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/raid1/www/Hosts/bankrupt/TCRLA_Public/110505.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 Thursday, May 5, 2011, Vol. 12, No. 88 Headlines A R G E N T I N A GPAT COMPANIA: Moody's Assigns 'Ba2' Sr. Unsecured Debt Rating FRAVEGA S.A.: Moody's Upgrades LC Corporate Family Rating to 'B1' B R A Z I L BANCO DAYCOVAL: Fitch Affirms LT Issuer Default Rating at 'BB' C A Y M A N I S L A N D S ALETRAX CAPITAL: Creditors' Proofs of Debt Due May 17 ALETRAX GLOBAL: Creditors' Proofs of Debt Due May 17 CITADEL RESIDENTIAL: Commences Liquidation Proceedings CMOF OFFSHORE: Commences Liquidation Proceedings FREEDOM IAM: Creditors' Proofs of Debt Due July 6 JOE-M LTD: Creditors' Proofs of Debt Due May 26 LIC INVESTMENT: Creditors' Proofs of Debt Due May 18 LIC OPPORTUNITIES: Creditors' Proofs of Debt Due May 18 RALPH-S LTD: Creditors' Proofs of Debt Due May 26 SIPIX GROUP: Creditors' Proofs of Debt Due May 17 TIDEN CORE: Creditors' Proofs of Debt Due May 27 TIDEN CORE: Creditors' Proofs of Debt Due May 27 WISTERIA ASSET: Creditors' Proofs of Debt Due May 27 ZIRUNDIUM LIMITED: Creditors' Proofs of Debt Due May 27 J A M A I C A AIR JAMAICA: Axed 54 Employees Last Month M E X I C O MAQUINARIA ESPECIALIZADA: S&P Assigns BB- Rating on US$160MM Notes VITRO SAB: Mexican Court Rejects Involuntary Bankruptcy Petition VITRO SAB: Sun Capital Unit Offers $45MM for U.S. Units VITRO SAB: Obtains Restraining Order Against Aurelius, Noteholders P U E R T O R I C O CARIBBEAN PETROLEUM: Puma Energy Agrees to Clean Up Bayamon Site S T K I T T S & N E V I S CLEAR HARBOR: High Court Judge Extends Injunction Against Firm U R U G U A Y BANCO SURINVEST: Fitch Affirms Issuer Default Rating at 'B' X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= GPAT COMPANIA: Moody's Assigns 'Ba2' Sr. Unsecured Debt Rating -------------------------------------------------------------- Moody's Investors Service assigned a Ba2 global local-currency senior unsecured debt rating to the expected second issuance of GPAT Compania Financiera (GPAT) under its AR$400 million program for up to AR$100 million. The outlook for the rating is stable. At the same time, Moody's Latin America assigned a Aa1.ar national scale local currency debt rating to GPAT's expected second issuance. These ratings were assigned to GPAT Compania Financiera S.A.: -- Second Issuance of a maximum amount of AR$ 100 million: -- Ba2 Global Local Currency Debt Rating, with stable outlook -- Aa1.ar Argentina National Scale Local Currency Debt Rating Moody's explained that the local currency senior unsecured debt rating derives from GPAT's Ba2 global local currency deposit rating. Moody's also noted that seniority was taken into consideration in the assignment of the debt ratings. GPAT Compania Financiera S.A. is headquartered in Buenos Aires, Argentina, and reported Ar$ 357.6 million of total assets and Ar$ 187.4 million of shareholders' equity as of December 31, 2010. FRAVEGA S.A.: Moody's Upgrades LC Corporate Family Rating to 'B1' ----------------------------------------------------------------- Moody's Latin America upgraded Fravega's local currency corporate family rating to B1 from B2 and its Argentina national scale rating to Aa2.ar from Aa3.ar. At the same time, Moody's assigned a B1 local currency rating and an Aa2.ar National Scale Rating to the proposed issuance of ARS30 million in domestic market bonds in Argentina. The ratings outlook is stable. The proceeds from the issuance will be used to refinance short term debt, for working capital and general corporate purposes. "The upgrade of the global rating to B1 and national scale rating to Aa2.ar are prompted by Fravega's strong revenue growth and cash generation which benefited from the 2010 government sponsored installment payment scheme for consumer electronics products as well as the 2010 World Cup Soccer event. Also supporting the upgrades are the company's continued strong market position in the Argentina retail sector, its well-known brand name, its strong execution ability and efficient operations that translate into a continued deleveraging of the company" said Veronica Amendola, AVP analyst at Moody's. The B1 rating reflect Fravega's position as one of the largest dedicated retailers of consumer electronics and appliances in Argentina, its solid position in selling recognized brand names and its well-established relationships with suppliers. The rating is also based on the group's fully vertically integrated operations, comprised of an appliance production plant based in Tierra del Fuego, which is one of its main suppliers, and Banco Saenz, which is responsible for granting personal consumer loans to Fravega's clients. Finally, the ratings reflect the long track record the company has in the retail business. Key credit negatives include Fravega's low geographic diversity and relatively small scale. In addition, Fravega's liquidity position depends on its ongoing ability to roll over its advised bank credit lines, in particular during 2011 when most of its outstanding debt comes due. Fravega's B1 local currency rating reflects its global default and loss expectation, while the Aa2.ar national scale rating reflects the standing of Fravega's credit quality relative to its domestic peers. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Argentina are designated by the ".ar" suffix. Issuers or issues rated Aa2.ar present above- average creditworthiness relative to other domestic issuers. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. The stable outlook reflects Moody's expectation that Fravega will be able to maintain its revenues and earnings profile over the near term based on its various efficiency and commercial initiatives. The rating outlook also reflects the expectation that Fravega will continue to successfully implement its business model, thus allowing the retailer to maintain adequate credit metrics for its rating category. Finally, the outlook reflects Moody's expectations that Fravega will be able to maintain adequate access to bank loans and credit card receivable discounting facilities. An upgrade of the ratings could result from sustained business improvement leading to higher operating margins, increased size and geographical diversification. Quantitatively, an upgrade could result from an increase in the operating margin above 10%, an improved liquidity profile, or free cash flow to adjusted debt of above 50%. Downward pressure could result from reduced availability of consumer loans in 2011-2012 and a weaker than expected performance of the company's business that leads to a deterioration in operating margins. A downgrade could also result from a drop in Fravega's EBIT margin to below 1% or a significant increase in leverage, with adjusted total debt to EBITDA of above 3.5 times. Indications of a weakening market share in the domestic retail market could also drive negative pressure. Finally, evidence of weaker cash flows generation and/or in its relationship with Banco Saenz could threaten Fravega's liquidity profile and also result in a downgrade. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Implementation Guidance published in August 2010 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings." Headquartered in Buenos Aires, Fravega is one of the largest home appliance retailers in Argentina. With total revenues of ARS 3.2 billion and 4.800 employees as of December 2010, Fravega is a family-owned company with a widely known brand name in the local retail market. =========== B R A Z I L =========== BANCO DAYCOVAL: Fitch Affirms LT Issuer Default Rating at 'BB' -------------------------------------------------------------- Fitch Ratings affirmed all ratings of Banco Daycoval S.A. (Daycoval): -- Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BB', Outlook Stable; -- Short-term foreign and local currency IDRs at 'B'; -- Individual rating at 'C/D'; -- Support rating at '5'; -- Support rating floor at 'No Floor'; -- Long-term national rating at 'A+(bra)', Outlook Stable; -- Short-term national rating at 'F1(bra)'; -- Senior unsecured notes due March 2015 at 'BB'; -- Senior unsecured notes due January 2016 at 'BB'. The IDRs and national ratings of Daycoval reflect a consistent track record of profitability despite low leverage; sound capitalization, which is better than its peers; and prudent liquidity management, maintaining high cash even in periods of stress. They also factor in the bank's moderate size and concentrations in assets and liabilities, its wholesale funding structure, and weakening margins. After the decline in deposits and earnings due to the global financial crisis in September 2008, Daycoval has been successful in increasing its operations and earnings since mid-2009, benefiting from an improved local economy. Unlike most small- and medium-sized banks, it has not closed its profitable retail operations (basically payroll deductible loans and vehicle financing), maintaining higher diversification as compared to its peers. In addition, it has attempted to establish and/or increase other products, such as foreign exchange and