/raid1/www/Hosts/bankrupt/TCRLA_Public/120112.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, January 12, 2012, Vol. 13, No. 009
Headlines
A R G E N T I N A
ALTO PARANA: Moody's Affirms 'Ba3' Corporate Family Rating
ANDBRAVA SRL: Calls for Bankruptcy Proceedings
CLUB DEL VINO: Requests Opening of Bankruptcy Proceedings
DALVE SRL: Creditors' Proofs of Debt Due Feb. 15
HOGAR DEL SOL: Creditors' Proofs of Debt Due Feb. 23
JAER SRL: Creditors' Proofs of Debt Due April 24
MAXIWORLD SA: Creditors' Proofs of Debt Due April 10
PLAMA SA: Applied for Bankruptcy Protection
* BUENOS AIRES: Moody's Assigns '(P)B3' Currency Ratings
B A R B A D O S
REDJET: Needs US$8-Mil. Injection to Continue Operations
B R A Z I L
BANCO CRUZEIRO: Moody's Places All Ratings for Possible Downgrade
BRAZILIAN FINANCE: Fitch Affirms Local Currency IDR at 'B'
ENERGISA S.A.: Moody's Maintains 'Ba2' Global Scale Rating
FIBRIA CELULOSE: Moody's Revises 'Ba1' Corp Family Rating Outlook
C A Y M A N I S L A N D S
ABSOLUTE RETURN: Shareholders Receive Wind-Up Report
AEOLUS FUND II: Shareholder Receives Wind-Up Report
ALMAL CAPITAL: Shareholders Receive Wind-Up Report
ALMAL PRIVATE: Shareholders Receive Wind-Up Report
AXIO HEDGE: Shareholder Receives Wind-Up Report
BLACKSTONE AQUAMARINE: Shareholders Receive Wind-Up Report
BLACKSTONE C OFFSHORE: Shareholders Receive Wind-Up Report
BLACKSTONE CD OFFSHORE: Shareholders Receive Wind-Up Report
BLACKSTONE MTCS: Shareholders Receive Wind-Up Report
BLACKSTONE PS: Shareholders Receive Wind-Up Report
BLACKSTONE Z OFFSHORE: Shareholders Receive Wind-Up Report
EAST LANE: Shareholder Receives Wind-Up Report
EAST LANE RE II: Shareholder Receives Wind-Up Report
JPMORGAN ALTERNATIVE: Shareholders Receive Wind-Up Report
JULIUS BAER: Shareholders Receive Wind-Up Report
KOHINOOR SERIES: Shareholders Receive Wind-Up Report
LB MWB: Shareholders Receive Wind-Up Report
SOCRATE INVESTMENTS: Members Receive Wind-Up Report
SSF III FATHER: Shareholders' Final Meeting Set for Jan. 23
SSF III YZ: Shareholders' Final Meeting Set for Jan. 23
C H I L E
AUTOMOTORES GILDEMEISTER: Fitch Rates US$10MM Sr. Notes at 'BB'
AUTOMOTORES GILDEMEISTER: Moody's Gives 'Ba1' Rating to Sr. Notes
C O L O M B I A
* COLOMBIA: MIF to Fund US$1.5MM Project for SME Improvement
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Moody's Gives Updates on 'B1' LT Ratings
M E X I C O
EMPRESAS ICA: Moody's Lowers Ratings to 'B1'; Outlook Stable
SAGICOR LIFE: S&P Affirms 'BB+' Rating on US$150MM Obligations
VITRO SAB: U.S. Court Allows Units to Support Restructuring
T R I N I D A D & T O B A G O
CL FINANCIAL: Payments to Begin in 1st Quarter, May Reach US$5BB
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
ALTO PARANA: Moody's Affirms 'Ba3' Corporate Family Rating
----------------------------------------------------------
Moody's Latin America revised the outlook for Alto Parana's Baa2-
rated US$270 million fully guaranteed notes to negative from
stable. At the same time, Moody's affirmed Alto Parana's Ba3
global local currency corporate family rating and the Aaa.ar
national scale rating. The outlook for these ratings remains
stable.
Ratings Rationale
The outlook revision for the Baa2 guaranteed debt rating reflects
the change in outlook to negative for the Baa2 rating of the
parent guarantor, Arauco, and reflects Arauco's weakening
operational performance due to deterioration in the pulp
industry's fundamentals globally. The outlook has diminished due
to the weakening in pulp prices amid significant expansion plans
for hardwood pulp in South America over the next few years (+8
million tons of new capacity expected between 2013-2016 although
some of this new capacity may ultimately be delayed)
The Ba3 corporate family rating considers the company's modest
scale and limited geographical diversification as the company's
assets are located primarily in Argentina as well as risks
associated with the country's operating environment. The rating
also considers Alto Parana's commodity-oriented product mix,
which is exposed to cyclical pulp prices. The company's dominant
position in the domestic pulp/forestry market is considered a
credit positive. The Ba3 corporate family rating incorporates a
two-notch rating uplift to the company's standalone credit
profile provided by the implicit support from Arauco.
Alto Parana's corporate family ratings could see upward pressure
if the operating framework led to a more stable and predictable
performance for the company and a demonstrated ability to
effectively manage the current downturn. Quantitatively,
retained cash flow to debt above 25% (21.1% as of LTM 09-11) and
debt to EBITDA below 1.5 times (2.0 as of LTM 09-11) could result
in upward rating pressure.
On the other hand, a significant decline in operating performance
or liquidity and persistent negative free cash flow could
negatively impact Alto Parana's outlook and/or ratings. Alto
Parana's corporate family ratings could also be lowered if its
dividend payments or potential acquisition activities were to
result in weaker debt protection measures.
Alto Parana is the largest forestry company in Argentina. It is
engaged in the production of pulp, forestry, wood and chemical
products and the management of forestry assets. Industrial
plants are located in the province of Misiones, Buenos Aires and
Santa Fe. Alto Parana manufactures whitened long fiber
cellulose, wood paper pulp, sawn timber, panels and chemistry
products. Alto Parana is a company controlled by Industrias
Forestales, a corporation belonging to Arauco Group, a Chilean
company, engaged primarily in the production of pulp, wood
products, and the management of forestry assets in Chile,
Argentina, Uruguay and Brazil.
ANDBRAVA SRL: Calls for Bankruptcy Proceedings
----------------------------------------------
Andbrava SRL called for bankruptcy proceedings.
The company has defaulted on its payments last Dec. 22, 2011.
CLUB DEL VINO: Requests Opening of Bankruptcy Proceedings
---------------------------------------------------------
Club del Vino SA requested the opening of bankruptcy proceedings.
DALVE SRL: Creditors' Proofs of Debt Due Feb. 15
------------------------------------------------
Juan Carlos Gabriel Toledo, the court-appointed trustee for Dalve
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Feb. 15, 2012.
Mr. Toledo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 46, 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:
Juan Carlos Gabriel Toledo
Paraguay 729
HOGAR DEL SOL: Creditors' Proofs of Debt Due Feb. 23
----------------------------------------------------
Carlos Enrique Wolff, the court-appointed trustee for Hogar del
Sol SRL's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Feb. 23, 2012.
Mr. Wolff will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 14 in Buenos Aires, with the assistance of Clerk No.
27, 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 Enrique Wolff
Virrey del Pino 2354
Argentina
JAER SRL: Creditors' Proofs of Debt Due April 24
------------------------------------------------
Ariel Marsili, the court-appointed trustee for Jaer SRL's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until April 24, 2012.
Mr. Marsili will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 37, 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:
Ariel Marsili
Lambare 1162
Argentina
MAXIWORLD SA: Creditors' Proofs of Debt Due April 10
----------------------------------------------------
Maximiliano Ezequiel Aquilino, the court-appointed trustee for
Maxiworld SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until April 10, 2012.
