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/raid1/www/Hosts/bankrupt/TCRLA_Public/110525.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, May 25, 2011, Vol. 12, No. 103 Headlines B E R M U D A DIGICEL GROUP: TSTT Hails Court Victory Over Firm PALMARENA INVESTMENTS: Creditors' Proofs of Debt Due June 3 PALMARENA INVESTMENTS: Member to Hear Wind-Up Report on June 21 UNION PACIFIC: Contributories & Creditors to Meet on May 30 B R A Z I L OGX PETROLEO: S&P Assigns 'B' Corporate Credit Rating C A Y M A N I S L A N D S CAMPANOLOGY LEASING: Shareholder to Hear Wind-Up Report on June 10 CRONUS FINANCE: Shareholders' Final Meeting Set for June 10 FOUNDATION RE II: Shareholder to Hear Wind-Up Report on June 9 GRANITE VENTURES: Shareholders' Final Meeting Set for June 10 JLOC XI: Shareholder to Hear Wind-Up Report on June 10 LASER LEASING: Shareholder to Hear Wind-Up Report on June 10 LOS ROBLES: Shareholders' Final Meeting Set for June 10 MAAC INVESTMENTS: Shareholders' Final Meeting Set for June 13 MABA INVESTMENTS: Shareholders' Final Meeting Set for June 13 OFFSHORE GROUP: Moody's Assigns 'B3' Rating to Sr. Notes Due 2015 SIPIX GROUP: Members' Final Meeting Set for May 31 E L S A L V A D O R SCOTIABANK EL SALVADOR: Fitch Withdraws 'C' Individual Rating J A M A I C A JAMAICA PUBLIC: Sticks to Decision to Delay Rate Hike - - - - - ============= B E R M U D A ============= DIGICEL GROUP: TSTT Hails Court Victory Over Firm ------------------------------------------------- Trinidad Express reports that Telecommunications Services of Trinidad and Tobago is proclaiming victory after the English Court of Appeal rejected Digicel Group's application to appeal Justice Morgan's April 2010 ruling that dismissed all claims brought by Digicel Group against TSTT. Digicel Group has also been directed by the court to pay TSTT's legal costs, according to Trinidad Express. The report relates that Digicel Group had initially sought at least US$50 million in damages from TSTT for allegedly delaying its interconnection in Trinidad and Tobago. The April 2010 ruling was based on proceedings filed by Digicel in 2007 against TSTT and several Cable and Wireless companies on matters arising from the liberalization of the telecommunications markets in the Caribbean. "This effectively brings an end to these legal proceedings in London," said Lisa Agard, TSTT's vice president, legal and executive vice president for Mobile. About Digicel Group Digicel Group Limited -- http://www.digicelgroup.com/-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state- of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barths. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of Jan. 14, 2010, the company continues to carry Moody's "Caa1" senior unsecured debt rating. PALMARENA INVESTMENTS: Creditors' Proofs of Debt Due June 3 ----------------------------------------------------------- The creditors of Palmarena Investments Limited are required to file their proofs of debt by June 3, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 18, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda PALMARENA INVESTMENTS: Member to Hear Wind-Up Report on June 21 --------------------------------------------------------------- The member of Palmarena Investments Limited will receive on June 21, 2011, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on May 18, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda UNION PACIFIC: Contributories & Creditors to Meet on May 30 ----------------------------------------------------------- The contributories and creditors of Union Pacific Reinsurance & General Co. Ltd will hold their first meeting on May 30, 2011, at 10:00 a.m. Michael Morrison and Charles Thresh are the company's joint provisional liquidators. =========== B R A Z I L =========== OGX PETROLEO: S&P Assigns 'B' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B' corporate credit rating to OGX Petroleo e Gas Participacoes S.A. OGX is a holding company listed in Brazil with investments in oil and gas exploration and production (E&P). The outlook is positive. "At the same time, we assigned a 'B' rating to the company's proposed issuance of a $2 billion senior unsecured bond with a bullet maturity of seven to 10 years. The bond is unconditionally guaranteed by OGX's subsidiaries, OGX Petroleo e Gas Ltda. and OGX Campos Petroleo e Gas S.A., and therefore rank pari passu with debt at the operating companies," S&P related. "The ratings on OGX reflect the preoperational phase of its subsidiaries and high investment requirements for oil and gas exploration on the company's 34 blocks in Brazil and Colombia," said Standard & Poor's credit analyst Paula Martins. The production ramp-up and the company's ability to convert contingent resources into reserves are its main risks. "Partially mitigating these negatives are the company's adequate liquidity and proposed debt issuance, which, according to our projections, should allow it to support capital and operating expenditures until 2013, even if production remains well below our projections," S&P said. "Our projections assume that OGX issues up to $2 billion of debt. They also consider Standard & Poor's prices for oil and gas, the company's realization price with discount, and a six-month delay in production ramp-up," S&P continued. "The positive outlook reflects our expectation that if OGX ramps up production and converts its contingent resources into reserves in line with its forecasted milestones, we might raise the rating on the company, assuming the company issues up to $2 billion of debt," S&P stated. On the other hand, delays in production ramp-up and difficulty in converting contingent resources into reserves might prevent the expected improvement in OGX's cash flow protection measures and overall financial position, pressuring the rating downward. =========================== C