/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/111110.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, November 10, 2011, Vol. 12, No. 223 Headlines A R G E N T I N A * ARGENTINA: IDB OKs US$20 Million Loan to Plaza Logistica C A Y M A N I S L A N D S ASTOS GLOBAL: Members' Final Meeting Set for Nov. 14 BLUE SKY: Members' Final Meeting Set for Nov. 11 CITRINE II INVESTMENT: Shareholder Receives Wind-Up Report CITRINE INVESTMENT: Shareholder Receives Wind-Up Report CS FUNDING: Members' Final Meeting Set for Nov. 11 DYNASTY CAYMAN: Members' Final Meeting Set for Nov. 17 FRONTPOINT OFFSHORE: Members' Final Meeting Set for Nov. 11 FRONTPOINT OFFSHORE: Members' Final Meeting Set for Nov. 11 FRONTPOINT OFFSHORE: Members' Final Meeting Set for Nov. 11 HEAVENLY LTD: Members' Final Meeting Set for Nov. 11 MARSHAL ASIA: Members' Final Meeting Set for Nov. 16 PETROLEUM EXPORT: Members' Final Meeting Set for Nov. 11 PETROLEUM EXPORT II: Members' Final Meeting Set for Nov. 11 PROTIUM MANAGEMENT: Members' Final Meeting Set for Nov. 17 SAIGON INVESTMENT: Members' Final Meeting Set for Nov. 15 SPRINGLAND INTERNATIONAL: Members Receive Wind-Up Report SWISS GOLD: Shareholder Receives Wind-Up Report TAIYO KAIHATSU: Members' Final Meeting Set for Nov. 11 UMEDA KAIHATSU: Members' Final Meeting Set for Nov. 11 VENCO BV: Members' Final Meeting Set for Nov. 15 C O S T A R I C A OSCAR DELA RENTA: Operations Closed by DGT Over Late Tax Payments E C U A D O R BANCO DE LA: Fitch Affirms LT Issuer Default Rating at 'B-' BANCO PICHINCHA: Fitch Affirms LT Issuer Default Rating at 'B-' M E X I C O SERVICIOS DE AGUA: Moody's Lowers Issuer & Debt Ratings to 'Ba1' URBI DESARROLLOS: Fitch Rates Issuer Default Ratings at 'BB-' VITRO SAB: Bonds Trading Above Value in Proposed Reorganization T R I N I D A D & T O B A G O CL FIN'L: Witness Reveals Disparities in Units' Finc'l Statements X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= * ARGENTINA: IDB OKs US$20 Million Loan to Plaza Logistica ---------------------------------------------------------- The Inter-American Development Bank (IDB) approved a US$20 million loan to Plaza Logistica SRL of Argentina to finance the construction of two logistics parks: one in Escobar and another one in Pilar, in the metropolitan area of Buenos Aires. This is the first non-sovereign guaranteed loan ever approved by the IDB to finance a logistics project in Latin America and the Caribbean. The logistics parks of Tortugas and Pilar, located in the most populated region of the country and on an important Mercosur transportation route, will become collection centers for distribution of goods such as processed foods, beverages, cleaning products and other consumer goods. The IDB loan will pave the way for Plaza Logistica to finance its investment plan with long-term financing that is currently offered on a very limited basis by the commercial banking market for this type of project. The construction of the two new logistics parks will add 85,000 of Class A warehouse facility for Plaza Logistica. The loan will also help finance the expansion and revamping of the company's Pacheco logistics park in Tigre. The project, approved by the IDB's Structured and Corporate Finance Department, is expected to contribute to the creation of approximately 500 full-time jobs and 380 temporary jobs. The companies that will contract Plaza Logistica's services, as well as their suppliers, will benefit from growing international trade, greater efficiency and reduced costs stemming from a better logistics service. Moreover, the project is expected to generate positive environmental outcomes, since the new parks will improve transportation efficiency, reducing carbon emissions. About the IDB's Structured and Corporate Finance Department The Structured and Corporate Finance Department (SCF) leads all IDB non-sovereign guaranteed operations for large scale projects, companies and financial institutions in Latin America and the Caribbean. Through its loan syndication program, SCF plays a catalytic role, helping mobilize resources from third parties by partnering with commercial banks, institutional investors, co- guarantors, and other co-lenders for projects with high developmental impact. =========================== C A Y M A N I S L A N D S =========================== ASTOS GLOBAL: Members' Final Meeting Set for Nov. 14 ---------------------------------------------------- The members of Astos Global Fund will hold their final meeting on Nov. 14, 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: Stefan Zeiss