Mr. Aquilino will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 37, 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:
Maximiliano Ezequiel Aquilino
Montevideo 571
Argentina
PLAMA SA: Applied for Bankruptcy Protection
-------------------------------------------
Plama SA applied for bankruptcy protection.
The company has defaulted on its payments last June 30, 2009.
* BUENOS AIRES: Moody's Assigns '(P)B3' Currency Ratings
--------------------------------------------------------
Moody's Latin America has assigned a rating of A3.ar (Argentina
National Scale) to the Province of Buenos Aires' 2012 Short-Term
Treasury Note Program. At the same time, Moody's Investors
Service has also assigned foreign and local currency ratings of
(P)B3 (Global Scale) to this program. The ratings are in line
with the province's long term issuer ratings.
Ratings Rationale
The Short-Term Treasury Note Program has been authorized by the
province's 2012 Budget Law 14331. The treasury notes, which will
be backed by transfers from the Government of Argentina (B3,
stable) under a tax-sharing agreement and sold under a Dutch
auction scheme, will mature within a period of 365 days. The
maximum authorized amount to be issued under the program is
ARS2.5 billion, or its equivalent in foreign currency, which
represents around 4.3% of the province's net direct and indirect
debt as of September 2011 and 2.7% of total revenues estimated
for 2011.
According to the calendar approved by Resolution 214/11 of the
provincial treasury, Buenos Aires is expecting to launch
seventeen tranches under the program in 2012, the first of which
is scheduled for January 11.
The assigned ratings, which are in line with those assigned to
the ST Treasury Note Programs of 2010 and 2011, reflect Moody's
view that the willingness and capacity of the Province of Buenos
Aires to honor short-term treasury notes is in line with the
province's long-term credit quality as captured in the B3/A3.ar
issuer ratings.
The ratings reflect the economic uncertainty and cost pressures
facing the province, reflected in structural fiscal imbalances
and weaker financial performance since 2005. While Buenos Aires
benefits from a diversified economy, which represents roughly 35%
of national output, the ratings also take into account the
financial dependence on the federal government, including the
importance of federal transfers on the provinces' revenue stream
as well as federal debt financing to help pay off debt
maturities. This consideration links Buenos Aires' credit quality
to that of the central government.
The ratings are also constrained by the operating environment for
regional and local governments in Argentina, which is
characterized by a GDP per capita that is high for a developing
country, very high GDP volatility, and a very low ranking on the
World Bank's Government Effectiveness Index, indicating a high
level of systemic risk.
This environment is wed to an institutional framework under which
regional and local governments carry significant responsibility
for public services while nearly all rely heavily on federal
automatic transfers of the tax share regime, suggesting a low
level of fiscal flexibility in relation to revenue.
===============
B A R B A D O S
===============
REDJET: Needs US$8-Mil. Injection to Continue Operations
--------------------------------------------------------
RJR News reports that Airone Caribbean/Airone Ventures Limited
(Redjet) has been forced to cancel flights over the next 11
weeks, after an aggressive expansion in recent months.
Redjet said it needs US$8 million dollar injection to continue
operations, according to RJR News.
RJR News, citing Caribbean Media Corporation, notes that it is in
possession of an internal memo from RedJet that revealed Customer
Service Manager Roy Norville advising staff that 56 flights "will
not be operating and have been taken off sale for commercial
reasons."
RJR News notes that flights will be cancelled as early as next
week.
The report discloses that the company's action will affect four
routes, two of which service Jamaica.
Friday flights from Barbados to Jamaica and back to Barbados will
be cancelled from January 20 to March 31; and flight from
Trinidad to Jamaica and back to Trinidad, which operates on
Sundays, will be cancelled from January 22 to March 31, RJR News
relays.
The report says that other affected routes are Barbados to Guyana
and back to Barbados, on Mondays and Thursday's, from January 16
to March 31, flight from Trinidad to Guyana and back to Trinidad
on Mondays will also be affected during that period.
RJR News recalls that RedJet investors hinted in November that
the cancellations would have taken place because US$8 million
that was invested for operating expenses in the initial months of
the business had to be used otherwise.
It was said at the time that investors in Redjet were unwilling
to put money into the venture, "as they were fed up with the way
their investment had been treated by the Barbados government,"
RJR News adds.
REDjet (Airone Caribbean/Airone Ventures Limited) is a startup
low-cost carrier (LCC) based at the Grantley Adams International
Airport in Christ Church, Barbados, near Bridgetown. The
privately-owned airline, incorporated in Barbados features a
fleet of McDonnell Douglas MD-82 and MD-83 aircraft.
===========
B R A Z I L
===========
BANCO CRUZEIRO: Moody's Places All Ratings for Possible Downgrade
-----------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade all ratings assigned to Banco Cruzeiro do Sul S.A.
(BCSul), including the D- bank financial strength rating (BFSR),
as well as the long-term global local and foreign currency
deposit ratings of Ba3 and the long-term Brazilian national scale
deposit rating of A3.br. The bank's long-term foreign currency
senior unsecured debt rating of Ba3, and the subordinated debt
rating of B1 were also placed on review.
The action follows the announcement that BCSul has signed an
agreement of intent to acquire 88.7194% of total shares of Banco
Prosper S.A. (Prosper, unrated) for approximately R$55 million.
The acquisition is subject to a due diligence process by BCSul
and to regulatory approval.
The following ratings assigned to Banco Cruzeiro do Sul were
placed on review for possible downgrade:
Bank Financial Strength Rating: D-
Long-term Global Local Currency Deposit Rating: Ba3
Long-term Foreign Currency Deposit Rating: Ba3
Long-term Foreign Currency Senior Unsecured Debt Rating: Ba3
Long-term Foreign Currency Subordinated Debt Rating: B1
Long-term Brazilian National Scale Deposit Rating : A3.br
Ratings Rationale
According to Moody's, the review process will assess the effect
that the acquisition of Banco Prosper -- if indeed completed --
could have on BCSul's franchise and financial performance.
Although small in size and market relevance, the announced
acquisition of Prosper's operations -- which are largely focused
on commercial lending appears to have limited benefit to BCSul's
specialized payroll business franchise.
Moody's noted that the review will focus on the extent to which
BCSul's already challenged liquidity profile, profitability and
capital position, which triggered the ratings downgrade in
November 2011, could be further affected by the acquisition of
Banco Prosper, a bank that has reported weak capitalization and
losses for the past two years. In addition, the transaction is
expected to be paid with BCSul cash resources, and will
potentially require R$100 million in capital injection , with
potential impact on the bank's current liquidity position.
The last rating action on Banco Cruzeiro do Sul S.A. occurred on
November 18, 2011 when Moody's downgraded all ratings and placed
all ratings on negative outlook.
Based in Sao Paulo, Banco Cruzeiro do Sul S.A. had total assets
of approximately R$9.89 billion (US$5.41 billion) and equity of
R$1.19 billion (US$649 million) as of September 30, 2011.
BRAZILIAN FINANCE: Fitch Affirms Local Currency IDR at 'B'
----------------------------------------------------------
Fitch Ratings has affirmed the ratings of Brazilian Finance &
Real Estate S.A. (BFRE) and its subsidiaries as follows:
BRFE:
-- Foreign and Local Currency IDR (Issuer Default Rating)
at 'BB-'; Outlook Stable;
-- Short-Term Foreign and Local Currency IDR at 'B';
-- Long-Term National Rating at'A-(bra)'; Outlook Stable;
-- Short-Term National Rating at 'F2(bra)'.
Brazilian Securities Companhia de Securitizacao (BS):
-- Foreign and Local Currency IDR (Issuer Default Rating) at
'BB-'; Outlook Stable;
-- Short-Term Foreign and Local Currency IDR at 'B';
-- Long-Term National Rating at 'A-(bra)', Outlook Stable;
-- Short-Term National Rating at 'F2(bra)';
-- 1st Issuance of Debentures, in the amount of BRL60 million
due October 2014 ;
-- Long-Term National Rating at 'A-(bra)'.
