/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120217.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 Friday, February 17, 2012, Vol. 13, No. 035 Headlines B E R M U D A ARMOUR REINSURANCE: Creditors' Proofs of Debt Due Feb. 29 ARMOUR REINSURANCE: Member to Receive Wind-Up Report on March 16 CANADA BUILDING: Creditors' Proofs of Debt Due Feb. 29 CANADA BUILDING: Member to Receive Wind-Up Report on March 16 CAPAG II: Creditors' Proofs of Debt Due Feb. 29 CAPAG II: Member to Receive Wind-Up Report on March 16 ETESIAN FUND: Creditors' Proofs of Debt Due Feb. 24 ETESIAN FUND: Member to Receive Wind-Up Report on March 12 FPFH HOLDING II: Creditors' Proofs of Debt Due Feb. 29 FPFH HOLDING II: Member to Receive Wind-Up Report on March 16 FPFH HOLDING III: Creditors' Proofs of Debt Due Feb. 29 FPFH HOLDING III: Member to Receive Wind-Up Report on March 16 B R A Z I L BANCO BBM: Moody's Affirms D+ Bank Financial Strength Rating GOL LINHAS: Fitch Puts Rating on Proposed Bonds at 'BB-' C A Y M A N I S L A N D S AC99C LIMITED: Shareholders Receive Wind-Up Report ALPSTAR EQUITY: Shareholders Receive Wind-Up Report CROFTER INVESTMENTS: Shareholders Receive Wind-Up Report DELOS FUND: Shareholders Receive Wind-Up Report DGC 2000: Shareholders Receive Wind-Up Report DGC LONG/SHORT: Shareholders Receive Wind-Up Report DWS ASIAN: Shareholders Receive Wind-Up Report EMERALD INTERNATIONAL: Members Receive Wind-Up Report HARTONE ASSOCIATES: Members Receive Wind-Up Report INVESTMENT OPPORTUNITIES I: Shareholders Receive Wind-Up Report INVESTMENT OPPORTUNITIES II: Shareholders Receive Wind-Up Report LIBERO TRADING: Shareholders Receive Wind-Up Report M/Y GTG III: Shareholders Receive Wind-Up Report N.T.S. LIMITED: Shareholders Receive Wind-Up Report NAPLES REAL: Shareholders Receive Wind-Up Report NORTH EUROPEAN: Shareholders Receive Wind-Up Report NOUNOURS LIMITED: Members Receive Wind-Up Report PAROTRICK LIMITED: Members Receive Wind-Up Report SAPPHIRE INTERNATIONAL: Members Receive Wind-Up Report SHENG-BDO ZIV: Shareholders Receive Wind-Up Report SYMPHONY CAPITAL: Shareholders Receive Wind-Up Report SYMPHONY REAL: Shareholders Receive Wind-Up Report TOURNESOL LIMITED: Members Receive Wind-Up Report YYC CAPITAL: Members Receive Wind-Up Report C H I L E INVERSIONES ALSACIA: Fitch Affirms US$464MM Secured Bonds at 'BB' V E N E Z U E L A BANESCO BANCO: Fitch Affirms Issuer Default Rating at 'B+' BANCO PROVINCIAL: Fitch Affirms Issuer Default Rating at Low-B MERCANTIL CA: Fitch Affirms Issuer Default Rating at Low-B - - - - - ============= B E R M U D A ============= ARMOUR REINSURANCE: Creditors' Proofs of Debt Due Feb. 29 --------------------------------------------------------- The creditors of Armour Reinsurance Group Limited are required to file their proofs of debt by Feb. 29, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 27, 2012. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda ARMOUR REINSURANCE: Member to Receive Wind-Up Report on March 16 ---------------------------------------------------------------- The member of Armour Reinsurance Group Limited will receive on March 16, 2012, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda CANADA BUILDING: Creditors' Proofs of Debt Due Feb. 29 ------------------------------------------------------ The creditors of Canada Building Products Holding, Ltd. are required to file their proofs of debt by Feb. 29, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 26, 2012. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda CANADA BUILDING: Member to Receive Wind-Up Report on March 16 ------------------------------------------------------------- The member of Canada Building Products Holding, Ltd. will receive on March 16, 2012, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda CAPAG II: Creditors' Proofs of Debt Due Feb. 29 ----------------------------------------------- The creditors of Capag II, Ltd. are required to file their proofs of debt by Feb. 29, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 26, 2012. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda CAPAG II: Member to Receive Wind-Up Report on March 16 ------------------------------------------------------ The member of CAPAG II, Ltd. will receive on March 16, 2012, at 10:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda ETESIAN FUND: Creditors' Proofs of Debt Due Feb. 24 --------------------------------------------------- The creditors of Etesian Fund Limited are required to file their proofs of debt by Feb. 24, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 9, 2012. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9 Bermuda ETESIAN FUND: Member to Receive Wind-Up Report on March 12 ---------------------------------------------------------- The member of Etesian Fund Limited will receive on March 12, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9 Bermuda FPFH HOLDING II: Creditors' Proofs of Debt Due Feb. 29 ------------------------------------------------------ The creditors of FPFH Holding II, Ltd. are required to file their proofs of debt by Feb. 29, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 26, 2012. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda FPFH HOLDING II: Member to Receive Wind-Up Report on March 16 ------------------------------------------------------------- The member of FPFH Holding II, Ltd. will receive on March 16, 2012, at 11:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Jan. 26, 2012. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda FPFH HOLDING III: Creditors' Proofs of Debt Due Feb. 29 ------------------------------------------------------- The creditors of FPFH Holding III, Ltd. are required to file their proofs of debt by Feb. 29, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 26, 2012. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda FPFH HOLDING III: Member to Receive Wind-Up Report on March 16 -------------------------------------------------------------- The member of FPFH Holding III, Ltd. will receive on March 16, 2012, at 2:00 p.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Kehinde A. L. George Crawford House, 50 Cedar Avenue Hamilton HM 11 Bermuda =========== B R A Z I L =========== BANCO BBM: Moody's Affirms D+ Bank Financial Strength Rating ------------------------------------------------------------ Moody's Investors Service affirmed all ratings assigned to Banco BBM S.A., including the D+ financial strength rating, the global local and foreign currency deposit ratings of Ba1 and Not Prime, as well as the national scale deposit ratings on Brazilian national scale of Aa2.br and BR-1.The outlook on all ratings remained stable. The following ratings assigned to Banco BBM S.A. were affirmed: Bank financial strength rating: D+, with stable outlook Long term global local currency deposit rating: Ba1, stable outlook Short-term global local currency deposit rating: Not Prime Long-term foreign currency deposit rating: Ba1 Short-term foreign currency deposit rating: Not Prime Long-term Brazilian national scale deposit rating: Aa2.br, stable outlook Short-term Brazilian national scale deposit rating: BR-1 Rating Rationale Moody's affirmation of BBM's ratings incorporates the favorable profitability prospects as the bank expands its lending business, supported by adequate capital levels and a relatively more diversified funding profile. BBM's disciplined liquidity management and conservative loan underwriting policies are also incorporated into this action, as well as its track record of volatile earnings, which reflect a dynamic risk management strategy. Moody's noted that BBM's loan book grew at a robust 60% rate in 2011 against 2010, with similar performance anticipated for 2012. This growth largely reflects the rebuilding of BBM's lending operations, following management's decision to substantially deleverage its balance sheet in 2008 and 2009, because of increased risk aversion during the crisis period. While such strategic shifts are intended to protect the bank's capital, Moody's notes that the resulting high growth now being reported may risk the bank's future asset quality indicators, particularly under very competitive market conditions. More importantly, they tend to create volatility and reduce the predictability of the bank's earnings, which is a negative ratings consideration. BBM's volatile track record of earnings recurrence, therefore, remains an important limitation to any future rating movement. In addition, Moody's notes that the recent shift in business strategy resulted in the segregation of BBM's asset management unit, which became a sister company of the bank in July 2011. Consequently, fees and securities trading gains, which have traditionally been a relevant component of BBM's earnings, are no longer available to boost the bank's profitability. Moody's therefore, expects earnings to accommodate at a lower, though more stable levels, as interest earnings grow with the expansion of its loan book. Its recent return on assets of 2.87% as of December 2011 evidences the new trend. Moody's notes that the bank's elevated loan and deposit concentration remains a challenge for BBM, as it is for other similar size rated banks. In a competitive environment, the maintenance of adequate asset quality indicators is critical for the bank. However, Moody's acknowledges BBM's robust risk management infrastructure and controls, and management's limited leverage appetite, (set at maximum three times the equity for 2012), as well as its predominantly short-term, secured lending, which all help mitigate risk exposures. Moreover, efforts to diversify funding sources have resulted in longer duration of the bank's liabilities relative to its assets, which is positive. The key challenge for BBM's ratings is the sustainability of earnings recurrence, which has yet to be proven as the bank increases loan origination, while it recovers to historically superior asset quality ratios. BBM has a high capital level, conservative liquidity management and capable management team to support growth over the next quarters. Banco BBM S.A. is headquartered in Rio de Janeiro, Brazil, and presented consolidated assets of R$2.3 billion (US$1.3 billion) and equity of R$536.2 million (US$287.8 million), as of Dec. 31, 2011. GOL LINHAS: Fitch Puts Rating on Proposed Bonds at 'BB-' -------------------------------------------------------- Fitch Ratings has assigned an expected rating of 'BB-(exp)' to Gol Linhas Aereas Inteligentes S.A.'s proposed perpetual bonds. These notes will be issued through GOL's wholly owned subsidiary, VRG Linhas Aereas S.A., and will be unconditionally guaranteed by GOL. The target amount of the proposed issuance is in the range of US$100 million to US$150 million; the final amount of the issuance will depend on market conditions. Proceeds from the proposed issuance will be used to refinance existing debt and general corporate purposes. The final rating is contingent upon the receipt of final documents conforming to information already received. Fitch currently rates GOL and the company's fully owned subsidiaries as follows: -- F oreign and local currency long-term Issuer Default Ratings (IDRs) 'BB-'; -- Long-term national rating 'A-(bra)'; -- US$200 million perpetual bonds 'BB-.; VRG Linhas Aereas S.A.: -- Foreign currency IDR 'BB-'; -- Local currency IDR 'BB-'; -- Long-term national rating 'A-(bra)'; -- BRL500 million of senior unsecured debentures due in 2017 'A- (bra)'. GOL Finance, a company incorporated with limited liability in the Cayman Islands: -- Foreign currency IDR 'BB-'; -- Local currency IDR 'BB-'. -- US$200 million of senior notes 2017 at 'BB-'; -- US$300 million of senior notes 2020 at 'BB-'. The Rating Outlook is Stable. GOL's ratings continue to reflect the company's significant market share position in the Brazilian airline sector and its business strategy of focusing its operations primarily on the Brazilian domestic market. The company is exposed to fuel cost volatility and other industry-related risks, such as revenue volatility, high operating leverage and increasing competition. The ratings incorporate the high degree of sensitivity of GOL's operations to changes in the macroeconomic scenario. Ratings are under pressure due to deterioration in the company's credit profile beyond Fitch's expectations previously incorporated in the ratings. Considering the trends in oil prices, the Brazilian real relative to the U.S. dollar, and yields and load factors in the Brazilian domestic market, Fitch expects to see further deterioration in the company's net leverage during fourth quarter 2011 (4Q'11), reaching levels of around 9.0 times (x) by the end of December 2011. Fitch is currently closely monitoring GOL's financial performance. A negative rating action may be likely absent a significant recovery in the company's operational results during the first and second quarters of 2012. The company's leverage and other financial metrics deteriorated during the six months ended September 2011 due to lower cash flow generation, measured by EBITDAR, resulting from growing fuel cost, which represents approximately 40% of its operating costs. Revenue declines were driven primarily by increasing competition, resulting in a negative trend in domestic yields. In addition, the negative trend in the Brazilian real relative to the U.S. dollar further exacerbated the deterioration of GOL's leverage, as approximately 90% of the company's revenues are denominated in local currency, while approximately 60% of the company's total costs and 80% of the company's total debt are denominated in U.S. dollars. GOL's cash generation as measured by EBITDAR was BRL942 million during the last-12-month (period ended Sept. 2011, a decline of 39% versus the LTM period ended in March 2011. The company had approximately BRL8.1 billion in total adjusted debt at the end of September 2011 versus BRL7.3 billion at the end of March 2011. The company's net leverage, as measured by total adjusted net debt/EBITDAR ratio, was 7.1x at the end of September 2011 versus 3.6x at the end of March 2011. Increasing financial leverage is partially mitigated by adequate liquidity and Fitch sees GOL's refinancing risk as low at this time. The company ended 3Q'11 with an adequate cash position of BRL1.5 billion, representing approximately 20% of the company's LTM revenues. In addition, GOL maintains a manageable debt maturity schedule -- incorporating on a pro forma basis debt related to recently acquired Webjet Linhas Aereas S.A. (WebJet) -- with due debt payments of BRL112 million and BRL260 million during 4Q'11 and 2012, respectively. =========================== C A Y M A N I S L A N D S =========================== AC99C LIMITED: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of AC99C Limited received on Feb. 2, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands ALPSTAR EQUITY: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Alpstar Equity Quantitative Strategies Master Fund, Ltd. received on Feb. 3, 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 CROFTER INVESTMENTS: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Crofter Investments Limited received on Jan. 23, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Baraterre Limited Bahamas Financial Centre, 2nd Floor Shirley & Charlotte streets P.O. Box N-4899 Nassau Bahamas c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands DELOS FUND: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Delos 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: Lisa Clarke Telephone: (345) 945-2187/ (345) 945-2197 PO Box 30464 Grand Cayman KY1-1202 Cayman Islands DGC 2000: Shareholders Receive Wind-Up Report --------------------------------------------- The shareholders of DGC 2000 Ltd. received on Jan. 24, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Richard Finlay Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands DGC LONG/SHORT: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of DGC Long/Short Euro Holdings Ltd. received on Jan. 24, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Richard Finlay Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands DWS ASIAN: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of DWS Asian Micro Cap Fund received on Jan. 31, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hugh Dickson Grant Thornton Specialist Services (Cayman) Ltd 48 Market Street, 2nd Floor, Unit 4290 Canella Court, Camana Bay Grand Cayman Cayman Islands EMERALD INTERNATIONAL: Members Receive Wind-Up Report ----------------------------------------------------- The members of Emerald International Fund received on Jan. 30, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alfredo Frohlich Telephone: 13058681500 HARTONE ASSOCIATES: Members Receive Wind-Up Report -------------------------------------------------- The members of Hartone Associates Ltd. received on Jan. 25, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 INVESTMENT OPPORTUNITIES I: Shareholders Receive Wind-Up Report --------------------------------------------------------------- The shareholders of Investment Opportunities Fund I, 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: Lisa Clarke c/o Jane Fleming Telephone: (345) 945-2187/ (345) 945-2197 PO Box 30464 Grand Cayman KY1-1202 Cayman Islands INVESTMENT OPPORTUNITIES II: Shareholders Receive Wind-Up Report ---------------------------------------------------------------- The shareholders of Investment Opportunities Fund II, 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: Lisa Clarke c/o Jane Fleming Telephone: (345) 945-2187/ (345) 945-2197 PO Box 30464 Grand Cayman KY1-1202 Cayman Islands LIBERO TRADING: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Libero Trading International Ltd. received on Jan. 24, 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 M/Y GTG III: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of M/Y GTG III Inc. received on Jan. 25, 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 N.T.S. LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of N.T.S. Limited received on Jan. 24, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands NAPLES REAL: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Naples Real Estate Holdings received on Jan. 25, 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 NORTH EUROPEAN: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of North European Capital Markets Services received on Jan. 23, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Baraterre Limited Bahamas Financial Centre, 2nd Floor Shirley & Charlotte streets P.O. Box N-4899 Nassau Bahamas c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands NOUNOURS LIMITED: Members Receive Wind-Up Report ------------------------------------------------ The members of Nounours Limited received on Jan. 19, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited First Caribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: 345 949-7128 PAROTRICK LIMITED: Members Receive Wind-Up Report ------------------------------------------------- The members of Parotrick Limited received on Jan. 9, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited First Caribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: 345 949-7128 SAPPHIRE INTERNATIONAL: Members Receive Wind-Up Report ------------------------------------------------------ The members of Sapphire