/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110429.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, April 29, 2011, Vol. 12, No. 84 Headlines B E R M U D A GLOBAL CROSSING: UK Subsidiary Incurs GBP6.95MM Net Loss in 2010 B R A Z I L GENERAL SHOPPING: Reopening Notes Carry Fitch's 'BB-' Rating MARFRIG HOLDINGS: S&P Puts 'B+' to US$500 Million Sr. Unsec. Notes MARFRIG HOLDINGS: Fitch Puts 'B+/RR4' to US$500MM Sr. Unsec. Notes C A Y M A N I S L A N D S ALCHEMIST LIMITED: Placed Under Voluntary Wind-Up BIOKO INVESTMENTS: Creditors' Proofs of Debt Due May 10 CASUAR LIMITED: Placed Under Voluntary Wind-Up CREP INVESTMENT: Creditors' Proofs of Debt Due May 26 DIVERSIFIED SECURITIES: Placed Under Voluntary Wind-Up FONTAINE TRADING: Placed Under Voluntary Wind-Up HALLMEYER HOLDINGS: Creditors' Proofs of Debt Due May 18 INFORUM NO. 2: Placed Under Voluntary Wind-Up INTERNATIONAL CORPORATION: Placed Under Voluntary Wind-Up JHETA INTERNATIONAL: Placed Under Voluntary Wind-Up JOHNSTON RE: S&P Assigns 'BB-' Ratings on Class A and B Notes KEVINGTON LIMITED: Placed Under Voluntary Wind-Up MSR ASIA: Creditors' Proofs of Debt Due May 17 PIKE PLACE: Creditors' Proofs of Debt Due May 18 PLYMOUTH REALTY: Placed Under Voluntary Wind-Up PURPLE EAGLE: Creditors' Proofs of Debt Due May 24 Q.D.M. LTD: Placed Under Voluntary Wind-Up RISTORANTE SAVONA: Placed Under Voluntary Wind-Up J A M A I C A AIR JAMAICA: Final Signing With Caribbean Airline Delayed JAMAICAN PEGASUS: BITU Seeks to Save Jobs Pending Closure M E X I C O ALESTRA S: Fitch Affirms BB- Currency Issuer Default Ratings P E R U INTERBANK: Fitch Affirms Junior Subordinated Debt at 'BB' P U E R T O R I C O FIRSTBANK PUERTO RICO: Moody's Downgrades Long-Term Deposits to B3 T U R K S & C A I C O S * TURKS & CAICOS: Completes Bond Sale to Help Tackle Crisis - - - - - ============= B E R M U D A ============= GLOBAL CROSSING: UK Subsidiary Incurs GBP6.95MM Net Loss in 2010 ---------------------------------------------------------------- Global Crossing Limited announced fourth-quarter and full-year 2010 results for its subsidiary, Global Crossing (UK) Telecommunications Limited. Global Crossing (UK) reported net loss for the period of GBP1.93 million on GBP82.80 million of revenue for the three months ended Dec. 31, 2010, compared with a net loss for the period of GBP1.56 million on GBP78.12 million of revenue for the same period during the prior year. The Company also reported a net loss for the period of GBP6.95 million on GBP314.01 million of revenue for the year ended Dec. 31, 2010, compared with net profit for the period of GBP4.66 million on GBP308.86 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed GBP288.02 million in total assets, GBP508.38 million in total liabilities and a GBP220.36 million in total deficit. "GCUK reported solid results in 2010, with an increase of three percent year over year in GCUK's 'Invest and Grow' revenue," said John Legere, Global Crossing's chief executive officer. "We continue to position the business strategically for long-term growth through investments in sales resources and enhanced capabilities to deliver value-added IP, Ethernet, data center and managed solutions." About Global Crossing Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- is a global IP, Ethernet, data center and video solutions provider with the world's first integrated global IP-based network. The Company's balance sheet at Dec. 31, 2010 showed US$2.31 billion in total assets, US$2.79 billion in total liabilities and US$477 million in total stockholders' deficit. Global Crossing Limited reported a consolidated net loss of US$172 million on US$2.609 billion of consolidated revenue for the twelve months ended Dec. 31, 2010, compared with a net loss of US$141 million on US$2.159 billion of revenue during the prior year. * * * As reported by the Troubled Company Reporter on March 31, 2010, Standard & Poor's Ratings Services raised all its ratings on Global Crossing, including the corporate credit rating to 'B' from 'B-'. The outlook is stable. S&P assigned its 'CCC+' issue-level rating and '6' recovery rating to Global Crossing's proposed US$150 million of senior unsecured notes due 2019. The '6' recovery rating indicates S&P's expectation for negligible (0%- 10%) recovery in the event of a payment default. =========== B R A Z I L =========== GENERAL SHOPPING: Reopening Notes Carry Fitch's 'BB-' Rating ------------------------------------------------------------ General Shopping Brasil S.A. has announced the reopening of its perpetual notes. The reopening will carry the same rating as the original deal at 'BB-'. Proceeds from the add-on issuance of up to US$50 million perpetual notes will be used primarily to fund additional developments recently incorporated in the company's capex plan. Fitch Ratings currently rates GSB and its wholly owned subsidiary General Shopping Finance Limited (GSF): General Shopping Brasil S.A. (GSB): -- Foreign currency Issuer Default Rating (IDR) 'BB-'; -- Local currency IDR 'BB-'; -- National scale ratings 'A-(bra)'. General Shopping Finance Limited (GSF): -- Foreign currency Issuer Default Rating (IDR) 'BB-'. GSF is the issuer of the proposed add-on issuance, which are irrevocably and unconditionally guaranteed by GSB and all of its operating subsidiaries. The Rating Outlook is Stable. The ratings reflect GSB's business position as one of the largest shopping center operators in Brazil's southeastern and southern regions with participation in 13 shopping centers, stable and predictable cash flow generation, and positive macro economic environment. The ratings also incorporate the company's diversified tenant base, large pool of unencumbered assets, a comfortable debt payment schedule and low working capital requirements with leases responsible for most maintenance