c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands BLUE SKY: Members' Final Meeting Set for Nov. 11 ------------------------------------------------ The members of Blue Sky Fund Cayman Ltd. will hold their final meeting on Nov. 11, 2011, at 11:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands CITRINE II INVESTMENT: Shareholder Receives Wind-Up Report ---------------------------------------------------------- The shareholder of Citrine II Investment Fund received on Nov. 8, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jonathan Bernstein Telephone: (345) 815-1897 Facsimile: (345) 949-9877 CITRINE INVESTMENT: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Citrine Investment Fund received on Nov. 8, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jonathan Bernstein Telephone: (345) 815-1897 Facsimile: (345) 949-9877 CS FUNDING: Members' Final Meeting Set for Nov. 11 -------------------------------------------------- The members of CS Funding Company will hold their final meeting on Nov. 11, 2011, at 12:00 noon, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Annie Chapman 69 Dr. Roy's Drive PO Box 1043 George Town Grand Cayman KY1-1102 Cayman Islands DYNASTY CAYMAN: Members' Final Meeting Set for Nov. 17 ------------------------------------------------------ The members of Dynasty Cayman Limited will hold their final meeting on Nov. 17, 2011, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michael Robinson c/o MaplesFS Limited 4th Floor, Boundary Hall Cricket Square George Town, Grand Cayman Cayman Islands FRONTPOINT OFFSHORE: Members' Final Meeting Set for Nov. 11 ----------------------------------------------------------- The members of Frontpoint Offshore Asia Pacific Fund, Ltd. will hold their final meeting on Nov. 11, 2011, at 9:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands FRONTPOINT OFFSHORE: Members' Final Meeting Set for Nov. 11 ----------------------------------------------------------- The members of Frontpoint Offshore Asian Event Driven Fund, Ltd. will hold their final meeting on Nov. 11, 2011, at 9:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands FRONTPOINT OFFSHORE: Members' Final Meeting Set for Nov. 11 ----------------------------------------------------------- The members of Frontpoint Offshore Currency Fund, Ltd. will hold their final meeting on Nov. 11, 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: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands HEAVENLY LTD: Members' Final Meeting Set for Nov. 11 ---------------------------------------------------- The members of Heavenly Ltd. will hold their final meeting on Nov. 11, 2011, at 11:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands MARSHAL ASIA: Members' Final Meeting Set for Nov. 16 ---------------------------------------------------- The members of Marshal Asia Opportunities Fund Limited will hold their final meeting on Nov. 16, 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: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands PETROLEUM EXPORT: Members' Final Meeting Set for Nov. 11 -------------------------------------------------------- The members of Petroleum Export Limited will hold their final meeting on Nov. 11, 2011, at 10:11 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Emille Small c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands PETROLEUM EXPORT II: Members' Final Meeting Set for Nov. 11 ----------------------------------------------------------- The members of Petroleum Export II Limited will hold their final meeting on Nov. 11, 2011, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Emille Small c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands PROTIUM MANAGEMENT: Members' Final Meeting Set for Nov. 17 ---------------------------------------------------------- The members of Protium Management Ltd will hold their final meeting on Nov. 17, 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: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands SAIGON INVESTMENT: Members' Final Meeting Set for Nov. 15 --------------------------------------------------------- The members of Saigon Investment Company will hold their final meeting on Nov. 15, 2011, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands SPRINGLAND INTERNATIONAL: Members Receive Wind-Up Report -------------------------------------------------------- The members of Springland International Assurance Company received on Sept. 27, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Graham Manchester Governors Square, Building 4 2nd Floor, 23 