/raid1/www/Hosts/bankrupt/TCRLA_Public/110223.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, February 23, 2011, Vol. 12, No. 38
Headlines
A R G E N T I N A
TOYOTA COMPANIA: Moody's Affirms 'E+' Bank Financial Rating
B E R M U D A
CONCORDIA DISTRESSED: Creditors' Proofs of Debt Due March 4
CONCORDIA DISTRESSED: Members' Final Meeting Set for March 25
FAIRLANE HOLDING: Creditors' Proofs of Debt Due March 4
FAIRLANE HOLDING: Member to Receive Wind-Up Report on March 25
NORTIDE III: Creditors' Proofs of Debt Due March 4
NORTIDE III: Members' Final Meeting Set for March 25
B R A Z I L
CAMARGO CORREA: Fitch Upgrades Issuer Default Rating to 'BB+'
CONCESSIONARIA DE RODOVIAS: Moody's Assigns 'Ba1' Bond Rating
C A Y M A N I S L A N D S
139 MOBILE: Creditors' Proofs of Debt Due March 14
AGA INTERNATIONAL: Creditors' Proofs of Debt Due March 14
CHEYNE LEVERAGE: Creditors' Proofs of Debt Due March 16
DUKE FUNDING: Creditors' Proofs of Debt Due March 14
GLG EMERGING: Creditors' Proofs of Debt Due March 14
GLG PENDRAGON: Creditors' Proofs of Debt Due March 14
HGM ASSET: Creditors' Proofs of Debt Due March 16
IT ESTATE: Creditors' Proofs of Debt Due March 14
JUBILEE INCORPORATIONS: Creditors' Proofs of Debt Due February 28
MAJESBIC COMPANY: Creditors' Proofs of Debt Due March 14
MH GROUP: Creditors' Proofs of Debt Due March 16
PLENARY INVESTMENTS: Creditors' Proofs of Debt Due March 16
REDWOOD CAPITAL: Creditors' Proofs of Debt Due March 7
SIMAC TRADING: Creditors' Proofs of Debt Due March 8
SKY HOLDING: Creditors' Proofs of Debt Due March 16
UBS-ARMR 2007-2: Creditors' Proofs of Debt Due March 16
VALHALLA SYNERGY: Creditors' Proofs of Debt Due March 14
VALHALLA SYNERGY: Creditors' Proofs of Debt Due March 14
WATERLOO FULLY: Creditors' Proofs of Debt Due March 21
J A M A I C A
PETROLEUM CORPORATION OF JAMAICA: Searches for Managing Director
P U E R T O R I C O
FARMACIAS EL AMAL: Shuts Stores Without Notice
T R I N I D A D & T O B A G O
CL FIN'L: CLICO Payout to Begin After Carnival Celebration
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A R G E N T I N A
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TOYOTA COMPANIA: Moody's Affirms 'E+' Bank Financial Rating
-----------------------------------------------------------
Moody's Investors Service affirmed Toyota Compania Financiera de
Argentina S.A.'s E+ bank financial strength rating and lifted the
unsupported baseline credit assessment to B2 from B3. The rating
agency also affirmed TCFA global local and foreign currency
deposit ratings of Ba1/Not Prime and Caa1/Not Prime respectively.
At the same time, Moody's affirmed the Aaa.ar and Ba1.ar Argentina
National Scale ratings for local and foreign currency deposits.
All these ratings have stable outlooks.
Moody's also affirmed TCFA's global local and foreign currency
senior debt ratings of Ba1 and B2, as well as the corresponding
Aaa.ar and Aa3.ar local and foreign currency debt ratings under
the Argentina National Scale.
These ratings were affirmed with stable outlooks:
Toyota Compania Financiera de Argentina S.A.:
* Bank Financial Strength Rating: E+
* Long- and short-term global local-currency deposit ratings: Ba1
and Not Prime
* Long- and short-term foreign currency deposit ratings: Caa1 and
Not Prime
* Long-Term National Scale Local-Currency Deposit Rating: Aaa.ar
* Long -Term National Scale Foreign Currency Deposit Rating:
Ba1.ar
* Global Local-Currency Debt Rating: Ba1
* Global Foreign-Currency Debt Rating: B2
* National Scale Local-Currency Debt Rating: Aaa.ar
* National Scale Foreign-Currency Debt Rating: Aa3.ar
Rating Rationale
In lifting TCFA's unsupported baseline credit assessment, Moody's
recognizes the strengthening of TCFA's financial fundamentals
since it commenced its lending operations in 2005 as well as its
growth potential in light of the recovering auto industry in
Argentina.
The company's profitability has been improving during the last
three years, as evidenced by its net interest margin (9.1% as of
September 2010 up from 6.5% in 2009), aided by loan growth and
lower funding costs in particular, as well as its pre-provision
profitability ratio (2.6% up from 2.2%). TCFA's profitability has
also been sustained by sound and improving asset quality, with a
manageable 1.5% non-performing loan ratio, benefiting from the
company's consistent risk management and collections practices.
Moody's also highlighted the company's improved funding structure,
including a shift from an almost full dependence on interbank
funding in 2008 towards a greater proportion of deposits chiefly
from the company's car dealer customers and the issuance of debt,
which now represent 18% and 24% of total funding, respectively.
TCFA nevertheless continues to be challenged by its limited
franchise and loan market shares (0.1%), as well as its monoline
business orientation risk factors that are incorporated in the E+
BFSR.
TCFA's deposit and debt ratings incorporate the assumption of a
very high probability of support from TCFA's ultimate parent,
Toyota Motor Corporation, due to its key role as TMC's financial
agent in Argentina. The strong support and strategic importance
to the parent company is reflected in the significant four-notch
lift of TCFA's local currency rating to Ba1.
Toyota Compania Financiera de Argentina S.A. is headquartered in
Vicente Lopez, Argentina. As of September 2010, the bank reported
AR$354 million in assets and AR$66.6 million in equity.
Moody's adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources Moody's considers to be reliable including, when
appropriate, independent third-party sources. However, Moody's is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.
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B E R M U D A
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CONCORDIA DISTRESSED: Creditors' Proofs of Debt Due March 4
-----------------------------------------------------------
The creditors of Concordia Distressed Debt Fund, Ltd. are required
to file their proofs of debt by March 4, 2011, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on February 14, 2011.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
CONCORDIA DISTRESSED: Members' Final Meeting Set for March 25
-------------------------------------------------------------
The members of Concordia Distressed Debt Fund, Ltd. will hold
their final meeting on March 25, 2011, 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 February 14, 2011.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
FAIRLANE HOLDING: Creditors' Proofs of Debt Due March 4
-------------------------------------------------------
The creditors of Fairlane Holding International Corporation
Limited are required to file their proofs of debt by March 4,
2011, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on January 26, 2011.
The company's liquidators are:
Edwin Wah Sing Mok
Beatrice Yee Man Mok
c/o Clarendon House
2 Church Street, Hamilton HM 11
Bermuda
FAIRLANE HOLDING: Member to Receive Wind-Up Report on March 25
--------------------------------------------------------------
The member of Fairlane Holding International Corporation Limited
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 commenced wind-up proceedings on January 26, 2011.
The company's liquidators are:
Edwin Wah Sing Mok
Beatrice Yee Man Mok
c/o Clarendon House
2 Church Street, Hamilton HM 11
Bermuda
NORTIDE III: Creditors' Proofs of Debt Due March 4
--------------------------------------------------
The creditors of Nortide III Shipping Limited are required to file
their proofs of debt by March 4, 2011, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on February 14, 2011.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
NORTIDE III: Members' Final Meeting Set for March 25
----------------------------------------------------
The members of Nortide III Shipping Limited will hold their final
meeting on March 25, 2011, 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 February 14, 2011.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
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B R A Z I L
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CAMARGO CORREA: Fitch Upgrades Issuer Default Rating to 'BB+'
-------------------------------------------------------------
Fitch Ratings has upgraded the foreign and local currency Issuer
Default Ratings and outstanding debt ratings of Brazilian
Conglomerate Camargo Correa S.A.:
Camargo:
-- Foreign Currency IDR to 'BB+' from 'BB-';
-- Local Currency IDR to 'BB+' from 'BB-';
-- National Scale rating to 'AA(bra)' from 'A+(bra)';
-- BR300 million Debentures Series 1 (due 2012) to 'AA(bra)'
from 'A+(bra)';
-- BR700 million Debentures Series 2 (due 2014) to 'AA(bra)'
from 'A+(bra)';
-- National Short-term credit rating to 'F1+(bra)' from
'F1(bra)';
-- BRL3 billion commercial paper (CP) second issuance to
'F1+(bra)' from 'F1(bra)'.
CCSA Finance Limited:
-- US$250 million senior unsecured bonds due 2016 upgraded to
'BB+' from 'BB-'.
Fitch has also assigned foreign and local currency Issuer Default
Ratings to CCSA Finance Limited at 'BB+'.
CCSA Finance Limited is wholly-owned by Camargo and incorporated
in the Cayman Islands. Camargo unconditionally guarantees CCSA
Finance Limited's debt.
The Rating Outlook is Stable.
The rating upgrade reflects Camargo's decision to execute the
disposal of a 4.5% stake in Itausa for BRL2.7 billion. Recently
completed, the disposal should strengthen the group's balance
sheet and liquidity. Itausa is the holding company that controls
Itau Unibanco, Brazil's largest non-government bank. Proceeds
from the transaction will support the pay-off of Camargo's BRL3
billion in commercial paper, due in March 2011. Also incorporated
in the rating upgrade is Camargo's commitment to complete
additional assets disposals for a total amount of BRL840 million
during the first six months of 2011. Camargo's decision to sell
assets no related to its core businesses (cement, construction,
energy, and transport concessions) is seen as a positive as it
reflects the company's business strategy to grow organically.
Camargo's credit ratings consider the company's diversified
portfolio of operations, solid market position in the industries
in which it participates, positive outlook for its core
businesses; and adequate liquidity. Camargo's credit ratings also
incorporate the structural subordination of the parent company
debt to the debt at its operating companies. Camargo relies on
dividends, interest and principal payments from operating
subsidiaries to service its debt. Approximately 50% of the
dividends received are from companies non-fully controlled by
Camargo.
The Stable Outlook reflects Fitch's expectations that Camargo - on
stand alone and consolidated basis - will improve its liquidity
and capital structure during 2011 as a result of continued
improving operational performance in its core businesses,
sustained levels of received dividends, and the management's
commitment to complete additional assets disposal. Also factored
in the Stable Outlook is the expectation that Camargo's business
strategy will focus on organic growth during 2011, the occurrence
of a significant debt-funded transaction affecting the company's
capital structure and liquidity is not expected in the near term.
On a Consolidated Basis, Business Expected to Grow 15% and Net
Leverage to Remains Stable around 3.0x in 2011:
Camargo's consolidated revenue for the last twelve months ended
June 30, 2010 was BR16.7 billion, an increase of 6% over the
company's revenue in 2009. Camargo's consolidated EBITDA for the
LTM ended in June 2010 was BR3.5 billion, which compares
positively with the company's EBITDA levels of BRL3.1 billion and
BRL2.9 billion during 2009 and 2008, respectively. The ratings
incorporate the expectation Camargo's EBITDA for 2010 would be
around BRL3.3 billion, supported primarily by the cement,
construction, energy concessions, and highway concessions
businesses with participations that together would represent
approximately 80% of the company's consolidated EBITDA. During
2011, Fitch expects Camargo's consolidated revenue and EBITDA to
reach growth rates of around 15%, with EBITDA margins in the 18%-
20% range.
As of June 30, 2010, Camargo had BRL15.8 billion of gross debt, an
increase from BRL10.8 billion at Dec. 31, 2009. Camargo's debt
consists of BRL10.7 billion of bank loans, BRL4.7 billion of
debentures, and BRL539 million in debt related to acquisitions.
By the end of June 2010, the company's cash position was BRL3.7
billion, resulting in Camargo's net debt of BRL12.1 billion. On a
proforma basis, taking in consideration assets disposal taking
place, the ratings incorporate the view that the group's
consolidated net debt will decline to levels around BRL11 billion,
while maintaining similar level of cash. This will result in a
net leverage ratio in the 2.75x to 3.00x range for 2011.
On a Stand-Alone Basis, Business Deleverage and Improved Liquidity
Expected in 2011:
The ratings factor in the expectation that Camargo's net debt at
the holding level will significantly decline during 2011 as cash
flow from assets disposal. Received dividends will be primarily
oriented to payoff Camargo's debt and strengthen its cash
position. As of June 30, 2010, Camargo had BRL6.4 billion of
gross debt, an increase from BRL2.5 billion at Dec. 31, 2009.
Camargo's cash position was BRL195 million by the end of June
2010, resulting in net debt of BRL6.2 billion. Including cash
position of approximately BRL500 million kept by Camargo's non-
operating offshore subsidiaries, the company's net debt would be
approximately BRL5.7 billion. Camargo's debt consists primarily
of bank loans, debentures, and obligations for acquisitions.
Assets disposal to occur during 2011 are expected to generate
proceeds of BRL3.5 billion, BRL2.7 billion from the sale of 4.5%
Stake in Itausa (transaction completed in January 2011) and
approximately BRL840 million from the sale of other assets, while
Camargo's dividend inflow from subsidiaries is expected to be
around BRL1.1 billion each year in 2010 and 2011, respectively.
With these proceeds, Camargo's gross leverage and cash (including
cash held in non-operating offshore companies) are expected to be
around BRL5.7 billion and BRL1.2 billion by the end of December
2011, resulting in a net debt of approximately BRL3.5 billion.
On a stand-alone basis, Fitch views Camargo's net leverage in
terms of operational flow over net debt. Camargo's operational
flow for 2011 is expected to be around BRL4.5 billion, which
included assets disposal (BRL3.5 billion), received dividends
(BRL1.1 billion), and other operating expenses (BRL120 million).
Camargo's net leverage is expected to be around 0.78x by the end
of 2011. Also incorporated in the ratings is the view that the
assets disposal is a one-time event. In the medium term - in a
normalized scenario excluding assets disposal - Camargo's net
leverage should be more related to its ability to received stable
levels of dividends from subsidiaries. In that sense, Fitch
expects to see a net debt/received dividends ratio around 2.5x
during 2011-2012 period.
Ratings Supported by Cement and Construction Businesses' Solid
Credit Profiles:
The ratings incorporated the solid credit profile of Camargo's
fully controlled Camargo Correa Cimentos S.A. and Construcoes e
Comercio Camargo Correa S.A. These two companies combined
represent the main source of dividend inflow from Camargo's fully
controlled subsidiaries, with approximately BRL400 million in
distributed dividends in 2010, and with expected annual level of
distributed dividends to be around BRL300 during the next two
years ended by December 2012.
Camargo Cimentos's operational performance during the last 12
month period ended June 30, 2010 is solid and reflects its
important 10% and 45% market share in the Brazilian and
Argentinean markets, respectively. Fitch views Camargo Cimentos'
market position solid and sustainable in the medium term supported
by the company's brand recognition (Caue and Loma Negra brands)
and scale of operations, with approximately 12 million cement tons
sold per year. During the LTM June 2010, Camargo Cimentos'
consolidated EBITDA and EBITDA margins were BRL602 million and
24.4%, respectively. By the end of June 2010, the company's total
cash and debt were BRL398 million and BRL1.3 billion,
respectively. Net leverage, measured by the Net Debt / EBITDA
ratio, of 1.4X. In addition, Camargo Cimentos' FCF for the LTM
June 2010 was positive in approximately BRL257 million.
Incorporated also in the ratings is CCCSA's solid market position
as a leading engineering and construction company in Latin America
and the second most important company in terms of annual revenue
(approximately BRL5 billion). During the LTM June 2010, CCCCSA's
consolidated EBITDA and EBITDA margins were BRL654 million and
13%, respectively. By the end of June 2010, CCCCSA's total cash
and debt were BRL386 million and BRL1.1 billion, respectively.
Net leverage, measured by the Net Debt / EBITDA ratio, of 1.0X.
CCCCSA's FCF for the LTM June 2010 was negative in approximately
BRL959 million, driven primarily by increase in account receivable
(AR). Fitch understands that there is some seasonality in terms
of working capital affecting the sector, with AR reaching the peak
in midyear and declining by the end of the year.
Significant Dividend Inflow from Non-controlling Businesses
Expected to Remains Stable around BRL500 million in 2011:
The ratings factor in Camargo's indirect participations of 25.6%
and 17% in CPFL Energia S.A. and Companhia de Concessoes
Rodoviarias S.A., respectively, and the expectation that the
company should continue receiving significant dividend inflow from
these operations. During 2010, Camargo's received indirectly
approximately a total amount of BRL500 million in distributed
dividends from these businesses, the ratings incorporate the
expectation that similar levels of distributed dividends should
continue during the next years.
CPFL's 'AA+(bra)' National long-term rating reflects the Brazilian
energy sector's positive trend as well as the company's solid
credit profile. During the LTM September 2010, CPFL's
consolidated EBITDA and EBITDA margins were BRL3.3 billion and
29.5%, respectively. By the end of September 2010, CPFL's total
cash and debt were BRL1.2 billion and BRL8.8 billion,
respectively. Net leverage, measured by the Net Debt / EBITDA
ratio, of 2.4X. In addition, for the LTM September 2010, CPFL's
cash flow from operations, capex. Distributed dividends reached
levels of BRL2.5 billion, BRL1.6 billion, and BRL1.4 billion,
respectively. This resulted in a negative FCF of BRL505 million.
CCR's 'A+(bra)' National long-term rating reflects the company's
strong liquidity and deleveraging balance sheet; leading position
within the industry; assets diversification; and improving debt
amortization profile. During the LTM September 2010, CCR's
consolidated EBITDAR and EBITDAR margins were BRL2.4 billion and
60.1%, respectively. By the end of September 2010, CCR's total
cash and adjusted debt were BRL1.2 billion and BRL7.9 billion,
respectively. Net leverage, measured by the Net Debt/ Adjusted
EBITDAR ratio, of 2.8X. In addition, for the LTM September 2010,
CCR's cash flow from operations, capex. Distributed dividends
reached levels of BRL1.1 billion, BRL1 billion, and BRL853
million, respectively. This resulted in a negative FCF of BRL830
million.
Camargo Correa is one of the largest private industrial
conglomerates in Brazil. Camargo is a holding company with full
ownership interests in cement, engineering and construction
companies. Having control position in homebuilding, textiles,
footwear and sportswear manufacturing companies, Camargo also has
equity interests in energy, transportation (highway concessions)
and steel businesses. A large proportion of Camargo's equity
investments are in companies that are publicly traded and liquid.
Camargo is controlled by the Camargo family through their direct
holdings in Participacoes Morro Vermelho, which in turn owns 100%
of Camargo.
CONCESSIONARIA DE RODOVIAS: Moody's Assigns 'Ba1' Bond Rating
-------------------------------------------------------------
Moody's America Latina has assigned issuer ratings of Baa3 on the
Global Scale and Aa1.br on the Brazilian National scale to
Concessionaria de Rodovias do Oeste de Sao Paulo - ViaOeste S.A.
At the same time, Moody's assigned Ba1 and Aa2.br ratings to
ViaOeste's proposed issuance of BRL150 million subordinated
debentures due in 2015. The outlook is stable for all ratings.
This is the first time Moody's has assigned ratings to ViaOeste.
The proceeds from the proposed debentures will be used to help
fund working capital and to support dividend payments in the near
term.
Assignments:
Issuer: Concessionaria de Rodovias do Oeste de Sao Paulo -
ViaOeste S.A.
-- Issuer Rating: Baa3 (global scale) / Aa1.br (Brazilian
national scale)
-- BRL150 million subordinated debentures: Ba1 / Aa2.br
Ratings Rationale
The Baa3 and Aa1.br issuer ratings reflect ViaOeste's strong asset
features as a road system with a favorable alignment connecting
the west metropolitan area of Sao Paulo to Sorocaba. The ratings
also reflect the mature nature of this concession evidenced by a
solid operating track record that dates back to 1998. The
relatively stable regulatory environment for operating toll roads
in the state of Sao Paulo and ViaOeste's strong credit metrics
further support the ratings.
The risks associated with the high level of investment activity of
its controlling shareholder constrain the rating, as does the risk
of additional investments in the concession that could lead to
further borrowings taking place when capital markets are not
necessarily favorable. The ratings also reflect ViaOeste's
relatively weak liquidity and debt maturity profile when compared
with other investment grade operating toll roads.
The Ba1 and Aa2.br ratings assigned to the proposed BRL150 million
debentures are one notch lower than ViaOeste's issuer ratings to
reflect the subordination of the debentures to existing BRL506
million senior secured debentures issued by ViaOeste in 2007.
ViaOeste's proposed debentures provide adequate protection clauses
for the bondholders. These legal provisions limit additional debt
issuances ranking above the subordinated debt class only to the
financing of new capital expenditures acknowledged by the
regulator in the concession agreement or to support working
capital needs up to BRL60 million. Additionally, there are
financial covenants that largely restrict the distribution of
dividends when the debt service coverage ratio is lower than 1.2
times and net debt to EBITDA is above 4.0 times (or above 3.0
times according to the provisions included in the indenture of
ViaOeste's other debt outstanding until 2015). Moreover, the
concession agreement requires the company to maintain a minimum
equity capital of 10% of the amount of accumulated investments in
the concession and projected for the next 12 months.
Moody's notes that ViaOeste's other existing debt agreements also
contain cross default provisions with Companhia de Concessoes
Rodoviarias, its parent company. In the event that CCR goes
bankrupt or files for reorganization under the Brazilian
bankruptcy law, the ViaOeste debenture holders could call an early
maturity event and execute their rights derived from the
debentures' guarantees. As a result, ViaOeste's issuer rating
also incorporates the risk profile of CCR on a consolidated basis.
The CCR group has a strong track record of sizeable investments
that include participating in auctions for new concessions and
acquiring operating companies, as illustrated by the recent
acquisition of Rodovias Integradas do Oeste S/A, a 516- kilometer
concession in the state of Sao Paulo for approximately BRL1.3
billion. Notwithstanding its strategy of pursuing opportunistic
investments in the transportation industry, CCR has historically
behaved like a prudent investor, seeking new ventures only with
the expectation of reasonable rates of return. On a consolidated
basis, additional leverage is largely limited by financial
covenants that require the net-debt-to-EBITDA ratio lower than 3.0
times and the EBITDA-to-net-interest expenses higher than 2.0
times.
CCR's access to the local banking and capital markets has been
resilient, supported by its experienced management team and
relatively high corporate governance standards compared to local
peers. Financing for CCR's various concessions has been mostly in
the form of long-term project finance debt. Thus, Moody's views
the risk of any major cash draining of ViaOeste in order to fund
new CCR group projects as relatively low in the near term.
ARTESP, the concession authority of Sao Paulo since 2002, is
generally supportive of toll road operators in the state as the
recent amendments in the concession agreement with ViaOeste
demonstrates. Although not completely independent of political
influence, from a credit perspective the regulatory framework of
Sao Paulo can be considered above the Brazilian average in terms
of the transparency of its tariff-setting mechanisms and the
protection against events outside the control of the
concessionaire. The concession agreement provides for annual
tariff increases in line with inflation as measured by the general
price index (IGP-M).
In 2006, ARTESP extended the concession of ViaOeste for an
additional 57 months in order to restore its financial equilibrium
which had been impacted by additional investments mainly for road
improvement in the regions of Sorocaba and Sao Roque. In 2009,
ViaOeste engaged in other significant capital expenditures of
approximately BRL250 million primarily to help reduce traffic
congestion in metropolitan Sao Paulo. These investments triggered
another review of the concession agreement for the economic-
equilibrium restatement through partial retention of concession
liability payments. At the same time, the concessionaire agreed
to reduce tariffs at certain toll plazas that were reconfigured to
capture higher traffic volumes. These adjustments to the
concession agreement are indicative of the reasonable and
supportive nature of the concession framework.
Going forward, ViaOeste is committed to BRL517 million in
investments over the remaining 12 years of the concession, of
which approximately 80% will be disbursed over the next five
years. Investments in the near term include the construction of
14 kilometers of side lanes and bridges in the Sorocaba region.
These investments are consistent with the current concession
agreement and will not be subject to review for additional
compensation.
In the medium term, the concessionaire could also invest BRL67
million for the construction of an extension of the Castello
Branco road to the CEAGESP, the largest agricultural distribution
center in the metropolitan Sao Paulo area; however, this
investment is still under negotiation with the regulator. Another
potential investment for ViaOeste is the incorporation of an
additional section of the Raposo Tavares road between the City of
Cotia and the metropolitan area of Sao Paulo. Moody's estimates
that the investments for recovery and improvement of this road
section could cost from BRL1.3 billion to BRL 1.7 billion. This
investment also depends on negotiation with the regulator for
additional compensation. The ultimate magnitude and timing of
these potential capital investments could exert pressure on
ViaOeste's financial performance.
ViaOeste's road system connects the cities of Sao Paulo and Cotia
to Sorocaba, in the interior of the state, passing through Barueri
and Osasco. Real estate developments initiated during the 1970's
coupled with fiscal incentives resulted in a strong and dynamic
economy in the region. The industries along the concession area
include a notable service economy, complemented by large
distribution centers for retail and building materials. It is
also an important route for agricultural freight (mainly sugar
cane) coming from rural areas in the interior of the state.
Around 80% of ViaOeste's total traffic volumes are at the Castello
Branco road section, which is considered one of the best Brazilian
roads in terms of quality and safety. Castello Branco runs about
the same direction as Raposo Tavares, so the immediate competition
is largely limited within the concession. The large alternative
routes are Anhanguera and Bandeirantes (the AutoBan system), which
are connected to the Castello Branco road section through the
Rodovia das Colinas and the Rodoanel West section. These routes
also have toll plazas, which mitigate competition Depending on the
final destination, there are other smaller alternative routes but
those are not comparable in terms of quality and safety.
ViaOeste has demonstrated a solid track record of traffic volumes
well balanced between commuters and commercial vehicles. From
1999 through 2009, Viaoeste's toll traffic achieved an average
growth rate of 6.4% per year, which compares favorably with the
Brazil's average GDP growth of 3.3% per year during the same
period. Despite the tighter economic conditions that led to no
growth in the Brazilian GDP in 2009, traffic volumes at ViaOeste
increased 1.3% in 2009. The comparison of traffic trends in 2010
is somewhat impaired by the changes in the configuration of
certain toll plazas that are reflected in a significantly larger
traffic volume reported by the company. Excluding the impact of
new toll plazas, Moody's estimates that traffic volumes grew by
10.3% in 2010, indicating strong recovery since 2009.
The solid traffic volumes and the stable regulatory environment in
the State of Sao Paulo support ViaOeste's strong credit metrics
for its rating category. The funds from operations to debt has
been around 20% in years of significant capital expenditures, such
as 2007 and 2009, improving to 23%-24% thereafter. The cash
interest coverage ratio has been in the 3.8x- 4.5x range over the
last three years while leverage as measured by the debt-to-EBITDA
ratio has been around 2.8x. These strong indicators are partially
offset by a low retained cash from operations driven by high
dividend distributions. This practice is generally in line with
other mature toll road concessions.
Moody's adjusts ViaOeste's debt to include the off-balance-sheet
concession liabilities of approximately BRL300 million and
refinanced taxes of approximately BRL60 million generated through
the company's adherence to the Federal Program of Fiscal Recovery
(REFIS).
The stable outlook reflects Moody's opinion that ViaOeste's
operational performance will continue to be strong during the
remaining life of the concession, albeit with a relatively weak
liquidity profile. Expected growth in the Brazilian GDP should
support solid credit fundamentals. Moody's expect that the
payment of dividends and additional leverage are likely to
continue over the next years but Moody's expect them to be
prudently managed with credit metrics remaining within the current
rating category.
The rating or the outlook could be upgraded if the company were to
steadily improve its liquidity profile and produce credit metrics
in line with or exceeding historical performance so that the FFO-
to-debt ratio remains above 30% and interest coverage stays above
5.5 times on a sustainable basis.
The rating or the outlook could be downgraded if there is a
significant and sustained deterioration in credit metrics so that
the FFO-to-debt ratio falls below 20% and interest coverage ratio
is below 4.0x for an extended period of time. Deterioration in
the liquidity profile or credit quality of CCR could also exert
downward rating pressures.
Concessionaria de Rodovias do Oeste de Sao Paulo - ViaOeste S.A.
is an operating subsidiary of Companhia de Concessoes Rodoviarias
(unrated), one of Brazil's largest toll-road concession groups,
which controls approximately 2,093 kilometers of toll road
concessions. CCR is controlled by a consortium of AGConcessoes,
Camargo Correa and Soares Penido Concessoes. In the last 12
months ended September 30, 2010, CCR attained consolidated
revenues of BRL3.6 billion (US$2.0 billion) and an EBITDA of
BRL2.5 billion (US$1.4 billion), ViaOeste accounted for 16% of the
revenues and 17% of the EBITDA.
ViaOeste holds a 25-year concession to operate the toll road
services of the Castello Branco-Raposo Tavares road system, a 173-
kilometer concession in the State of Sao Paulo, which the state
regulatory agency, Agencia Reguladora de Servi‡os Publicos
Delegados de Transporte, granted in March 1998. In the last 12
months ended September 30, 2010, the company reported an annual
tolled traffic of 95 million of equivalent vehicles.
===========================
C A Y M A N I S L A N D S
===========================
139 MOBILE: Creditors' Proofs of Debt Due March 14
--------------------------------------------------
The creditors of 139 Mobile Internet (Cayman) Limited are required
to file their proofs of debt by March 14, 2011, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on January 31, 2011.
The company's liquidators are:
Ye Bing
Tu Zhi Sen
Telephone: 8610-66496085
Facsimile: 8610-66496027
16th Floor, No. 131A
North Xidan Avenue
Xicheng District
Beijing, China 100032
AGA INTERNATIONAL: Creditors' Proofs of Debt Due March 14
---------------------------------------------------------
The creditors of Aga International, Ltd. are required to file
their proofs of debt by March 14, 2011, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on January 18, 2011.
The company's liquidator is:
Glenn Garaudy
3500 North Causeway Blvd.
Suite 600, Metairie
Louisiana 70002
U.S.A.
CHEYNE LEVERAGE: Creditors' Proofs of Debt Due March 16
-------------------------------------------------------
The creditors of Cheyne Leverage Special Purpose Asset Vehicle
Inc. are required to file their proofs of debt by March 16, 2011,
to be included in the company's dividend distribution.
The company commenced liquidation proceedings on January 31, 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
DUKE FUNDING: Creditors' Proofs of Debt Due March 14
----------------------------------------------------
The creditors of Duke Funding High Grade II-S / EGAM I, Ltd. are
required to file their proofs of debt by March 14, 2011, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on January 25, 2011.
The company's liquidator is:
Victor Murray
c/o Maples Liquidation Services (Cayman) Limited
P.O. Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
GLG EMERGING: Creditors' Proofs of Debt Due March 14
----------------------------------------------------
The creditors of GLG Emerging Markets (Special Assets) Fund 2 are
required to file their proofs of debt by March 14, 2011, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on February 4, 2011.
The company's liquidator is:
K.D. Blake
c/o Gerhard Albertyn
P.O. Box 493 Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-914-4395 / 345-949-4800
Facsimile: 345-949-7164 / 345-949-7164
GLG PENDRAGON: Creditors' Proofs of Debt Due March 14
-----------------------------------------------------
The creditors of GLG Pendragon Event Driven Fund are required to
file their proofs of debt by March 14, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on February 4, 2011.
The company's liquidator is:
K.D. Blake
c/o Gerhard Albertyn
P.O. Box 493 Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-914-4395 / 345-949-4800
Facsimile: 345-949-7164 / 345-949-7164
HGM ASSET: Creditors' Proofs of Debt Due March 16
-------------------------------------------------
The creditors of HGM Asset Finance Cayman Limited are required to
file their proofs of debt by March 16, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on February 4, 2011.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
Grand Cayman KY1-1104
Cayman Islands
IT ESTATE: Creditors' Proofs of Debt Due March 14
-------------------------------------------------
The creditors of IT Estate Holdings Inc. are required to file
their proofs of debt by March 14, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on January 26, 2011.
The company's liquidator is:
Victor Murray
c/o Maples Liquidation Services (Cayman) Limited
P.O. Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
JUBILEE INCORPORATIONS: Creditors' Proofs of Debt Due February 28
-----------------------------------------------------------------
The creditors of Jubilee Incorporations are required to file their
proofs of debt by February 28, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on January 14, 2011.
The company's liquidator is:
HSBC Trustee (Singapore) Limited
21 Collyer Quay, #09-01
HSBC Building
Singapore 049320
c/o Mr. Philip C Pedro
HSBC International Trustee Limited
Compass Point, Bermudiana Road
Hamilton HM 11, Bermuda
Telephone: (441) 299-6482
Facsimile: (441) 299-6526
MAJESBIC COMPANY: Creditors' Proofs of Debt Due March 14
--------------------------------------------------------
The creditors of Majesbic Company Limited are required to file
their proofs of debt by March 14, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on January 6, 2011.
The company's liquidator is:
Lion International Management Limited
P.O. Box 71, Craigmuir Chambers
Road Town, Tortola
British Virgin Islands
c/o Philip C Pedro
HSBC International Trustee Limited
Compass Point, Bermudiana Road
Hamilton HM 11, Bermuda
Telephone: (441) 299-6482
Facsimile: (441) 299-6526
MH GROUP: Creditors' Proofs of Debt Due March 16
------------------------------------------------
The creditors of MH Group Limited are required to file their
proofs of debt by March 16, 2011, to be included in the company's
dividend distribution.
The company's liquidator is:
Mr. Hepburn Bruce
14 Chesterfield Road
Chiswick, London
England W4 3HG
United Kingdom
PLENARY INVESTMENTS: Creditors' Proofs of Debt Due March 16
-----------------------------------------------------------
The creditors of Plenary Investments Limited are required to file
their proofs of debt by March 16, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on February 4, 2011.
The company's liquidator is:
Stuart Sybersma
c/o Karen Scott
Deloitte & Touche
P.O. Box 1787, Grand Cayman KY1-1109
Cayman Islands
Telephone: (345) 949 7500
Facsimile: (345) 949 8258
e-mail: kascott@deloitte.com
REDWOOD CAPITAL: Creditors' Proofs of Debt Due March 7
------------------------------------------------------
The creditors of Redwood Capital XI Ltd. are required to file
their proofs of debt by March 7, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on February 2, 2011.
The company's liquidator is:
Carl Gosselin
c/o Wilmington Trust (Cayman), Ltd.
P.O. Box 32322, Grand Cayman, KY1-1209
Cayman Islands
Telephone: (345) 814-6712
SIMAC TRADING: Creditors' Proofs of Debt Due March 8
----------------------------------------------------
The creditors of Simac Trading are required to file their proofs
of debt by March 8, 2011, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on January 21, 2011.
The company's liquidator is:
Christopher D. Johnson
c/o Jill Zadny
Telephone: (345) 946-0820
Facsimile: (345) 946-0864
P.O. Box 2499, George Town
Grand Cayman KY1-1104
Cayman Islands
SKY HOLDING: Creditors' Proofs of Debt Due March 16
---------------------------------------------------
The creditors of Sky Holding Company II Ltd. are required to file
their proofs of debt by March 16, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on January 31, 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
UBS-ARMR 2007-2: Creditors' Proofs of Debt Due March 16
-------------------------------------------------------
The creditors of UBS-ARMR 2007-2, Ltd. are required to file their
proofs of debt by March 16, 2011, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on February 2, 2011.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Telephone: (345) 914-6314
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
VALHALLA SYNERGY: Creditors' Proofs of Debt Due March 14
--------------------------------------------------------
The creditors of Valhalla Synergy Ltd. are required to file their
proofs of debt by March 14, 2011, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on January 20, 2011.
The company's liquidators are:
Mourant Ozannes Cayman Liquidators Limited
c/o Mourant Ozannes
Attorneys-at-Law for the Company
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647; or
Mourant Ozannes Cayman Liquidators Limited
c/o Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
Harbour Centre, 42 North Church Street
P.O. Box 1348, George Town
Grand Cayman KY1-1108
Cayman Islands
VALHALLA SYNERGY: Creditors' Proofs of Debt Due March 14
--------------------------------------------------------
The creditors of Valhalla Synergy Master Fund Ltd. are required to
file their proofs of debt by March 14, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on January 20, 2011.