expenses. GSB's current capex plan will be funded primarily with the debt issuance of perpetuals including the proposed transaction; free cash flow is expected to be negative during the next two years, ended in December 2012. GSB's rating incorporates the risk of completion delays and leasing of new developments, as well as limited geographical and revenue diversification. Leverage will increase as the company carries out its capex plan. The Stable Outlook reflects Fitch's expectation that GSB will continue to deliver positive operating results based on its solid regional market position and the quality of its assets. GSB is expected to complete its capex plans, as scheduled during 2011, 2012, and 1Q'13 without a further increase in the company's total debt, and that the company will maintain a solid liquidity going forward. Strong Business Fundamentals: GSB is expected to continue to benefit from the strong industry fundamentals as a result of a positive macroeconomic environment coupled with a limited supply of leasable shopping areas. Brazil's favorable economic environment during the last few years has led to an increase in disposable income per capita, which in turn has led to an increase in retail sales at a higher rate than Brazil's inflation rate and GDP growth. After growing 7.5% in 2010, the Brazilian economy is forecast to post growth rates of 4% and 4.5% during 2011 and 2012, respectively. The company's net operating income (NOI) during 2009 and 2010 was BRL85.6 million and BRL100.6 million, respectively, and NOI is expected to be around BRL120 million in fiscal 2011. Solid Regional Market Position: GSB is a strong regional player, and its operations are primarily located in Brazil's southeastern and southern regions. GSB is particularly well positioned in the Sao Paulo State, an area that represents approximately 31% and 33% of Brazil's GDP and retail market, respectively. The company is the market leader in the city of Sao Paulo with owned gross leasable area (GLA) of 168,597 square meters (m2), which represents about 89% of the company's total owned GLA (190,100 m2). The company's business position is sustainable in the near to medium term due to the location of its high quality assets, well- distributed tenant portfolio, and stable cash-flow generation. The company is the fifth largest Brazilian shopping center operator in terms of GLA with 225,399 square meters (m2) and 190,100 m2 of total GLA and owned GLA, respectively, at the end of December 2010. The company's mall portfolio serves middle-class customers. Stable and Predictable Results: GSB's stable revenue stream is derived from its lease portfolio and the sound credit profile of its main tenants. The lease revenues are predominately fixed in nature and provide for the pass-through of ongoing maintenance and operating expenses for the company's properties, which lowers business risk. The company's revenues for the fiscal years ending 2008, 2009, and 2010 were BRL87 million, BRL101 million, and BRL116 million, respectively. The company's lease portfolio has an adequate maturity profile with staggered expirations of 5.9% and 2.9% of company's rental income expiring in the next 12 and 24 months, respectively; about of 34.5% of the company's rental income contracts have expiration dates over the next 24-48 months, and 56.6% of the portfolio expires beyond 48 months. GSB's revenue structure is mostly based on rentals, which represent about of 80% total gross revenues, making the company's revenues very predictable. The other significant component in the company's revenue structure includes the proceeds from services, which represent about of 20% of total gross revenues. GSB has low tenant concentration risk. GSB's 20 largest tenants occupy a total area of 53 thousand m2, which represents approximately 28% and 9.7% of GSB's total area and total net revenue, respectively. No single tenant represents more than 1% of total revenue. Positive Trend in Operating Metrics to Continue: GSB's recent operational performance reflects the quality of its portfolio, evidenced by the high level of occupancy, positive trending revenues per m2 and increasing lease spreads. The company has consistently reached occupancy levels between 95% and 96% during the last three years. The company's occupancy rate for 2009 and 2010 reached levels of 95.8% and 96%, respectively. Same store rent (SSR) growth continued a positive trend resulting in a minimum rent increase of 7.3% during 2010 versus the previous year. GSB's tenant consolidated sales volumes totaled BRL1.285 million and BRL1.639 million during 2009 and 2010, respectively, representing an annual increase of 27.5% for 2010. Aggressive Capex & Negative Free Cash Flow: GSB is currently implementing an aggressive capex plan with several greenfield and expansion projects, which are expected to be funded by the new debt. GSB is expected to reach capex levels of around BRL199 million and BRL144 million, and BRL42 million during 2011 2012, and 1Q'13, respectively, which will negatively affect its leverage and free cash flow generation. The company's capex plan has been updated and it is considering the increase in its GLA from current level of 225 thousand m2 to 270 thousand m2 , 324.5 thousand m2, and 352.5 thousand m2 by the end of 2011, 2012, and, 1Q'13, respectively. The company's greenfield projects are Barueri, Sulacap, and Outlet, which will add 37 thousand m2, 32 thousand m2, and 16.5 thousand m2, respectively. Barueri is expected to start operations during 4Q'11, while Sulacap and Outlet projects are both expected to start their operations during 2Q'12. In terms of expansion projects, the company expects to add 8 thousand m2 and 8 thousand m2 to both the Unimart and the Prudente expansions, which are expected to be finished during 4Q'11 and 2Q'12, respectively. The