/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120419.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, April 19, 2012, Vol. 13, No. 078 Headlines A R G E N T I N A BANCO COLUMBIA: Moody's Issues Summary Credit Opinion BANCO GANADERO: Moody's Issues Summary Credit Opinion BANCO DE SERVICIOS: Moody's Issues Summary Credit Opinion CAJA DE CREDITO: Moody's Issues Summary Credit Opinion YPF SOCIEDAD: Moody's Cuts Global Local Currency Rating to 'B3' B A R B A D O S REDJET: Seeks Help From Guyana to Resume Operations B E R M U D A LEHMAN BROTHERS: Court Approves Lehman Re Settlement LIDZ: Closes Business Due to Struggling Sales B O L I V I A BANCO SOLIDARIO: Moody's Issues Summary Credit Opinion B R A Z I L BANCO HSBC: Fitch Affirms 'BB' Viability Rating FIDC BCSUL: Moody's Lowers Ratings on Senior Shares to 'Ba3' JSL SA: Fitch Assigns Issuer Default Rating at Low-B SAN ANTONIO: Fitch Affirms Issuer Default Rating at 'B-' C A Y M A N I S L A N D S COSMIC LAND: Shareholders' Final Meeting Set for May 1 CUSHING FUND: Shareholders' Final Meeting Set for May 11 ERMITAGE DIVERSIFIED: Shareholders' Final Meeting Set for May 3 ERRY NETWORK: Shareholders' Final Meeting Set for May 2 HAV2 (XII): Shareholders' Final Meeting Set for May 11 HAV2 (XVIII): Shareholders' Final Meeting Set for May 11 MARATHON OIL: Shareholders' Final Meeting Set for May 11 O'CONNOR CREDIT: Shareholders' Final Meeting Set for May 4 O'CONNOR QUANTITATIVE: Shareholders' Final Meeting Set for May 4 SOLENT CAPITAL: Shareholders' Final Meeting Set for May 1 C O L O M B I A BBVA COLOMBIA: Fitch Raises Viability Rating From 'BB+' D O M I N I C A N R E P U B L I C CERVECERIA NACIONAL: Moody's Affirms 'B1' CFR; Outlook Positive J A M A I C A WYNDHAM KINGSTON: To be Auctioned, Employees Worried P U E R T O R I C O ALCO CORP: Reaches Agreement With Banco Popular on Asset Sale LAUSELL INC: Door Maker Files for Bankruptcy in Puerto Rico X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= BANCO COLUMBIA: Moody's Issues Summary Credit Opinion ----------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Banco Columbia S.A. and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for Banco Columbia S.A Moody's current ratings on Banco Columbia S.A. are: Senior Unsecured (domestic currency) ratings of B2 Senior Unsecured MTN Program (domestic and foreign currency) ratings of (P)B2 Long Term Bank Deposits (domestic currency) ratings of B2 Long Term Bank Deposits (foreign currency) ratings of Caa1 Bank Financial Strength ratings of E+ Short Term Bank Deposits (domestic and foreign currency) ratings of NP NSR Senior Unsecured (domestic currency) ratings of A2.ar NSR Senior Unsecured MTN Program (domestic and foreign currency) ratings of A2.ar NSR Long Term Bank Deposits (domestic currency) ratings of A2.ar NSR Long Term Bank Deposits (foreign currency) ratings of Ba1.ar Rating Rationale Moody's assigned a bank financial strength rating (BFSR) of E+ to Banco Columbia. The rating reflects its relatively good franchise and market share in its targeted business of consumer finance, which is aimed at medium and low-income individuals. The BFSR also incorporates the bank's captive operation of financing retirees in the Argentine social security system -- ANSES -- which supports its business volumes and fee generation. The ratings, however, are constrained by Banco Columbia's weak financial fundamentals, particularly asset quality that limits its growth prospects. Columbia is very active in securitizing its good quality consumer loans; as a result, asset quality has deteriorated sharply. Moreover, Columbia faces harsh competition from peers, which may affect its ability to build quality loans and revenues, despite its relatively assured loan-generation capability. During the last years the bank has bought a loan portfolio from C&A and General Electric, thus, expanding its franchise and upgrading its business in scale and margins. The E+ BFSR translates to a Baseline Credit Assessment of b3. Moody's assessment is that there is a moderate probability of systemic support to be extended to the bank in case of stress because of its relatively modest market share in terms of deposits. Such an assessment results in a one-notch lift of the local currency rating to B2. The bank foreign currency deposit rating of Caa1 remains constrained by Argentina's foreign currency deposit ceiling. Rating Outlook All ratings have a stable outlook. What Could Change the Rating - Up The consolidation of a larger franchise through the loan acquisitions -- without erosion of portfolio quality -- and the improvement in the bank financial fundamentals could eventually bolster Columbia's financial strength rating. The foreign currency deposit rating would rise with an upgrade of the deposit ceiling. What Could Change the Rating - Down Deterioration in portfolio quality might put Columbia's equity at risk and could press down on the financial strength rating. The rating could also be downgraded if capitalization needs damage the bank's franchise. In addition, a slip in the sovereign risk rating would undermine the foreign currency deposit rating. BANCO GANADERO: Moody's Issues Summary Credit Opinion ----------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Banco Ganadero S.A. and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Banco Ganadero S.A. Moody's current ratings on Banco Ganadero S.A. are: Long Term Bank Deposits (domestic currency) ratings of B1 Long Term Bank Deposits (foreign currency) ratings of B2 Bank Financial Strength ratings of E+ Subordinate (domestic and foreign currency) ratings of B2 Subordinate MTN Program (foreign currency) ratings of (P)B2 Short Term Bank Deposits (domestic and foreign currency) ratings of NP NSR Long Term Bank Deposits (domestic currency) ratings of Aa2.bo NSR Subordinate (domestic currency) ratings of Aa3.bo NSR Long Term Bank Deposits (foreign currency) ratings of Aa3.bo NSR Subordinate (foreign currency) ratings of Aa3.bo NSR Subordinate MTN Program (foreign currency) ratings of Aa3.bo Rating Rationale Moody's maintains a bank financial strength rating (BFSR) of E+ to Banco Ganadero S.A. This reflects the bank's improved financial fundamentals, particularly asset quality, capitalization, liquidity, and profitability. However, Ganadero still faces the challenge of increasing earnings amid harsh competition and a volatile operating environment. The bank's rating is still B1 for its long-term local currency (GLC) deposits. This is based on Ganadero's own Baseline Credit Assessment, and it also incorporates the low probability of systemic support in a crisis. Moody's final GLC rating