A Y M A N I S L A N D S =========================== CAMPANOLOGY LEASING: Shareholder to Hear Wind-Up Report on June 10 ------------------------------------------------------------------ The shareholder of Campanology Leasing Limited will receive on June 10, 2011, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jeremy Spratt c/o Jacqueline Edwards Telephone: +44 (0) 20 7311 8563/ 345-949-4800 Facsimile: +44 (0) 20 7694 3533/ 345-949-7164 P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands CRONUS FINANCE: Shareholders' Final Meeting Set for June 10 ----------------------------------------------------------- The shareholders of Cronus Finance Limited will hold their final meeting on June 10, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands FOUNDATION RE II: Shareholder to Hear Wind-Up Report on June 9 -------------------------------------------------------------- The shareholder of Foundation RE II Ltd. will receive on June 9, 2011, at 9:00 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidators are: Katherine Chiazza Damien Austin Telephone: 914-7553 / 914-7580 Facsimile: 949-6021 P.O. Box 1109, Grand Cayman Cayman Islands Telephone: 949-7755 Facsimile: 949-6021 GRANITE VENTURES: Shareholders' Final Meeting Set for June 10 ------------------------------------------------------------- The shareholders of Granite Ventures IV Ltd. will hold their final meeting on June 10, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949-8244 Facsimile: (345) 949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands JLOC XI: Shareholder to Hear Wind-Up Report on June 10 ------------------------------------------------------ The shareholder of JLOC XI Limited will receive on June 10, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949-8244 Facsimile: (345) 949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands LASER LEASING: Shareholder to Hear Wind-Up Report on June 10 ------------------------------------------------------------ The shareholder of Laser Leasing Limited will receive on June 10, 2011, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jeremy Spratt c/o Jacqueline Edwards Telephone: +44 (0) 20 7311 8563/ 345-949-4800 Facsimile: +44 (0) 20 7694 3533/ 345-949-7164 P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands LOS ROBLES: Shareholders' Final Meeting Set for June 10 ------------------------------------------------------- The shareholders of Los Robles CDO Ltd will hold their final meeting on June 10, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949-8244 Facsimile: (345) 949-5223 P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands MAAC INVESTMENTS: Shareholders' Final Meeting Set for June 13 ------------------------------------------------------------- The shareholders of Maac Investments Limited will hold their final meeting on June 13, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands MABA INVESTMENTS: Shareholders' Final Meeting Set for June 13 ------------------------------------------------------------- The shareholders of Maba Investments Limited will hold their final meeting on June 13, 2011, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands OFFSHORE GROUP: Moody's Assigns 'B3' Rating to Sr. Notes Due 2015 ----------------------------------------------------------------- Moody's Investors Service assigned Offshore Group Investment Limited (OGIL) a B3 (LGD 3, 34%) rating to the company's proposed $225 million senior secured notes due August 2015. The new notes are an add-on to the existing $1 billion note offering from July 2010. The rating outlook is stable. The proceeds of the note offering will be used by OGIL to acquire the Aquamarine Driller jack-up rig from its parent, Vantage Drilling Company (Vantage) for $228 million. Vantage is a small offshore drilling company that owns four premium jack-up rigs (the Aquamarine Driller, the Emerald Driller, the Sapphire Driller, and the Topaz Driller) and one drillship (the Platinum Explorer). Recently the company entered into a contract to purchase one drillship under construction (the Tungsten Explorer). The sales proceeds Vantage receives from OGIL for the Aquamarine Driller will be used to repay a $127 million term loan and to make a $104 million down payment on the Tungsten Explorer. The new drillship is in the early stages of construction and is expected to be delivered in May 2013. Upon delivery, Vantage will be required to make a final payment to the shipyard. The remaining payment to the shipyard and the development costs including spares and pre- delivery crew costs totals approximately $490 million. "OGIL's B3 Corporate Family Rating reflects Vantage's small size and limited operating history," said Stuart Miller, Moody's Senior Analyst. "The company has a short operating history, with its first jack-up delivered in February 2009. While limited, Vantage's operating performance to date has been good, and the company benefits from owning new and high quality rigs." The rating also reflects the small fleet size and the high leverage for Vantage. With five operating rigs, there is significant concentration in value and if any rig experiences downtime, especially the Platinum Explorer, it would have a meaningful impact on the company's financial results. On a consolidated basis, Vantage's run rate EBITDA is projected to be about $240 to $250 million, including the fees earned for managing the construction of four drillships for third parties. The run rate EBITDA is supported by work contracts for each of the company owned rigs, which give good earnings visibility through 2012. However, the ratio of debt to EBITDA pro forma for the new notes will be approximately 5.0 times, a very high ratio for a small company in a capital intensive and cyclical industry. Furthermore, in 2013, there is significant contract renewal risk. Due to the