company's net capex for the next two years ended in March 2013 is estimated to be around BRL325 million, as in 2010 the company sold a 48% stake in the Barueri project to a private equity firm while maintaining the management of the shopping center. The company's FCF was positive for 2010 at around BRL32.2 million; driven by BRL50.3 million in cash flow from operations (CFFO), BRL18.1 million in capital expenditures (capex), and no dividends being distributed, which positively compares with negative FCF reached during 2009 at BRL2.8 million. FCF calculation considers CFFO less capex and distributed dividends. The company's FCF is expected to be negative during 2011 and 2012, driven primarily by capex levels. Cash Flow Generation Continues to Grow: GSB's cash flow generation, as measured by Adjusted EBITDA, has continued to improve during the last several years. The company's Adjusted EBITDA for 2010 was BRL81.7 million, which positively compares with its Adjusted EBITDA levels of BRL74 million, BRL64 million, and BRL37 million in 2009, 2008 and 2007, respectively. In addition, the company's Adjusted EBITDA margins have remained stable, reaching levels of 72%, 74%, 73%, and 70% during years 2007, 2008, 2009 and 2010, respectively. GSB is expected to reach EBITDA levels of approximately BRL100 million during 2011. The expected improvement in the company's cash flow generation is highly dependent on its capacity to execute its capex plan as scheduled. Delays in the execution of the company's capex could pressure ratings. Total Debt to Increase, Net Leverage Stable: GSB will increase its total debt level to fund capex. By the end of December 2010, the company's total debt was BRL668 million, and it was BRL322 million and BRL505 million by the end of December 2009 and December 2008, respectively. By the end of December 2010, GSB's debt was composed of recently issued perpetual bonds (BRL326.6 millions), Real Estate Credit Notes (BRL320.9 million) and loans with local banks (BRL21.2 million). The company does not maintain any off-balance debt associated with operating leases obligations. Considering GSB's cash position of BRL334 million, the company's net debt was BRL335 million by the end of December 2010. The company's net leverage, as measured by total net debt/EBITDA, was 4.1 times (x) by the end of December 2010, while it was 4.2x and 6.4x at the end of December 2009 and December 2008, respectively. The company's net leverage is expected to be around 4.5x during 2011, which includes the reduction of approximately BRL110 million in the company's secured debt and loans occurred during 1Q'11. Liquidity Solid Following Offering: GSB's liquidity has fluctuated in the past, which reflects the company's negative free cash flow generation during the 2007-2008 period and the low levels of cash flow generation relative to its capex levels during 2009 and 2010. The company's cash position (BRL18 million) at September 2010 represented 0.5x the company's short-term debt (BRL38 million at September 2010). The company has recently rebuilt its cash position, GSB liquidity has improved with the proceeds from the perpetual bonds (US$200 million) issued during the 4Q'10, reaching a cash position of BRL334 million by December 2010. The company's liquidity should further improve with the proposed transaction. The ratings incorporate the expectation that the GSB will maintain solid liquidity with expected cash levels of approximately BRL214 million by the end of 2011. Manageable Debt Schedule: GSB manageable debt maturity schedule is positive. The company's financial strategy is to issue perpetual bonds for an outstanding amount of approximately US$250 million, which includes the US$50 million proposed reopening transaction, to payoff short-term debt (BRL110 million approximately occurred in 1Q'11), fund its net capital expenditures of approximately BRL325 million during the next two years ending in March 2013, and improve its liquidity. On a pro forma basis, the company's debt amortization principal payments for 2011 and 2012 would be around BRL9.2 million and BRL12.1 million, respectively, representing 1.6% and 2.1% of the company's total debt. Good Level of Unencumbered Assets: The company maintains good levels of unencumbered assets; by the end of December 2010 approximately 60% of the company's owned GLA (123 thousand m2) supports its secured debt of BRL320.9 million. The company maintains 67 thousand m2 available and free of any lien that it could use in the future to access liquidity. In addition, during the 1Q'11, the company paid-off approximately BRL110 million of its secured debt and loans, increasing its level of unencumbered assets to approximately 108 thousand m2 or 57% of its total GLA. Key rating drivers include the development of the Brazilian macroeconomic environment in which GSB operates, its operating metrics (vacancy and delinquency rates, property income, and lease spreads), successful completion of its capex plan, and its ability to maintain adequate liquidity. MARFRIG HOLDINGS: S&P Puts 'B+' to US$500 Million Sr. Unsec. Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services said it assigned its 'B+' rating to the senior unsecured, unsubordinated bonds to be issued by Marfrig Holdings Europe B.V. in the amount of US$500 million maturing in 2018 (seven-year tenor). The rating on the issue reflects the credit quality of Brazil-based Marfrig Alimentos S.A. (Marfrig; B+/Stable), which will irrevocably and unconditionally guarantee the bonds. "We expect the debt issuance to help Marfrig improve its financial profile, reducing short-term refinancing risks and extending its debt maturity schedule. We believe the company will use part of the proceeds to pay down short-term and more expensive debt," S&P stated. "We assess Marfrig's business risk profile as fair, which reflects the company's sizable scale of operations and its business and geographic diversification. Marfrig's growth, which the company achieved mainly through several sizable acquisitions, has leveraged its financial ratios and has thus led us to assess Marfrig's financial profile as highly leveraged," S&P related. Ratings List Marfrig Alimentos S.A. Corporate credit rating B+/Stable New Rating Marfrig Holdings Europe B.V. US$500 mil sr unsec B+ MARFRIG HOLDINGS: Fitch Puts 'B+/RR4' to US$500MM Sr. Unsec. Notes ------------------------------------------------------------------ Fitch Ratings has assigned a 'B+/RR4' rating to Marfrig's proposed US$500 million senior unsecured notes due 2018 to be issued by Marfrig Holdings (Europe) BV. These notes will be unconditionally guaranteed by Marfrig Alimentos S.A. (Marfrig), Marfrig Overseas Ltd and several other subsidiaries. Proceeds are expected to be used to refinance debt maturities in 2011 and 2012 and to support the organic growth of the company. In conjunction with this rating action, Fitch has assigned a 'B+' foreign currency Issuer Default Rating (IDR) to Marfrig Holdings (Europe) BV, which is a holding company wholly-owned by Marfrig and incorporated in the Netherlands. The ratings of Marfrig Holdings (Europe) BV have been directly linked to that of its parent company Marfrig through Fitch's parent and subsidiary methodology. Simultaneously, Fitch has also assigned a 'B+' foreign currency IDR to Marfrig Overseas Ltd, the issuer of Marfrig's previously issued notes due in 2016 and 2020. Fitch currently rates Marfrig: Marfrig Alimentos S.A. -- Local currency IDR 'B+'; -- Foreign currency IDR 'B+'; -- National scale rating 'BBB+(bra)'; -- BRL 300 million 3rd debentures issue (1-st tranche)'BBB+(bra)'; -- BRL 300 million 3rd debentures issue (2-nd tranche)'BBB+(bra)'. Marfrig Overseas Ltd -- US$375 million senior unsecured notes due 2016 'B+/RR4'; -- US$500 million senior unsecured notes due 2020 at 'B+/RR4'. The Rating Outlook for all those ratings is Stable. The ratings are supported by Marfrig's strong business position, as one of the largest producers and exporters of beef, poultry, and pork in Brazil. The ratings take into consideration the volatility of protein prices and profit margins due to factors beyond the company's control. Further factored into the 'B+' ratings are the company's aggressive growth strategy and high leverage. Leverage Remains High But Should Decline During 2011: As of Dec. 31, 2010, Marfrig had BRL 10.6 billion (US$6 billion) of total debt and BRL3.9 billion (US$2.3 billion) of cash and marketable securities. Approximately BRL3.4 billion of the company's debt falls due during 2011. Marfrig intends to use about 75% of the proceeds from the proposed bond offering to repay some short-term debt. During 2010, the company generated BRL1.5 billion (US$895 million) of EBITDA. On a pro-forma basis, including the Keystone acquisition, the EBITDA for 2010 would have been BRL1.7 billion (US$1 billion). The pro-forma gross leverage ratio for Marfrig was 6.2 times (x) during 2010, while pro-forma net leverage ratio was 3.9x. The company's leverage ratios should improve within the next 18 months due to: higher capacity utilization, a more favorable moment in the beef cycle, increases in market share in Brazil, plus synergies from prior acquisitions. Fitch's treats BRL2.5 billion of convertible securities associated with the Keystone acquisition as equity due to the unique features that prevent the principal from ever being repaid in cash. Growth Strategy Affects Cash Flow: The 'B+' ratings continue to reflect the company's aggressive growth strategy. This strategy, which is primarily based upon acquisitions, has been financed with a mix of debt and equity. It has led to increasing working capital requirements and has resulted in negative free cash flow generation over the past few years. During 2010, Marfrig's direct capital expenditures totaled BRL1.1 billion, resulting in a negative free cash flow (FCF) of BRL1.1 billion. Fitch projects an improvement in Marfrig's FCF generation as the company integrates acquisitions and improves working capital management. Nevertheless, FCF is expected to continue to remain weak, most likely negative or neutral in 2011. Strong Business Profile Partially Mitigates Industry Risks: Marfrig's ratings are supported by the company's position as one of Brazil's largest producers and exporters of beef, poultry and pork. The company's activities are evenly distributed between the domestic market and export sales with a more diversified business profile than most of its peers. During 2010, Marfrig became the second largest provider of processed and specialty pork and poultry products in Brazil. The ratings take into consideration the volatility of the prices for proteins. Prices and margins in the animal protein markets are vulnerable to domestic and international supply and demand imbalances resulting from such factors as disease and weather conditions, global economic growth, changes in consumption habits, government-imposed sanitary and trade restrictions, and competitive pressures from other Brazilian or international producers and exporters. Key Rating Drivers: Marfrig's rating could be positively affected by some combination of these: a significant decrease in leverage, generation of positive FCF, reduction of the company's reliance upon short-term debt, further revenue diversification, and the lifting of Brazilian beef sanitary restrictions by more countries. A rating downgrade could be triggered by a rise in the company's total debt credit ratios, a low level of cash liquidity, an inability to roll over short-term credit lines, a continuation of negative FCF generation and/or a significant deterioration of operations due to trade restrictions or sanitary outbreaks. =========================== C A Y M A N I S L A N D S =========================== ALCHEMIST LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------- At an extraordinary general meeting held on March 8, 2011, the shareholders of Alchemist Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 26, 2011, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands BIOKO INVESTMENTS: Creditors' Proofs of Debt Due May 10 ------------------------------------------------------- The creditors of Bioko Investments LDC are required to file their proofs of debt by May 10, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 31, 2011. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71, Road Town Tortola, B.V.I. 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 CASUAR LIMITED: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on March 25, 2011, the shareholders of Casuar Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 26, 2011, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands CREP INVESTMENT: Creditors' Proofs of Debt Due May 26 ----------------------------------------------------- The creditors of Crep Investment H Cayman are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 28, 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 DIVERSIFIED SECURITIES: Placed Under Voluntary Wind-Up ------------------------------------------------------ At an extraordinary general meeting held on March 30, 2011, the shareholders of Diversified Securities Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM LTD. Governor's Square Ground Floor, West Bay Road P.O. Box 1982, Grand Cayman KY-1104 Cayman Islands FONTAINE TRADING: Placed Under Voluntary Wind-Up ------------------------------------------------ On April 5, 2011, the sole shareholder of Fontaine Trading Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt by May 2011, to be included in the company's dividend distribution. 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 HALLMEYER HOLDINGS: Creditors' Proofs of Debt Due May 18 -------------------------------------------------------- The creditors of Hallmeyer Holdings Limited are required to file their proofs of debt by May 18, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 31, 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, Grand Cayman KY1-1104 Cayman Islands INFORUM NO. 2: Placed Under Voluntary Wind-Up --------------------------------------------- On March 11, 2011, the shareholder of Inforum No. 2 Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 INTERNATIONAL CORPORATION: Placed Under Voluntary Wind-Up --------------------------------------------------------- At an extraordinary general meeting held on March 30, 2011, the shareholders of International Corporation Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM LTD. Governor's Square Ground Floor, West Bay Road P.O. Box 1982, Grand Cayman KY-1104 Cayman Islands JHETA INTERNATIONAL: Placed Under Voluntary Wind-Up --------------------------------------------------- At an extraordinary general meeting held on March 8, 2011, the shareholders of Jheta International Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 26, 2011, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands JOHNSTON RE: S&P Assigns 'BB-' Ratings on Class A and B Notes ------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its preliminary 'BB-' ratings on the Series 2011-1 Class A and B notes to be issued by Johnston Re Ltd. Johnston Re is a special-purpose Cayman Islands exempted company licensed as a Class B insurer in the Cayman Islands. HSBC Bank (Cayman) Ltd., as share trustee, holds all of Johnston Re's issued and outstanding shares in trust for charitable or similar purposes. The ceding reinsurer will be Munich Reinsurance America Inc. (Munich Re America; AA-/Stable/--). Munich Re America will be responsible for the premium payments due under the retrocession agreement in place between Munich Re America and Johnston Re. Johnston Re will cover losses on a per-occurrence basis due to hurricanes. Covered losses will not be directly linked to Munich Re America's exposure in the covered area (North Carolina), rather they will be based on the losses of the North Carolina Joint Underwriters Assn. (NCJUA) and the North Carolina Insurance Underwriters Assn. (NCIUA). Ratings List Preliminary Ratings Assigned Johnston Re Ltd. Series 2011-1 Class A Notes BB-(prelim) Series 2011-1 Class B Notes BB-(prelim) KEVINGTON LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------- At an extraordinary general meeting held on March 16, 2011, the shareholders of Kevington Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 26, 2011, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Rose Ferguson Telephone: (345) 949-0355 Facsimile: (345) 949-0360 P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands MSR ASIA: Creditors' Proofs of Debt Due May 17 ---------------------------------------------- The creditors of MSR Asia Acquisitions V, Inc. are required to file their proofs of debt by May 17, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 16, 2011. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands PIKE PLACE: Creditors' Proofs of Debt Due May 18 ------------------------------------------------ The creditors of Pike Place Capital Offshore, Ltd. are required to file their proofs of debt by May 18, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 31, 2011. The company's liquidator is: Ogier c/o Catherine Pham Telephone: (345) 949-9876 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands PLYMOUTH REALTY: Placed Under Voluntary Wind-Up ----------------------------------------------- At an extraordinary general meeting held on March 30, 2011, the shareholders of Plymouth Realty Company Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM LTD. Governor's Square Ground Floor, West Bay Road P.O. Box 1982, Grand Cayman KY-1104 Cayman Islands PURPLE EAGLE: Creditors' Proofs of Debt Due May 24 -------------------------------------------------- The creditors of Purple Eagle Limited are required to file their proofs of debt by May 24, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 6, 2011. The company's liquidator is: Trident Liquidators (Cayman) Ltd c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands Q.D.M. LTD: Placed Under Voluntary Wind-Up ------------------------------------------ At an extraordinary general meeting held on March 30, 2011, the shareholders of Q.D.M. Ltd. resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM Ltd. Governor's Square Ground Floor, West Bay Road P.O. Box 1982, Grand Cayman KY-1104 Cayman Islands RISTORANTE SAVONA: Placed Under Voluntary Wind-Up ------------------------------------------------- On March 24, 2011, the sole shareholder of Ristorante Savona Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 24, 2011, will be included in the company's dividend distribution. 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 ============= J A M A I C A ============= AIR JAMAICA: Final Signing With Caribbean Airline Delayed --------------------------------------------------------- Vernon Khelawan at Trinidad and Tobago Newsday reports that final signing of the document which would consummate the Caribbean Airlines Limited /Air Jamaica Limited deal has been postponed following high level discussions with officials of both Jamaica and Trinidad and Tobago. Final date for the signing is on April 30, 2011. Sources said all the legal paperwork has not as yet been completed and as a result, an agreement has to be negotiated with the government of Jamaica for a postponement at least until May 15, according to T&T Newsday. The report notes that CAL Chairman George Nicholas III has been trying to secure the services of eminent Caribbean jurist Fenton Ramsahoye as part of the legal team to complete the transaction but the board is yet to meet on this issue. T&T Newsday relates that Mr. Nicholas was trying to bring English QC Andrew Mitchell on board at first but this was snagged when several members of the board opposed the move and the chairman was forced to abandon that course of action. The report discloses that cabinet has now given permission for the board to meet for the sole purpose of completing the CAL-JM deal. Meanwhile, T&T Newsday says that losses on the so-called "profitable routes" of Air Jamaica continue to mount and with the added Air Jamaica aircraft, the fuel subsidy allowed to CAL now also covers aircraft used on the JM services between Kingston and Montego Bay to the U.S. and Canada. According to reliable sources the losses have surpassed the US$49.2 million in equity put in by the Trinidad and Tobago government last year, the report adds. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2010, Trinidad and Tobago Caribbean Airline on May 1, 2010, acquired Air Jamaica for US$50 million and operated six Air Jamaica aircraft and eight of its routes. Jamaica got a 16% stake in the merged operation, with CAL owning 84%. According to a TCR- LA report on June 29, 2009, RadioJamaica News said the Jamaican government indicated it will name a buyer for cash-strapped Air Jamaica. RadioJamaica related the airline has been hemorrhaging over US$150 million per annum and the government has had to foot the massive bill. In addition, RadioJamaica said, Air Jamaica currently has over US$600 million in loans outstanding. As of Aug. 18, 2010, the airline continues to carry Moody's "B3" long-term corporate family, and senior unsecured debt ratings. JAMAICAN PEGASUS: BITU Seeks to Save Jobs Pending Closure --------------------------------------------------------- RJR News reports that the Bustamante Industrial Trade Union (BITU) has come up with proposals which could help to save jobs at the Jamaica Pegasus Hotel. The hotel is to carry out a redundancy exercise ahead of its closure for major refurbishing, according to RJR News. The report relates that about 300 workers will lose their jobs. RJR News notes that the union has requested a meeting to discuss suggestions which it believes will reduce the need to send the workers to the unemployment line. =========== M E X I C O =========== ALESTRA S: Fitch Affirms BB- Currency Issuer Default Ratings ------------------------------------------------------------ Fitch Ratings has affirmed Alestra, S. de R.L. de C.V.'s (Alestra) ratings following the announcement by Grupo Alfa S.A.B. de C.V. (Alfa)that it would acquire the remaining 49% stake in Alestra it does not already own from AT&T for an undisclosed amount. The rating actions reflect Fitch's view that Alestra's financial profile should not materially change following the closing of the transaction and that potential revenue loss associated with the AT&T Global Network Agreement (AGN) services should be at least partially offset by growth in value added services (VAS). In addition, the company's business and financial strategy are expected to remain unchanged under the full control of Alfa. Fitch estimates the amount paid by Alfa to AT&T should not be material to Alfa and expects it to be paid with cash balances. The AGN agreement is expected to remain in the short term within Alestra. AT&T should take the business relationship with its multi-national customers, and Alestra will provide the infrastructure for delivering these types of services. Fitch expects that revenue and cash flow declines associated with no longer providing the end-to-end service of the AGN agreement should at least be partially offset with growth in VAS. In the medium-to-long term, as in the past, Alestra will continue to compete with carriers to provide the infrastructure required by AT&T to deliver the AGN services. Leverage Expected