stays at B1, without adjustments. Moody's mantained Ganadero's foreign currency deposit rating in both the global and national scales on B2 and Aa3.bo, with positive outlook. Rating Outlook All ratings have a stable outlook, with the exception of the foreign currency deposit ratings which were placed on positive outlook, following a similar action on the sovereign ceiling for foreign currency deposits. What Could Change the Rating - Up An upgrade of the BFSR would require considerable sustained improvement in the bank's franchise and profitability ratios, which are still low compared to those of its peers. Foreign currency deposit ratings include external-support factors, so an upgrade would depend on the upgrade of Moody's foreign currency ceiling. What Could Change the Rating - Down Ratings could be downgraded if the financial fundamentals of the bank should worsen, especially if there is a deterioration in asset quality. The foreign currency deposit ratings would decline after a downgrade of the country ceilings. BANCO DE SERVICIOS: Moody's Issues Summary Credit Opinion --------------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Banco de Servicios y Transacciones S.A. and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for Banco de Servicios y Transacciones S.A. Moody's current ratings on Banco de Servicios y Transacciones S.A. are: Senior Unsecured (domestic currency) ratings of B2, on review for downgrade Senior Unsecured MTN Program (domestic and foreign currency) ratings of (P)B2, on review for downgrade Long Term Bank Deposits (domestic currency) ratings of B2, on review for downgrade Long Term Bank Deposits (foreign currency) ratings of Caa1 Bank Financial Strength ratings of E+ Subordinate (domestic currency) ratings of B3, on review for downgrade Short Term Bank Deposits (domestic and foreign currency) ratings of NP NSR Senior Unsecured (domestic currency) ratings of A1.ar, on review for downgrade NSR Senior Unsecured MTN Program (domestic currency) ratings of A1.ar, on review for downgrade NSR Long Term Bank Deposits (domestic currency) ratings of A1.ar, on review for downgrade NSR Subordinate (domestic currency) ratings of A2.ar, on review for downgrade NSR Senior Unsecured MTN Program (foreign currency) ratings of A1.ar, on review for downgrade NSR Long Term Bank Deposits (foreign currency) ratings of Ba1.ar Rating Rationale Moody's assigned a bank financial strength rating (BFSR) of E+ to Banco de Servicios y Transacciones S.A. (BST). The rating largely derives from its small franchise, wholesale funding structure, and limited profitability despite a focus on consumer finance. The rating is however supported by the bank's highly granular loan book and good asset quality and capitalization. Moody's assigns a global local currency deposit rating of B2 to BST, based on its b2 BCA, with no uplift due to systemic support, as Moody's assesses a very low probability of systemic support for BST. The bank's foreign currency deposit rating of Caa1 remains constrained by Argentina's foreign currency deposit ceiling. Rating Outlook The local currency deposit and debt ratings are on review for possible downgrade. All other ratings are stable. What Could Change the Rating - Up Any upward pressure on BST's BFSR and GLC ratings is currently unlikely given the existing reassessment of the BCA. The foreign currency deposit and senior unsecured debt ratings are currently constrained by the country ceilings of the respective instruments and have a stable outlook aligned to the outlook of the ceilings. These ratings could be upgraded following an upgrade of the ceilings. What Could Change the Rating - Down The local currency deposit ratings could be downgraded following Moody's review which will re-assess the degree of linkage to sovereign risk. Downward pressures could also be fostered if the bank suffered a substantial deterioration in its asset quality or in its core earning profile, as well as if the operating environment weakened further. A downgrade of the country's deposit ceilings would of course affect its deposit ratings. CAJA DE CREDITO: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on Caja de Credito Cuenca Coop. Ltda. and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for Caja de Credito Cuenca Coop. Ltda. Moody's current ratings on Caja de Credito Cuenca Coop. Ltda. are: Senior Unsecured (domestic currency) ratings of B3 Senior Unsecured MTN Program (domestic and foreign currency) ratings of (P)B3 Long Term Bank Deposits (domestic currency) ratings of B3 Long Term Bank Deposits (foreign currency) ratings of Caa1 Bank Financial Strength ratings of E+ Short Term Bank Deposits (domestic and foreign currency) ratings of NP NSR Senior Unsecured (domestic currency) ratings of A3.ar NSR Senior Unsecured MTN Program (domestic and foreign currency) ratings of A3.ar NSR Long Term Bank Deposits (domestic currency) ratings of A3.ar NSR Long Term Bank Deposits (foreign currency) ratings of Ba1.ar Rating Rationale Moody's has assigned a bank financial strength rating (BFSR) of E+ to Caja de Credito Cuenca Cooperativa Limitada. The rating is based largely on Cuenca's business model; the bank focuses on consumer finance in a captive market, granting loans to pensioners from ANSES (Argentina National Social Security Administration) and providing payroll loans to employees of national government's entities. Cuenca's high granularity in terms of loans lends it considerable financial strength, as does its high level of capitalization, which is reflected in its Tier 1 ratio of 18.4%. The rating also takes into account Cuenca`s liquidity and profitability strategies, which are driven by recurrent loan sales and trusts origination. Cuenca has sound profitability ratios, but also a high dependence on the securitization market. Cuenca's rating also incorporates the bank's modest asset quality, with nonperforming loans at 6.1% of total loans, as well as its very small share of the Argentine deposit market, at 0.01%. The E+ BFSR translates to a baseline credit assessment of b3 and to a global local currency rating of B3, and a A3.ar on the Argentinean national scale. Cuenca's deposit ratings do not receive any uplift from an assumption of government support in the event of stress, as Moody's assesses the probability of such support to be low. The bank's foreign currency deposit rating of Caa1 is constrained by the foreign currency deposit ceiling for Argentina. Rating Outlook All the ratings have a stable outlook. What Could Change the Rating - Up A larger franchise, combined with growth that does not compromise portfolio quality, could improve Cuenca`s financial strength. The bank's foreign currency deposit ratings include sovereign risk; an upgrade of the sovereign rating could therefore positively influence Cuenca`s ratings. What Could Change the Rating - Down A deterioration of the loan book would likely result in a downgrade of the BFSR. The rating could also be downgraded if the securitization market deteriorates, negatively affecting Cuenca's liquidity and profitability. In addition, a lowering of the sovereign risk ceiling would undermine Cuenca`s foreign currency deposit and debt ratings. YPF SOCIEDAD: Moody's Cuts Global Local Currency Rating to 'B3' --------------------------------------------------------------- Moody's Investors Service downgraded YPF Sociedad Anonima reflecting the Argentine government's expected partial nationalization of YPF. Moody's downgraded YPF's Global Local Currency Rating to B3 from Ba3 and National Scale Rating to Baa3.ar from Aa2.ar. All ratings remain on review for downgrade. Ratings Rationale The rating actions reflect the expected approval of legislation that will enable the government of Argentina (B3 stable) and certain hydrocarbon producing Argentine provinces to take a 51% stake in YPF by declaring 51% of YPF's Class D shares of public interest and subject to expropriation. This 51% stake will be 51% owned by the federal government and 49% owned by various provinces. The government also announced that the company would come under immediate state supervision and control for a 30-day period, and declared hydrocarbon self-sufficiency to be in the county's national interest. Approval of the legislation will result in the Argentine government and the provinces taking control of roughly 201 million Class D shares currently owned by Repsol YPF S.A. (Repsol, Baa2 stable), which would reduce Repsol's stake in YPF to 6% from 57%. The terms of compensation offered to existing shareholders has not been resolved and is expected to be determined by a federal tribunal. Given YPF's expected impending partial nationalization by the B3 rated Argentine government, as opposed to Repsol YPF S.A.'s prior majority control, Moody's believes that YPF should not be rated higher than the government and has equalized the ratings. The ratings review reflects uncertainty regarding how the government will manage YPF, including uncertainty regarding the company's future operating and financial profile. As a result of the ownership transfer, a change-of-control could be deemed an event of default under certain YPF debt agreements, giving rise to acceleration rights, barring a waiver from the lenders. Resolution of the review will be subject to whether an event of default is declared and how quickly it can be cured, as well as any clarifications on the intentions of the government regarding the management of YPF. =============== B A R B A D O S =============== REDJET: Seeks Help From Guyana to Resume Operations --------------------------------------------------- RJR News reports that REDjet (Airone Caribbean/Airone Ventures Limited) has intensified its search for funds to resume operations. REDjet officials have reportedly approached the Guyanese government for financial assistance and are reportedly also in discussion with foreign investors in an effort to get the airline back in the air, according to RJR News. The report relates that Guyana Minister of Public Works and Transport Robeson Benn confirmed that his Ministry, along with the Ministry of Tourism, met with the carrier's chief executive officer Ian Burns last week. Sources also disclosed that the low-cost carrier is in talks with Venezuelans who have interests in the airline industry about getting involved, RJR News relays. RJR News adds that Mr. Benn told a Barbados newspaper that the government had not made any decision on the finance request from REDjet. About REDjet REDjet (Airone Caribbean/Airone Ventures Limited) is a startup low-cost carrier (LCC) based at the Grantley Adams International Airport in Christ Church, Barbados, near Bridgetown. Incorporated in Barbados, the privately owned airline features a fleet of McDonnell Douglas MD-82 and MD-83 aircraft. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 2012, RJR News reports that REDjet's decision to suspend all flights came a day after the airline announced the addition of its new route to Antigua and Barbuda. REDjet officials are calling on the Barbadian government for close to $8,000,000 in assistance, and to receive the same subsidies as other airlines, RJR News noted. The report disclosed that Mr. Maharaj said governments cannot continue to expose themselves as a guarantor to private enterprises. ============= B E R M U D A ============= LEHMAN BROTHERS: Court Approves Lehman Re Settlement ---------------------------------------------------- The U.S. Bankruptcy Court in Manhattan issued an order approving a settlement between Lehman Brothers Holdings Inc. and Lehman Re Ltd., a Bermuda-based insurance firm. The deal would reduce Lehman Re's claims from $2.3 billion to $1 billion. The claims stemmed from the insurance firm's 1999 repurchase agreement with Lehman's commercial paper unit involving residential and commercial mortgages and loans, and from its 2007 Net Worth Maintenance Agreement with Lehman. Aside from the settlement of claims, the deal also requires Lehman's commercial paper unit to purchase loans from the insurance firm for $32 million. Lehman Re's claim, designated as Claim No. 28307, against Lehman is classified under the Chapter 11 plan in Class 8, and is allowed as an unsecured, non-priority affiliate claim in the sum of $415 million. Its claim against Lehman's commercial paper unit is classified in Class 5C and is allowed as an unsecured, non-priority affiliate claim in the sum of $490 million, according to the court order. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LIDZ: Closes Business Due to Struggling Sales --------------------------------------------- The Royal Gazette reports that Lidz is closing down its shop due to struggling sales. Shop owner Giovanna Harris said sales started off "great" but dropped off by the end of this past summer, according to The Royal Gazette. "It's really slow in St George's and we have just been affected by the economy," the report quoted Ms. Harris as saying. The Royal Gazette notes that Lidz had only been open a year. The report relays that the Harrises chose the St George's location for the business because the rent was more reasonable than Hamilton. Lidz is located in Mullet Bay, in the former Reid's building. The Royal Gazette says that it will close at the end of the month and all inventory is currently on sale. The report notes that Ms. Harris said deals include five hats for US$100 and selected hats for US$25. The report relays that if another entrepreneur was interested in the store shelving, security and tech systems, they should contact the owner. Lidz is St George's specialty hat and clothing shop. The shop specialized in baseball caps, and also sold football jerseys, shoes and other items. ============= B O L I V I A ============= BANCO SOLIDARIO: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on Banco Solidario S.A. (Bolivia) and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Banco Solidario S.A. (Bolivia). Moody's current ratings on Banco Solidario S.A. (Bolivia) are: Long Term Bank Deposits (domestic currency) ratings of Ba2, on review for downgrade Long Term Bank Deposits (foreign currency) ratings of B2 Bank Financial Strength ratings of D, on review for downgrade Subordinate (domestic currency) ratings of Ba3, on review for downgrade Subordinate MTN Program (domestic and foreign currency) ratings of (P)Ba3, on review for downgrade Short Term Bank Deposits (domestic and foreign currency) ratings of NP NSR Long Term Bank Deposits (domestic currency) ratings of Aaa.bo, on review for downgrade NSR Subordinate (domestic currency) ratings of Aa1.bo, on review for downgrade NSR Subordinate MTN Program (domestic currency) ratings of Aa1.bo, on review for downgrade NSR Long Term Bank Deposits (foreign currency) ratings of Aa3.bo Rating Rationale Moody's assigns a BFSR of D and a baseline credit assessment of ba2 to Banco Sol. This rating reflects the bank's ample profit margins, as well as its good liquidity and asset quality metrics. It also captures Banco Sol's established franchise in the microfinance business. Key risks include a declining capitalization, which is likely to become a binding restriction for further loan growth, and lagging efficiency indicators. Moody's assigns Banco Sol a Ba2 long-term global local currency deposit rating. A national scale local currency deposit rating of Aaa.bo was also assigned. A B2 and a Aa3.bo global and national scale foreign currency deposit ratings were also assigned, with a positive outlook, in line with the outlook on sovereign ceilings for foreign currency deposits. Rating Outlook All ratings are on review for downgrade, with the exception of the foreign currency deposit ratings, which have a positive outlook. What Could Change the Rating - Up Any upward pressure on ratings is currently unlikely given the existing reviews for downgrade. The foreign currency deposit rating is currently constrained by the country ceilings and have a positive outlook aligned to the outlook of the ceilings. These ratings could be upgraded following an upgrade of the ceilings. What Could Change the Rating - Down The BFSR could be downgraded following Moody's review which will re-assess the degree of linkage to sovereign risk. The BFSR would also be put under stress if the bank suffered a substantial deterioration in its asset quality or in its core earning profile, as well as if the operating environment weakened. A downgrade of the country's deposit ceilings would of course affect its deposit ratings. =========== B R A Z I L =========== BANCO HSBC: Fitch Affirms 'BB' Viability Rating ----------------------------------------------- Fitch Ratings has affirmed Banco HSBC Salvadoreno, S.A.'s (HSBCS) Viability Rating at 'bb'. All of HSBCS's other ratings remain on Rating Watch Negative. HSBCSs Support Rating and IDRs are driven by Fitch's view that there is a high probability that the bank would receive support from its ultimate parent, HSBC Holdings plc (rated 'AA' with a Negative Outlook by Fitch), if needed. In turn, HSBCS's viability rating (VR) reflects the bank's domestic franchise and market share, improved capital ratios, and well-balanced business mix; however, it also factors weakened asset quality and modest profitability. HSBCS's IDRs and national rating were placed on Negative Rating Watch since January 2012, after the announcement of HSBC's agreement to sell its operations in El Salvador, Honduras and Costa Rica to Colombian Banco Davivienda, S.A. (Davivienda). The Rating Watch indicates that there is a heightened probability of a potential downgrade of HSBCS's ratings once the transaction is completed, given that HSBCS would no longer receive potential support from its current ultimate parent, and will be resolved once the transaction is completed and Fitch assesses the potential support that Davivienda could provide to its future subsidiaries. HSBCS is the fourth largest bank in El Salvador in terms of assets, with a market share of 14% as of December 2011. The bank has a well balanced, loan portfolio and a nationwide network of 344 points of service. HSBCS consolidates two financial services subsidiaries in El Salvador. HSBCS is part of a local financial group consolidated under Inversiones Financieras HSBC, S.A. (IFHSBC), where it accounts for the majority of consolidated assets and earnings. Fitch affirms the following ratings: -- Viability Rating at 'bb'; The following ratings remain on Rating Watch Negative -- Long-term IDR 'BBB-'; -- Short-term IDR 'F2'; -- Support '2'; -- Long-term National Rating 'AAA(slv)'; -- Short-term National Rating 'F1+(slv)'; -- Senior Unsecured Debt Long-term Rating 'AAA(slv)'; -- Senior Secured Debt Long-term Rating 'AAA(slv)'; -- Senior Unsecured Debt Short-term Rating 'F1+(slv)'; -- Senior Secured Debt Short-term Rating 'F1+(slv)'. Fitch has also affirmed the National Ratings For Banco HSBC Salvadoreno, S.A.'s holding in El Salvador Inversiones Financieras HSBC and Mantains Negative Watch. HSBCS's rating drivers also explain the national ratings for its holding, as the Bank represents 99% of total assets. IFHSBC's remain on Rating Watch Negative: -- Long-term National Rating at 'AAA(slv)''; -- Short-term National Rating at 'F1+(slv)''. FIDC BCSUL: Moody's Lowers Ratings on Senior Shares to 'Ba3' ------------------------------------------------------------ Moody's America Latina has downgraded the ratings of the senior shares of the fifth series (or Series 2009-1) issued by FIDC BCSul Verax Credito Consignado II (FIDC BCSUL or the issuer), to Ba3 (sf) from Ba1 (sf), global local currency scale, and to A3.br (sf) from Aa2.br (sf) on the Brazilian national scale. The transaction is a securitization backed by a pool of payroll deducted loans originated by Banco Cruzeiro do Sul S.A. (the bank or Banco Cruzeiro do Sul). The issuer's shares are backed by the cash flows arising from repayment of personal loans extended by the bank solely to active government employees at the federal, state, and municipal levels, and retirees and pensioners covered by the Regime Geral de Previdencia Social (RGPS) pension system, which in turn is managed by the INSS (Instituto Nacional do Seguro Social). The transaction was placed on review for possible downgrade on March 12, 2012; the review was prompted by higher credit losses than original estimates, concerns over the adequate provisioning of the personal loans and concerns about the credit quality of Banco Cruzeiro do Sul. Ratings Rationale Concerns about the credit quality of Banco Cruzeiro do Sul: On March 29, 2012, Moody's downgraded the standalone bank financial strength rating assigned to Banco Cruzeiro do Sul S.A. to E+, from D-, as well as the long-term global local and foreign currency deposit ratings to B2 from Ba3 and the Brazilian national scale ratings to Ba2.br/BR-4 from A3.br/BR-2, long and short term, respectively. Moody's views the rating of FIDC BCSUL linked to some degree to the rating of Banco Cruzeiro do Sul sponsoring the deal. Moody's view is based on the commingling of the securitized flows with collections belonging to the originator and operational and legal issues that could make it difficult to transfer servicing to an alternate servicer. As the primary servicer of the transaction, Banco Cruzeiro do Sul receives cash payments from the jurisdictions and then proceeds to reconcile the received payments to determine which funds are to be transferred to the segregated bank account of the FIDC, and which funds it will retain for consigned loans that have not been sold and remain on its own balance sheet. In the case of a financial failure of the originator, however, cash could become trapped in the estate of the originator until the regulators or the judicial system sorts out what are the cash flows that belong to the securitization. Furthermore, Moody's highlights that consigned loan transactions in general may also be supported by the originators in the form of repurchase of delinquent assets, replacement of loans to avoid breach of transaction triggers, sale of delinquent loans to a third party and cash advances to cover shortfalls from prepaid loans. A financial distress of the originator would halt support to the securitization transaction, and as a result the performance of the receivables could deteriorate significantly. Concerns over the adequate provisioning of the personal loans: In the earlier press release dated March 12, 2012 when placing the transaction on review for possible downgrade, Moody's noted instances in which a significant number of delinquent loans classified in past due bucket "E" (91 to 120 days past due) and past due bucket "F" (121 to 150 days past due) were re-classified as "D" (61 to 90 days past due) following the sale of one or more past due installments of those loans to third parties outside of the fund. The sale of those past due installments appears to have triggered a reclassification of the future installments of the outstanding loans, thereby raising questions regarding the adequacy of provisioning. In the first quarter 2012, this practice seems to have stopped for the months of January and February, resulting in the migration of delinquent loans classified in lower arrear buckets into higher arrear buckets (please see performance overview dated March 21, 2012). Consequently, according to information provided by the custodian bank to the transaction, total provisions increased by BRL 6.1 million (from BRL 2.5 million in December 31, 2011 to BRL 8.6 million in March 31, 2012) as loans naturally migrated to higher delinquency buckets. Higher credit losses than original estimates: The historical losses for this transaction have been higher than for comparable transactions. The net increase in provisions of BRL 6.1 million during the first quarter 2012 on an outstanding portfolio volume that averaged BRL 230 million during the same 3-month time period implies a one-off 2.6% net increase of provisions in a 90 day period and it is considered very high. However, according to Moody's, the senior shares enjoy significant overcollateralization (41.9% as of March 31, 2012) and a relatively short time to maturity (Series 2009-1 senior shares mature in January 2014), which are strengths that support the current rating level. Moody's notes that a future downgrade of the rating of the bank or further deterioration of the asset pool performance may lead to a downgrade of the rating of this transaction. Rating Methodology The rating methodology used to rate consigned-loan backed transactions is based on historical performance data, the deal's structural features and qualitative assessments. The performance data includes, among others, historical information about the origination of receivables, delinquencies, and prepayments. The qualitative assessment includes, among other factors, a review of origination and credit approval processes and servicing. Moody's also analyzes structural features such as the triggers present in the transaction and the availability of reserve accounts. JSL SA: Fitch Assigns Issuer Default Rating at Low-B ---------------------------------------------------- On April 16, 2012, Fitch Ratings assigned a Long-Term National Rating of 'A-(bra)' to JSL S.A.'s (JSL) expected unsecured debentures issuance in the amount of BRL200 million due in 2015. The proceeds from this issuance will be used to strengthen the company's working capital. The assigned rating to the debentures is one notch below the corporate rating due to their structural subordination in relation to most of JSL's debt, which is secured by its fleet. JSL's ratings reflect its strong business profile, supported by a leading position in the Brazilian logistics industry and diversified service portfolio, and its resilient operating performance over the last years. Leverage is considered high due to the combination of the company's ongoing growth strategy and its recent acquisition of Schio S.A., besides the incorporation of Simpar Concessionarias Ltda. JSL's main challenge is to effectively convert its business expansion into operating cash flow generation in order to reduce net leverage ratio, as measured by net debt/EBITDA, to around 3.5 times (x) from 4.2x on a pro forma basis (including both transactions). JSL's strong commitment to maintain adequate liquidity vis-a-vis short-term obligations is fully incorporated into the ratings. JSL's ratings are constrained by the company's close correlation between its business and the macroeconomic conditions in Brazil; the capital-intensive nature of its business; and by the company's aggressive growth strategy. These