Brazilian Mortgages Companhia Hipotecaria (BM):
-- Foreign and Local Currency IDR (Issuer Default Rating) at
'BB-'; Outlook Stable;
-- Short-Term Foreign and Local Currency IDR at 'B';
-- Long-Term National Rating at 'A-(bra)'; Outlook Stable;
-- Short-Term National Rating at 'F2(bra)'.
The ratings' affirmation of BFRE reflects the group's strong
experience in the real estate financial market chain in Brazil,
its experienced and conservative team, and the well-identified
and controlled risks. The ratings also consider BFRE's good
credit quality and satisfactory performance. However, they also
factor the concentration in the real estate market and reliance
on institutional funding.
The ratings could be negatively impacted by credit quality
deterioration, which Fitch believes is unlikely, over the medium
term. In addition, strong outflows of third-party funds under
management and certificates of real estate receivables (CRIs)
issued could also damage the group's image and its access to
institutional funding.
On Dec. 28, 2011, BFRE announced that it was negotiating the sale
of the company and its subsidiaries to Banco Panamericano S.A.
(BP, national rating 'AA-[bra]') and one of its owners, Banco BTG
Pactual S.A. (BTG Pactual, LT IDR 'BBB-'). In Fitch's opinion,
this operation should benefit BFRE, given its complementary
activities with the new shareholders, lower funding costs and
potentially better results.
After receiving the details of the transaction, Fitch will review
the impact of the transaction on BFRE, BP and BTG Pactual. The
analysis will focus on consolidated debt levels, capitalization
and expected synergies of the transaction. Also, the agency will
analyze the strategic importance of the acquired entities.
Definitive documents of the transaction and pro-forma financial
information are expected to be fully disclosed in February. The
proposed transaction must still be approved by all shareholders
and relevant regulatory bodies.
According to preliminary information, BP will receive a capital
infusion from its shareholders for up to BRL1.8 billion to
conclude this transaction. Also, BP relies upon a credit
facility totaling BRL10 billion from Caixa Economica Federal
(national rating 'AAA[bra]' by Fitch).
BFRE group is a provider of financial services, with exclusive
focus on the real estate sector in Brazil. The main activities
developed by BFRE are construction financing for real estate
developers and constructors and real estate credit for the
acquisition of residential and commercial properties for
individuals through BM, besides the acquisition and issuance of
real estate receivables by BS. This is the largest
securitization company in Brazil, with a market share of around
31% in the local market. BFRE group is controlled by Ourinvest
Real Estate Holding S.A., with 70.56% of the voting shares and
34% of the total capital. The remainder belongs to two
international investors.
ENERGISA S.A.: Moody's Maintains 'Ba2' Global Scale Rating
----------------------------------------------------------
Moody's Investors Service has upgraded Energisa S.A. Corporate
Family Rating from A1.br to Aa3.br while maintaining its global
scale rating of Ba2. The outlook remains stable for both
ratings.
The last rating action on ENERGISA was taken on Jan. 12, 2011,
when Moody's assigned a Ba2 rating with a stable outlook to the
US$ 200 million perpetual hybrid bond issued by the Company.
Ratings Rationale
Moody's has upgraded ENERGISA on the Brazilian national rating
scale based on the Company's solid credit metrics, strong
electricity sales growth in the concession areas in the States of
Paraiba and Sergipe, healthy liquidity position, and the stable
cash flows derived from the electricity distribution business.
ENERGISA's stable rating outlook reflects Moody's opinion that
the Company will continue to produce solid credit metrics for the
rating category assigned; the mix of business will remain largely
focused on electricity distribution, while the increase in the
generation business will be achieved through renewable energy
sources, as contemplated by the current investment program; the
corporate risk management policies, which were implemented in
early 2009 and updated in February 2011, will continue to reduce
cash flow and earnings volatility; and the Company will be able
to secure financing at adequate terms to fund its generation
projects.
ENERGISA's fairly sizeable capital expenditure program, which
will increase ENERGISA's participation in the unregulated
electricity generation business, is currently a constraint on the
ratings. Over the next three years, ENERGISA plans to invest
around BRL1.3 billion mainly to expand its generation business,
meet performance targets set by the regulator for its
distribution business, and reduce energy losses. Approximately
BRL 550 million are being invested in the construction of five
wind farms with an installed capacity of 150 MW scheduled to come
on-line in September 2013. ENERGISA's generation projects have
been declared eligible for long-term financing from the Brazilian
National Development Bank (BNDES). ENERGISA is currently
negotiating with BNDES the terms of the financing. Once these
generation projects become operational, Moody's estimates that
the distribution business will still represent more than 75% of
the consolidated cash flow.
Additional constraints on ENERGISA's ratings are the evolving
Brazilian regulatory framework, and the past volatility of its
financial performance resulting from derivative transactions
entered into in 2009 and in early 2010; however, Moody's has
confirmed that ENERGISA's current hedging and financial policies
are expected to prevent future volatility of financial results.
In light of the November 2010 upgrade of ENERGISA's CFR and the
current large capital investment program, near-term prospects of
a rating upgrade on the global scale are somewhat limited. The
rating could be downgraded if: (i) the Company is not able to
secure the financing for its generation projects at adequate
terms; (ii) material delays in the construction of the generation
projects are incurred which negatively impact cash flow and
costs; and/or (iii) the Company chooses to finance its growth
strategy with higher than anticipated leverage. Quantitatively, a
downgrade could result if the ratio of retained cash flow to debt
were to drop below 10%, and its cash flow interest coverage falls
below 2.5x for an extended period.
Energisa, based in Cataguases, Minas Gerais, is a holding company
that controls five electricity distribution utilities in four
Brazilian states (Paraiba, Sergipe, Minas Gerais and Rio de
Janeiro), serving approximately 2.4 million consumers. In the
first nine months of 2011, ENERGISA distributed 7,355.1 GWh, an
increase of 9.9% over the same period in 2010. In the twelve-
month period ended September 30, 2011, ENERGISA posted net sales
of BRL 2,080 million (US$1,261 million), operating profit of BRL
373 million (US$226 million), and net profit of BRL 199 million
(US$121 million). ENERGISA is listed on the Brazilian stock
market (BM&FBOVESPA), and is controlled by the Botelho family.
FIBRIA CELULOSE: Moody's Revises 'Ba1' Corp Family Rating Outlook
-----------------------------------------------------------------
Moody's Investors Service has revised the rating outlook of
Fibria Celulose S.A.to stable from positive and affirmed the
long-term ratings, including its Ba1 Corporate Family Rating.
Existing ratings:
Issuer: Fibria Celulose S.A.
- Corporate Family Rating: Ba1 (global scale); Aa2.br (Brazilian
national scale)
Issuer: Fibria Overseas Finance Ltd (Cayman Islands)
- US$750 million senior unsecured guaranteed global bonds due
2021: Ba1 (foreign currency)
- US$1.87 billion senior unsecured guaranteed notes due 2020:
Ba1 (foreign currency)
- US$63 million senior unsecured guaranteed notes due 2019: Ba1
(foreign currency)
The outlook for all ratings is stable.
Ratings Rationale
The change in outlook to stable reflects weakening operational
performance due to the deterioration in the industry's
fundamentals globally as well as the impact of the recent
domestic currency (Real) depreciation on leverage metrics, which
led to a net loss in 3Q11. The outlook has diminished due to the
further weakening in pulp prices amid significant expansion plans
for pulp in South America over the next few years (+8 million
tons of new capacity expected between 2013-2016 although some of
this new capacity may ultimately be delayed). Higher leverage
and weaker operating results led Fibria to postpone the decision
on capacity expansion at the Tres Lagoas mill until the end of
2012, which is expected to gradually bring leverage to levels
more commensurate with the Ba1 rating while maintaining healthy
liquidity.