trade financing and investment fund management, which should favor its relationship with clients and allow for more diversified revenues. Fitch notes with concern, however, that despite aggressive loan growth of 46% in 2010, pre-impairment operating results were flat in 2010 due to a significant deterioration in the net interest margin; this was somewhat offset by lower credit loss provisions and improved efficiency. While the bank aims to return to its pre-crisis return on equity of about 20%, this will be challenging given margin trends. Given its historically sound capital measures, the increase in leverage that occurred in 2010 will likely continue. While overall profitability compares well with similarly-rated banks internationally, Fitch will monitor margin trends as higher leverage could weaken the bank's loss-absorption capacity in the future. Asset quality ratios have been improving, benefiting from a better economy and rapid loan growth. Although relatively concentrated like its peers, Daycoval has diversified its liability structure but remains a primarily wholesale-funded bank. Assets are well matched to liabilities. Capitalization (primarily Tier I) remains sound although metrics diminished last year due to a high dividend payout ratio and strong balance sheet growth. The convertible bond issued in March 2009 (BRL530 million in December 2010) could enhance capitalization subsequent to March 2011 when it is convertible at the option of the investors. If converted, this could help support future loan growth. While better funding and revenue diversification accompanied by adequate profitability and capital could benefit ratings, Fitch views this as more of a medium to long-term likelihood. The ratings could be negatively impacted by asset quality deterioration, erosion in earnings capability and higher leverage. Originated in 1968, Daycoval is controlled by the Dayan family and has been listed on the Stock, Commodities, and Futures Exchange (BM&FBovespa) since 2007 =========================== C A Y M A N I S L A N D S =========================== ALETRAX CAPITAL: Creditors' Proofs of Debt Due May 17 ----------------------------------------------------- The creditors of Aletrax Capital Management Limited 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 April 1, 2011. The company's liquidator is: Jeffrey Skinner Telephone: +350 200 52545 Facsimile: +350 200 52546 c/o CARD Corporate Services Ltd. P.O. Box 709 Zephyr House, 122 Mary Street Grand Cayman KY1-1107 Cayman Islands ALETRAX GLOBAL: Creditors' Proofs of Debt Due May 17 ---------------------------------------------------- The creditors of Aletrax Global SPC Limited 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 April 1, 2011. The company's liquidator is: Jeffrey Skinner Telephone: +350 200 52545 Facsimile: +350 200 52546 c/o CARD Corporate Services Ltd. P.O. Box 709 Zephyr House, 122 Mary Street Grand Cayman KY1-1107 Cayman Islands CITADEL RESIDENTIAL: Commences Liquidation Proceedings ------------------------------------------------------ On April 15, 2011, the members of Citadel Residential Whole Loan Opportunities Master Fund Ltd. passed a resolution that voluntarily liquidates the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Citadel Advisors LLC c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands CMOF OFFSHORE: Commences Liquidation Proceedings ------------------------------------------------ On April 15, 2011, the members of CMOF Offshore Holdings Ltd. passed a resolution that voluntarily liquidates the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Citadel Advisors LLC c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands FREEDOM IAM: Creditors' Proofs of Debt Due July 6 ------------------------------------------------- The creditors of Freedom Iam Limited are required to file their proofs of debt by July 6, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 12, 2011. The company's liquidator is: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands JOE-M LTD: Creditors' Proofs of Debt Due May 26 ----------------------------------------------- The creditors of JOE-M Ltd. 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 April 15, 2011. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands LIC INVESTMENT: Creditors' Proofs of Debt Due May 18 ---------------------------------------------------- The creditors of LIC Investment 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 April 13, 2011. The company's liquidator is: Ogier c/o Chu Chi Ho Ian Telephone: (852) 3198-0835 Facsimile: (345) 949-9877 c/o Ogier, 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands LIC OPPORTUNITIES: Creditors' Proofs of Debt Due May 18 ------------------------------------------------------- The creditors of LIC Opportunities Fund (Cayman) 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 wind-up proceedings on April 13, 2011. The company's liquidator is: Ogier c/o Chu Chi Ho Ian Telephone: (852) 3198-0835 Facsimile: (345) 949-9877 c/o Ogier, 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands RALPH-S LTD: Creditors' Proofs of Debt Due May 26 ------------------------------------------------- The creditors of Ralph-S Ltd. 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 April 15, 2011. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands SIPIX GROUP: Creditors' Proofs of Debt Due May 17 ------------------------------------------------- The creditors of Sipix Group Limited 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 31, 2011. The company's liquidator is: Ching-Shon Ho Telephone: +886-2-2700-4333 Facsimile: +886-2-2706-2282 c/o CARD Corporate Services Ltd. P.O. Box 709 122 Mary Street Grand Cayman KY1-1107 Cayman Islands TIDEN CORE: Creditors' Proofs of Debt Due May 27 ------------------------------------------------ The creditors of Tiden Core Fund Limited are required to file their proofs of debt by May 27, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 10, 2011. The company's liquidator is: DMS Corporate Services Ltd. Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands TIDEN CORE: Creditors' Proofs of Debt Due May 27 ------------------------------------------------ The creditors of Tiden Core Master Fund Limited are required to file their proofs of debt by May 27, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 10, 2011. The company's liquidator is: DMS Corporate Services Ltd. Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands WISTERIA ASSET: Creditors' Proofs of Debt Due May 27 ---------------------------------------------------- The creditors of Wisteria Asset Holdings are required to file their proofs of debt by May 27, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 15, 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 ZIRUNDIUM LIMITED: Creditors' Proofs of Debt Due May 27 ------------------------------------------------------- The creditors of Zirundium Limited are required to file their proofs of debt by May 27, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 11, 2011. The company's liquidator is: Graham Robinson c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897, Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands ============= J A M A I C A ============= AIR JAMAICA: Axed 54 Employees Last Month ----------------------------------------- Abby Brathwaite at Trinidad Express reports that more than 50 Air Jamaica Limited employees have been let go at the end of April because of the planned merger with State carrier Caribbean Airlines Limited (CAL). Laura Asbjornsen, head of Corporate Communications at CAL, told Trinidad Express that the downsizing was a major step towards the formation of one company. "After any merger or acquisition, you will be harmonizing your companies, which is what transpired. It was 54 people who were employed across the organization who were let go, and not just people from one department," Trinidad Express quotes Ms. Asbjornsen as saying. Senior employees, including Sue Rosen, former head of Commercial Support for the airline, were among those who were not retained, according to Trinidad Express. Trinidad Express, citing Jamaica Gleaner, notes that the majority of customer service staff at the airline have had their positions downgraded to part-time while others, whose contracts have expired, have been given a two-month contract. 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. =========== M E X I C O =========== MAQUINARIA ESPECIALIZADA: S&P Assigns BB- Rating on US$160MM Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BB- (sf)' rating to Maquinaria Especializada MXO Trust Agreement No. F/00762's (Geo Maquinaria Trust's) US$160 million fixed-rate secured notes series 2011 due 2021. The rating reflects S&P's view of: * The likelihood that quarterly interest and principal payments will be made on or before each scheduled payment date. * Corporacion Geo S.A.B. de C.V.'s (Geo's; foreign currency rating BB-/Stable/--) and its subsidiaries' roles as the sole obligors of the issuing trust's transferred receivables and payment obligations and the beneficiaries of the machinery availability services provided