factors have resulted in a recurring need to access funding to finance negative free cash flow (FCF). Prominent Market Position and Diversified Service Portfolio JSL's diversified services portfolio with operations in multiple sectors of the economy, coupled with its long-term contracts for most of its revenues, partially mitigate the company's exposure to volatile economic conditions. JSL's business strategy is to offer a diversified portfolio of logistics services through an integrated operating platform that gives it a significant competitive advantage as compared with other players that operate a single service. JSL's significant operating scale has made it an important purchaser of light vehicles and trucks, reinforcing its bargaining power over industry competitors. The services offered by the company in 2011 included those dedicated to the supply chain (56% of its gross revenue); fleet management and outsourcing (21%), passenger transportation (12%), and general cargo transportation (9%). Growth Strategy Pressures FCF JSL's expansion over the past few years was mainly based upon organic growth, by adding new services and clients, and building up its fleet. Between 2007 and 2011, company's net revenue, excluding vehicle sales, increased by 123%, reaching BRL2.3 billion, while the fleet increased by 117%. During that same period, operating cash generation, measured by EBITDA, rose from BRL198 million to BRL431 million. In 2011, JSL reported strong cash flow from operations (CFFO), of BRL408 million, compared to BRL290 million and BRL185 million recorded in 2010 and 2009, respectively. The company is still reporting negative FCF, mainly due to its business growth and the capital-intensive nature of the business. During that same period, JSL reported negative FCF of BRL372 million, as a result of the BRL758 million of capital expenditures. Fitch expects that the company will continue to report negative FCFs as its operations expand, albeit at lower levels due to the stronger cash flow generation as a result of previously made investments. High Leverage JSL's credit metrics are high for its rating category. JSL reported leverage, as measured by total debt/EBITDA, of 5.5x, and net debt/EBITDA of 3.3x in 2011. In 2010, the ratios were 4.7x and 3.3x, respectively. On a pro forma basis, considering Schio and Simpar, JSL's leverage is 5.1x, while, on a net basis, it is 4.2x. Fitch expects that the increase in operating cash flow results in net leverage reduction to near 3.5x over the medium term. JSL's leverage relative to its fleet market value is solid. The company reports a fleet market value of approximately BRL2.1 billion, corresponding to 1.1x its net debt. Nevertheless, the company's potential flexibility is limited given the low percentage (18%) of its fleet that is free of fiduciary liens. Maintenance of Strong Liquidity is Essential JSL's adequate liquidity vis-a-vis its short-term debt is fundamental in supporting the company's ratings. On a pro forma basis, on Dec. 31, 2011, the company recorded total debt of BRL2.5 billion, with BRL448 million of cash and marketable securities and BRL556.5 million of short-term debt. The current debenture issuance, with a firm guarantee of placement, should be used for working capital reinforcement. Key Rating Drivers The ratings could benefit from a higher-than-expected level of cash flow generation leading to a sustained reduction in leverage which, coupled with the maintenance of a strong cash position could affect JSL's credit quality positively. The ratings may be negatively pressured by new acquisitions, significant reduction in the market value of its fleet and by a less favorable macroeconomic environment. Increased exposure to refinancing risks in case of any significant deterioration in liquidity could also pressure JSL's ratings. Fitch currently rates JSL as follows: -- Foreign Currency Issuer Default Rating (IDR) 'BB-' (BB minus); -- Local Currency IDR 'BB-' (BB minus); -- Long-Term National Rating 'A(bra)'; -- 3rd debentures issuance due in 2016 'A-(bra)' SAN ANTONIO: Fitch Affirms Issuer Default Rating at 'B-' -------------------------------------------------------- Fitch Ratings has affirmed San Antonio Internacional's (SAI) foreign and local currency Issuer Default Ratings at 'B-' and SAI's expected USD500 million debt expected issuance at 'B-/RR4', Stable Outlook. The ratings have been simultaneously withdrawn due to the suspension of the expected debt issuance and as they are no longer relevant for Fitch's coverage. =========================== C A Y M A N I S L A N D S =========================== COSMIC LAND: Shareholders' Final Meeting Set for May 1 ------------------------------------------------------ The shareholders of Cosmic Land Limited will hold their final meeting on May 1, 2012, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rob Mcmahon c/o Robert Crockett Ernst & Young Ltd 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman KY1 -1106 Cayman Islands Telephone: +1 345 814 8986 CUSHING FUND: Shareholders' Final Meeting Set for May 11 -------------------------------------------------------- The shareholders of The Cushing Fund (Offshore), Ltd. will hold their final meeting on May 11, 2012, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 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 ERMITAGE DIVERSIFIED: Shareholders' Final Meeting Set for May 3 --------------------------------------------------------------- The shareholders of Ermitage Diversified Strategies Fund Limited will hold their final meeting on May 3, 2012, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Morrissey c/o Ermitage Asset Management Jersey Limited 47 The Esplanade, 1st Floor St Helier Jersey JE1 9LB Channel Islands ERRY NETWORK: Shareholders' Final Meeting Set for May 2 ------------------------------------------------------- The shareholders of Erry Network Technology Ltd. will hold their final meeting on May 2, 2012, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands HAV2 (XII): Shareholders' Final Meeting Set for May 11 ------------------------------------------------------ The shareholders of HAV2 (XII) Limited will hold their final meeting on May 11, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 HAV2 (XVIII): Shareholders' Final Meeting Set for May 11 -------------------------------------------------------- The shareholders of HAV2 (XVIII) Limited will hold their final meeting on May 11, 2012, at 9:50 a.m., to receive 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 MARATHON OIL: Shareholders' Final Meeting Set for May 11 -------------------------------------------------------- The