Fibria's Ba1 rating reflects the company's leading position as
the world's largest producer of market pulp, its extremely
competitive production costs which are among the lowest worldwide
based on its structural cost advantages when compared with
international peers, including self-sufficiency in wood fiber and
electricity and efficient logistics. Revenues are largely
generated under long-term supply contracts that support stable
sales volume with good geographic diversification. Fibria's low
product diversity and its relative small size when compared with
global peers as measured by net revenues are constraining factors
for its rating. Operational diversity is good with pulp
production spread over four plants, although 69% of capacity is
concentrated in two site locations. Additionally, the Ba1 rating
incorporates the benefit from the ownership by and expected
support from Votorantim Participacoes S.A. (Baa3, outlook stable)
due to existing cross default provisions in part of Votorantim's
outstanding debt. Also, Moody's view of Fibria's strong
ownership considers the fact that the Brazilian Development Bank
BNDES (A3, outlook stable) is currently its largest individual
shareholder through its subsidiary BNDES Participacoes S.A. (A3,
outlook stable) with 30.4% of Fibria's voting and total capital,
and a major lender to the company.
The company's liquidity profile is adequate, supported by its BRL
2 billion in cash as of September 2011. Moody's expects Fibria
will continue to be free cash flow positive in 2012 and will
continue to have ample access to pre-export financing in support
of the maintenance of adequate liquidity. Moody's also expects
Fibria will proactively manage its compliance levels as leverage
covenants will tighten. Current covenants under existing debts
totaling some BRL 2.5 billion set maximum leverage expressed by
Net Debt to EBITDA at 4.25 x as of September 2011, going down to
4.0x as of December 2011 (4.2x reported as of LTM ended Sep. 30,
2011). Also, Moody's believes that the Brazilian Development
Bank - BNDES will continue to finance a substantial portion of
Fibria's capital spending.
The ratings could be upgraded if Fibria manages to reduce
leverage as measured by Total Adjusted Debt to Adjusted EBITDA
approaching 3x (4.6x as of LTM ended Sept. 30, 2011) together
with Retained Cash Flow (defined as Funds From Operations less
Dividends) less Capex to Total Adjusted Debt above 12% on a
consistent basis (5.4% as of LTM ended Sept. 30, 2011).
Downgrade pressure on the ratings would result if Fibria is
unable to continue to delever, or experiences a deterioration in
liquidity. Also, a deterioration of VPAR's credit quality could
negatively impact Fibria's ratings. A substantial increase in
secured debt could negatively affect the senior unsecured notes
rating. Negative rating pressure would arise should Total
Adjusted Debt to Adjusted EBITDA stay above 4.5x consistently in
the upcoming quarters together with Retained Cash Flow (defined
as Funds From Operations less Dividends) less Capex to Total
Adjusted Debt below 5% on a consistent basis (5.4% as of LTM
ended Sept. 30, 2011), and Adjusted EBITDA to Interest expenses
below 2.5x (2.9x as of LTM ended September 2011) on a consistent
basis. All credit metrics are adjusted according to Moody's
standard adjustments and definitions.
Fibria Celulose S.A. is the largest producer of market pulp in
the world, with pulp capacity of 5.25 million tons/year. In the
LTM ended Sept. 30, 2011, Fibria reported consolidated net
revenues of BRL 6.0 billion (approximately US$ 3.7 billion
converted by the average foreign exchange rate).
===========================
C A Y M A N I S L A N D S
===========================
ABSOLUTE RETURN: Shareholders Receive Wind-Up Report
----------------------------------------------------
The shareholders of The Absolute Return Fund Limited received on
Jan. 6, 2012, 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
c/o Jennifer Chailler
Telephone: (345) 814 6847
AEOLUS FUND II: Shareholder Receives Wind-Up Report
---------------------------------------------------
The shareholder of Aeolus Fund II Master Fund, Ltd. received on
Dec. 28, 2011, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ogier
c/o Susan Taber
Telephone: (345) 815-1889
Facsimile: (345) 949-9877
ALMAL CAPITAL: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Almal Capital Ltd. received on Jan. 6, 2012,
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
c/o Jennifer Chailler
Telephone: (345) 814 6847
ALMAL PRIVATE: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Almal Private Equity GP Ltd. received on
Jan. 6, 2012, 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
c/o Jennifer Chailler
Telephone: (345) 814 6847
AXIO HEDGE: Shareholder Receives Wind-Up Report
-----------------------------------------------
The shareholder of Axio Hedge Fund SPC received on Dec. 28, 2011,
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ogier
c/o Kim Smith
Telephone: (345) 949-9876
Facsimile: (345) 949-9877
BLACKSTONE AQUAMARINE: Shareholders Receive Wind-Up Report
----------------------------------------------------------
The shareholders of The Blackstone Aquamarine Fund Ltd. received
on Jan. 4, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Samuel A.D. Young
Cayman Corporate Centre
27 Hospital Road George Town
Grand Cayman KY1-1109
Cayman Islands
BLACKSTONE C OFFSHORE: Shareholders Receive Wind-Up Report
----------------------------------------------------------
The shareholders of Blackstone C Offshore Fund Ltd. received on
Jan. 4, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Samuel A.D. Young
Cayman Corporate Centre
27 Hospital Road George Town
Grand Cayman KY1-1109
Cayman Islands
BLACKSTONE CD OFFSHORE: Shareholders Receive Wind-Up Report
-----------------------------------------------------------
The shareholders of Blackstone CD Offshore Fund Ltd. received on
Jan. 4, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Samuel A.D. Young
Cayman Corporate Centre
27 Hospital Road George Town
Grand Cayman KY1-1109
Cayman Islands
BLACKSTONE MTCS: Shareholders Receive Wind-Up Report
----------------------------------------------------
The shareholders of Blackstone MTCS Offshore Fund Ltd. received
on Jan. 4, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Peter M.O. Young
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-1109
Cayman Islands
BLACKSTONE PS: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Blackstone PS Offshore Fund Ltd. received on
Jan. 4, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Samuel A.D. Young
Cayman Corporate Centre
27 Hospital Road George Town
Grand Cayman KY1-1109
Cayman Islands
BLACKSTONE Z OFFSHORE: Shareholders Receive Wind-Up Report
----------------------------------------------------------
The shareholders of Blackstone Z Offshore Fund Ltd. received on
Jan. 4, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Samuel A.D. Young
Cayman Corporate Centre
27 Hospital Road George Town
Grand Cayman KY1-1109
Cayman Islands
EAST LANE: Shareholder Receives Wind-Up Report
----------------------------------------------
The shareholder of East Lane Re Ltd. received on Jan. 9, 2012,
the liquidators' report on the company's wind-up proceedings and
property disposal.
The company's liquidators are:
Dena Thompson
Laura McLaughlin
Telephone: 914-2267 / 914-2264
Facsimile: 949-6021
PO Box 10233 171 Elgin Avenue, George Town
The Pavilion Building, Cricket Square
Grand Cayman KY1 -1002
Cayman Islands
EAST LANE RE II: Shareholder Receives Wind-Up Report
----------------------------------------------------
The shareholder of East Lane RE II Ltd. received on Jan. 9, 2012,
the liquidators' report on the company's wind-up proceedings and
property disposal.