by the issuing trust. * Geo Importex S.A. de C.V.'s (Geo Importex; a subsidiary of Geo) servicing experience and operational ability to manage the issuing trust's assets. * The issuing trust's ability to withstand a haircut of up to 7.8% of the minimum contracted quarterly payments, as described in the service rendering agreement, from Geo during the life of the transaction and still be able to pay the notes. * The availability of US$20 million as a liquidity reserve to cover any principal or interest shortfall. * The availability of a US$16 million capital expenditures reserve fund for the acquisition of additional machinery. * The transaction's legal structure, which contemplates a true sale of the machinery and the rights and obligations under the service rendering agreement from Maquinaria Especializada MXO S.A. de C.V. (Geo Maquinaria; a subsidiary of Geo) to the issuing trust. * The assumption that Geo or any of its subsidiaries will cover all required tax payments. * Geo's and its subsidiaries' experience and management teams. "In our stress scenario, the transaction's credit quality is dependent on Geo and its subsidiaries in three ways. First, all cash flows that the issuing trust will receive to pay investors will come primarily from Geo through the service rendering agreement. Second, given the high level of experience, business knowledge, and operational ability required to service the trust assets, we believe only a Geo subsidiary would be capable of doing so without affecting the transaction's performance. Third, if the trust is required to make any business-related tax payments, we assume these payments would be covered by Geo Maquinaria. Given this, the rating on the series 2011 notes is capped (weak-linked) to the rating on Geo," S&P stated. "In addition, we consider the cash flows from the underlying assets, which we stressed at a 'BB-' rating scenario, to be sufficient to pay the notes, and we are assigning a 'BB- (sf)' rating -- the same rating as Geo -- to the series 2011 transaction," S&P added. VITRO SAB: Mexican Court Rejects Involuntary Bankruptcy Petition ---------------------------------------------------------------- Reuters' Elinor Comlay and Gabriela Lopez report that a Mexican court in Monterrey threw out an involuntary bankruptcy proceeding against Vitro on Friday, easing the way for the company's own prepackaged bankruptcy to proceed. The Court ruled on Friday against the involuntary bankruptcy petition filed by creditors, but made its decision public on Monday, according to Reuters. Dow Jones' Daily Bankruptcy Review reports that Vitro, in a statement, said it will now go after the bondholders for legal bills and other expenses tied to that involuntary proceeding. Reuters relates Vitro and its creditors are still fighting -- in a separate procedure -- over whether the Company can vote on its own intercompany debt. Joseph Checkler, writing for Dow Jones' Daily Bankruptcy Review, notes that Vitro has been mired in a months-long battle with bondholders that contend the company is trying to sidestep the spirit of Mexico's 11-year-old bankruptcy law. Bondholders contended that in soliciting votes from bondholders on the prepackaged plan, the company shouldn't have counted votes from the holders of US$1.9 billion in loans made from Vitro subsidiaries to the parent company. Vitro has said Mexican law has shown that certain intercompany claims can be allowed, while the bondholders have argued that it shouldn't be at the expense of other creditors. Several hedge- fund managers that hold those bonds have told Dow Jones they could recover much more than they would under Vitro's plan. The proposed restructuring plan would exchange US$1.5 billion in debt for US$850 million in new notes due in 2019 and another US$100 million in new debt that would be convertible into 15% of the company's equity. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Vitro America, et al., have tapped Louis R. Strubeck, Jr., Esq., and William R. Greendyke, Esq., at Fulbright & Jaworski LLP, in Dallas, Texas, as counsel. Kurtzman Carson Consultants is the claims and notice agent. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. VITRO SAB: Sun Capital Unit Offers $45MM for U.S. Units ------------------------------------------------------- Joseph Checkler, writing for Dow Jones' Daily Bankruptcy Review, reports that an entity controlled by Sun Capital Partners Inc. has emerged as a rival bidder for Vitro SAB's U.S. units that are set to be sold through a bankruptcy court auction. Sun Capital's American Glass Enterprises LLC said it has made a $45 million bid for Vitro America LLC and three other subsidiaries on the auction block, according to papers filed Tuesday with the U.S. Bankruptcy Court in Dallas. DBR notes that American Glass's offer exceeds the $44 million offer from Colorado-based private equity firm Grey Mountain Partners LLC that Vitro presented last month and removes the requirement that the lead bidder for the units be paid a $1.3 million fee if it is bested at auction. American Glass claims to be a creditor of Vitro's U.S. units. According to DBR, American Glass said in court papers its offer has been largely rebuffed by the company despite the higher purchase price. In addition to American Glass, Sun also owns Arch Aluminum & Glass Co., a direct competitor to Vitro. DBR relates a spokesman for Vitro's U.S. units declined to comment. A preliminary hearing on the sale is set for Friday. Objection to Grey Mountain Deal DBR further reports that Vitro bondholders and another creditor, Oldcastle Building Envelope, have questioned the proposed sale to Grey Mountain. Oldcastle on Monday said in court papers it doesn't know who is behind the proposed buyer and if they have the financial wherewithal to complete the deal. "For all we know, this could be an affiliate" of Vitro, Oldcastle said in court papers, according to DBR. Oldcastle supplies of architectural glass to Vitro. "Not Normal" DBR recounts that Judge Shelley C. Chapman of U.S. Bankruptcy Court in Manhattan late last week granted Vitro SAB a temporary restraining order that protects it from litigation between now and a hearing later this month in which it will seek recognition of its Mexican bankruptcy case. According to DBR, Judge Chapman signed off on the order after the Bankruptcy Court in Dallas held off ruling on a bondholder group's request to move Vitro's Chapter 15 case to Texas. According to DBR, the main immediate effect of Judge Chapman's decision is that it temporarily halts a New York state lawsuit filed against Vitro by affiliates of company bondholders Aurelius Capital Management and Elliott Management, who are seeking accelerated payments on the bonds they hold. According to DBR, White & Case LLP's J. Christopher Shore, a lawyer for an ad hoc group of Vitro's noteholders, told Judge Chapman at the restraining order hearing last week that the request to temporarily halt the New York state lawsuit was Vitro's way of saying, "I want you to step in and provide greater relief than I could get on my own," and that the decision should be made by Mexican courts. Judge Chapman will convene a hearing May 11 to consider Vitro's Chapter 15 petition. According to DBR, at a hearing Thursday, Judge Chapman said the case isn't "normal in any sense of the word." About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Vitro America, et al., have tapped Louis R. Strubeck, Jr., Esq., and William R. Greendyke, Esq., at Fulbright & Jaworski LLP, in Dallas, Texas, as counsel. Kurtzman Carson Consultants is the claims and notice agent. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. VITRO SAB: Obtains Restraining Order Against Aurelius, Noteholders ------------------------------------------------------------------ Samuel Howard at Bankruptcy Law360 reports that a federal judge in New York granted Vitro SAB de CV a temporary restraining order Friday blocking Aurelius Capital Master Ltd. and other noteholders from suing the debtor or otherwise impeding its restructuring in Mexico. According to Law360, the TRO enjoins the noteholders and other creditors from trying to collect debts from Vitro's non-debtor affiliates and scuttle the glass maker's prepackaged US$1.7 billion global restructuring under way in Mexico. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Vitro America, et al., have tapped Louis R. Strubeck, Jr., Esq., and William R. Greendyke, Esq., at Fulbright & Jaworski LLP, in Dallas, Texas, as counsel. Kurtzman Carson Consultants is the claims and notice agent. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. ===================== P U E R T O R I C O ===================== CARIBBEAN PETROLEUM: Puma Energy Agrees to Clean Up Bayamon Site ---------------------------------------------------------------- Puma Energy Caribe, LLC, has agreed to clean up the former Caribbean Petroleum Refining facility in Bayamon, Puerto Rico, and address environmental conditions at 147 gas stations throughout Puerto Rico under two agreements proposed by the U.S. Environmental Protection Agency. Puma intends to purchase the petroleum storage facility, now known as CAPECO, and the gas stations after successfully bidding US$82 million to acquire the facility at a court-ordered bankruptcy sale. On October 23, 2009, a catastrophic explosion and fires at the CAPECO facility caused tremendous damage to the facility and significant environmental impacts. In August 2010, Caribbean Petroleum Refining, Caribbean Petroleum Corporation and Gulf Petroleum Refining Corporation filed a Chapter 11 petition in United States Bankruptcy Court to liquidate their assets. Puma is voluntarily entering into the agreements to clarify and resolve its future environmental responsibilities at the CAPECO facility and the gas stations, subject to purchasing the properties. EPA is receiving public comment on the proposed agreements until May 9, 2011. "The environmental work that will be conducted by Puma Energy Caribe under one of the proposed agreements with EPA will make substantial progress on the ongoing cleanup of the CAPECO facility," said EPA Regional Administrator Judith Enck. "Cleanups and improvements at the gas stations are additional actions that will provide public health and environmental benefits to people throughout Puerto Rico." Under the first agreement, Puma will perform cleanup work at the CAPECO facility under the federal Superfund law, which governs cleanups of closed or abandoned hazardous waste sites. The work includes asbestos abatement, removing and disposing of hazardous and ignitable material, and cleaning up acidic water that has leaked onto the ground in one section of the facility. Puma has also agreed to pay EPA's costs in overseeing the cleanup work. Under the second agreement, which is also being signed by the Commonwealth of Puerto Rico, Puma has agreed to assume responsibility for compliance with federally approved Commonwealth regulations governing the underground petroleum storage tank systems at 147 of the gas stations that are currently owned or leased by Caribbean Petroleum Corporation. In addition, Puma has agreed to operate the gas stations in accordance with these laws and make certain EPA-recommended improvements to leak detection and overfill protection systems at the gas stations go beyond what is required by the regulations. The agreements are also available for public review in San Juan at EPA's Caribbean Environmental Protection Division, at Centro Europa Building, at 1492 Ponce de Leon Avenue, Mezzanine Level, Santurce, and at EPA's New York City office, at 290 Broadway, 18th Floor Records Center. About Caribbean Petroleum San Juan, Puerto Rico-based Caribbean Petroleum Corporation, aka CAPECO, owns and operates certain facilities in Bayomon, Puerto Rico for the import, offloading, storage and distribution of petroleum products. Caribbean Petroleum sought Chapter 11 protection (Bankr. D. Del. Case No. 10-12553) on Aug. 12, 2010, nearly 10 months after a massive explosion at its major Puerto Rican fuel storage depot virtually shut down the company's operations. The Debtor estimated assets of US$100 million to US$500 million and debts of US$500 million to US$1 billion as of the Petition Date. Affiliates Caribbean Petroleum Refining, L.P., and Gulf Petroleum Refining (Puerto Rico) Corporation filed separate Chapter 11 petitions on Aug. 12, 2010. John J. Rapisardi, Esq., George A. Davis, Esq., and Zachary A. Smith, Esq. at Cadwalader, Wickersham & Taft LLP serve as lead counsel to the Debtors, and Mark D. Collins, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., serve as local counsel. The Debtors' financial advisor is FTI Consulting Inc. The Debtors' chief restructuring officer is Kevin Lavin of FTI Consulting Inc. Kurtzman Carson Consultants LLC serves as the noticing, claims and balloting agent. In December 2010, the Debtor won bankruptcy court approval to sell its business to Puma Energy International for US$82 million. Puma obtained Capeco's entire retail network which consists of 157 locations, gasoline, diesel and other fuel storage facilities as well as undeveloped land and a private deep water jetty. ============================ S T K I T T S & N E V I S ============================ CLEAR HARBOR: High Court Judge Extends Injunction Against Firm -------------------------------------------------------------- Caribbean360.com reports that High Court Judge Justice Errol Thomas has extended an injunction against Clear Harbor (Nevis) Ltd. following its dismissal without warning of 131 workers last month. Earlier this month, Justice Thomas granted the injunction that prevents Clear Harbor from getting rid of any of its assets until it settles debts to workers and others owed in the twin-island federation, according to Carribbean360.com. Following a new hearing this week, the report notes, Judge Thomas has issued a further order. Clear Harbor is barred from disposing, transferring, charging, dissipating, or diminishing or in any way, whatsoever, dealing with any assets held in the names of the companies and persons named in the injunction, according to Carribbean360.com. Caribbean360.com relates that Labour Commissioner Spencer Amory sought the injunction after the company shut down its operations on March 30, terminating the employment of all its workers. Clear Harbor still owes the employees their wages, holiday pay and payment in lieu of notice, Caribbean360.com. The report relates that the company also owes monies to the Social Security Board for Social Security and Employment benefits, Severance Payments and Housing Levy, taxes to the Inland Revenue Department, and for electricity and water supplies. Clear Harbor (Nevis) Ltd. is a U.S.-based internet cable company. ============= U R U G U A Y ============= BANCO SURINVEST: Fitch Affirms Issuer Default Rating at 'B' ----------------------------------------------------------- Fitch Ratings has affirmed Banco Surinvest's ratings: -- Foreign and local currency Issuer Default Rating (IDR) at 'B'; Positive Outlook; -- National long-term rating at 'BBB(uy)'; Positive Outlook; -- Support rating at '5'. Fitch revised the Rating Outlook on Surinvest's IDRs and National long-term rating to Positive from Stable to reflect improvements seen in the bank's corporate governance and the increased integration with its shareholder (Switzerland's Banque Heritage) following the increase of its stake to 100%. Greater integration with its shareholder has resulted in a clearer strategy for Surinvest and enhanced controls and procedures that in Fitch's opinion make the goals of its business plan more achievable. An upgrade will hinge on the bank's success in the implementation of its business plan. On the other hand, continued marked deterioration of its solvency ratios could put pressure on its ratings. Surinvest's ratings balance the bank's low risk profile of its activities, adequate liquidity and strong capitalization against its low market share and weak financial performance. Fitch also considers that the stronger synergy with Surinvest's shareholder (Banque Heritage) will deepen the bank's current business strategy, which is focused on wealth management and corporate services and strengthen its franchise in the region. The rating also reflects the significant challenges of Surinvest's chosen strategy. In the 2H10, Banque Heritage (BH) indirectly (through its subsidiary HFT International (Guernsey) Ltd.) became Surinvest's only shareholder. Since the bank's core business is mainly in U.S. dollars, Surinvest's profitability has historically been affected by exchange rate volatility and the inflation adjustment. Despite weak efficiency ratios, operating profit has been improving along with the bank's growing business volume. Fitch considers that the stronger link with its shareholder will allow Surinvest to achieve its business plan in the medium-term. Surinvest key risks are operational and reputational, but the bank's management system minimizes expected losses related to this type of risk. Due to Surinvest's business strategy, the bank has low funding requirements. Its main funding source is short-term deposits by non-residents. Deposit concentration is high relative to Uruguayan peers (the ten largest depositors accounted for 30.7% of total deposits), though sound liquidity mitigates this risk. Surinvest's capitalization is strong relative to Uruguay peers and similarly rated banks (IDRs of 'B-', 'B' or 'B+' by Fitch). Nevertheless, capitalization ratios have declined over the past four years due to Surinvest's weak financial performance. Fitch will continue monitoring Surinvest's performance to evaluate the possible effect on its solvency. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- April 27-29, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott, Chicago, IL Contact: http://www.turnaround.org/ May 5, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - New York City Association of the Bar of the City of New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 6, 2011 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Hilton New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** 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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