/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110606.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, June 6, 2011, Vol. 12, No. 110 Headlines A N G U I L L A BARNES BAY: Asks U.S. Court to Undo Anguilla Court Authorization A R G E N T I N A BRUFY SA: Applies for Reorganization Proceedings CORPBANCA CHILE: Fitch Affirms Individual Rating at 'C' FUNDACION GALICIA: Creditors' Proofs of Debt Due June 28 GALION FEDERAL: Creditors' Proofs of Debt Due August 1 REXCEL SA: Asks for Bankruptcy Proceedings TEXTIL SD: Creditors' Proofs of Debt Due August 2 TRANSPORTES CAMI: Creditors' Proofs of Debt Due October 24 B R A Z I L BANCO BMG: Moody's Puts D Bank Fin'l Strength Rating on Review COMPANHIA DE SANEAMENTO: Fitch Ratings Affirms IDR at 'BB' ENCO ZOLCSAK EQUIPAMENTOS: Chapter 15 Case Summary B E R M U D A BAICO: Bermuda Unit Liquidators Accept Bid for Front Street Bldg. C A Y M A N I S L A N D S BLUE AGUA: Shareholder to Receive Wind-Up Report on June 9 CHINA GREENS: Members' Final Meeting Set for June 15 EDEN CAPITAL: Shareholder to Hear Wind-Up Report on June 27 EUGENIE LIMITED: Members' Final Meeting Set for June 14 FOREST HILL: Members' Final Meeting Set for June 24 IBF CAYMAN: Shareholders Receive Wind-Up Report ICBC INTERNATIONAL: Shareholders' Final Meeting Set for June 24 KENMAR GLOBAL: Shareholders' Final Meeting Set for June 24 LFI BOND: Shareholders' Final Meeting Set for June 14 NEUBERGER BERMAN: Shareholders' Final Meeting Set for June 20 NEUBERGER BERMAN: Shareholders' Final Meeting Set for June 20 PLATINUM TURNBERRY: Shareholder to Hear Wind-Up Report on June 24 SENEX INVESTMENTS: Shareholder to Hear Wind-Up Report on June 14 SP IGNIS: Shareholders' Final Meeting Set for June 24 SPIRIT MANAGEMENT: Shareholder to Hear Wind-Up Report on June 27 TIBERIUS FUND: Shareholders' Final Meeting Set for June 24 M E X I C O BANCA MIFEL: S&P Affirms Global Ratings at 'BB-/B'; Outlook Stable GRUPO PAPELERO: S&P Cuts Global Scale CCR to 'B+'; Outlook Stable T R I N I D A D & T O B A G O CENTRAL TRINIDAD STEEL: Closes Plant, Axes 250 Jobs CL FINANCIAL: US$3BB Chinese Bailout Non-Existent, Chairman Says X X X X X X X X * BOND PRICING: For the Week May 30, to June 2, 2011 - - - - - =============== A N G U I L L A =============== BARNES BAY: Asks U.S. Court to Undo Anguilla Court Authorization ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Viceroy Anguilla Resort and Residences on the island of Anguilla in the British West Indies filed papers asking Judge Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware to rethink authorization he gave in May allowing buyers of four units to enforce their rights in the court in Anguilla. Mr. Rochelle recounts that after the bankruptcy court authorized an auction for the project to be held in Anguilla on July 27, purchasers of four units went to court arguing that the U.S. court had no right to undo prior rulings by a court in Anguilla. In one instance, the buyer had an order from the court in Anguilla prohibiting sale of the specific unit until it was repaid its US$2 million deposit. Judge Walsh responded by signing an order May 24 allowing four unit purchasers "to pursue whatever rights they believe they have in their respective units in the Anguillan court." According to Mr. Rochelle, in this week's bankruptcy court filing, the resort argues that the order from May goes too far and would allow the unit purchasers to attach or seize property in Anguilla. The resort wants the bankruptcy judge to limit his order by allowing the court in Anguilla to do nothing more than declare the rights of the purchasers. Mr. Rochelle relates that at the auction in July, secured creditor Starwood Capital Group LLC is expected to be the winner. Starwood would take title after a reorganization plan is approved at a confirmation hearing. About Barnes Bay Beverly Hills, California-based Barnes Bay Development Ltd., owns the Viceroy Anguilla Resort & Residences on the British West Indies island of Anguilla. Barnes Bay and two affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10792) on March 17, 2011. The Debtor disclosed US$3,331,282 in assets and US$481,840,435 in liabilities as of the Chapter 11 filing. Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy counsel, and Keithley Lake & Associates is the Debtors' special Anguillan counsel. Kurtzman Carson Consultants LLC is the Debtors' claims, noticing, solicitation and balloting agent. The Debtors' Chapter 11 plan is intended to facilitate the sale of the Viceroy Anguilla Resort and Residences. The U.S. Trustee appointed five members to the official committee of unsecured creditors in the Debtors' cases. Brown Rudnick LLP serves as the Committee's co-counsel, and Womble Carlyle Sandridge & Rice, PLLC, as its Delaware co-counsel. C.R. Hodge & Associates is the Committee's foreign counsel. FTI Consulting, Inc., serves as the Committee's financial advisors. ================= A R G E N T I N A ================= BRUFY SA: Applies for Reorganization Proceedings ------------------------------------------------ Brufy SA applied for reorganization proceedings. CORPBANCA CHILE: Fitch Affirms Individual Rating at 'C' -------------------------------------------------------- Fitch Ratings has affirmed Corpbanca (Chile)'s ratings: -- Foreign and local currency Long-term Issuer Default Rating (IDR) at 'BBB+'; -- Foreign and local currency Short-term IDR at 'F2'; -- Individual Rating at 'C'; -- Support Rating at '3'; -- Support Rating Floor at 'BB-'; -- USD200 million bonds programme foreign currency long-term rating at 'BBB+'. The Rating Outlook on the IDRs is Stable. Corpbanca's ratings have a Stable Outlook. Upward ratings potential stems from a consolidation of the improvement seen in profitability, a loan book more balanced between commercial and retail lending and continued improvements in its capital and funding structure. Downward rating pressure could occur if its capitalization ratios decline significantly or if the composition of its capital deteriorates. The ratings assigned to Corpbanca reflect its adequate financial performance through the cycle, the improvement seen in its profitability, its good asset quality and cost efficiency, and its adequate liquidity and capital base. The ratings also reflect some dependence on concentrated time deposits, although these have proved stable and the concentration has decreased as it diversifies its funding sources, and the higher reliance of its capital on subordinated debt issuance. Corpbanca's profitability has improved markedly since 1Q09 based on higher operating revenues boosted by loan growth, efficient balance sheet management, lower loan loss provisions (LLP) and improved productivity. Fitch considers the main challenge for Corpbanca is to consolidate the growing revenue trend and the expansion of retail lending to obtain a more balanced loan book. Corpbanca's conservative approach to credit risk leads to healthy asset quality ratios, with a non-performing to total loans ratio of 2.03% at March 31, 2011; loan loss reserve coverage of its impaired loans was sound at 94.0% and LLP and charge-offs fell by 27.3% and represented 0.80% of total loans and 24.43% of the bank's profit before taxes and provisions. The bank has actively diversified its funding sources by accessing the local and international capital markets. However, its funding is still dominated by time deposits, which are largely wholesale and somewhat concentrated. Corpbanca's capitalization is adequate, although it is now more reliant on subordinated debt which, together with improved profitability, have compensated for strong growth and higher dividends. At March 31, 2011, its Fitch core and eligible capital ratios were 7.81% and 11.16%, respectively, and its regulatory capital to risk weighted assets was 12.33%. Although these ratios are somewhat low by international standards (the average Fitch core capital ratio for banks the in the same rating category as Corpbanca was 11.34%), Corpbanca is in the process of issuing USD400m fresh capital. Although Corpbanca's capital adequacy ratios will rise after the capital increase, Fitch estimates that they are likely to go down in the medium term as the bank continues to grow. Fitch will monitor the quality and composition of Corpbanca's capital base and the evolution of its Fitch core capital ratio given its strong growth plans, and a significant deterioration could put pressure on the bank's ratings Corpbanca is a mid-sized bank that operates in almost all market segments, through a multi-product strategy. At March 31, 2011 it had 114 branches and 7.0% of the Chilean financial system's loans and 7.5% and 3.3% in time and sight deposits, respectively. It is 49.59% owned by Corp Group Banking S.A. (CGB), 8.71% by Cia. Inmobiliaria y de Inversiones SAGA (entity controlled by Alvaro Saieh Bendeck and his family), and the balance is widely held by domestic and foreign institutional investors. In turn, CGB is controlled by a group of Chilean businessmen, in which the main individual shareholder is Alvaro Saieh, who together with his family indirectly control a 75.64% of Corpbanca. FUNDACION GALICIA: Creditors' Proofs of Debt Due June 28 -------------------------------------------------------- Estudio Conti-Costa, the court-appointed trustee for Fundacion Galicia Saude's reorganization proceedings, will be verifying creditors' proofs of claim until June 28, 2011. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 40, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Creditors will vote to ratify the completed settlement plan during the assembly on April 5, 2012. The Trustee can be reached at: Estudio Conti-Costa Avenida Corrientes 1967 Argentina GALION FEDERAL: Creditors' Proofs of Debt Due August 1 ------------------------------------------------------ Carlos Federico Berger, the court-appointed trustee for Galion Federal Corp's bankruptcy proceedings, will be verifying creditors' proofs of claim until August 1, 2011. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 24, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Carlos Federico Berger Suipacha 1172 Argentina REXCEL SA: Asks for Bankruptcy Proceedings ------------------------------------------ Rexcel SA asked for bankruptcy proceedings. TEXTIL SD: Creditors' Proofs of Debt Due August 2 ------------------------------------------------- Manuel Palmeiro, the court-appointed trustee for Textil SD SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until August 2, 2011. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 23, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Manuel Palmeiro Arcos 4033 Argentina TRANSPORTES CAMI: Creditors' Proofs of Debt Due October 24 ---------------------------------------------------------- Luis Traverso, the court-appointed trustee for Transportes Cami SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 24, 2011. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 22 in Buenos Aires, with the assistance of Clerk No. 43, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Creditors will vote to ratify the completed settlement plan during the assembly on June 26, 2012. The Trustee can be reached at: Luis Traverso Reconquista 642 Argentina =========== B R A Z I L =========== BANCO BMG: Moody's Puts D Bank Fin'l Strength Rating on Review -------------------------------------------------------------- Moody's Investors Service placed the D bank financial strength rating (BFSR) of Banco BMG S.A. (BMG), on review for possible downgrade. The Ba2 long-term global local and foreign currency deposit ratings were also placed on review for downgrade, as well as BMG's Aa3.br Brazilian national scale deposit rating. BMG's long-term foreign currency senior unsecured and subordinated debt ratings of Ba2 and Ba3, respectively, were also placed on review for downgrade. All short-term ratings remained unchanged. At the same time, Moody's downgraded the BFSR assigned to Banco Schahin S.A. (Schahin) to E+ from D-. The bank's long-term local and foreign currency deposit ratings were also lowered to B2 from Ba3, as well as the long-term Brazilian national scale deposit rating to Ba2.br from A2.br, and short-term to BR-4 from BR-2. Schahin's long-term foreign currency senior unsecured debt rating of Ba3 and subordinated debt rating of B1, were also downgraded to B2 and B3, respectively. The outlook on all ratings of Schahin remained negative. The action follows the announcement that Banco BMG has signed an agreement of intent to acquire control of Banco Schahin for approximately R$230 million in a tender offer. The acquisition is subject to a due diligence process by BMG and to regulatory approval . These ratings assigned to Banco BMG were placed on review for downgrade: Bank Financial Strength Rating: D Long-term Global Local Currency Deposit Rating: Ba2 Long-term Foreign Currency Deposit Rating: Ba2 Long-term Foreign Currency Senior Unsecured Debt Rating: Ba2 Long-term Foreign Currency Subordinated Debt Rating: Ba3 Long-term Brazilian National Scale Deposit Rating in Brazil: Aa3.br The following ratings assigned to Banco BMG remained unchanged: Short-term Global Local Currency Deposit Rating: Not Prime Short-term Foreign Currency Deposit Rating: Not Prime Short-term National Scale Rating in Brazil: BR-1 The following ratings assigned to Banco Schahin were downgraded: Bank Financial Strength Rating to E+ from D-; with negative outlook Long-term Global Local Currency Deposit Rating to B2 from Ba3; with negative outlook Long-term Foreign Currency Deposit Rating to B2 from Ba3; with negative outlook Long-term Foreign Currency Senior Unsecured Debt Rating to B2 from Ba3; with negative outlook Long-term Foreign Currency Subordinated Debt Rating to B3 from B1; with negative outlook Long-term National Scale Rating in Brazil to Ba2.br from A2.br, with negative outlook Short-term National Scale Rating in Brazil to BR-4 from BR-2 The following ratings assigned to Banco Schahin remain unchanged: Short-term Global Local Currency Deposit Rating: Not Prime Short-term Foreign Currency Deposit Rating: Not Prime Rating Rationale Banco Bmg According to Moody's, the review process will assess the effect that the acquisition of Schahin -- if indeed completed -- could have on BMG's franchise and financial performance, and particularly on its capital structure and profitability. Moody's notes that BMG's capital levels have come under pressure because of the recent requirement for additional capital allocation on longer dated loans, as well as by the decision to retain loans in its balance sheet, as securitizations and loan sales become less attractive. In addition, BMG's Tier 1 equity ratio at 9.88% (total BIS ratio of 14.1%), as of March 2011, reveals that the bank's capital is already challenged by the upcoming accounting change on credit sales, which could reduce the pace of capital replenishment through earnings. These concerns had already been raised in December, when Moody's assigned a negative outlook on BMG's ratings, but they can be potentially exacerbated with the acquisition of Banco Schahin. However, Moody's acknowledges that the bank's established position in the payroll lending business, with a market share of 18%, is a positive consideration for the ratings, particularly when compared to its niche peers. The bank has managed to maintain stable volumes of loan origination over the past three months, in view of its ability to access other long term funding alternatives in foreign and domestic markets, thus complementing the funds originated from credit sales. Banco Schahin Moody's explained that Banco Schahin's BFSR was lowered to E+ from D- reflecting concerns about its financial metrics, particularly its liquidity position and capitalization. The bank has not released financial statements for the periods 4Q10 and 1Q11; however, preliminary data available at the central bank points to poor profitability, reflecting the negative effects of more expensive cost of funding, and much weakened capitalization ratios, also a result of the regulatory measures that require additional capital allocation for long tenor consumer loans. Moreover, Schahin has faced much tighter liquidity conditions as loan sales and securitizations became limited, with resultant growing reliance of the bank on DPGEs (guaranteed time deposits by the Deposit Insurance Fund) to support its lending activities. Moody's explained that such reliance on this source of funding also places important pressure around its business continuity, because these resources are scheduled to be phased out starting January 2012. These challenges, combined with increasing competition in its core markets of car finance and payroll loans, will likely reduce the bank's ability to generate earnings to support its capitalization and thus, growth in the near future. The last rating action on Banco BMG S.A. occurred on April 04, 2011 when Moody's rated Ba2 the US$300 million senior unsecured notes due 2018, with a negative outlook. The other ratings remained unchanged. The last rating action on Banco Schahin S.A. occurred on December 09, 2010 when Moody's changed to negative from stable the outlook on the bank's ratings. The principal methodologies used in these banks 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. 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 ".br" for Brazil. 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." Based in Belo Horizonte, Banco BMG S.A. had total assets of approximately R$11.6 billion (US$7.1 billion) and equity of R$2.16 billion (US$1.33 billion) as of March 31, 2011. Based in Sao Paulo, Banco Schahin S.A. had total assets of approximately R$2.6 billion (US$1.42 billion) and equity of R$229 million (US$127 million) as of June 30, 2010. COMPANHIA DE SANEAMENTO: Fitch Ratings Affirms IDR at 'BB' ---------------------------------------------------------- Fitch Ratings affirmed these ratings for Companhia de Saneamento Basico do Estado de Sao Paulo (Sabesp): -- Local Currency Long-Term Issuer Default Rating (IDR) at 'BB'; -- Foreign Currency Long-Term IDR at 'BB'; -- International Long-Term Rating for the USD140 million notes at 'BB'; -- International Long-Term Rating for the USD350 million bonds at 'BB'; -- National Long-Term Rating at 'A+(bra)'; and -- Long-Term National Rating for the ninth debenture issuance in the amount of BRL220 million at 'A+(bra)'. The Outlook for the corporate ratings is Stable. Sabep's ratings are based on the company's solid financial profile with adequate margins and robust cash flow from operations (CFFO). The ratings are also supported by Sabesp's almost monopolistic position in its business area, as well as its economies of scale as the largest basic sanitation utility company in the Americas by number of customers. Sabesp's ratings are limited by the company's recurring need to roll over significant debt amounts, by the uncertainties regarding the review and tariff readjustment effective from September 2012 onwards, in addition to its aggressive investment program for the next few years. The classification also factors in, albeit to a lesser degree, the company's exposure to hydrological conditions and to the political risks inherent to its government control, together with the moderate regulatory risk due to the recent and unproven legal framework of the basic sanitation sector. Sound Operational Cash Generation; Investments Pressure Free Cash Flow: Sabesp's sound operating performance has shown consistent growth. The net revenue of BRL9.4 billion during the LTM ended March 31st 2011 benefited from the 4.0% tariff readjustment in September 2010 and 4.4% in September 2009, besides a 3.8% increase in the volume of water and sewage invoiced, compared to the same period in 2009. During the LTM ended March 31st 2011, Sabesp's EBITDA, of BRL3.0 billion and 33% margin, was pressured in the last nine months by the BRL237 million of additional expenses related with the new contract with the municipality of Sao Paulo. According to this agreement, Sabesp is to transfer to a municipality fund 7.5% of the gross revenue generated in the city of Sao Paulo, excluding construction revenues and net of PIS, Cofins and the municipality delinquency. The municipality of Sao Paulo represents around 55% of the company's revenue. Considering the same accounting basis, Sabesp recorded net revenue and EBITDA of BRL8.6 billion and BRL 2.7 billion, respectively, in 2009, with a 31% margin. During the LTM ended on March 31, 2011, Sabesp registered robust FFO equivalent to BRL2.0 billion, in line with this figure recorded in 2009. However, the free cash flow was negative at BRL265 million, impacted by the aggressive investments, which summed BRL1.9 billion, in addition to dividend distribution in the amount of BRL 398 million in the same period. Over the next few years, Sabesp is expected to continue reporting negative FCF as a result of high capital expenditures estimated in approximately BRL2 billion annually. Historically, investments have not contributed to Sabesp's CFFO as the company does not transfer into the tariff the investments in the expansion of sewage treatment capacity, for example. Credit Metrics Moderately Pressured by Debt Increase: Sabesp's financial leverage has been moderately pressured by the higher debt level to support the company's investments, without materially affecting, however, the credit fundamentals of the company. By the end of March 2011, Sabesp's total adjusted debt increased to BRL10.6 billion from BRL7.2 billion reported by year- end December 2009. This was mainly due to BRL1.5 billion relative adjustments on actuarial liabilities in 2010, and by the increment of BRL1.6 billion in the volume of cash and marketable securities, as well as the need to finance the negative FCF. As of Mar 31st 2011, Sabesp leverage remained consistent with the ratings assigned. During the period, Sabesp's total adjusted debt- to-EBITDA ratio was 3.5 times (x), while the net adjusted debt-to- EBITDA registered 2.7x, which compares with 2.6x and 2.4x respectively reported by the year-end of 2009. Fitch believes that the company should keep its net adjusted debt-to-EBITDA ratio below 3.0x, being 2.7x in 2011, which will be important for maintaining the current ratings. The company continues to have a relevant portion of its debt (BRL2.6 billion or 24% of the total adjusted debt) exposed to foreign currency fluctuations, which may negatively impact its credit measures in the event of a devaluation of the real, at relevant levels. Uncertainties related with the Tariff Revision Reduces Cash Generation Predictability: Sabesp has always had the predictability of its operating cash generation as one of its major ratings support strengths. However, there are uncertainties regarding the new tariff environment and its robustness. This scenario should remain until the readjustment formulas and company tariff review is defined, which is currently under discussion by the regulatory agent, and effective by September 2012. The determination of the new calculation for tariff readjustment has the positive aspect of granting a more consistent regulatory support to Sabesp's future readjustments. However, until May 2011, uncertainties remained as to the real impact of the outcome of this process on the company's cash generation capacity. Fitch's preliminary expectation is that the new tariff readjustment should preserve adequate tariff levels to sustain the company's credit quality. Recurring Need for Debt Refinancing: The high volume of financial obligation due in the next few years, associated to negative free cash flows, indicate the need to roll over relevant debt volumes. Such refinancing risk has been partially mitigated by Sabesp's positive track record of accessing the debt market, in view of its strong business and its satisfactory liquidity position. At the end of March 2011, Sabesp liquidity was supported by total cash and marketable securities of BRL2.4 billion, against a BRL1.3 billion of short-term debt. Sabesp has secured funding for debt roll over regarding its debt maturing in 2011 but the company may access the capital market in the next quarters for additional resources of around BRL800 million to complement its refinancing needs related with the company's 2012 financial obligations. The company's debt amortization schedule is adequate and does not present strong concentration on any period. Low Business Risk: Sabesp's low business risk is based on its almost monopolistic position as the provider of water and sewage services and was confirmed by its resilient performance during the global economic crisis. Competition is limited in its business and the company benefits from the large gains of scale compared with other companies in the sector. Sabesp has been efficient in reducing losses and has made progress in signing concession contracts with the municipalities it serves. As to the political risk, Fitch has not noted any relevant change in company's risk after the change of government in the state of Sao Paulo, in early 2011. ENCO ZOLCSAK EQUIPAMENTOS: Chapter 15 Case Summary -------------------------------------------------- Chapter 15 Debtor: Enco Zolcsak Equipamentos Industriais Ltda. c/o Edward H. Davis, Jr. Astigarraga Davis 701 Brickell Ave., 16th Floor Miami, FL 33131 Tel: (305) 372-8282 Chapter 15 Case No.: 11-22924 About the Business: Before its bankruptcy in 1997, Enco, the main company of the Zolcsak group of companies, had at its peak over 1,200 employees and supplied about 70% of painting equipment for the major automotive companies in Brazil. Enco's financial condition deteriorated after a debilitating stoke hit the founder Istvan Zolcsak and the son was named provisory guardian, and an ensuing disputes among the heirs. The petitioner is seeking U.S. recognition of the bankruptcy proceeding in the 4th Civil Court of Sao Bernardo do Campo, Sao Paulo, Brazil as the "foreign main proceeding." Chapter 15 Petition Date: May 11, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Chapter 15 Petitioner: Alfredo Luiz Kugelmas, as trustee Petitioner's Counsel: Jeremy O. Harwood, Esq. BLANK ROME, LLP 405 Lexington Avenue New York, NY 10174 Tel: (212) 885-5000 Fax: (212) 885-5001 E-mail: jharwood@blankrome.com Estimated Assets: Not stated Estimated Debts: Not stated ============= B E R M U D A ============= BAICO: Bermuda Unit Liquidators Accept Bid for Front Street Bldg. ----------------------------------------------------------------- The Royal Gazette Online reports that liquidators of the folded Bermuda branch of the British American Insurance Company (BAICO) have struck a deal to sell the insurer's Front Street building. The sum raised by the sale, which has been agreed subject to contract, has not been revealed and nor has the identity of the buyer, according to The Royal Gazette Online. But if and when the sale is finalized, the money will add to the funds available to disperse among policyholders, the report relates. The building at 133 Front Street is 40% owned by BAICO and 60% owned by the BAICO Bermuda pension scheme. The Royal Gazette Online notes that Mike Morrison, of liquidator's agents KPMG Advisory Ltd., who told The Royal Gazette in April that the building had a price tag of $3.6 million, said only: "We were pretty close to our asking price. It's a tough market, but we did see some competition." The Royal Gazette Online discloses that the news comes after policyholders voted overwhelmingly in favor of the scheme of arrangement drawn up by the liquidators that will give them less than 50 cents on the dollar of the value of their policies. There are approximately 3,800 policyholders and 6,000 existing policies, the report says. The branch's assets total almost $11 million and its liabilities around $21 million. BAICO's Bermuda business, which is a branch of its parent company in the Bahamas, went into receivership in August 2009. About BAICO British American Insurance Company is a Bahamian company, which is owned by Trinidad-based parent CL Financial. Casey McDonald, the British Virgin Islands liquidator for British American Isle of Venice (BVI), Ltd, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 10-21627) on April 29, 2010. Mr. McDonald is represented by Leyza F. Blanco, Esq., at Gray Robinson in Miami, Fla. At the time of the filing, the liquidator estimated British American Isle of Venice (BVI), Ltd's asset at less than US$10 million and its debts at more than US$100 million. Two affiliates -- British American Insurance Company Limited (Bankr. S.D. Fla. Case No. 09-31881) and British American Insurance Company Limited (Bankr. S.D. Fla. Case No. 09-35888) -- are also subject to the jurisdiction of the U.S. Bankruptcy Court. =========================== C A Y M A N I S L A N D S =========================== BLUE AGUA: Shareholder to Receive Wind-Up Report on June 9 ---------------------------------------------------------- The shareholder of Blue Agua Ltd. will receive on June 9, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Darryl Myers Telephone: +1 345 949 0699 Facsimile: +1 345 949 8171 c/o Thorp Alberga Harbour Place, 2nd Floor 103 South Church Street George Town Grand Cayman KY1-1106 Cayman Islands CHINA GREENS: Members' Final Meeting Set for June 15 ---------------------------------------------------- The members of China Greens Limited will hold their final meeting on June 15, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Shen Ji Ye c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands EDEN CAPITAL: Shareholder to Hear Wind-Up Report on June 27 ----------------------------------------------------------- The shareholder of Eden Capital Management Ltd. will receive on June 27, 2011, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815-1759 Facsimile: (345) 949-9877 EUGENIE LIMITED: Members' Final Meeting Set for June 14 ------------------------------------------------------- The members of Eugenie Limited will hold their final meeting on June 14, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands FOREST HILL: Members' Final Meeting Set for June 24 --------------------------------------------------- The members of Forest Hill Select Offshore Ltd will hold their final meeting on June 24, 2011, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 IBF CAYMAN: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of IBF Cayman Ltd. received on June 4, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands ICBC INTERNATIONAL: Shareholders' Final Meeting Set for June 24 --------------------------------------------------------------- The shareholders of ICBC International Investment Fund SPC will hold their final meeting on June 24, 2011, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o 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 KENMAR GLOBAL: Shareholders' Final Meeting Set for June 24 ---------------------------------------------------------- The shareholders of Kenmar Global Agricultural and Softs Fund SPC Limited will hold their final meeting on June 24, 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: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands LFI BOND: Shareholders' Final Meeting Set for June 14 ----------------------------------------------------- The shareholders of LFI Bond Investments Ltd. will hold their final meeting on June 14, 2011, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David A.K. Walker c/o Adam Keenan Telephone: (345) 914 8743 Facsimile: (345) 945 4237 P.O. Box 258, Grand Cayman KY1-1104 Cayman Islands NEUBERGER BERMAN: Shareholders' Final Meeting Set for June 20 ------------------------------------------------------------- The shareholders of Neuberger Berman Q Fund Ltd. will hold their final meeting on June 20, 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: Richard Finlay c/o Tania Dons Telephone: (345) 814 7766 Facsimile: (345) 945 3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands NEUBERGER BERMAN: Shareholders' Final Meeting Set for June 20 ------------------------------------------------------------- The shareholders of Neuberger Berman Q Master Fund Ltd. will hold their final meeting on June 20, 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: Richard Finlay c/o Tania Dons Telephone: (345) 814 7766 Facsimile: (345) 945 3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands PLATINUM TURNBERRY: Shareholder to Hear Wind-Up Report on June 24 ----------------------------------------------------------------- The shareholder of Platinum Turnberry Fund Limited will receive on June 24, 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: Ogier Jo-Anne Maher Telephone: (345) 815-1762 Facsimile: (345) 949-9877 SENEX INVESTMENTS: Shareholder to Hear Wind-Up Report on June 14 ---------------------------------------------------------------- The shareholder of Senex Investments Limited will receive on June 14, 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: Ying Hing Chiu Three Pacific Place, Level 28 1 Queen's Road East Hong Kong SP IGNIS: Shareholders' Final Meeting Set for June 24 ----------------------------------------------------- The shareholders of SP Ignis Offshore, Ltd. will hold their final meeting on June 24, 2011, at 10:15 a.m., to receive liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands SPIRIT MANAGEMENT: Shareholder to Hear Wind-Up Report on June 27 ---------------------------------------------------------------- The shareholder of Spirit Management Ltd. will receive on June 27, 2011, at 9:30 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815-1759 Facsimile: (345) 949-9877 TIBERIUS FUND: Shareholders' Final Meeting Set for June 24 ---------------------------------------------------------- The shareholders of The Tiberius Fund Ltd. will hold their final meeting on June 24, 2011, at 10:00 a.m., to receive liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands =========== M E X I C O =========== BANCA MIFEL: S&P Affirms Global Ratings at 'BB-/B'; Outlook Stable ------------------------------------------------------------------ Standard & Poor's Rating affirmed its ratings on Mexican based Banca Mifel S.A., including the 'BB-/B' counterparty credit rating and the 'mxBBB+/mxA-2' national scale (CaVal) counterparty credit rating. The outlook is stable. "We also affirmed our 'B-' rating on Mifel's $100 million perpetual, noncumulative, nonpreferred subordinated notes," S&P stated. "The ratings reflect the bank's limited capitalization and pressured profitability resulting from its expansion plans. Its improvements in asset-quality indicators and its stable and loyal client base offset the negative factors," said Standard & Poor's credit analyst Laurence Wattraint. The ratings on Mifel's notes reflect their subordination, the potential deferment of interest payments, and the bank's overall financial strength. The ratings also consider expected plans to raise capital that will substantially improve the bank's capital base and enable it to achieve its growth plans for the coming years. "We believe that this capital injection could raise the bank's competitiveness in the local market, but Mifel's main challenge is to manage growth in a very competitive market," S&P said. One of Mifel's major strengths is its stable and loyal deposit base. Branch openings resulted in 48% growth in deposits during 2010 and another 24% by March 2011 since the end of 2010. However, the deposit base shows some concentration. "Its ratio of loans to deposits plus long-term funding reached 72% in first-quarter 2011, and we expect this figure to remain less than 90% throughout 2011 thanks to an expanded deposit base and stable facilities from development banks in Mexico. The bank will have trouble improving asset quality and growing its portfolio, but we expect improved risk-management practices to yield better results than in the past," S&P continued. "The stable outlook reflects the bank's financial performance and expected improvements in profitability in the medium term. If the bank improves its asset quality and completes a capitalization plan that raises its RAC ratio before diversification to around 6.5%, we could raise the ratings," S&P noted. Conversely, the ratings could be under negative pressure if Mifel's capital, profitability, and/or asset quality indicators weaken. GRUPO PAPELERO: S&P Cuts Global Scale CCR to 'B+'; Outlook Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its global scale corporate credit rating on Grupo Papelero Scribe S.A. de C.V. (Scribe) to 'B+' from 'BB-'. "In addition, we are lowering our senior unsecured debt rating on Scribe's $300 million senior unsecured notes to 'B+' from 'BB-'. The outlook is stable. We affirmed our recovery rating of '4'," S&P related. "Our ratings on Mexico-based paper products manufacturer Scribe reflect the company's weak business risk profile and aggressive financial risk profile," said Standard & Poor's credit analyst Monica Ponce. The rating considers the company's relatively high debt leverage, its position as a segment player in a seasonal and somewhat mature industry, and its exposure to pulp price volatility and exchange rate fluctuations. The company's strong brand recognition in Mexico, its leadership in the notebook market (with a market share of 80%), a solid position in the paper and office (P&O) supplies markets, and its relatively low-cost production partially offset the negative factors. "Scribe's financial performance for the past 12 months ended March 31, 2011, has been below our expectations. During that time, Scribe posted adjusted EBITDA interest coverage and total debt-to- EBITDA ratios of 1.7x and 5.0x, which compare unfavorably with 4.7x, and 3.7x from the same period a year ago as a consequence of lower EBITDA generation. We expect modest improvement in Scribe's gross margin to drive Scribe's total debt-to-EBITDA ratio to 4.9x in 2011. Scribe continues to be somewhat exposed to a sharp drop in the value of the Mexican peso because its outstanding debt is denominated in U.S. dollars and most of its sales are denominated in Mexican pesos. However, weakness in the Mexican peso reduces the competitiveness of imported products, favoring Scribes competitive position," S&P related. S&P continued, "The stable outlook reflects our expectations of a gradual recovery in the company's operating results in the next couple of years, which should translate into stronger key credit metrics, particularly an adjusted debt-to-EBITDA ratio of less than 5.0x. We could lower the rating if the recovery doesn't materialize and there is a further financial deterioration, such as if the company reports an adjusted debt to EBITDA at more than 5.5x. Higher pulp prices coupled with the continued strength of the Mexican peso could lead to further weakness in the issuer's gross margin. We could also lower the rating if the company incurs additional debt that would be a breach of covenants under the notes. But a strong financial performance, most likely because of lower pulp prices and a depreciation of the Mexican peso, could lead to a positive rating action, particularly if the company posts adjusted debt to EBITDA of less than 3.5x." =============================== T R I N I D A D & T O B A G O =============================== CENTRAL TRINIDAD STEEL: Closes Plant, Axes 250 Jobs ------------------------------------------------------ Trinidad Express reports that Central Trinidad Steel Ltd (Centrin) closed its factory and retrenched 250 workers. The company said it could no longer make a profit because the price of raw material purchased from the ArcelorMittal steel plant was too high, according to Trinidad Express. "It is not the intention of the company to shut down operations permanently. We are temporarily suspending operations until we can get back on the bargaining table and set a better price." Centrin purchases its raw material (billets) to make rebar steel used in construction projects," Trinidad Express quotes Centrin Marketing Manager Balliram John as saying. Trinidad Express notes that some workers protested on the company's compound, calling on Prime Minister Kamla Persad- Bissessar, Minister of Trade Stephen Cadiz and Minister of Labor Errol McLeod to intervene. The report relates that the workers said government needed to regulate the price of billets since there was alleged price manipulation on the steel market. CL FINANCIAL: US$3BB Chinese Bailout Non-Existent, Chairman Says ---------------------------------------------------------------- Trinida Express reports that CL Financial Limited Chairman Gerald Yetming said the US$3 billion investment proposed by a Hong Kong- based business consortium to bail out the company is non-existent. The company, Centerpoint Holdings Ltd., through mediator Roy Dan, offered the multibillion-dollar investment to offset the costs of all the financial payouts of the beleaguered company and to take over operations of CL Financial, according to Trinidad Express. The report relates that Mr. Yetming said Mr. Dan wanted to appoint a former minister as chairman once the deal was signed. Trinidad Express notes that Mr. Yetming initially remained mum on the investment rumor when Opposition MP Colm Imbert raised the issue but broke his silence, saying the entire issue needed to be put to rest. "The public and the shareholders need to know that there is no investor," Trinidad Express quoted Mr. Yetming as saying. The report notes that Mr. Yetming said the frontman for the investors, Mr. Dan, met with him and Central Bank Governor Ewart Williams twice recently, but nothing tangible came out of the meeting. Trinidad Express discloses that Mr. Yetming said the offer was actually a US$3 billion loan over a ten-year period, with a moratorium for the first two years on the principal and the interest. The loan accrued a 3 to 5% interest rate. CL Financial would have to put up 10% of the loan figure, roughly $2 billion, in a cash deposit and Centerpoint would hold the security liens on the company, Trinidad Express notes. "The investors needed CL Financial to demonstrate the financial viability to support the loan repayment," Trinidad Express quotes Mr. Yetming as saying. "But they would hold all the assets and the revenue streams," he added. Trinidad Express notes that Mr. Yetming said that Mr. Dan was informed that according to the 2009 agreement between the then People's National Movement (PNM) government and CL Financial, neither government nor the management of CL Financial had the authority to borrow money in the company's name. The report Relates that Mr. Yetming learned Mr. Dan had spoken to Government ministers, but they did not have the authority to borrow any money for CL either. Mr. Yetming said CL Financial is expected to table its first audited accounts since 2007 at a June 22 board meeting, the report adds. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. =============== X X X X X X X X =============== * BOND PRICING: For the Week May 30, to June 2, 2011 ---------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-PAR 1.18 12/31/2038 ARS 61.49 ARGENT-DIS 7.82 12/31/2033 EUR 73 ARGENT-DIS 7.82 12/31/2033 EUR 72.75 ARGENT-DIS 4.33 12/31/2033 JPY 42 ARGENT-PAR&GDP 0.45 12/31/2038 JPY 8 ARGNT-BOCON PR13 2 3/15/2024 ARS 110.04 BODEN 2014 2 9/30/2014 ARS 32.5 BOGAR 2018 2 2/4/2018 ARS 31.85 PRO12 2 1/3/2016 ARS 118.14 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 39.099 BCP FINANCE BANK 5.01 3/31/2024 EUR 47.206 BCP FINANCE BANK 5.31 12/10/2023 EUR 49.744 BCP FINANCE CO 5.54 EUR 65.956 BCP FINANCE CO 4.23 EUR 65.65 BES FINANCE LTD 5.77 2/7/2035 EUR 57.101 BES FINANCE LTD 5.58 EUR 64.864 BES FINANCE LTD 4.5 EUR 66.012 BES FINANCE LTD 6.62 EUR 73.009 EFG ORA FUNDING 1.7 10/29/2014 EUR 62.834 ESFG INTERNATION 5.75 EUR 58.322 IMCOPA INTL CAYM 10.37 12/19/2014 USD 36.5 CHILE ----- BANCO BPI (CI) 4.15 11/14/2035 EUR 39.099 AGUAS NUEVAS 3.4 5/15/2012 CLP 0.13 CGE DISTRIBUCION 3.25 12/1/2012 CLP 40.042 ESVAL S.A. 3.8 7/15/2012 CLP 37.677 MASISA 4.25 10/15/2012 CLP 29.682 QUINENCO SA 3.5 7/21/2013 CLP 38.182 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 53.531 PUERTO RICO CONS 6.5 4/1/2016 USD 63.375 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 46.082 PETROLEOS DE VEN 5.375 4/12/2027 USD 47.81 PETROLEOS DE VEN 5.25 4/12/2017 USD 60.148 PETROLEOS DE VEN 5.125 10/28/2016 USD 61.709 PETROLEOS DE VEN 5 10/28/2015 USD 65.873 PETROLEOS DE VEN 8.5 11/2/2017 USD 71.244 PETROLEOS DE VEN 8.5 11/2/2017 USD 71.055 PETROLEOS DE VEN 4.9 10/28/2014 USD 73.904 VENEZUELA 7 3/31/2038 USD 56.146 VENEZUELA 7 3/31/2038 USD 57.1 VENEZUELA 6 12/9/2020 USD 60 VENEZUELA 7.65 4/21/2025 USD 61.625 VENEZUELA 8.25 10/13/2024 USD 64.125 VENEZUELA 9.25 5/7/2028 USD 68 VENEZUELA 9 5/7/2023 USD 69 VENEZUELA 7.75 10/13/2019 USD 69.625 VENEZUELA 7 12/1/2018 USD 70.625 VENEZUELA 9.25 9/15/2027 USD 71.737 VENEZUELA 9.25 9/15/2027 USD 72.42 VENZOD - 189000 9.375 1/13/2034 USD 68.75 *********** 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 * * *