The company's liquidators are:
Dena Thompson
Laura McLaughlin
Telephone: 914-2267 / 914-2264
Facsimile: 949-6021
PO Box 10233 171 Elgin Avenue, George Town
The Pavilion Building, Cricket Square
Grand Cayman KY1 -1002
Cayman Islands
JPMORGAN ALTERNATIVE: Shareholders Receive Wind-Up Report
---------------------------------------------------------
The shareholders of JPMorgan Alternative Investment Strategies
SPC, Ltd. received on Jan. 6, 2012, the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
JULIUS BAER: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Julius Baer Alternative Balanced Index Fund
Ltd received on Dec. 30, 2011, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Ian Stokoe
c/o Aaron Gardner
Telephone: (345) 914 8655
Facsimile: (345) 945 4237
PO Box 258 Grand Cayman KY1-1104
Cayman Islands
KOHINOOR SERIES: Shareholders Receive Wind-Up Report
----------------------------------------------------
The shareholders of Kohinoor Series Two Fund received on Jan. 6,
2012, 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
c/o Jennifer Chailler
Telephone: (345) 814 6847
LB MWB: Shareholders Receive Wind-Up Report
-------------------------------------------
The shareholders of LB MWB Holdings Ltd. received on Jan. 6,
2012, 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
c/o Jennifer Chailler
Telephone: (345) 814 6847
SOCRATE INVESTMENTS: Members Receive Wind-Up Report
---------------------------------------------------
The members of Socrate Investments Limited received on Dec. 30,
2011, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Buchanan Limited
P.O. Box 1170
George Town, Grand Cayman
Cayman Islands
SSF III FATHER: Shareholders' Final Meeting Set for Jan. 23
-----------------------------------------------------------
The shareholders of SSF III Father Holdings, Ltd. will hold their
final meeting on Jan. 23, 2012, 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:
Ogier
c/o Madeleine Welham
Telephone: (345) 815-1750
89 Nexus Way Camana Bay
Grand Cayman KY1-9007
Cayman Islands
SSF III YZ: Shareholders' Final Meeting Set for Jan. 23
-------------------------------------------------------
The shareholders of SSF III YZ Holdings, Ltd. will hold their
final meeting on Jan. 23, 2012, 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:
Ogier
c/o Madeleine Welham
Telephone: (345) 815-1750
89 Nexus Way Camana Bay
Grand Cayman KY1-9007
Cayman Islands
=========
C H I L E
=========
AUTOMOTORES GILDEMEISTER: Fitch Rates US$10MM Sr. Notes at 'BB'
---------------------------------------------------------------
Fitch Ratings rates the reopening of the 2021 senior notes of
Automotores Gildemeister S.A.'s (GA) issuance of up to US$100
million 'BB (exp)'. The reopening carries the same rating as the
original deal (US$300 million senior notes due in 2021).
Proceeds from the proposed reopening are expected to be used to
refinance existing short term debt.
Fitch currently rates AG as follows:
-- Foreign currency Issuer Default Rating (IDR) 'BB';
-- Local currency IDR 'BB';
-- US$300 million senior notes due in 2021 'BB'.
The Rating Outlook is Stable.
AG's credit ratings reflect the company's solid business position
in the automobile distribution and retailing industry within
Chile and Peru with market shares of 11.8% and 15.6%,
respectively, by the end of September 2011. They also take into
consideration the company's unique business model, which has
resulted in EBITDAR margins of about 14% during the LTM period
ended in September 2011. Further considered in the ratings was
the company's strong performance during 2009, a period of high
stress in the market, and the favorable outlook for vehicle
demand in Chile and Peru.
The company benefits from the strong brand recognition of the
vehicles it sells. Hyundai is the most important brand sold and
distributed by the company, accounting for approximately 70% of
AG's revenues. The ratings also reflect AG's ability to
withstand competitive pressures based upon its market position as
the company is the third largest auto distributor in Chile and
the second most important importer and distributor in Peru.
The ratings are constrained by the cyclicality of AG's business,
moderate leverage, negative FCF, and limited product
diversification. The latter factor exposes the company to
reputation risk associated with the Hyundai brand. The
automobile business is AG's core business, generating
approximately 90% of its total revenues. The company's
geographic diversification is somewhat limited, as Chile
represents about 70% of revenues, while Peru accounts for the
remaining 30% of revenues. In addition to this geographic risk,
the AG's brand mix is highly dependent of Hyundai products.
The Stable Outlook reflects Fitch's view that AG will continue to
deliver strong operating results based due to its solid market
position. The Stable Outlook also factors in the expectation
that the company's gross adjusted leverage, measured by the total
adjusted debt to EBITDAR ratio, will remain stable around 3 times
(x) and that the company will maintain an adequate liquidity and
manageable debt profile during the short and medium term.
Favorable Macroeconomic-driven Sales Environment:
The ratings consider the business outlook for the company's main
markets, Chile and Peru. In both markets, the demand for new
cars has been trending positive during the last years. After
growing 5.2% in 2010, the Chilean economy is forecast to post
growth rates of 6% and 3.7% during 2011 and 2012, respectively.
The Peruvian economy grew 8.8% during 2010, and it is expected to
grow by 6.3% and 5.5% during 2011 and 2012, respectively.
The number of new cars sold per year in Chile increased from
182,000 to 289,280 between 2005 and 2010 (a compounded average
growth rate (CAGR) of 10%), and it was 339,540 for the LTM period
ended in September 2011. In the case of Peru, the numbers of new
cars sold per year increased from 21,000 to 102,164 between 2005
and 2010, reflecting a CAGR of 37%, and it was 119,540 during LTM
September 2011. This trend is expected to continue during the
medium term. For 2012, the Peruvian market should reach solid
growth rates in the 20% to 25% range, while the Chilean market
should reach a more moderate growth in the 4% to 4.5% range.
Operational Results Trending Positive Driven by Higher Volume:
AG's total revenues and EBITDAR for LTM September 2011 reached
levels of US$1.3 billion (CHP621,926 million) and US$183 million
(CHP86,983 million), respectively, representing increases in
revenue and EBITDAR of approximately 30% and 49% in US$ over
those levels reached in 2010, driven primarily by solid increase
in volume. For LTM period September 2011, calculations consider
end of period and average exchange rates of CHP520.2 and CHP475.7
per US$, respectively.
In Chile, the number of passenger and light commercial vehicles
sold by the company increased from 27,805 units to 37,683 from
2009 to 2010, while it was 39,880 during LTM September 2011. In
Peru, passenger and light commercial vehicles sold increased from
10,312 units to 16,218 units, a 57% increase between 2009 and
2010, and it was 20,184 during LTM September 2011. The company's
number of passenger and light commercial vehicles sold for full
2011 in Chile and Peru are expected to be around 40,500 and
21,000, respectively.
Adequate Liquidity, Improving with Proposed Reopening:
AG will improve its liquidity and financial flexibility with the
proposed transaction. The company rebuilt its liquidity during
2011 with the proceeds from the US$300 million senior notes
completed during the first half of 2011. At the end of September
2011, the company had US$135 million of cash (US$60 million as of
December 2010) and US$102 million of short-term debt (US$154
million as of December 2010). The company's short-term debt is
expected to be around US$185 million by the end of 2011. With
the proposed reopening of up to US$100 million the company will
reduce a significant portion of its short term debt further
improving its debt payment schedule. The ratings reflect Fitch's
expectation that the company's cash position will remain in the
US$100 million - US$120 million range and short-term in the US$50
million to US$70 million range during the 2012-13 period.
Gross Adjusted Leverage Stable around 3x:
AG had US$520 million (CHP270,412 million) of total adjusted debt
by the end of September 2011. This debt consists of US$416
million of on-balance debt -- including the US$300 million senior
notes due in 2021 - and US$114 million of off-balance lease
adjusted debt -- calculated as 7x annual rental expenses of
US$16.3 million.
AG's total adjusted leverage, as measured by total adjusted debt
versus total EBITDAR was 2.8x (in US$) during LTM September 2011.
This ratio compares favorably with leverage ratios of 3.6x and
6.0x in 2010 and 2009, respectively. The decline in the
company's gross adjusted leverage was primarily driven by the
improvement in the company's cash flow generation, measured as
EBITDAR, which increased to US$183 million (CHP86,983 million)
during LTM September 2011 from US$123 million (CHP62,493 million)
during 2010. The improvement in the company's EBITDAR during LTM
September 2011 was primarily driven by solid increase in units
sold in both markets. The ratings incorporate the expectation
that the company's gross adjusted leverage will remain stable
around 3x in the short and medium term.