The company's liquidators are:
Mourant Ozannes Cayman Liquidators Limited
c/o Mourant Ozannes
Attorneys-at-Law for the Company
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647; or
Mourant Ozannes Cayman Liquidators Limited
c/o Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
Harbour Centre, 42 North Church Street
P.O. Box 1348, George Town
Grand Cayman KY1-1108
Cayman Islands
WATERLOO FULLY: Creditors' Proofs of Debt Due March 21
------------------------------------------------------
The creditors of Waterloo Fully Invested Fund, Ltd are required to
file their proofs of debt by March 21, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on February 3, 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
=============
J A M A I C A
=============
PETROLEUM CORPORATION OF JAMAICA: Searches for Managing Director
----------------------------------------------------------------
RadioJamaica reports that the state-run Petroleum Corporation of
Jamaica is searching for a new boss. The post of Group Managing
Director, which was formerly held by Dr. Ruth Potopsingh, has been
advertised in the local press, RadioJamaica relates.
The search come 10 months after Dr. Potopsingh was fired after a
report revealed operational breaches at the PCJ, according to
RadioJamaica.
Interested persons may submit their resumes no later than March 4.
RadioJamaica notes that the appointee, who will report to the
Chairman of the PCJ, will lead a team of technical and
professional personnel in fulfilling the mandate of the National
Energy Policy.
As reported in the Troubled Company Reporter-Latin America on
August 23, 2010, Jamaica Observer said that PCJ has been one of
the most scrutinized public agencies over the last few years and
has been without a chairman since Kathryn Phipps left her post.
RadioJamaica reported in May 2010 that auditors found a raft of
irregularities in the financial operations of the PCJ, with
millions of dollars paid out under questionable circumstances.
The audit reportedly revealed a lax system which allowed money to
be paid out without following basic accounting or government
guidelines, according to RadioJamaica. Dr. Ruth Potopsingh,
Managing Director of the PCJ, was eventually sacked by the PCJ
board, the report noted.
About Petroleum Corporation
Petroleum Corporation of Jamaica is a petroleum company owned by
the government of Jamaica. It was established in 1975 as State
Energy Corporation under the Ministry of Mining and Energy and
changed its name in 1979 by the Petroleum Act. The PCJ has the
exclusive right to explore for oil in Jamaica.
=====================
P U E R T O R I C O
=====================
FARMACIAS EL AMAL: Shuts Stores Without Notice
----------------------------------------------
Caribbean Business reports that Farmacias El Amal has closed its
drug stores on Feb. 19, 2011, without any notice to its staff and
customers.
The company posted signs on the doors of its various El Amal
outlets that read: "We are informing our clients that Farmacias El
Amal has shut down its operations," according to Caribbean
Business. The signs provided a telephone number to call in case
of questions, Caribbean Business relates.
Farmacias El Amal filed for Chapter 11 bankruptcy (reorganization)
protection in March 2009 and moved forward with a massive
reorganization of its operations, Caribbean Business recounts.
The move left the drugstore chain with a sharply reduced network
of 22 stores around the island as of this year, about half of the
number before the bankruptcy filing, the report cites.
Caribbean Business notes that the locally held company amended the
filing to Chapter 7 (liquidation) last May. However, the report
relates, El Amal President Mohammad Yassin, the founder of the
drugstore chain, announced in June that the company would spend
US$5 million to remodel its 22 stores and spend another US$1
million on a media blitz to reposition the local chain in the
competitive market that has seen the growth of national
powerhouses Walgreens and CVS.
The apparent closure is expected to leave some 600 workers
jobless, Caribbean Business adds.
Farmacias El Amal is Puerto Rico's second-largest drugstore chain.
===============================
T R I N I D A D & T O B A G O
===============================
CL FIN'L: CLICO Payout to Begin After Carnival Celebration
----------------------------------------------------------
Joel Julien at Trinidad Express reports that the Finance Ministry
has said the process to start the payout for Colonial Life
Insurance Company (Trinidad) Limited (CLICO) policyholders is
scheduled to begin two days after Carnival, which will be
celebrated on March 7 to 8, 2011. CLICO is a subsidiary of CL
Financial Limited.
CLICO policyholders, who hold deposits under TT$75,000 at the
collapsed company, can start applying to be repaid from March 10,
according to Trinidad Express. The report relates that the first
phase of the payment process does not apply to policyholders who
invested more than TT$75,000.
Trinidad Express notes that the Ministry of Finance said in a
press advertisement published: "The Government of the Republic of
Trinidad and Tobago wishes to advise of its offer to eligible
payees of CLICO and BAT (British American Insurance Company Ltd)
who hold Short Term Investment Products (STIPS). Eligible persons
whose principal balance does not exceed TT$75,000 as determined by
the records of CLICO and BAT will each receive payment up to the
limit of TT$75,000 by way of deposits to their bank accounts via a
cheque for persons without a local bank account. Persons
accepting the offer of payment will be required to assign all
their rights, titles and interests under the STIPS to the
Government of Trinidad and Tobago. Persons will also be required
to agree not to take any subsequent legal action against CLICO,
BAT and the Government of Trinidad and Tobago."
Closing date for applications will be on Sept. 30, 2011.
About CL Financial
CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago. Founded as an insurance company by Cyril Duprey,
Colonial Life Insurance Company was expanded into a diversified
company by his nephew, Lawrence Duprey. CL Financial is now one
of the largest local conglomerates in the region, encompassing
over 65 companies in 32 countries worldwide with total assets
standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to "ccc"
from "bb" of Colonial Life Insurance Company (Trinidad) Limited
(CLICO) (Trinidad & Tobago). The ratings remain under review with
negative implications. CLICO is an insurance member company of CL
Financial Limited (CL Financial), a diversified holding company
based in Trinidad & Tobago.
According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and
Tobago Express, Tobago President George Maxwell Richards signed
bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
***********
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 * * *