shareholders of Marathon Oil Garnet Limited will hold their final meeting on May 11, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y. R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A. O'CONNOR CREDIT: Shareholders' Final Meeting Set for May 4 ---------------------------------------------------------- The shareholders of O'Connor Credit Arbitrage Limited will hold their final meeting on May 4, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma c/o Russell Gleisner Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Telephone: +1 (345) 814 2330 O'CONNOR QUANTITATIVE: Shareholders' Final Meeting Set for May 4 ---------------------------------------------------------------- The shareholders of O'Connor Quantitative Trading Strategies Master Limited will hold their final meeting on May 4, 2012, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma c/o Russell Gleisner Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Telephone: +1 (345) 814 2330 SOLENT CAPITAL: Shareholders' Final Meeting Set for May 1 --------------------------------------------------------- The shareholders of Solent Capital (Cayman) Limited will hold their final meeting on May 1, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hugh Dickson c/o Saskia Lawrence PO Box 765 10 Market Street, Camana Bay Grand Cayman KY1-9006 Cayman Islands Telephone: (345) 769 7212 Facsimile: (345) 949 7120 =============== C O L O M B I A =============== BBVA COLOMBIA: Fitch Raises Viability Rating From 'BB+' ------------------------------------------------------- Fitch Ratings has affirmed BBVA Colombia's Issuer Default Ratings (IDRs) and Support Ratings. At the same time, Fitch has upgraded BBVA Colombia's Viability Rating (VR) to 'bbb-'. BBVA Colombia's Support rating and IDRs reflect the support it would receive from its parent, BBVA, given its growing strategic importance which is the result of its steady performance, high growth potential and growing contribution to BBVA's bottom line. The parent's IDR (rated 'A', with a Negative Outlook by Fitch) reflects the challenges of its core operating environment and the impact this has had on its performance. BBVA Colombia's local currency IDR bears a Negative Outlook in line with that of its parent. The IDR could be downgraded if its parent's IDR is downgraded, generally maintaining the current one-notch difference. Downward risk for BBVA Colombia's IDRs is limited by its intrinsic creditworthiness, as reflected in its VR. BBVA Colombia's VR could be pressured by severe asset quality deterioration or a dismal performance that would erode its capital and reserve cushion. BBVA Colombia's VR was upgraded after the bank successfully restored its asset quality while sustaining and marginally improving its profitability and capital/reserve cushions, which were generally in line with other entities rated with the same VR. Moreover, BBVA Colombia's positive operating environment and strengthened risk management processes give an additional level of comfort as to the sustainability of these indicators. Colombia's economy has performed well through the crisis, showing stability and resilience. Growth has been wide ranging and sustained while low debt levels and healthy fiscal balances leave room for counter-cyclical stimuli. A large cash and equivalents position coupled with liquid and relatively safe investments contribute to BBVA Colombia's sound liquidity ratios. Contingency liquidity plans complete a process that has been strengthened following the global credit crunch. Despite its larger than proportional share of mortgage and other consumer loans, asset and liability matching compares well, underpinned by a sizable share of long-term funding. Red flags during the crisis prompted the bank to bolster its risk management function while tightening its credit policies. The bank is now better equipped to manage the risks it takes and shows a sound credit process from origination to collection. The positive economic backdrop and bolstered credit process have contributed to improve asset quality which is now better than the industry average. This is complemented by sound loan loss reserve coverage (3.4 times (x) impaired loans and almost 4% of total loans). BBVA Colombia has been able to reverse the impact of higher loan loss reserves during 2008-2009 and stabilize its profitability at a very comfortable level. Tight cost control policies and moderate expansion plans, as well as its improved asset quality should allow BBVA Colombia to sustain its profitability. Sustained profitability and a moderate dividend policy have allowed BBVA Colombia to stabilize its capital ratios (Fitch core capital stood at 10.3% at December 2011). The bank may not be the best capitalized among its peers but considering its ample loan loss reserves, improved asset quality and risk management and good profitability, its capital ratios are deemed adequate. Fierce competition pressured loan portfolio yields and, along with growing funding costs, have somewhat depressed BBVA Colombia's margins. The latter are expected to remain stable -- underpinned by BBVA Colombia's growth into retail lending -- and are unlikely to improve significantly. BBVA Colombia's institutional funding creates a moderate concentration by depositor (BBVA Colombia's top 25 depositors accounted for about 30% of deposits at December 2011). This is a weakness when compared to larger peers but is well managed and mitigated by strong liquidity. BBVA Colombia is a universal bank catering to corporate and consumer customers in the Colombian market where it is the fourth largest with around 9% market share by assets. The bank is the largest foreign bank in Colombia, it is controlled by BBVA and is fully integrated within its parent's regional strategy and operating structure. Fitch has taken the following rating actions: -- Long-term foreign currency IDR affirmed at 'BBB'; Outlook Stable; -- Short-term foreign currency IDR affirmed at 'F2'; -- Local currency Long-term IDR affirmed at 'A-'; Outlook Negative; -- Local currency Short-term IDR affirmed at 'F1'; -- Viability Rating upgraded to 'bbb-' from 'bb+'. -- Support rating affirmed at '2'. =================================== D O M I N I C A N R E P U B L I C =================================== CERVECERIA NACIONAL: Moody's Affirms 'B1' CFR; Outlook Positive --------------------------------------------------------------- Moody's Investors Service has revised the rating outlook to positive from stable for Cerveceria Nacional Dominicana, S.A. (CND). At the same time, Moody's affirmed the B1 senior unsecured debt and corporate family ratings. Rating