Negative FCF Driven by Business Growth, Manageable:
AG reached negative FCF of US$25.6 million during LTM September
2011. FCF calculation for period considers cash flow from
operations (CFFO) of US$64 million less capex and distributed
dividends of US$37.5 million and US$52.5 million, respectively.
The ratings factor in the expectation that the company's FCF will
be negative during 2011 and 2012. This negative trend in the
company's FCF is expected to be driven primarily by increase in
working capital needs as the business continues to grow. AG's
negative free cash flow is considered manageable and it is not
expected to negative affect the company's credit profile in the
medium term. The company's capex and distributed dividends
during 2012 are expected to remain at similar levels to those
reached during LTM September 2011.
The ratings factored in the expectation that AG will maintain
leverage and liquidity at the above-mentioned levels. Fitch will
view as a positive to credit quality that could trigger a
positive rating action a combination of the following factors:
continued business growth supported by a favorable macroeconomic-
driven sales environment in Chile and Peru, resulting in better
than expected improvement in cash flow generation (measured by
EBITDAR), coupled with lower gross adjusted leverage and solid
liquidity.
Factors that could lead to the consideration of a Negative
Outlook or downgrade include a combination of the following
factors: change in management's strategy with regard to the
financial leverage target, decline in sales volume due to a
deteriorating business and political environment, shareholder
friendly actions; and, events negatively affecting its reputation
with the Hyundai brand.
AUTOMOTORES GILDEMEISTER: Moody's Gives 'Ba1' Rating to Sr. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to the
reopening of the US$300 million of 8.25% senior unsecured notes
due May 24, 2021 issued by Automotores Gildemeister S.A. At the
same time, Gildemeister's Ba1 corporate family rating was
affirmed. The outlook for all ratings is stable. Proceeds of
the reopening, which is expected to be for up to US$100 million,
will be used in full to refinance short term debt and is part of
the company's liability management. The rating of the proposed
reopening assumes that the final transaction documents will not
be materially different from draft legal documentation reviewed
by Moody's and assume that these agreements are legally valid,
binding and enforceable.
Ratings Affirmed:
Gildemeister S.A.
-- Corporate Family Rating: Ba1
Ratings Assigned
-- Reopening of US$300-mil. proposed senior unsecured notes: Ba1
The outlook for all ratings is stable.
Ratings Rationale
"Gildemeister's Ba1 rating reflects Moody's expectation that the
company will be able to continue to benefit from the still
attractive fundamentals of the Chilean and Peruvian automotive
retail markets despite the deteriorating global economic outlook
and maintain its position as one of the leading automotive
distributors and retailers in its markets driven by the strong
consumer reception to Hyundai's current product offerings", said
Filippe Goossens, Senior Vice President and local market analyst
of Moody's. The ratings also incorporate the benefit of
Gildemeister's hybrid business model as both a distributor and
retailer of car brands which has resulted in above average
operating margins when compared to the traditional U.S. based
auto retailers and its ability to manage working capital as a
source of funding during periods of economic and financial stress
as evidenced in 2009", commented Filippe Goossens.
On the other hand, Gildemeister's rating is constrained by its
high dependence on the Hyundai brand, the cyclical nature of the
automotive industry, an aggressive capital expenditures program
which is expected to result in increased leverage and negative
free cash flow over the near term and weak corporate governance
standards partially reflecting its private ownership structure.
The negative free cash flow will keep the company dependent on
uncommitted working capital financing provided by local banks.
The senior unsecured notes which are issued by Automotores
Gildemeister S.A., the company's principal operating subsidiary
in Chile, do not benefit from an upstream guarantees from any of
its domestic or foreign subsidiaries.
The stable outlook reflects Moody's expectation that the company
will maintain its strong operating performance and be able to
restore the recent loss in market share due to shortage of
Hyundai vehicles as the manufacturer has certain popular brands
on allocation due to continued strong worldwide demand. The
stable outlook incorporates expectations that the company may
generate slightly negative free cash flow in the near term but
will improve its cash generation once the major capital projects
are completed. Similarly, Moody's expects leverage to trend to
around 3.0 times EBITDA.
Gildemeister, which was founded in 1986, is the sole distributor
and retailer of the Hyundai brand in Chile (since 1986) and Peru
(since 2001). Sales over the medium term are expected to remain
positive despite the uncertain global macro economic outlook on
still relative attractive fundamentals for Chile and Peru as well
as the low car ownership penetration rates particularly when
compared with more developed markets. Additionally, Moody's
expects Gildemeister to continue to benefit from a favorable
consumer response to most of the Hyundai product portfolio.
Gildemeister's business is rather unique in the automotive world
as it functions as importer, distributor, retailer and provider
of a number of services such as financing and insurance
brokerage, maintenance and the sale of both OEM and third-party
non-OEM spare parts. The low fixed cost associated with the
import and distribution business and the ability to act as a
price setter for the Hyundai brand in its markets are factors
contributing to the company's high EBITDA margins, which are well
above its U.S. based more traditional peers (for the year-to-date
period ending Sept. 30, 2011 Gildemeister posted a 14% EBITDA
margin as per Moody's definition, well above the low single digit
range posted by the U.S. retailers). While Moody's expects over
time that this margin may trend lower, Moody's does not believe
that Hyundai will materially change the terms of its relationship
with Gildemeister. The current contract with Hyundai, which
provides Gildemeister with an exclusivity is set to mature in
2013. So far, Gildemeister has been able to extend the contract
for periods of four years each, well above the standard two year
period for the industry. Despite the strong margin performance
and the expectation for a continued positive sales trend, free
cash flow is expected to be negative and leverage to increase
over the near term as Gildemeister has stepped up its capital
expenditures program (new HQ building and an expansion of its
spare parts warehouse) following the slowdown in the wake of the
global economic and financial crisis in 2008-2009.
Gildemeister is a family owned and controlled company. Through
Minvest, the Puntous, Lessman, and Baumann families, own
respectively 45%, 30% and 25% of the company. The board is
comprised of only three members which represents each of the
three families. No special committees or written policies are in
place to support the board in its duties. As such, Moody's deems
corporate governance to be weak and a negative ratings factor.
However, Moody's expects that the company will take steps to
improve its corporate governance such as implementing strict
financial policies -- the company has re-iterated that it plans
to limit short term debt to no more than 15% of total debt,
reduce dividend pay-out ratios to closer the minimum legally
required 30% and bring net non-adjusted debt to 2.5 times EBITDA
over the next twelve months.
The rating or outlook could be upgraded, although unlikely over
the near term, if Gildemeister makes significant additional
improvements in its corporate governance structure, is able to
maintain EBITDA margins above 13% despite its aggressive growth
initiatives, is able to generate consistently positive free cash
flow and is able to maintain adjusted leverage of less than 2.5
times.
Gildemeister's rating or outlook could be lowered if EBITDA
margins dropped below 10%, the company is unable to generate
positive free cash flow and if adjusted leverage increased to
more than 3.5 times for a twelve month period. The rating could
also be negatively affected to the extent the terms of the
exclusivity agreement with Hyundai were to be unfavorably
altered.
Gildemeister S.A., headquartered in Santiago, Chile, is one of
the largest importers and distributors in Chile and Peru
operating a network of company-owned and franchised vehicle
dealerships. Its principal car brand is Hyundai for which it is
the sole importer in both of its markets. During the last twelve
months ended in September 2011, Gildemeister reported
consolidated net revenues of Chilean Pesos 634.4 billion (about
US$1.2 billion converted by the average exchange rate).
===============
C O L O M B I A
===============
* COLOMBIA: MIF to Fund US$1.5MM Project for SME Improvement
------------------------------------------------------------
The Multilateral Investment Fund, in partnership with Banco de
Comercio Exterior de Colombia, S.A., will help strengthen the
venture capital industry in Colombia to pave the way for
increased access to finance for small and medium enterprises in
the country.
The US$1.5 million project will provide training to local fund
managers and institutional investors as well as facilitate
interaction and networking between SMEs and venture and private
equity funds to improve access to equity financing and create a
suitable public policy framework for investment to flourish in
Colombia.
"We expect that business initiatives in Colombia will not wither
on the vine, but rather blossom into viable companies through the
timely influx of funding," said Susana Garcˇa-Robles, the MIF
team leader. "In order to further the industry, the project
includes two innovative components: the creation of a Latin
American venture capital institute that will operate in Colombia
but train fund managers from across the region, and the creation
of the Colombian venture capital association."
By improving the ecosystem for venture capital and private equity
financing, this project will help Colombian entrepreneurs
overcome the hurdle of insufficient credit to develop and grow
their businesses, allowing the country to better take advantage
of its thriving environment for entrepreneurship to foster
economic growth and reduce poverty.
The project will be executed by Bancoldex, a state-owned
commercial bank with a mission to promote economic development
and contribute to the competitiveness of Colombian firms while
operating in a financially sustainable way.
About the MIF
Established in 1993 as part of the Inter-American Development
Bank Group, the Multilateral Investment Fund develops effective
approaches to support economic growth and poverty reduction
through private sector-led development in support of micro, small
and medium enterprises benefitting the poor -- their businesses,
their farms, and their households.
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Moody's Gives Updates on 'B1' LT Ratings
--------------------------------------------------------------
In its credit analysis on Dominican Republic, Moody's Investors
Service provides an updated assessment of its B1 long-term
ratings and stable outlook. The rating agency's report is an
update to the markets and does not constitute a rating action.
Moody's maintains the following ratings for Government of
Dominican Republic:
Long Term Issuer (domestic and foreign) ratings of B1
Senior Unsecured (foreign) B1
Ratings Rationale
The Dominican Republic's B1 sovereign rating reflects the
country's low economic, institutional, and government financial
strength, and moderate susceptibility to event risk.
Economic strength is assessed at low on a global basis due to the
relatively small size of the economy and income levels that
remain low despite a long history of strong, steady growth.
Weak institutional strength continues to constrain the rating as
well, notwithstanding recent and ongoing progress in this
respect, including strengthened bank supervision and effective
enforcement of prudential regulations, increasing transparency,
and the creation of a domestic market for government bonds.
While debt levels remain moderate relative to GDP, government
financial strength is limited by a significant decline in
revenues in recent years coupled with persistent deficits in
government-owned electricity companies, which restricts budget
flexibility. Reduced fiscal space and limited access to market
financing continue to restrict the government's capacity to adopt
counter-cyclical policies, as was most recently demonstrated in
2009.
The assessment of susceptibility to event risk as moderate
captures vulnerabilities associated with the relatively small
size the country's economy and its dependence on the U.S.,
exposure to terms of trade shocks and associated balance of
payments pressures, exchange-rate risk related to the
government's significant foreign currency-denominated financial
obligations, and relatively low international reserves compared
to peers, although external financial vulnerability has declined
considerably.
Rating Outlook
The stable outlook reflects Moody's expectation that while
expenditures may increase leading up to the presidential
elections in May, particularly given the impending expiration of
the government's Standby Agreement with the IMF, the necessary
adjustments will subsequently be made to restore fiscal
sustainability. Moody's further incorporates an expectation that
the next government will remain committed to pursuing orthodox
economic policies and continuing to strengthen the institutional
framework.
What Could Change the Rating - Up
The rating could face upward pressure if vulnerabilities to
external imbalances decline and/or if the government is able to
achieve a better fiscal balance, through some combination of
revenue increases, reduced transfers to the electric sector, and
other initiatives to limit growth in expenditures and government
debt levels.
What Could Change the Rating - Down
A material drop in international reserves or an abrupt
depreciation of the exchange rate could put downward pressure on
the rating. Lack of fiscal discipline that results in increased
government deficits and rising debt levels could also lead to
lower ratings.
===========
M E X I C O
===========
EMPRESAS ICA: Moody's Lowers Ratings to 'B1'; Outlook Stable
------------------------------------------------------------
Moody's Investors Service downgraded Empresas ICA, S.A.B. de C.V.
(ICA)'s Corporate Family and the senior unsecured ratings on the
company's US$500 million in global notes due 2021 to B1 from Ba3.
This concludes the ratings review initiated on Aug. 24, 2011 that
was prompted by the significant increase in consolidated debt
leverage. The outlook on the ratings is stable.
The following debt instruments were affected by Moody's action:
-- US$500 million of 8.9% Guaranteed Senior Unsecured Global
Notes due 2021: Downgraded to B1 from Ba3
The ratings downgrade was based on ICA's aggressive debt-funded
growth of its concession portfolio in the last few quarters,
which significantly increased its consolidated leverage and will
worsen credit protection metrics for the next 2 to 3 years.
Moody's estimates that, as of September 2011, approximately 36%
of the company's total debt had no legal recourse against ICA
since it was related to the concession business. However, the
rating agency believes that, in case of need, the company would
likely support the debt at the concession businesses given their
high margins, cash contributions to ICA and positive long-term
prospects.
ICA's B1 ratings are based on its aggressive funding practices
related to the expansion of its concession business; high
leverage; small revenue size as compared to its global peers; and
limited global geographic diversity. Supporting ICA's ratings
are its leading position in the construction industry in Mexico;
its long-term track record of participating in the largest
construction and infrastructure projects in Mexico as well as the
company's diversified and solid portfolio of concessions in the
road, airport and water treatment sectors, among others, most of
which have solid margins and favorable earnings prospects.
ICA's ratings assume that, in the next 12 to 18 months, there
will be a reduction in its financial leverage due to improved
EBITDA generation at its concession portfolio and due to the
completion and delivery of the La Yesca hydroelectric power
project, whose related debt accounted for 26% of the company's
consolidated debt as of September 2011.
ICA estimates that the debt related to La Yesca will be paid off
by the end of 2012. ICA's Moody's-adjusted debt leverage of 8.8
times for the last twelve months ended in Sept. 30, 2011 compares
to the company's reported 7.5 times. The agency adjusts the
company's debt by adding operating leases with a multiple of 5
times. Moody's assumes that the company's Moody's-adjusted
leverage will decline from current levels to about 6.5 times at
the end of 2012.
ICA's liquidity position improved from June 2011 to September
2011 as payment collections from certain construction projects
became current again. However, the upcoming payment of the debt
related to La Yesca, in the amount of about MXN12 billion,
increases ICA's liquidity risk which is significantly influenced
by working capital swings related to the construction business.
The company's MXN13. 3 billion in cash on hands as of Sept. 30,
2011 was above management's minimum cash target of 10% of
revenues (about MXN4 billion) but should be mostly used in the
completion of the construction of the two new concessions, which
started in October 2011. Moody's expects that the company will
generate enough cash flow to fund its payment commitments in the
next 12 to 18 months. However, ICA is usually dependent on
approximately MXN15 billion in uncommitted revolving credit
lines, of which two thirds were unused at the end of the third
quarter 2011. Liquidity risk is somewhat mitigated by ICA's
solid banking relationships and expectations of continued renewal
of ICA's credit lines.
In the last twelve months ended in Sept. 30, 2011, ICA's revenue
was 80% driven by construction-related business; 14% by
infrastructure and concession projects; and 8% by housing. In
turn, construction provided for 45% of EBITDA; infrastructure and
concessions for 47%; and housing for 7%. ICA's strategy is to
increase the share of infrastructure and concessions of its total
revenues so that it can leverage its construction business and
improve consolidated margins. However, the company could also
choose to sell certain mature infrastructure assets to provide
funds for new projects. In the event the net result is an
increase of revenues and EBITDA from infrastructure/concession
projects, the relatively stable nature of this business in
comparison with the construction business could contribute to a
lower overall business risk for ICA.
The stable outlook on the ratings is based on Moody's expectation
that ICA will be successful in maintaining its market share of
construction and concession business and that the latter's
portfolio, specifically, will provide for stable earnings
contributions. Moody's does anticipate, however, that the
construction business revenue growth and margin may decline in
2012 due to lower government spending, typical during a
presidential election year. The stable outlook also assumes that
the company's leverage will not change significantly over the
next couple of years and the company will maintain an adequate
liquidity profile.
ICA's ratings could be upgraded if the company's maturing
concession portfolio either increase dividends to ICA or can be
monetized via asset sales, with the proceeds used for debt
reduction. In this regard, the ratings could be positively
affected if the company manages to reduce its Moody's-adjusted
leverage to around 5 times on a sustained basis, while
maintaining positive revenue growth and stable margins.
Conversely, ICA's ratings could be downgraded if the company's
liquidity position worsens with limited prospects for a short-
term improvement; if revenue growth or margins are affected by an
increasingly competitive business environment; if debt leverage
increases further and is not reduced by year end 2012 or early
2013; or if it becomes difficult for the company to renew its
revolver credit lines, which fund its working capital needs.
The methodology-indicated rating for ICA is B2, one notch below
ICA's B1 ratings. Supporting the gap is the company's solid
concession business.
ICA is a Mexican holding company which began operations in 1947.
The company is the largest engineering, procurement and
construction company in Mexico and the largest provider in Mexico
of construction services to both public and private-sector
clients. It is engaged in a full range of construction and
related activities, involving the construction of infrastructure
facilities, as well as industrial, urban and housing
construction. In addition, it is engaged in the development and
marketing of real estate, the construction, maintenance and
operation of airports, highways, bridges and tunnels and in the
management and operation of water supply systems and solid waste
disposal systems under concessions granted by governmental
authorities. During the last twelve months ended in Sept. 30,
2011, its revenues and adjusted EBITA amounted to US$3.3 billion.
SAGICOR LIFE: S&P Affirms 'BB+' Rating on US$150MM Obligations
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Sagicor
Life Inc. to negative from stable, while affirming its 'BBB-'
financial strength and counterparty credit ratings on the
company. "At the same time, we affirmed our 'BB+' rating on the
US$150 million, 10-year senior unsecured obligations of Sagicor
Finance Ltd," S&P said.
"The rating action reflects our belief that Sagicor's operating
performance could experience further pressure during 2012 as a
result of the still-challenging economic environment in the
Caribbean and the company's significant concentration in Jamaica
and Barbados," said Standard & Poor's credit analyst Alfonso
Novelo. "Also, bad results of the group after claims arising
from catastrophic events during 2011 were a major factor behind
deterioration of the company's results."
The counterparty credit and financial strength ratings reflect
Sagicor's dominant market position as the leading life insurer in
the Caribbean, increasing group's geographic diversification, and
good capitalization.
The group's relatively high concentration in revenues and
investments in Jamaica, higher volatility in bottom-line results
arising from its larger property and casualty line of business,
and challenging economic conditions in most of the economies in
which Sagicor underwrites its business partially offset the
positive factors.
"The negative outlook incorporates our expectation that further
pressure could fall on Sagicor's operating performance, based on
the still-challenging economic conditions in the Caribbean and
volatility from catastrophic exposures the group covers," S&P
said.
VITRO SAB: U.S. Court Allows Units to Support Restructuring
-----------------------------------------------------------
Jonathan Roeder at Bloomberg News reports that a U.S. federal
appeals court overturned a previous U.S. court ruling that barred
subsidiaries of Vitro SAB from backing a restructuring plan in
Mexican bankruptcy proceedings.
Vitro SAB said that a panel of judges of the U.S. Court of
Appeals for the Fifth Circuit made the decision, according to
Bloomberg.
Bloomberg notes that the company said its units continue to
support the restructuring plan presented in court in Monterrey,
Mexico.
About Vitro SAB
Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.
Vitro is the largest manufacturer of glass containers and flat
glass in Mexico, with consolidated net sales in 2009 of MXN23,991
million (US$1.837 billion).
Vitro defaulted on its debt in 2009, and sought to restructure
around US$1.5 billion in debt, including US$1.2 billion in notes.
Vitro launched an offer to buy back or swap US$1.2 billion in
debt from bondholders. The tender offer would be consummated
with a bankruptcy filing in Mexico and Chapter 15 filing in the
United States. Vitro said noteholders would recover as much as
73% by exchanging existing debt for cash, new debt or convertible
bonds.
Concurso Mercantil & Chapter 15 Proceedings
Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a
pre-packaged Concurso Plan in the Federal District Court for
Civil and Labor Matters for the State of Nuevo Leon, commencing
its voluntary concurso mercantil proceedings -- the Mexican
equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB
also commenced parallel proceedings under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan
on Dec. 13, 2010, to seek U.S. recognition and deference to its
bankruptcy proceedings in Mexico.
Early in January 2011, the Mexican Court dismissed the Concurso
Mercantil proceedings. The judge said Vitro couldn't push
through a plan to buy back or swap US$1.2 billion in debt from
bondholders based on the vote of US$1.9 billion of intercompany
debt when third-party creditors were opposed. Vitro as a result
dismissed the first Chapter 15 petition following the ruling by
the Mexican court.
On April 12, 2011, an appellate court in Mexico reinstated the
reorganization. Accordingly, Vitro SAB on April 14 re-filed a
petition for recognition of its Mexican reorganization in U.S.
Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-
11754).
The Vitro parent told the Mexico stock exchange that it received
sufficient acceptances of its reorganization pending in a court
in Monterrey. The approval vote was evidently obtained using
claims of affiliates. The bondholders are opposing the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full. Bondholders
previously cited an "independent analyst" who estimated the
Mexican plan was worth 49% to 54% of creditors' claims.
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 FINANCIAL: Payments to Begin in 1st Quarter, May Reach US$5BB
----------------------------------------------------------------
Julien Neaves at Trinidad Express reports that Trinidad and
Tobago Finance Minister Winston Dookeran said that the final step
in government's plan to repay Colonial Life Insurance Company
(Trinidad) Limited (CLICO) policyholders -- the Clico Investment
Trust -- will begin in the first quarter of this year and could
cost more than US$5 billion.
Minister Dookeran said the Cabinet decision to officially
establish the trust "brings a closure to the policyholders
situation regarding Clico," according to Trinidad Express.
The report relates that Minister Dookeran said the trust will
have 51.9 million Republic Bank shares currently held by Clico.
Trinidad Express relays that these will be transferred to the
trust, and represent a transfer of approximately US$4.8 billion.
Minister Dookeran said policyholders with bonds of 11-to 20-year
duration will now have access to the trust to purchase units
equivalent to the value of their deposits during that period, the
report says.
Trinidad Express discloses that Minister Dookeran said the total
value of this obligation is anticipated to be US$5.2 billion, and
if they all took up the offer, Government will still need to add
a further US$400 million to the trust to have it fully
capitalized.
Minister Dookeran expressed hope that all the matters will be
resolved within the first quarter of this year and depositors can
access the shares and units of the trust, either to keep the
shares and reap benefits of dividends or trade it, Trinidad
Express relates.
The report notes that Minister Dookeran said after the
transaction is complete the operation will be transferred to the
Trinidad and Tobago Stock Exchange and "it will be an open and
transparent process".
Miniter Dookeran said the "bulk" of Clico policyholders with
investments under TT$75,000 had been repaid, Trinidad Express
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
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
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, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.
Copyright 2012. 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 Peter Chapman at 240/629-3300.
* * * End of Transmission * * *