International Fund received on Jan. 30, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alfredo Frohlich Telephone: 13058681500 SHENG-BDO ZIV: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Sheng-BDO ZIV Haft China Hospitality Fund Associates, Ltd. received on Feb. 3, 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 SYMPHONY CAPITAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Symphony Capital Partners Ltd. received on Jan. 25, 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 SYMPHONY REAL: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Symphony Real Estate Ltd. received on Jan. 25, 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 TOURNESOL LIMITED: Members Receive Wind-Up Report ------------------------------------------------- The members of Tournesol Limited received on Jan. 19, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited First Caribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: 345 949-7128 YYC CAPITAL: Members Receive Wind-Up Report ------------------------------------------- The members of YYC Capital Partners Healthcare Fund Ltd. received on Feb. 3, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands ========= C H I L E ========= INVERSIONES ALSACIA: Fitch Affirms US$464MM Secured Bonds at 'BB' ----------------------------------------------------------------- Fitch Ratings affirms the 'BB' rating on Inversiones Alsacia's US$464 million senior secured bonds due in 2018. The Rating Outlook remains Stable. STRONG COMPETITIVE POSITION: Inversiones Alsacia, S.A. and Express de Santiago Uno, S.A. have a combined market share of over 30% of Transantiago's bus operations, which constitutes a key service for the city of Santiago. In terms of operational efficiency, both companies are among the strongest in the system. ESSENTIAL PUBLIC SERVICE: A portion of the current government subsidy available to financially support the transport system is supposed to end in 2014. Given the social essentiality of the Transantiago and the solid legal framework in Chile, Fitch believes it is very likely that the Chilean government will continue providing financial support to it beyond 2014. COMPLEX OPERATION: Compared to other availability-based projects, the bus operations are logistically complex. Synergies coming from Alsacia and Express' operational merger may take longer to materialize than what was initially expected by the sponsor. The eventual adoption of additional bus routes may increase such complexity. The project operates based upon a strong contract with indexed pass-through of major cost items, which meaningfully mitigate cost escalation risk. LIMITED OPERATOR EXPERIENCE: Although the sponsor has experience in similar bus lines in Colombia, the size of the Chilean business is much bigger and has rapidly expanded with the acquisition of Express in 2011, increasing the need of having strong logistics and controls. CONSERVATIVE DEBT STRUCTURE: Tight covenants for equity distribution and additional leverage, fixed interest rate, cross- currency swap, among other credit protections. Historical (two biannual payments) financial performance is in line with Fitch's original base expectations, and in accordance to other availability-based projects that are similarly rated. What Could Trigger a Rating Action -- Lower operating levels: Failure to achieve synergies and similar competitiveness among the two companies may significantly reduce operating performance; -- Cost escalations: Substantial and sustained cost escalations may stress financial flexibility; -- Concession terms: Liquidity and debt coverage levels may be adversely affected by the restatement of current concession titles; -- Government actions: Elimination of subsidies may materially deteriorate the overall credit profile. The notes are secured by a first lien interest of total revenues and contract rights, as well as all assets owned by Alsacia and Express, excluding a bus terminal located in Huachuraba. Twelve months have elapsed since Alsacia and Express started operating under a single administrative team. Fitch believes that the main challenges facing the concessionaires are to gain operational efficiency, to control costs, and to reach certain synergies deriving mainly from scale economies and best practices. In 2011, even with the students' protests that took place in the second quarter of the year and partially interrupted the operation of their bus routes for some weeks, both concessionaires kept increasing their average operational efficiency (indicated in the form of Service Fulfillment Index) to 97.6% in the case of Alsacia, and 94.1% for Express. According to information of the Chilean Ministry of Transportation and Telecommunications (MTT), this positive trend has continued and both companies registered 99.1% and 95.8% of efficiency in January 2012. Such operational performance led to 11.1% increase in revenue during 2011 and 23.5% EBITDA. Debt Service Coverage Ratio (DSCR) for the first debt payment reached 1.30 times (x), which favorably compares with our 1.26x estimation for that specific period. DSCR for the second debt payment to be made in February 2012 is expected in similar levels. The level of cash at the end of December 2011, amounted CLP 47.8 billion (approx. US$ 91.9 million) managed by the Secured Party Trustee. During 2011, the MTT invited all Transantiago operators to express their interest to take over additional routes that previously were operated by underperforming concessionaires. On Dec. 22, the interested concessionaires entered into new concession agreements that are in the process of being approved and are anticipated to occur in February or March 2012. The restated agreements incorporate new routes with the old bus lines and also modify important concepts such as the way revenues and deductions are calculated, the economic stabilization mechanisms, among others. Several paybacks from the MTT in annual installments that amount to approximately CLP 40 billion will also be included in the new documents. Related to these contractual changes, Express will incorporate in its bus network (Trunk 4 and some routes of Trunk 3, as of today) the routes of Feeder D, which represents about 24% of its current operational size, in terms of travelled kilometers. Alsacia obtained a Fairness Opinion from an independent consulting firm who analyzed the financial impact of the concessions' adjustments, concluding they are more likely to be beneficial. Also, the CEO and CFO delivered a certificate stating that the restatements could not reasonably be expected to result in material adverse effect. The affirmation of the 'BB' rating is supported by a combination of increasing operation efficiency, augmented revenue, cost control, and debt coverage in line with Fitch's original projections regarding the transaction's financial flexibility. The 8% fixed-rate notes were issued by Alsacia under a 7.5-year tenure, with expected maturity in 2018, and secured by all the revenues collected on Alsacia and Express' operations pursuant to their respective concessions. Alsacia and Express are two of the top bus concessionaires of the Transantiago System, which provides mass urban bus/metro transportation services to the City of Santiago, in Chile since 2005, and is regulated by the MTT. The transaction consisted of the acquisition by Alsacia of the remaining shares of Express, and the refinancing of all the existing debt of both concessionaires. ================= V E N E Z U E L A ================= BANESCO BANCO: Fitch Affirms Issuer Default Rating at 'B+' ---------------------------------------------------------- Fitch Ratings has affirmed Venezuela-based Banesco Banco Universal's Issuer Default Rating at 'B+', with a Stable Rating Outlook. BBU's ratings balance its strong franchise, as well as its adequate liquidity and asset quality against its tight capital base and a volatile operating environment. A significant improvement in capital ratios could be positive for BBU's ratings. Negative action could stem from deteriorating capital and asset quality ratios in an environment of meager profits. Since peaking in 2009, BBU's impaired loans to gross loans ratio (NPL) improved to 1.23% at Sept. 30, 2011, still slightly higher than domestic peers (universal banks), but lower than international peers (emerging market commercial banks rated 'B- /B/B+'). Fitch views BBU's reserve coverage of total loans (2.33%) as tight in light of its larger share of unsecured consumer lending and the volatile operating environment. Fitch expects BBU's NPL ratio to remain low in 2012 given the favorable economic scenario. However, it could be pressured by government intervention in the private sector and the seasoning of credit portfolio expansion over the medium term. In spite of interest rate controls, BBU has consistently reduced its funding cost due to a dramatic shift in its funding structure, which has underpinned its net interest margins to a peak level in 2011, and along with a slower pace of provisioning, has benefited the bank's profitability that has recovered from its low level posted in 2009. Under the absence of new government intervention, Fitch expects that BBU's ROAA could get closer to 3% in the medium term, though it will remain low relative to local peers. BBU's costly operating structure compares unfavorably with local and regional peers. Fitch highlights, that in spite of BBU's efforts, a volatile operating environment, high inflation, and a larger burden of contributions to government constitute a barrier to enhance its efficiency. Since 2008, moderate asset growth, controlled cash dividends (33% average of net income), and better profitability steadily improved BBU's capital ratios, though these remain below the peer average for larger banks in Venezuela. Fitch views the bank's capitalization as tight given its exposure to unsecured lending and is concerned that capital ratios could be pressured somewhat in 2012 due to robust asset growth. BBU's ample presence and leadership in retail markets contributes to its diversified funding base. In Fitch's opinion, continued monetary base expansion in real terms this year should result in low liquidity risk for Venezuela's largest banks. Given Venezuela's sub-investment grade rating and the lack of a consistent policy regarding bank support, in Fitch's view, current interference with the banking system could influence decisions that shareholders may face if BBU were to require financial assistance, which, although possible, cannot be relied on. BBU is the largest private bank with 12.47% market share in terms of assets at end of Sept. 30, 2011, and has been the leader in many segments, especially in the consumer and middle-loan market. Fitch affirms BBU's ratings as follow: -- Long-term foreign and local currency Issuer Default Ratings (IDR) at 'B'; Outlook Stable; -- Short-term foreign and local currency ratings at 'B'; -- Viability rating at 'b'; -- Support at '5'; -- Support floor 'NF'; -- Long-term national-scale rating at 'A(ven)'; -- Short-term national-scale rating at 'F1(ven)'. BANCO PROVINCIAL: Fitch Affirms Issuer Default Rating at Low-B -------------------------------------------------------------- Fitch Ratings has affirmed Venezuela-based Banco Provincial's long-term Issuer Default Rating at 'B+'. The Rating Outlook is Stable. Additional government intervention resulting in pressures on Provincial's financial performance could negatively affect its ratings. Currently, there is limited upside potential for Provincial's ratings as the country ceiling is equivalent to Venezuela's long-term IDR of 'B+'. Although the Outlook on Venezuela's sovereign ratings is Stable, a change in Fitch's view on the sovereign's creditworthiness could also affect the bank's ratings. Provincial's ratings reflect its strong franchise and financial profile. The ratings also incorporate the bank's conservative risk management and operational support from Spain's Banco Bilbao Vizcaya Argentaria. The negative effects of government control over the financial sector and the broader economy, as well as high inflation, continue to weigh on Provincial's ratings. Inflation averaged 27% in the five years ending in 2011; however, Venezuelan banks are not required to adjust financial statements for inflation. Provincial continues to be one of the most profitable privately owned banks in Venezuela due to its stable and ample net interest margin, controlled credit costs and better efficiency. The bank's return on average assets ratio has averaged around 4.5% since 2007 and reached 4.8% at Sept. 30, 2011. Based on supplemental information contained in Provincial's audited financial statements, Fitch estimates that Provincial's inflation adjusted annualized ROAA reached 3.4% at June 30, 2011, which still compares favorably to both domestic (privately-owned large universal banks) and international (emerging market commercial banks with a foreign currency IDR of 'B-/B/B+')peers. Absent government intervention, Fitch expects profitability to remain at similar levels in 2012 as credit growth is likely to remain sound and positive in real terms under current domestic market conditions. Strong risk policies bolstered by Provincial's largest shareholder combined with the bank's vast knowledge of the Venezuelan market continue to underpin solid asset quality as reflected by low impaired loans and charge-offs and ample loan loss reserve coverage relative to peers. As of Sept. 30, 2011, Provincial's impaired loans/gross loans ratio stood at 1.1%, while loan loss reserves covered 4.2% of gross loans. The bank's loan portfolio is adequately diversified given its leading position in most business segments. Fitch expects these trends to continue in 2012. Access to ample retail funding is a key strength of the bank, in terms of funding costs and liquidity management, as well as a tool to leverage its growth through cross-selling from its vast costumer base. As robust deposit growth exceeded loan growth, Provincial's loans/customer deposits ratio declined to 66%. While excess liquidity during 2012 will continue to benefit deposit growth, loan growth is likely to increase this ratio in the near term though Fitch expects the bank's loan portfolio to remain fully funded by deposits. Moderate cash dividends limited by local regulation and high profits continue to sustain Provincial's capital base growth. The bank's Fitch core capital/adjusted weighted risks ratio increased to 20% at Sept. 30, 2011, and compares quite favorably to both domestic and international peers, though it may decline somewhat in 2012 due to asset growth. Provincial's regulatory capital ratio reached 22.1% at Sept. 30, 2011, reflecting growth in its securities portfolio and compulsory loans as well as an expansion in the bank's capital base. According to local regulation, compulsory loans are weighted at 50% (versus 100% for Fitch core capital ratio). Provincial is Venezuela's third largest bank, with a 12.1% market share in terms of total assets at Sept. 30, 2011. Spain's BBVA controls about 55.21% of Provincial's equity and Grupo Polar is the second largest shareholder with a 26.47% stake. Fitch has affirmed Provincial's ratings as follows: -- Long-term foreign and local currency IDRs at 'B+'; Stable Outlook; -- Short-term foreign and local currency ratings at 'B'; -- Viability at 'b+'; -- Support at 5; -- Support Floor NF; -- Long-term national-scale rating at 'AA+(ven)'; -- Short-term national-scale rating at 'F1+(ven)'. MERCANTIL CA: Fitch Affirms Issuer Default Rating at Low-B ---------------------------------------------------------- Fitch Ratings has affirmed Venezuela-based Mercantil, C.A. Banco Universal's (MB) Issuer Default Rating (IDR) at 'B+', with a Stable Rating Outlook. MB's ratings reflect its strong franchise, stable retail deposit base, and adequate performance sustained by an above-average risk control culture, while its ratings are constrained by the negative effects of government intervention over the bank business and overall private sector activities. The Rating Outlook for the long-term IDR is Stable. Government intervention that pressures MB's financial performance could negatively affect its ratings. There is limited upside potential to the bank's international ratings given Venezuela's current country ceiling of 'B+'. MB continues to post healthy asset quality ratios in spite of economic volatility, government policies that affect borrowers' willingness to pay, and the natural seasoning process of its expanding loan portfolio due to its comparably stronger credit risk culture, as well as its appropriate loan origination and monitoring tools. MB's asset quality ratios compare favorably to both domestic (universal banks) and international peers (emerging market commercial banks rated 'B-/B/B+'). Fitch expects MB's past-due ratio to remain low in 2012 given the favorable economic scenario, however, this ratio could be pressured by the seasoning of credit portfolio expansion in midst of a less benign operating environment in 2013. MB's performance has been resilient against a still heavy burden of operating costs and the negative effects of government intervention. Given its diversified business base, adequate interest margin management, manageable credit costs and non recurrent devaluation gains, MB's profitability ratios recovered to the highest level since 2006 at Sept. 30, 2011. Under the absence of new government intervention, Fitch expects profitability to remain at similar levels in 2012, even without non recurrent income. Reflecting sound profitability and moderate cash dividends, MB's capital ratios remain adequate and above the system average, but relatively lower than other large peers around the region. Fitch core capital to adjusted weighted assets stood at 14.06% as of Sept. 30, 2011. Nevertheless, Fitch considers that this level may be pressured somewhat in 2012 due to robust asset growth. MB's ample market share and leadership in the retail market provides a powerful client base in terms of funding. The bank's deposit mix has changed over time, adapting to the complex array of interest rate controls, and privileging very short-term deposits to benefit net interest income. In Fitch's opinion, the likely continued monetary base expansion in real terms for a second year in a row will result in low liquidity risk for Venezuela's largest banks. Given Venezuela's sub-investment grade rating and the lack of a consistent policy regarding bank support, in Fitch's view, current interference with the banking system could influence decisions that shareholders may face if MB were to require financial assistance, which, although possible, cannot be relied on. MB was the fourth largest bank in Venezuela at September 2011, with almost 11% of market share in terms of assets. MB is 99.9% owned by Mercantil Servicios Financieros, a holding company with major investments in Venezuela and the U.S. Fitch affirms MB's ratings as follow: -- Long-term foreign and local currency Issuer Default Ratings (IDR) at 'B+'; Outlook Stable; -- Short-term foreign and local currency ratings at 'B'; -- Viability rating at 'b+'; -- Support at '5'; -- Support floor 'NF'; -- Long-term national-scale rating at 'AA+(ven)'; -- Short-term national-scale rating at 'F1+(ven)'. *********** 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 * * *