/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120202.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, February 2, 2012, Vol. 13, No. 024 Headlines B E R M U D A * BERMUDA: Two Small Washington Mall Businesses Shut Down C A Y M A N I S L A N D S ANCHORAGE CAPITAL MASTER: Shareholders Receive Wind-Up Report ANCHORAGE CAPITAL PARTNERS: Shareholders Receive Wind-Up Report ASHKEY INVESTMENTS: Shareholders Receive Wind-Up Report ASHLEAF INVESTMENTS: Shareholders Receive Wind-Up Report ASHMOUNT INVESTMENTS: Shareholders Receive Wind-Up Report ASHPOINT INVESTMENTS: Shareholders Receive Wind-Up Report ASHSTEAD INVESTMENTS: Shareholders Receive Wind-Up Report BELENOS ALTERNATIVE: Shareholders Receive Wind-Up Report BUSTER GENPAR: Shareholders Receive Wind-Up Report CITADEL RESIDENTIAL MORTGAGE: Shareholders Receive Wind-Up Report CITADEL RESIDENTIAL SECURITIES: Shareholders Hear Wind-Up Report CITADEL RESIDENTIAL WHOLE: Shareholders Receive Wind-Up Report CLOSE INTERNATIONAL: Shareholders Receive Wind-Up Report CMOF OFFSHORE: Shareholders Receive Wind-Up Report COLUMBUS STRATEGIC: Shareholders Receive Wind-Up Report DOS HOLDINGS: Shareholder Receives Wind-Up Report EILEEN MARY: Shareholders Receive Wind-Up Report EPIC CANADIAN: Shareholders Receive Wind-Up Report ERIN INTERESTS: Shareholders Receive Wind-Up Report FALCON STRATEGIC: Shareholders Receive Wind-Up Report GAVEA BRASIL: Shareholders Receive Wind-Up Report JP LIMITED: Shareholders Receive Wind-Up Report LINDEN GLOBAL: Shareholders Receive Wind-Up Report MS CEMENT: Members Receive Wind-Up Report MS CEMENT II: Members Receive Wind-Up Report MS CEMENT III: Members Receive Wind-Up Report R-ONE MACHIDA HOLDINGS: Shareholders Receive Wind-Up Report REDSTONE CHINA: Shareholders Receive Wind-Up Report ROGER WESTLAKE: Shareholders Receive Wind-Up Report WELLS FARGO HEDGE: Shareholders Receive Wind-Up Report J A M A I C A HILO FOOD: To Close Savanna-la-Mar Branch by Month's End THE PALMS: In Receivership, Property Up for Auction VISTA AMBASSADOR: Business Up for Sale, D.C. Tavares Seeks Buyer M E X I C O DESARROLLADORA HOMES: Fitch Puts BB- Rating on 2 Sr. Note Classes P U E R T O R I C O CARIBBEAN RESTAURANTS: Moody's Reviews 'Caa2' CFR for Upgrade CARIBBEAN RESTAURANTS: S&P Raises Corp. Credit Rating to 'B-' U R U G U A Y BANCO SANTANDER: Moody's Changes Outlook on 'Ba2' Long-Term GFCDR X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ============= B E R M U D A ============= * BERMUDA: Two Small Washington Mall Businesses Shut Down --------------------------------------------------------- The Royal Gazette reports that two small businesses in the Washington Mall, A&J Sports Cards and The Christian Bookstore & Gift Centre, closed their doors on Jan. 31 as Bermuda's struggling economy continues to hurt the retail industry. The Body Shop also vacated Washington Mall's premises in January as well, according to the report. "It's because of the economy," The Royal Gazette quoted A&J owner Joan Hollis as saying. She said the shop has lost its overseas customers and although school children continue to patronize the business, it isn't enough to cover the rent. Larger companies bringing in similar inventory and selling it at a lower price also hurt her business, Ms. Hollis added, The Royal Gazette relates. Ms. Hollis also said the shop's two employees will lose their jobs, including her long-time assistant, Ann Mitchell, the report notes. In a separate report, Jamaica Gleaner relates that Christian Bookstore & Gift Centre owner George E.W. said, "I see four reasons for the closing: economic downturn, folks downloading books and music from the Internet, the tucked away location and the waning interest in spiritual things." Paul Slaughter of Washington Properties (Bermuda) Limited said they have "several interested parties" considering occupying the empty retail spaces but wouldn't reveal their names, according to The Royal Gazette. =========================== C A Y M A N I S L A N D S =========================== ANCHORAGE CAPITAL MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------------- The shareholders of Anchorage Capital Master Offshore III, Ltd. received on Jan. 20, 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 ANCHORAGE CAPITAL PARTNERS: Shareholders Receive Wind-Up Report --------------------------------------------------------------- The shareholders of Anchorage Capital Partners Offshore III, Ltd. received on Jan. 27, 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 ASHKEY INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Ashkey Investments received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB ASHLEAF INVESTMENTS: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Ashleaf Investments received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB ASHMOUNT INVESTMENTS: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Ashmount Investments received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB ASHPOINT INVESTMENTS: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Ashpoint Investments received on Jan. 20, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB ASHSTEAD INVESTMENTS: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Ashstead Investments received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB BELENOS ALTERNATIVE: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Belenos Alternative Access Master Fund Ltd. received on Jan. 23, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Vincent King Telephone: 242 394 9200 Facsimile: 242 394 9250 Swiss Financial Services (Bahamas) Ltd. One Montague Place, 4th Floor East Bay Street P.O. Box EE-17758 Nassau Bahamas BUSTER GENPAR: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Buster Genpar, Ltd. received on Jan. 20, 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 CITADEL RESIDENTIAL MORTGAGE: Shareholders Receive Wind-Up Report ----------------------------------------------------------------- The shareholders of Citadel Residential Mortgage Opportunities Fund Ltd. received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Citadel Advisors LLC c/o Maples and Calder Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands CITADEL RESIDENTIAL SECURITIES: Shareholders Hear Wind-Up Report ---------------------------------------------------------------- The shareholders of Citadel Residential Mortgage Securities Opportunities Master Fund Ltd. received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Citadel Advisors LLC c/o Maples and Calder Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands CITADEL RESIDENTIAL WHOLE: Shareholders Receive Wind-Up Report -------------------------------------------------------------- The shareholders of Citadel Residential Whole Loan Opportunities Master Fund Ltd. received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Citadel Advisors LLC c/o Maples and Calder Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands CLOSE INTERNATIONAL: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Close International Asset Management (Cayman) Limited received on Jan. 30, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Warren Keens Intertrust (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034 Grand Cayman KYI-1102 Cayman Islands CMOF OFFSHORE: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of CMOF Offshore Holdings Ltd. received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Citadel Advisors LLC c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands COLUMBUS STRATEGIC: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Columbus Strategic Investment Fund received on Jan. 10, 2012, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands DOS HOLDINGS: Shareholder Receives Wind-Up Report ------------------------------------------------- The shareholder of Dos Holdings Limited received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands EILEEN MARY: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Eileen Mary Taylor received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB EPIC CANADIAN: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Epic Canadian Long Short Fund Inc. received on Jan. 20, 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 ERIN INTERESTS: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Erin Interests received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB FALCON STRATEGIC: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Falcon Strategic Fund received on Jan. 10, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands GAVEA BRASIL: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Gavea Brasil Fund, Ltd received on Jan. 20, 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 JP LIMITED: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of JP Limited received on Jan. 12, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: UBS Nominees Limited c/o Dilys Maletroit Associate Director Telephone: +44 (0) 1534 701673 Facsimile: +44 (0) 1534 701699 e-mail: dilys.maletroit@ubs.com P.O. Box 450, Durell House 28 New Street, St. Helier Jersy JE4 0XT LINDEN GLOBAL: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Linden Global Partners Ltd received on Jan. 20, 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 MS CEMENT: Members Receive Wind-Up Report ----------------------------------------- The members of MS Cement Limited received on Jan. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MS CEMENT II: Members Receive Wind-Up Report -------------------------------------------- The members of MS Cement II Limited received on Jan. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MS CEMENT III: Members Receive Wind-Up Report --------------------------------------------- The members of MS Cement III Limited received on Jan. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands R-ONE MACHIDA HOLDINGS: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of R-One Machida Holdings received on Jan. 20, 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 REDSTONE CHINA: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Redstone China Private Equity Fund SPC received on Jan. 10, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ROGER WESTLAKE: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Roger Westlake received on Jan. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble Telephone: +44 870 460 0763 Facsimile: +44 870 458 2568 P.O. Box 2 Port St. Mary Isle of Man, IM99 7PB WELLS FARGO HEDGE: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Wells Fargo Hedge Strategy Palette Offshore, SPC, received on Jan. 20, 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 ============= J A M A I C A ============= HILO FOOD: To Close Savanna-la-Mar Branch by Month's End -------------------------------------------------------- The Jamaica Gleaner reports that GraceKennedy-owned Hilo Food Store chain will close its Savanna-la-Mar branch at the end of this month, citing profitability issues, and is working on a plan to bring other underperforming stores up to par. "We will be closing the Savanna-la-Mar store because it is not profitable. We did a review in quarter three of last year and from that we have taken the decision . . . . We think our efforts would be better spent concentrating on other stores," Jamaica Gleaner quoted Michael Ranglin, chief executive officer of GK Foods, as saying. The 15 persons employed at Savanna-la-Mar will be transferred to other Hi-Lo stores, according to The Jamaica Gleaner. The report notes that GK Foods is projecting 10% growth in revenue across the 14 Hi-Lo stores this year, but admits the target may be too optimistic. "Given the environment we are in now, it could be a stretch, but we are optimistic. We know what we have to do, and we are going to do it," the report quoted Mr. Ranglin as saying. Hi-Lo Food Stores was incorporated in Jamaica in 1954, but was acquired by GraceKennedy Limited in 1984. It operates as a division of GK Foods. The store has been operating for six years. The closure cuts the chain of supermarkets to 14 stores nationwide. THE PALMS: In Receivership, Property Up for Auction --------------------------------------------------- Jamaica Gleaner reports that The Palms' assets are listed with D.C. Tavares & Finson Realty Limited for sale by auction. The Palms, which is owned by principals John and Cassandra Nelson of U.S.-based Mandolin Investment Inc, was placed in receivership by its creditors in the first week of January, according to Jamaica Gleaner. The report notes that Joseph Smith, the hotelier and receiver manager appointed by the group of venture capitalists to whom money is owed by the owners, said that he had put the property up for auction on instructions of the investors who were located in different US states. "I can say nothing about the money owed. They put up their money in the project and the former owners did not fulfill their mortgage obligations," Jamaica Gleaner quoted Mr. Smith as saying. The hotel is still operating with guests in-house, the report adds. VISTA AMBASSADOR: Business Up for Sale, D.C. Tavares Seeks Buyer ---------------------------------------------------------------- Avia Collinder at The Gleaner reports that Vista Ambassador Resort & Spa's owner Constantine Hinds said that the business is up for auction. The property is listed with D.C. Tavares & Finson Realty Limited for sale by auction, according to The Gleaner. The report notes that a representative of D.C. Tavares said the placement of the 110-room property was made by a financial institution whose name could not be disclosed. The Gleaner recalls that Vista Ambassador Resort, who had two name changes from Miranda Hill hotel and later Lifestyle Resorts, was shuttered for seven years when Hinds announced the US$3 million renovation program in February 2010. The report relays that Mr. Hinds proposed at that time to raise cash to rehabilitate the business by offering about half of the 110 rooms for sale, priced at US$135,000 to US$150,000, in a switch of business model. Purchasers were being offered the option of leasing back the units to the resort's operators at a fixed guaranteed rental of US$500 monthly, with the hotel paying the maintenance and utility costs, Jamaica Gleaner adds. =========== M E X I C O =========== DESARROLLADORA HOMES: Fitch Puts BB- Rating on 2 Sr. Note Classes --------------------------------------------------------------- Fitch Ratings has assigned the following ratings to Desarrolladora Homex, S.A.B. de C.V.'s: -- Foreign currency Issuer Default Rating (IDR) at 'BB-'; -- Local currency IDR at 'BB-'; -- Proposed US$300 million in senior notes due 2017 'BB-(exp)'; -- US$250 million in senior notes due 2015 'BB-'; -- US$250 million in senior notes due 2019 'BB-'. The Rating Outlook is Stable. The ratings reflect Homex's solid national market position in Mexico in terms of revenues and sold units, geographic diversification, as well as sustainable business strategy oriented mainly to the affiliated low-income housing segment, primarily in Mexico and to a lesser extent in Brazil. In addition, the ratings consider the company's business line diversification strategy in the homebuilding, tourism and infrastructure segments. Also factored in the ratings are the company's significant land reserves and its access to capital markets financing. The ratings are limited by Homex's moderate leverage, reduced capacity to generate positive free cash flow and challenges associated with the development of new business lines, such as the construction and operation of penitentiaries, as well as its internationalization efforts in Brazil. Homex's credit ratings also incorporate a challenging operating environment and growing working capital requirements. The Stable Outlook reflects the expectation that Homex's profitability and main credit metrics from its traditional homebuilding businesses will remain relatively stable during the short and medium term. On a consolidated basis, Fitch expects some degree of deterioration as the construction and delivery of the penitentiaries project is completed. Strong National Market Position Homex is the largest Mexican homebuilder in terms of revenues, with MXN21.4 billion generated during the last 12 months (LTM) ended in September 2011. In the same period, comparable peers Corporacion Geo (Geo) and Urbi Desarrollos Urbanos (Urbi) registered MXN20.5 billion and MXN16.2 billion, respectively. This reflects Homex's geographic and business diversification strategy which allows it to have alternate revenue sources different from the traditional Mexican homebuilding segment. Homex is the second largest homebuilder in terms of units sold, with 49,184 units titled during the LTM period ended in September 2011, compared to 44,347 units for full-year 2010. Geo is the largest Mexican homebuilder in terms of units sold, as it titled 58,002 and 56,093 units at LTM ended in September 2011 and year- end 2010 respectively. Urbi titled 35,813 and 33,478 in the same comparable periods previously mentioned. Geographic Diversification Homex is the most geographically diversified homebuilder in Mexico with operations in 34 cities in 21 states. In Fitch's view, this operating diversification allows the company to mitigate local or regional volatility, which in turn translates into stable results. The company also operates in three cities located in two Brazilian states. During the first nine months of 2011, Homex concentrated around 35% of its units sold in Estado de Mexico, and approximately 12% and 10.6% in Jalisco and Baja California Sur respectively. Comparable Mexican homebuilder Geo operates in 20 states in the country while Urbi has developments in 16 states. Business Strategy Homex's sustainable business strategy, oriented mainly to the affiliated low-income housing segment primarily in Mexico, supports the ratings. Units sold in Mexico in the low-income segment represented 92% and 88.6% in the LTM ended September 2011 and year-end 2010 respectively. Units sold in Brazil totaled 1.6% and 0.6% for the same periods, while middle income units accounted for 6.4% in the LTM period ended September 2011 and 10.8% at year-end 2010. The company has also engaged in touristic developments in Loreto and Los Cabos in Baja California Sur and in Cancun. Homex's condo and townhouse prices usually are between US$0.25 million-US$0.4 million and are targeted mainly for U.S. residents. On Dec. 27, 2010, The Mexican Public Security Secretary awarded Homex a long-term service contract to build and operate, over a 20-year term, two federal penitentiaries: one for MXN5.2 billion and the other for MXN5.4 billion. The construction is estimated to be finished in 2012 and operations will start in 2013. Although the development of this business segment will increase the company's consolidated leverage ratios, the contracts are expected to provide sustained cash flows of approximately MXN2.2 billion annually that will be associated to fully cover operations and debt service. Homex is entitled to 100% of value of one penitentiary and 50% of the other where it shares participation with a business partner. Land Reserves As of Sept. 30, 2011, Homex had land reserves of 78.9 millions square meters equivalent to 435,837 homes, out of which approximately 92% is reserved for low-income units, including its Brazilian operations, with a price range from MXN0.2 million to MXN0.6 million; 7.7% is reserved for homes with a price range above MXN0.6 million including middle income segment as well as its tourism division. Homex's land reserves were registered at MXN11.8 billion at Sept. 30, 2011. The company considers that its land reserves cover six years of future operations, considering the new densification with 40% of expected sales being vertical units; management's long term view is to maintain at least 3.5 years of future production. During the first nine months of 2011, the company acquired land reserves in Mexico for MXN600 million, in line with its annual budget of MXN1 billion. Fitch believes that Homex's strategy has flexibility to support future positive free cash flow (FCF) generation, as the industry moves to a higher proportion of vertical construction. Negative Free Cash Flow Generation Fitch expects Homex's consolidated FCF to be negative in 2012 around MXN7.7 billion and neutral excluding the penitentiaries projects as it is expected to deploy around 55,000 units; 40% of those units, including Brazil's projects, are expected to be executed as vertical developments which require a longer working capital cycle. Homex's target for 2012 is to have a sale mix consisting of 45% vertical units. In addition, on a consolidated basis, the construction of the penitentiaries projects will reflect additional working capital requirements, as they are registered by the percentage of completion method. Fitch estimates that the company will fund the working capital requirements from its traditional homebuilding operations with cash on hand and internally generated cash flows. Debt Profile The company plans to issue US$$300 million in senior notes with proceeds directed mostly to refinance some of its current indebtedness with maturities in 2012 and 2013. Fitch considers this initiative positive as it will improve Homex's financial flexibility and will extend its debt maturity profile. As of Sept. 30, 2011, Homex had MXN3.3 billion of cash and marketable securities. Total debt was around MXN14.3 billion, out of which MXN3.3 billion is short term, primarily composed of bank loans and bridge loans. As of Sept. 30, 2011, the company has a total of MXN0.9 billion in bridge loans, secured by the company's inventory, which are paid as the building cycle is completed; out of the total balance, MXN0.7 billion mature in 2013. The company's long-term debt is primarily composed of two US$250 million senior unsecured notes due in 2015 and 2019, respectively. During the first nine months of 2011, total debt increased MXN1.4 billion compared to Dec. 31 2010, but MXN1.1 billion of this increase is related to the peso depreciation against the U.S. dollar during the period; the company's foreign currency denominated debt which is registered according to the exchange rate at the end of each reported period. The company will obtain a loan of approximately MXN7.7 billion to finance the construction of the penitentiaries. This loan will be non-recourse to Homex, and the penitentiaries will be non- restricted subsidiaries. In addition, the cash flows obtained from the operation of these contracts will be associated to debt service. The company's cash flow generation, measured by EBITDA, increased to MXN4.6 billion LTM September 2011 from MXN4.2 billion at year- end 2010. The company's debt/EBITDA ratio remained stable at 3.1 times (x) LTM September 2011, compared to December 2010. Homex's LTM at September 2011 net debt/EBITDA was 2.4x and 2.3x at the end of 2010. The ratings incorporate Fitch's expectation that Homex's Homebuilding business gross leverage will be around 3.0x during 2012 and in the long term in the range of 2.5x-3.0x. Fitch will consider Homex's infrastructure business credit metrics separated from its homebuilding and tourism operations. Sustained improvement in the company's FCF and leverage in the traditional business operations (homebuilding, tourism and infrastructure), in conjunction with stable market share and profitability, are factors that could result in positive rating actions. Conversely, negative rating actions could result from some combination of the following factors: Pro forma debt/EBITDA leverage ratio (excluding the penitentiary business line) is consistently above current level, the penitentiary construction and execution fails to a point that demands additional resources from Homex's core business, longer working capital cycle from its homebuilding segment, growth more aggressive than expected in Brazil Homebuilding and Tourism segments, a decline of government funding programs, and deterioration in the company's industry business environment leading to erosion in the company's market position. ===================== P U E R T O R I C O ===================== CARIBBEAN RESTAURANTS: Moody's Reviews 'Caa2' CFR for Upgrade ------------------------------------------------------------- Moody's Investors Service placed Caribbean Restaurants, LLC's Caa2 Corporate Family and Probability of Default ratings on review for possible upgrade. At the same time, Moody's assigned a B3 rating to the proposed US$20 million first lien 4.5-year senior secured revolver and a B3 rating to the US$170 million first lien 5-year senior secured term loan, both to be issued by a newly created parent holding company of Caribbean's -- Restaurant Holding Company, LLC. Caribbean's existing senior secured notes rating was affirmed and will be withdrawn once the transaction closes and the notes repaid. The company intends to use the net proceeds from the issuance, combined with a planned cash equity contribution from its owner, to refinance all existing debt obligations that mature within the current year. Rating assigned: Restaurant Holding Company, LLC US$20 million senior secured revolving credit facility due 2016 -- B3 (LGD3, 31%) US$190 million senior secured term loan due 2017 -- B3 (LGD3, 31%) Ratings were placed under review for possible upgrade: Caribbean Restaurants LLC: Corporate Family Rating -- Caa2 Probability of Default Rating -- Caa2 Rating affirmed and will be withdrawn upon closing: US$147 million senior secured second lien notes due June 2012 -- Caa1 (LGD3, 39%) Ratings Rationale The review for possible upgrade considers Moody's view that the proposed refinancing will provide Caribbean with an extended debt maturity schedule, thus averting an otherwise imminent default situation in the very near term. The timely completion of the refinancing will likely result in a upgrade in Caribbean's Corporate Family Rating to B3 once the proposed transaction closes. The ratings on the new refinancing debt securities were assigned based on the improved CFR of B3 should the transaction transpire, subject to Moody's review of final terms and conditions. The possible rating upgrade also reflects a modest improvement in financial leverage and cash flow generation due to reduced debt level and anticipated interest saving as a result of the transaction. Leverage as measured by debt/EBITDA (including Moody's analytical adjustment but before preferred equity) would improve to around 6.0x from nearly 7.0x on a proforma basis, while the debt/EBITDA including adjustment for preferred stock will improve more significantly to 6.8x from 10.0x thanks to a proposed conversion of existing preferred stock to common stock upon closing of the transaction. In addition, the potential interest expense savings as contemplated by the refinancing would result in better cash flow from operation, part of which could be used to support future store expansion or renovation for both the Burger King stores and newly introduced Firehouse Subs concept. Conversely, given the very short time frame the company has to complete the refinancing before the earliest debt maturity date on March 1, the current ratings would be pressured if Caribbean fails to refinance on time. The rating action, however, also incorporates Caribbean's earnings vulnerability to consumer spending, its small scale, geographic concentration in Puerto Rico and the weak local economy. Moody's believes the negative pressure on revenue and earnings will persist so that Caribbean's earnings could likely decline modestly in the next 12-18 months. Caribbean's recently reported weak operating results were primarily driven by the declining guest traffic at its 177 Burger King franchised restaurants in Puerto Rico, and margin pressure due to higher commodity cost and other input cost volatility such as for utilities. Moody's believes that the key contributing factors to the company's weak guest traffic, such as the protracted recession since 2006 and high unemployment rate (around 14%) in Puerto Rico, will continue to affect customer spending on dining- out. Intensified competition among quick service restaurants (QSR) focusing on promotional activities will also continue to exert pressure on revenue and will also limit the company's ability to pass along higher input cost to protect margins. "Despite the recent improvement in economic activities in Puerto Rico per data released by the government and continuous recovery in the tourism industry, these trends have not yet translated into higher demand for dining out at Caribbean's restaurants as consumer discretionary spending remains fragile," explained Moody's analyst John Zhao. "We also expect commodity input costs, such as beef, will remain elevated in the near future, that would further squeeze margin." The future earnings pressure, the mandatory debt amortization requirement and capital expenditure commitment as well as the increased management fee to sponsor, will likely diminish some of the effects of the expected interest saving from the refinancing. Positive rating consideration was given to strong name recognition and leading position of the Burger King brand in the Puerto Rico QSR segment, a seasoned management team and the company's exclusive development agreement within Puerto Rico. Therefore, Moody's anticipates any decline in earnings will likely be modest over the next 12-18 months without depressing free cash flow sustainably negative, given management's track record in maintaining steady profitability in a recessionary yet inflationary environment. Moody's anticipates the debt/EBITDA (excluding preferred equity adjustment) will not likely rise materially above 6.5x in the coming year. Moody's also expects the company to maintain adequate liquidity position in the next 12 months. Caribbean Restaurants, LLC, through an exclusive territorial development agreement with Burger King Corporation, is the sole franchisee of Burger King restaurants in Puerto Rico with approximately 177 units as of July 2011. Caribbean is a wholly- owned subsidiary of BKH Acquisition Corp., which in turn is 100% owned by Castle Harlan Partners, a private equity firm that purchased the company in 2004. CARIBBEAN RESTAURANTS: S&P Raises Corp. Credit Rating to 'B-' ------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on San Juan, Puerto Rico-based Caribbean Restaurants LLC to 'B-' from 'CCC'. The outlook is stable. "At the same time, we assigned a preliminary 'B-' issue-level rating to the company's proposed new senior secured facility, which consists a US$20 million revolving credit facility due 2016 and a US$190 million term loan due 2017. The debt is being issued by a holding company, Restaurant Holding Company LLC, and is guaranteed by Caribbean and all direct and indirect subsidiaries. The preliminary recovery rating is '3', indicating our expectation of a meaningful (50%-70%) recovery a payment default scenario. Our 'CCC+' rating on the company's remaining existing US$149 million senior secured notes is unchanged and we will withdraw it upon completion of the proposed transaction," S&P said. "The ratings on Caribbean Restaurants reflect our belief that liquidity will improve after the completion of the refinancing, with an extended maturity profile and adequate covenant headroom," said Standard & Poor's credit analyst Helena Song. "It also reflects our expectations that operating performance will remain relatively stable at the current weak level, as modest revenue growth will somewhat offset lower margins due to the continuing weak Puerto Rican economy, commodity cost pressure, and building new Firehouse Subs concept." "The outlook is stable and indicates our belief that the company's operating performance will remain relatively stable at the current weak level, as modest revenue growth will somewhat offset lower margins due the persistently weak Puerto Rican economy, commodity cost pressure, and the building of the new Firehouse units," S&P said. "We could lower the ratings if weaker-than-expected performance results in inadequate covenant headroom and pressuring of the company's liquidity position," S&P said. "Although unlikely in the near term, we could raise the ratings if the company improves its operating performance significantly, and the trend is supported by adequate liquidity and improved credit metrics, including debt to EBITDA of 5x-6x. This could happen if the company improves its EBITDA meaningfully by about 30% through margin expansion of 200 basis points and revenue growth of 4%," S&P said. ============= U R U G U A Y ============= BANCO SANTANDER: Moody's Changes Outlook on 'Ba2' Long-Term GFCDR ----------------------------------------------------------------- Moody's Investors Service changed the outlook to positive from stable of the Ba2 long term global foreign currency deposit ratings of Banco Santander S.A. (Uruguay), Banco Itau Uruguay S.A., and Lloyds TSB Bank plc (Uruguay). The change in outlooks is in line with the change in outlook to positive from stable of the Ba2 Uruguayan country ceiling for foreign currency deposits, which constrains the banks' foreign currency deposit ratings. Moody's also changed the outlook to positive from stable of the Ba1and the Aa2.uy foreign currency deposit ratings of the two government-owned banks, Banco de la Republica Oriental del Uruguay (BROU) and Banco Hipotecario del Uruguay (BHU), on its global and national scales, respectively. The change in outlook reflects the change in the outlook to positive from stable of the Uruguayan government's Ba1 foreign currency bond rating. The Uruguayan government fully and unconditionally guarantees the obligations of both banks. The rating actions followed Moody's sovereign rating action announced on Jan. 26, 2012. The bank financial strength ratings of the individual Uruguayan banks remain unaffected. These rating outlooks were affected: Banco de la Republica Oriental del Uruguay -- Foreign currency deposit rating of Ba1/NP, outlook changed to positive from stable -- Foreign currency national scale deposit rating of Aa2.uy, outlook changed to positive from stable Banco Santander Uruguay -- Foreign currency deposit rating of Ba2/NP, outlook changed to positive from stable Banco Hipotecario del Uruguay -- Foreign currency deposit rating of Ba1/NP, outlook changed to positive from stable -- Foreign currency national scale deposit rating of Aa2.uy, outlook changed to positive from stable Banco Itau Uruguay S.A. -- Foreign currency deposit rating of Ba2/NP, outlook changed to positive from stable Lloyds TSB Bank plc (Uruguay) -- Foreign currency deposit rating of Ba2/NP, outlook changed to positive from stable =============== 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. 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