Lime Tree Bay Avenue P.O. Box 1051 Grand Cayman KY1-1102 Cayman Islands Telephone: 1-345-949-7988 Facsimile: 1-345-949-7849 SWISS GOLD: Shareholder Receives Wind-Up Report ----------------------------------------------- The shareholder of Swiss Gold & Silver Hedge Fund Ltd received on Nov. 1, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Andrin Waldburger Baarerstrasse 147 Zug, Switzerland TAIYO KAIHATSU: Members' Final Meeting Set for Nov. 11 ------------------------------------------------------ The members of Taiyo Kaihatsu Cayman Co., Ltd. will hold their final meeting on Nov. 11, 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: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands UMEDA KAIHATSU: Members' Final Meeting Set for Nov. 11 ------------------------------------------------------ The members of Umeda Kaihatsu Cayman will hold their final meeting on Nov. 11, 2011, at 11:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands VENCO BV: Members' Final Meeting Set for Nov. 15 ------------------------------------------------ The members of Venco, B.V. will hold their final meeting on Nov. 15, 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: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands =================== C O S T A R I C A =================== OSCAR DELA RENTA: Operations Closed by DGT Over Late Tax Payments ----------------------------------------------------------------- Inside Costa Rica reports that Oscar de la Renta is the latest to be shut down by the tax man for being late with their tax payments. In the last couple of weeks, a total 80 retail stores and businesses, including Hallmark, have been shut down for five days by the Directorate General of Taxation (DGT) for the penalty for filing late, according to Inside Costa Rica. Director of Taxation Francisco Villalobos, according to the report, explains that "cierres" (closures) that take place for delinquencies or problems with filing tax or not giving customers receipts are among the reasons. ============= E C U A D O R ============= BANCO DE LA: Fitch Affirms LT Issuer Default Rating at 'B-' ----------------------------------------------------------- Fitch Ratings has affirmed Banco de la Produccion S.A. y Subsidiarias' (Produbanco) long-term Issuer Default Rating (IDR) at 'B-'. The Rating Outlook is Stable. Produbanco's Viability rating and IDR reflect its strong franchise, experienced management, good asset quality indicators and adequate liquidity. Nevertheless, Ecuador's political and regulatory uncertainty, its loan and investment concentration and overall challenging environment continue to burden the bank's ratings. The ratings are also constrained by the country ceiling. Despite having the fourth largest deposit market share, Fitch believes that Produbanco cannot rely upon government support, should it be necessary, given Ecuador's weak fiscal stance and the lack of a lender of last resort. An upgrade of the sovereign's ratings could lead to an upgrade of Produbanco's IDR and Viability rating, if the bank maintains adequate capital, asset quality and profitability ratios. Although not considered Fitch's base case scenario, severe asset quality deterioration, weak financial performance or further government intervention affecting the bank's liquidity or balance sheet could pressure ratings downward. Asset quality deteriorated somewhat during the first half of 2011. However, at 1.1%, Produbanco's impaired loans/gross loans ratio continued to compare favorably to both the domestic industry (privately owned banks) average as well as similarly Fitch-rated international peers (emerging market commercial banks with a long-term IDR of 'B-', 'B' or 'B+'). Nevertheless, given Produbanco's corporate focus, its credit portfolio remains moderately concentrated with the top 20 largest exposures (including contingencies) by economic group accounting for 26% of gross loans at end-June 2011. Although loan loss reserve coverage of impaired loans (230% at end-June 2011) is below the domestic industry average, it continued to compare favorably with international peers and should be viewed within the context of the bank's lower risk, predominately corporate loan portfolio. Given the still moderate loan concentration, Fitch views this level as adequate. Stable and diversified deposits accounted for an average of 89% of total funding over the past five years. Liquid assets (of which about two-thirds was in cash and due from banks) covered 50% of deposits and short-term funding at end-June 2011, comparing favorably to peers. As