quality of Vantage's rigs, it is likely that the rigs will find work, however, the day rates may be lower than current levels due to the expected increase in the supply of newly constructed rigs over this time period. Near term liquidity is adequate (SGL-3) based on the cash balances at OGIL of $27 million and an additional $54 million at Vantage. The company's liquidity is supported by Moody's expectations of positive free cash flow generation until the final payment on the Tungsten Explorer is due in May 2013. As time passes and this payment obligation approaches, the company's liquidity position (and CFR) will be monitored. OGIL's short term liquidity position is tempered by the lack of a revolving credit facility, although Moody's notes that there is a $25 million revolver carve-out provision within the senior secured notes. The B3 rating on the secured notes considers the high quality nature of the rigs and the likelihood of favorable recovery in a default scenario. The collateral package includes Vantage's four jack-up rigs and the deepwater Platinum Explorer drillship as well as their associated work contracts. Moody's believes that the tangible asset cover for the secured debt is better than average given the quality and relatively young age of Vantage's rigs. Therefore, Moody's used a 65% recovery rate in Moody's LGD analysis instead of the standard 50% recovery rate. However, the rating of the notes at B3 is at par with the B3 Corporate Family Rating since the notes comprise the majority of the capital structure. A positive rating action is possible if Vantage reduces leverage as measured by debt to EBITDA to below 4.0x on a sustainable basis at both the issuer and family level. The rating or outlook will come under downward pressure if the company raises debt to pre- fund the final payment for the Tungsten Explorer, if the work contract for the Platinum Explorer is altered materially or abrogated, or if liquidity drops to less than $40 million on a consolidated basis. The principal rating methodology used in rating Offshore Group Investment Limited was Moody's Oilfield Services Rating Methodology, published in December 2009 and available on www.moodys.com in the Rating Methodologies sub-directory under the Research and Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. Offshore Group Investment Limited is a subsidiary of Vantage Drilling Company and is headquartered in the Cayman Islands. SIPIX GROUP: Members' Final Meeting Set for May 31 -------------------------------------------------- The members of Sipix Group Limited will hold their final meeting on May 31, 2011, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ching-Shon Ho Telephone: +886-2-2700-4333 Facsimile: +886-2-2706-2282 CARD Corporate Services Ltd. P.O. Box 709, Zephyr House 122 Mary Street Grand Cayman KY1-1107 Cayman Islands ==================== E L S A L V A D O R ==================== SCOTIABANK EL SALVADOR: Fitch Withdraws 'C' Individual Rating ------------------------------------------------------------- Fitch Ratings has affirmed and simultaneously withdrawn Scotiabank El Salvador's international ratings: -- Long-term Issuer Default Rating (IDR) at 'BBB-'; Outlook Negative; -- Short-term IDR at 'F2'; -- Individual rating at 'C/D'; -- Support rating at '2'. Fitch will no longer provide international ratings of Scotiabank El Salvador; however, the agency will continue to provide analytical coverage on national ratings. Fitch currently rates Scotiabank El Salvador's national ratings: -- Long-term national rating 'AAA(slv)'; Outlook Stable; -- Short-term national rating 'F1+(slv)'. ============= J A M A I C A ============= JAMAICA PUBLIC: Sticks to Decision to Delay Rate Hike ----------------------------------------------------- RJR News reports that the Jamaica Public Service Company said it will stick to its decision to delay a full hike in fuel rates on electricity bills, despite concerns from the Office of Utility Regulations (OUR) on the matter. JPSCO decided to postpone a 10% hike in electricity bills that would have been necessary to recoup costs due to higher oil prices and instead only apply a 4% increase on May bills, according to RJR News. RJR News notes that the company said the rest of the increase would be applied in coming months when oil prices start to fall. However, the report relates, OUR said it did not like that decision as it could mean a one off big increase in bills when the JPSCO decides to recover the rest of the delayed increase. The OUR also asked the JPSCO if it had a time line for applying the delayed increase, RJR News adds. About JPSCO Headquartered in Kingston, Jamaica -- https://www.jpsco.com/ -- Jamaica Public Service Company Limited is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has roughly 582,000 customers who are served by a workforce of more than 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and roughly 14,000 kilometers of distribution and transmission lines. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2010, RadioJamaica said that the multi-billion dollar show down between the Jamaica Public Service and the three unions -- BITU, NWU and UCASE -- representing workers at the company has entered the penultimate stage before the Industrial Disputes Tribunal. The report related that the IDT heard testimony from the Chairman of JPSCO, Tommy Fukuda who was called as the last witness. According to the report, Mr. Fukuda maintained that JPSCO has paid the US$2.3 billion it owed the workers following the 2001 job reclassification exercise. However, the report related, the three unions argued that the company still owed the workers an additional JM$500 million to JM$600 million in retroactive, overtime and redundancy payments. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Julie Anne G. Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *