31/2033 EUR 73.125 ARGENT- DIS 4.33 12/31/2033 JPY 42 ARGENT- PAR&GDP 0.45 12/31/2038 JPY 8 BODEN 2014 2 9/30/2014 ARS 165.5 BOGAR 2018 2 2/4/2018 ARS 160.8 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 51.626 BANIF FIN LTD 3 12/31/2019 EUR 67.625 BCP FINANCE BANK 5.01 3/31/2024 EUR 61.092 BCP FINANCE BANK 5.31 12/10/2023 EUR 63.898 BCP FINANCE CO 4.239 EUR 55.617 BCP FINANCE CO 5.543 EUR 56.883 BES FINANCE LTD 5.772 2/7/2035 EUR 58.517 BES FINANCE LTD 5.58 EUR 59.017 BES FINANCE LTD 4.5 EUR 61.661 BES FINANCE LTD 6.625 EUR 67.938 CHINA FORESTRY 7.75 11/17/2015 USD 73.25 CHINA FORESTRY 7.75 11/17/2015 USD 73.125 EFG ORA FUNDING 1.7 10/29/2014 EUR 62.96 ESFG INTERNATION 5.753 EUR 59.375 IMCOPA INTL CAYM 10.38 12/16/2014 USD 38 PUBMASTER FIN 6.962 6/30/2028 GBP 51.01 PUBMASTER FIN 8.44 6/30/2025 GBP 56.25 THPA FINANCE LTD 8.241 3/15/2028 GBP 71.41 CHILE ----- AGUAS NUEVAS 3.4 5/15/2012 CLP 0.95 CGE DISTRIBUCION 3.25 12/1/2012 CLP 39.56 ESVAL S.A. 3.8 7/15/2012 CLP 37.49 MASISA 4.25 10/15/2012 CLP 40.00 PUERTO RICO ----------- PUERTO RICO CONS 6.5 4/1/2016 USD 50 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 44.960 PETROLEOS DE VEN 5.375 4/12/2027 USD 45.970 PETROLEOS DE VEN 5.25 4/12/2017 USD 58.340 PETROLEOS DE VEN 5.125 10/28/2016 USD 58.769 PETROLEOS DE VEN 5 10/28/2015 USD 61.822 PETROLEOS DE VEN 4.9 10/28/2014 USD 66.821 PETROLEOS DE VEN 8.5 11/2/2017 USD 67.707 PETROLEOS DE VEN 8.5 11/2/2017 USD 68.284 PETROLEOS DE VEN 8.5 11/2/2017 USD 68.043 VENEZUELA 7 3/31/2038 USD 55.5 VENEZUELA 7 3/31/2038 USD 55.688 VENEZUELA 6 12/9/2020 USD 58.25 VENEZUELA 7.65 4/21/2025 USD 60.9 VENEZUELA 8.25 10/13/2024 USD 63.75 VENEZUELA 7.75 10/13/2019 USD 67.25 VENEZUELA 9.25 5/7/2028 USD 67.5 VENEZUELA 9 5/7/2023 USD 68 VENEZUELA 7 12/1/2018 USD 67.75 VENEZUELA 9.25 9/15/2027 USD 70.602 VENEZUELA 5.75 2/26/2016 USD 72.25 VENEZUELA 9.25 9/15/2027 USD 73.1 VENZOD - 189000 9.375 1/13/2034 USD 68.25 *********** 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. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Julie Anne G. Lopez, 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. * * * End of Transmission * * *