such, Fitch views Produbanco's liquidity as adequate for its operating environment. The bank's profitability strengthened in the first half of 2011, mostly reflecting a stronger net interest margin due to growth in the consumer segment. Nevertheless, key profitability ratios remain weak relative to peers' given the bank's corporate focus. Government-set pricing is likely to continue to affect operating revenues, pressuring margins and limiting non-interest revenue growth. Moderate GDP growth should continue to support Produbanco's strategy of diversifying into the consumer segment, which should sustain improvements in profitability despite mandated interest rate caps and fee limits. Produbanco's Fitch core capital/weighted risks ratio of 12.5% at end-June 2011 remained relatively stable as income growth has kept pace with asset growth, a trend Fitch expects to continue. While capitalization is in line with domestic peers, it is tight relative to international peers. Nevertheless, adequate reserve coverage of impaired loans somewhat mitigates this risk. Incorporated in 1978, Produbanco is Ecuador's fourth largest bank by assets (15% of the system's assets at June 2011). Historically focused on corporate banking, it has expanded into retail banking in the past few years. The bank is also active in fund management and securities brokerage. Fitch has affirmed Produbanco's ratings as follows: -- Foreign currency long-term IDR at 'B-'; Stable Outlook; -- Foreign currency short-term IDR at 'B'; -- Viability rating at 'b-'; -- Individual rating at 'D'; -- Support rating at '5'; -- Support Floor at 'NF'. BANCO PICHINCHA: Fitch Affirms LT Issuer Default Rating at 'B-' --------------------------------------------------------------- Fitch Ratings has affirmed Banco Pichincha C.A. y Subsidiarias' long-term Issuer Default Rating (IDR) at 'B-'. The Rating Outlook is Stable. Pichincha's Viability rating and IDR reflect its strong franchise, broad deposit base, ample liquidity and good asset quality. Nevertheless, Ecuador's political and regulatory uncertainty, and overall challenging environment continue to burden the bank's ratings. The ratings are constrained by the country ceiling. Despite having the largest deposit market share, Fitch believes that Pichincha cannot rely upon government support, should it be necessary, due to Ecuador's weak fiscal stance and the lack of a lender of last resort. An upgrade of the sovereign's ratings could lead to an upgrade of Pichincha's IDR and Viability rating, if the bank maintains adequate capital, asset quality and profitability ratios. Although not considered Fitch's base case scenario, severe asset quality deterioration, weak financial performance or further government intervention affecting the bank's liquidity or balance sheet could pressure ratings downward. Asset quality deteriorated during the first six months of 2011, due to the maturation of Pichincha's rapidly growing microcredit and consumer portfolio. At the end of June 2011, Pichincha's impaired loans/total loans ratio of 3% was worse than the domestic peer (privately owned banks) average of 2.6%, a trend that is likely to continue given the bank's higher proportion of retail lending. However, this ratio continued to compare favorably to international peers (Fitch rated emerging market commercial banks with a long-term IDR of 'B-', 'B' or 'B+'). Loan loss reserve coverage of impaired loans significantly exceeds both domestic and international peer medians. Pichincha's profitability strengthened in the first half of 2011, as a stronger net interest margin (NIM), as well as robust growth in fees and commissions more than offset increased provisioning expenses and operating costs. As a result, the bank's annualized ROAA reached around 1.6% at the end of June 2011, which compares favorably to domestic peers and is similar to international peers. Absent a more disruptive government intervention, profitability should stabilize at current levels, underpinning capital growth over the medium term. Since 2010, Pichincha's capitalization ratios have declined slightly due to stronger asset growth, with the equity/assets ratio reaching 7.9% and the Fitch core capital/weighted risks ratio reaching 10.3% at the end of June 2011. Although capitalization is lower relative to other large domestic peers and international peers, Fitch believes Pichincha's capital ratios are adequate in light of the bank's risk profile. Furthermore, strong reserve coverage of impaired loans somewhat mitigates lower capitalization. Pichincha is Ecuador's largest bank with about 29% of the system's assets at the end of June 2011. Incorporated in 1906, the group offers a wide array of services to corporate, middle market, and retail customers. Pichincha is tightly controlled by its main shareholder Fidel Egas Grijalva, who holds 61% of the company's stock. Fitch has affirmed Pichincha's ratings as follows: -- Foreign currency long-term IDR at 'B-', Stable Outlook; -- Foreign currency short-term IDR at 'B'; -- Viability rating at 'b-'; -- Individual rating at 'D'; -- Support rating at '5'; -- Support Floor at'NF'. =========== M E X I C O =========== SERVICIOS DE AGUA: Moody's Lowers Issuer & Debt Ratings to 'Ba1' ---------------------------------------------------------------- Moody's de Mexico downgraded Servicios de Agua y Drenaje de Monterrey (SADM) issuer ratings to Ba1 (Global Scale, local currency) and A1.mx (Mexico National Scale) from Baa3 and Aa3.mx, respectively. The outlook was changed to negative from stable. At the same time, Moody's downgraded debt ratings to Ba1 (Global Scale, local currency) and A1.mx (Mexico National Scale) from Baa3 and Aa3.mx to SADM's MXN 1.6 billion and MXN 1.16 billion (original face values) enhanced loans from Banorte and to the MXN 1.8 billion (original face value) enhanced loan from Banobras. Ratings Rationale The rating action to downgrade SADM's issuer rating was prompted by the recent decision to downgrade the ratings of the State of Nuevo Leon to Ba1/A1.mx from Baa3/Aa3.mx. SADM has a public mandate to provide water and sewage services in the state and, therefore shares the same own-source revenue base. The rating action also reflects SADM's ties with the state of Nuevo Leon and the latter's role in the management decisions of the company. The negative outlook reflects uncertainty on the margin of action that SADM will have to impose future tariff increases to cover an ambitious capital expenditure program to provide water from new sources. It also reflects the negative outlook of Nuevo Leon's issuer ratings. The outlook could be stabilized if the financing structure of the new project incorporates the necessary tariff adjustments and thereby, does not translate in higher debt levels. Deterioration in SADM's financial performance, owing to either insufficient tariff increases and/or higher capital expenditures that lead to increases in debt levels, could exert downward pressure on the ratings. A downgrade of the State of Nuevo Leon issuer ratings (Ba1/A1.mx, negative outlook) could also exert downward pressure on SADM's ratings. Further improvement in SADM's liquidity position, coupled with consecutive cash financing surpluses and an easing in debt metrics, could exert upward pressure on the ratings. An upgrade of the State of Nuevo Leon issuer ratings could also exert upward pressure on the ratings. The downgrade of the debt ratings to Ba1/A1.mx from Baa3/Aa3.mx to SADM's three enhanced loans: MXN 1.6 billion and MXN 1.16 billion (original face values) enhanced loans from Banorte and to the MXN 1.8 billion (original face value) from Banobras, reflects the downgrade of SADM's issuer ratings. The ratings rationale reflects the strength derived from credit enhancements embedded in the three enhanced loans, offset by Moody's assessment that the underlying credit risks of these loans are, nevertheless, undistinguishable from the issuer ratings assigned to SADM. Given the links between the loans and the credit quality of the obligor, a downgrade of SADM's issuer ratings could also exert downward pressure on debt ratings for the loans. Conversely, an upgrade of SADM's issuer ratings could result in an upgrade of the ratings on the loans. URBI DESARROLLOS: Fitch Rates Issuer Default Ratings at 'BB-' ------------------------------------------------------------- Fitch Ratings has assigned 'A-'(mex) rating to Urbi Desarrollos Urbanos; S.A.B. de C.V.'s proposed independent issuance of Certificados Bursatiles of up to MXN1,000 million. Proceeds from the issuance will be used primarily to refinance debt. Fitch currently rates Urbi as follows: -- Foreign Currency Issuer Default Rating (IDR) at 'BB-'; -- Local Currency IDR at 'BB-'; -- National Long-term rating at 'A-(Mex)'; -- US$150 million senior notes due 2016 at 'BB-'; -- US$300 million senior notes due 2020 at 'BB-'; -- Short-term rating at 'F2(Mex)'. The Rating Outlook is Stable. The ratings reflect the company's solid market position in the Mexican Homebuilding industry, business strategy oriented to the low-income segment, geographic diversification; important land reserve; adequate liquidity, and moderate leverage. The ratings also incorporate the company's limited capacity to generate positive free cash flow in the short and medium term due to increasing working capital needs as the business continues to grow. The Stable Outlook incorporates the expectation that Urbi's credit profile will remain stable. The company's gross leverage is expected to remain around 3.5 times (x), cash position above MXN4 billion, and EBITDA margin around 27.5% during the next twelve month ended in September 2012. Urbi's market position is solid and sustainable in the medium term based on the company's large scale and relative geographic diversification. The company is the third largest homebuilder in Mexico in terms of number of units sold. Urbi's units sold for LTM September 2011 was 35,813, an increase of 6.7% when compared to LTM September 2010. The ratings factor in the view that the company's total units sold for FY2011 and FY2012 would be around the 39,000 units and 45,000 units, respectively, which would represent an annual increase levels of 16% and 15%, respectively. Urbi's ratings are constrained by the higher working capital requirements incorporated in its business model. A factor that differentiates the company's business strategy from other participants is Urbi's continued efforts, during the last several years, to develop Mexico's non-affiliated low-income housing market (informal sector) through mechanisms such Alternativa Urbi. The ratings incorporate the company's strategy to allocate approximately 18% of its annual units sold through Alternativa Urbi. This mechanism offers very good growth opportunities but at the same time, financially, represents a challenge, since developing a solid market position in the non-affiliated segment requires a higher level of working capital because the company has to nurture potential buyers until they are qualified to obtain a mortgage. The ratings consider Urbi's more aggressive growth strategy since the second half of 2010 which has resulted in the company's total debt increase to cover higher working capital requirements related to operations as well as to finance the integration of housing projects in progress (HPPs). The company's total debt increased to MXN14 billion by the end of September 2011 from MXN10.6 billion and MXN7.7 billion by September 2010 and December 2009, respectively. The imbalance between the variations between the company's cash flow generation (EBITDA) and its financial debt during the last two years explains the increase in the company's gross leverage, measured as total debt to EBITDA ratio. The company's gross leverage was 3.2 times (x) by the end of September 2011, which compares negatively with the company's gross leverage of 2.7x and 1.9x by the end of September 2010 and December 2009, respectively. The company's gross leverage is expected to remain around 3.5x during the next twelve-month period ended in September 2012. The company's FCF is expected to be negative 2011, as the business continues to grow with expected increase in total titled homes revenues around 16% during FY2011, which implies a record level for titled homes of approximately 13,000 during the four quarter of 2011 (4Q11). The company's free cash flow (FCF) during LTM September 2011 was negative MXN2.8 billion, including interest paid. Fitch's FCF calculation for the period considers cash flow from operations after interest paid (CFO: negative MXM2.7 billon) minus capex (MXN116 million) and distributed dividends (no distributed dividends during the period). Driving the company's FCF trend is primarily the increase in its working capital needs which started during the second half of 2010 as the company increased its levels of account receivables (ARs) from MXN531 million in December 2009 to MXN3.6 billion and MXN7 billion by September 2010 and September 2011, respectively. The ratings consider that the company's debt payment schedule has deteriorated during the last 18 months due to the increase in the company's short term debt. During LTM September 2011 Urbi maintained stable cash position reaching levels of MXN5.7 billion and MXN6.9 billion by the end of September 2010 and September 2010, respectively. However, Urbi's short term debt during the same period increased from MXN1.7 billion to MXN 7 billion as the company funded with short term debt HPPs acquisitions. With the proposed transaction the company is planning to pay-off and reduce its short term debt position. The ratings incorporate the expectation that Urbi will maintain a solid cash position of approximately MXN4 billion during the next twelve-month period ended in September 2012 and that its debt payment schedule will significantly improve with additional refinancing of its debt to take place during the first half of 2012. Positive rating actions could result from some combination of the following factors: a sustained strengthening of the company's gross leverage returning to levels below 2.0x, stability in credit metrics, and consistently positive FCF. A negative rating action could be triggered by a deterioration of the company's credit protection measures and cash position due to weak operational results and more aggressive HPP acquisitions, a decline of government funding programs, and deterioration in the company's industry business environment leading to erosion in the company's market position. Sustained gross leverage levels above 3.75x could result in a negative rating action. VITRO SAB: Bonds Trading Above Value in Proposed Reorganization --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that defaulted bonds issued by Vitro SAB are trading at prices above what some analysts estimate is the value of the restructuring offered to creditors in the reorganization in Mexico. Bondholders have a lawsuit pending in New York state court seeking a declaration that nothing that occurs in the Mexican courts can alter obligations of non-bankruptcy Vitro subsidiaries on the $1.2 billion in defaulted bonds. The bondholders argued a summary judgment motion in state court on Nov. 7. The judge didn't say when he would rule. 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. 0-47477); 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. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC, is the Debtors' operations and financial advisor. 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. Blackstone Advisory Partners L.P. serves as financial advisor to the Committee. The U.S. Vitro companies sold their assets to American Glass Enterprises LLC, an affiliate of Sun Capital Partners Inc., for US$55 million. =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: Witness Reveals Disparities in Units' Finc'l Statements ----------------------------------------------------------------- Trinidad Express reports that several "eye catching disparities" in the financial statements of CLICO Investment Bank and British American Trinidad and Tobago were revealed as Maria Daniel, a partner at Ernst and Young Services Ltd, took the witness stand in the Commission of Enquiry into the collapse of CL Financial Limited and Colonial Life Insurance Company (Trinidad) Limited (CLICO). CIB and British American are subsidiaries of CL Financial Limited. Ernst and Young were commissioned on March 11, 2009, by the Trinidad and Tobago Central Bank to prepare a Statement of Affairs for CIB and British American, Trinidad Express recalls. Ms. Daniel, the report notes, said both companies were insolvent since 2007, Daniel said. The net assets of CIB as of January 31, according to their management accounts were over $1 billion, Ms. Daniel said, according to Trinidad Express. The report says that After Ernst and Young prepared their Statement of Affairs the net assets were recalculated to negative $4 billion. "The most significant contributor to CIB's financial distress and to its eventual insolvency is the lack of recovery of inter- company balances from CLF and other related parties," Trinidad Express quoted Ms. Daniel as saying. Trinidad Express relates that on the management accounts of CIB under assets "due from related companies" amounted to TT$2 billion. This amount was written off by Ernst and Young in its Statement of Affairs, the report notes. Ms. Daniel said the amount was written off because these funds were not able to be recovered, the report relays. "These were just paper transactions. CIB was used as a funding vehicle," Ms. Daniel added, Trinidad Express relates. About CIB Clico Investment Bank is owned and managed by CL Financial, a privately held conglomerate in Trinidad and Tobago. About CL Financial CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat CL Financial's collapse and the consequent systemic crisis. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.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/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.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/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.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, 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 * * *