to Remain Stable Alestra's total debt to EBITDA should remain within current levels of 2.0 times (x) after the transaction is completed. In Fitch's opinion, Alestra has sufficient cash flow generation and cash balances to maintain leverage within current levels considering a potential gradual migration of AT&T services that are delivered through Alestra's network to other networks. The ratings continue to incorporate total debt to EBITDA below 2.5x in the long term. A sustained gross leverage increase above 2.5x over time would negatively affect credit quality and could result in a downgrade. Value added services should continue growing in 2011 as long distance is expected to continue declining as a percentage of total revenues due to business fundamental trends as competition remains strong and price pressure continues. Fitch estimates that for year-end 2010, approximately 80% of revenues and 88% of EBITDA was generated by value added services. Potential migration of the AGN services agreement to other networks should be gradual if AT&T elects to do so and can be manageable from a credit perspective. While it is estimated that these services amount to approximately 20% of revenues and slightly more than 20% of consolidated EBITDA, Alestra is expected to initiate efforts to retain AT&T as a customer. Alestra's credit quality is supported by the company's continued stable operating performance, moderate leverage, a manageable debt maturity profile, lower business risk and stable cash flow generation. The ratings reflect its position as a niche service provider, its small scale, advanced network infrastructure, moderate regulatory risk and sound financial profile. Conversely, the ratings are tempered by the currency mismatch between debt and cash flows, challenges in the long distance market and competition in data, Internet and local services (DILS or value added services). Lower business risk has resulted as a consequence of management's strategy to grow DILS and the company's focus on corporate customers, which provides stability for cash flow as the competitive environment is less intense than the residential market. Fitch affirms these: -- Local currency Issuer Default Rating (IDR) at 'BB-; -- Foreign currency IDR at 'BB-'; -- Senior Notes due 2014 at 'BB-'; The Rating Outlook is Stable. ======= P E R U ======= INTERBANK: Fitch Affirms Junior Subordinated Debt at 'BB' --------------------------------------------------------- Fitch Ratings has affirmed Banco Internacional del Peru's (Interbank) ratings: -- Foreign currency long-term Issuer Default Rating (IDR) at 'BBB-'; -- Foreign currency short-term IDR at "F3'; -- Local currency long-term IDR at 'BBB-'; -- Local currency short-term IDR at "F3'; -- Individual rating at 'C'; -- Support rating at '3'; -- Support Floor at 'BB'; -- Senior Unsecured Debt at 'BBB-'; -- Junior Subordinated Debt at 'BB'. The Rating Outlook is revised to Positive from Stable. The affirmation of Interbank's ratings reflect its sound retail franchise, focused strategy, good asset quality, adequate capital and reserves, improved liquidity and solid performance through the global crisis. However, Fitch's view toward the ratings of Interbank is tempered by deposit concentration, expected pressure on margins, and the risk profile of its rapidly growing loan portfolio and the potential impact of its maturation on credit quality. Interbank's Rating Outlook was revised to Positive given its solid performance through the crisis that saw the bank gain market share and consolidate as a top player in the retail segment while expanding in the corporate market. The ratings could be upgraded if Interbank is able to sustain its current performance while sufficiently managing the credit quality of its rapidly growing loan portfolio, as well as maintain capital and reserve coverage at suitable levels for a bank with its risk profile. The bank's support floor is indicative of its systemic importance. Being the second largest Peruvian controlled bank, Fitch believes that there would be a strong propensity for support from the government, should it be required. Peru's ability to provide such support is deemed moderate and reflected in its 'BBB-' sovereign rating. Interbank's performance in 2010 was driven by solid loan growth and strong margins that along with growing non-interest revenues, propelled net income to record highs in spite of higher operating expenses and credit cost. The bank's strong growth momentum -- which showed resilience through the crisis -- accelerated during 2010 in line with the economy and benefited from declining funding costs that underpinned margins. Operating expenses increased as the bank's expansion continued and even though credit cost increased, overall efficiency stabilized and profitability improved to an return on average assets (ROAA) of 2.9% and a return on average equity (ROAE) of 34% at December 2010. Deposits are wide-based albeit carrying a somewhat higher cost than those of its competitors and being more concentrated. Asset quality stabilized and remains better than that of its specialized peers and adequately covered by reserves. Capital ratios improved and stood above the industry average and are expected to remain fairly stable in the medium term. Interbank's loan portfolio is expected to maintain a similar growth track into 2012 in spite of the anticipated elections hiccup. Loan volumes are expected to grow 15%-20% and should compensate for the expected increase in interest rates that should pressure margins by the second half of 2011 despite continued growth in the retail segment. Non-interest revenues should continue growing as the bank exploits its cross-selling opportunities while operating costs are expected to continue growing at a slower pace than revenues; on the other hand, loan loss provisions should continue to grow moderately; hence, profitability should continue to compare well to its peers -- with an ROAA around 2.5% and an ROAE comfortably above 20% -- thus sustaining adequate capital levels. Interbank is a medium-sized Peruvian bank, fourth in a highly concentrated market with a market share of about 11% by assets. The first universal bank to massively invest in retail banking, Interbank is a top contender in each retail segment and boasts the country's largest ATM network. Interbank is controlled by a well- regarded local group. ==================== P U E R T O R I C O ==================== FIRSTBANK PUERTO RICO: Moody's Downgrades Long-Term Deposits to B3 ------------------------------------------------------------------ Moody's Investors Service downgraded the long-term ratings of FirstBank Puerto Rico (FirstBank; long-term deposits to B3 from B2, senior unsecured to Caa2 from B3). FirstBank's unsupported bank financial strength rating (BFSR) was confirmed at E+. FirstBank is the primary operating subsidiary of First BanCorp, which is unrated. The rating outlook on FirstBank is negative. This concludes Moody's review that commenced on June 4, 2010. RATINGS RATIONALE The downgrade reflects Moody's view that FirstBank's continued high level of problem assets as reflected in its recently filed 10-K limit its prospects for a return to profitability. This, in turn, in Moody's opinion, impedes its ability to attract new equity to address its required capital ratios as stipulated in the Regulatory Agreement entered into with the FDIC and the Office of the Commissioner of Financial Institutions of Puerto Rico on July 2, 2010. The long-term deposit rating of B3 reflects the rating agency's opinion that even if the bank were to ultimately be resolved, domestic depositors are not likely to incur losses. The senior unsecured rating of Caa2, two notches lower than the deposit rating, reflects the greater loss severity for this class of creditors in the event the bank is resolved. The negative outlook reflects the company's significant level of problem assets in a very challenged market where trends are likely to remain weak at least throughout 2011. A further downgrade could result if trends in FirstBank's asset quality deteriorate beyond Moody's expectations and Moody's analysis indicates a greater likelihood of losses for creditors. First BanCorp's tangible common equity capital position further weakened with the fourth quarter 2010 loss of US$251.4 million, which included a US$93.7 million valuation allowance against the majority of its remaining deferred tax asset. As of December 31, 2010, the Bank had not reached the capital ratios it is required to attain of Tier 1 leverage of 8%, Tier 1 risk-based of 10% and Total risk-based of 12% set forth under the Regulatory Agreement. While Moody's notes the steps the company is taking to attain its required capital ratios, namely deleveraging its balance sheet, in the rating agency's opinion, First BanCorp will continue to incur sizable credit costs in its commercial real estate and C&I portfolios. These credit costs, combined with the company's inability to recognize tax benefits on losses due to the valuation allowance against its deferred tax asset, will continue to weaken capital ratios. The principal methodologies used in this rating were "Bank Financial Strength Ratings: Global Methodology published in February 2007 and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007. First BanCorp headquartered in San Juan, Puerto Rico, reported total assets of US$15.6 billion at December 31, 2010 Downgrades: Issuer: FirstBank Puerto Rico -- Issuer Rating, Downgraded to Caa2 from B3 -- OSO Senior Unsecured OSO Rating, Downgraded to Caa2 from B3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 from B3 -- Senior Unsecured Deposit Rating, Downgraded to B3 from B2 Outlook Actions: Issuer: FirstBank Puerto Rico -- Outlook, Changed To Negative From Rating Under Review Confirmations: Issuer: FirstBank Puerto Rico -- Bank Financial Strength Rating, Confirmed at E+ ========================= T U R K S & C A I C O S ========================= * TURKS & CAICOS: Completes Bond Sale to Help Tackle Crisis ----------------------------------------------------------- Bloomberg News reports that the Turks and Caicos Islands completed a roughly US$280 million bond sale that officials said aims to help the British dependency tackle a fiscal crisis. The Caribbean islands' London-appointed governor said the sale "buys us the time we need to tackle the dire fiscal legacy" inherited by his interim administration, according to Bloomberg. Bloomberg notes Britain imposed direct rule on Turks and Caicos in August 2009 after a probe into allegations that local leaders misused public money and profited from the sale of government- owned land. Bloomberg relates the local government and legislature were suspended. Bloomberg says Gov. Gordon Wetherell said the bond sale was the best option to give his administration a fixed interest rate and allow some "certainty over our future debt service." The bonds, with a fixed interest rate of 3.2%, will be fully payable on maturity in February 2016, Bloomberg discloses. Bloomberg notes that the bond sale does not provide additional funding for the islands' government, but replaces a US$280 million bridge loan that was part of a US$417 million rescue package approved by Britain earlier this year. Gov. Wetherell said the bailout won't fund significant new expenditures or reverse spending cuts, Bloomberg relates. It will only allow the financially struggling islands of roughly 23,000 people to bring spending and revenue in line, he 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 *********** 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. 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