Action -- Corporate Family Rating: B1 rating affirmed, outlook changed to positive from stable. -- Senior Unsecured Notes due 2014: B1 rating affirmed, outlook changed to positive from stable. Ratings Rationale "The outlook change reflects our expectation that the recently announced strategic alliance with Companhia de Bebidas das Americas-AmBev (AmBev) will benefit CND's already strong market position, broaden its product portfolio and help improve its operating results in the medium term." said Alonso Sanchez Rosario, a Moody's Assistant Vice President. On April 16, 2012 CND announced that it has entered into a transaction to form a strategic alliance with AmBev. The transaction is expected to be closed during the 2Q12 and upon execution of this transaction, and a separate purchase of Heineken's 9% stake, AmBev will indirectly own around 51% of CND. CND's B1 ratings continue to reflect the company's position as the leading brewer in the Dominican Republic, its solid profitability and low leverage for a B1 rating category, and the defensive nature of its beer business. These credit strengths are partly offset by the company's modest operating scale compared to its international peers, its limited geographic and brand diversification as it generates most of its earnings domestically, the competitive challenges in the local beer market that the company has faced in recent years, which will be largely eliminated following this transaction, and the company's moderate dependence on external sources of cash to cover its near term debt maturities. The ratings also consider the Dominican Republic's country risk and the dollar exposure in the company's cost, and to a lesser extent, debt structures relative to a revenue base that is largely in local currency. Currently, CND is the leading brewer in the Dominican Republic, with an estimated 79% volume share of the domestic market followed by AmBev. Once the transaction is closed, it is expected that CND will benefit from AmBev's corporate practices, its experience in international markets and its size; being the largest brewer in Latin America in terms of volume with revenues over USD15 billion. Over the last year, CND has been active reducing its debt and improving its debt maturity profile. As of March 31, 2012, total debt was DOP10,996 million (approximately US$288 million) (vs. DOP14,872 million as of March 31, 2011) out of which 59% is dollar denominated and the balance is Dominican peso denominated. The company has the following debt maturities: DOP631 million in 2012, DOP2,050 million in 2013, DOP3,377 million in 2014, DOP2,759 million in 2015, DOP1,057 million in 2016, and DOP374 million in 2019. As a result of CND's reduction in debt its credit metrics have improved substantially in 2011. Moody's adjusted Debt/EBITDA has declined to 2.5x in 2011 (down from 3.1x in 2010). Similarly, adjusted EBIT/Interest expense has increased from 1.5x in 2010 to 2x in 2011. CND's cash generation and cash on hand of DOP3,198 million in 2011 is enough to cover its 2012 and 2013 debt maturities. However, absent a higher cash flow generation, the company will need to rely on external sources of liquidity to cover its 2014 debt maturities. Furthermore, the 2014 maturity is a 144A issue with a change of control clause that may be triggered following this transaction, which could result in a cash need earlier than the final maturity. In addition to cash on hand (DOP1,611 million as of December 31, 2011) the company has approximately DOP4,000 million available under a medium term local notes program and close to US$70 million under its revolving credit facilities. CND's free cash flow (cash from operations minus dividend payments and capital expenditures) was DOP1,619 million in 2011 and has been DOP1,445 million on average over the last two years. The ratings could be downgraded if operating performance comes under material pressure, resulting in negative free cash flow and a weakening of credit metrics such that adjusted Debt/EBITDA rises above 3.5x and EBIT/Interest drops below 1.6x for a prolonged period. Negative rating pressure could also emerge because of delays in refinancing upcoming near and medium term debt maturities Ratings could be upgraded if the company improves its operating performance and credit metrics, e.g. operating margin of above 20% and Debt/EBITDA reaching 2.5x or below on a sustainable basis. Headquartered in Santo Domingo, Dominican Republic, Cerveceria Nacional Dominicana, S.A. is the leading brewer in Dominican Republic. Total domestic revenues account for approximately 90% of total sales, exports represent around 5% and its Caribbean operation accounts for the balance. The company's domestic sales include beer, malt and rum out of which beer sales represent around 86.5% of total domestic revenues. Its main beer brands include Presidente, Bohemia and their respective light versions. The company's beer exports are targeted mainly to the U.S., the Caribbean and various European countries. In 2011, the company reported revenues of DOP17,602 million (approximately USD460 million) and EBITDA of DOP4,891 million (approximately USD128 million). ============= J A M A I C A ============= WYNDHAM KINGSTON: To be Auctioned, Employees Worried ---------------------------------------------------- RJR News notes that concern is being raised about the future of employees of the Wyndham Kingston Hotel in the wake of reports that the property has been placed on the auction block. The Bustamante Industrial Trade Union (BITU), which represents the more than 300 workers is worried about the implications of the impending sale on the security of jobs, according to RJR News. RJR News says that BITU Senior Negotiating Officer Rudolph Thomas said the union will welcome an early meeting with the new owners of the Wyndham. ==================== P U E R T O R I C O ==================== ALCO CORP: Reaches Agreement With Banco Popular on Asset Sale ------------------------------------------------------------- Alco Corporation reached an agreement with Banco Popular de Puerto Rico regarding the sale of the company's asphalt plant located in Toa, Alta, Puerto Rico. Banco Popular filed an objection on the sale on March 27, 2012. The Debtor and the bank resolved this issue and agreed on these terms: 1. The Debtor recognizes that the bank holds a valid lien over, among other things, the plant, its licenses and permits. 2. The Debtor recognizes that the bank has asserted a secured claim of at least $874,000. 3. The bank's secured claim has a first lien over the plant. 4. The Debtor has proposed and the bank has accepted that the plant be sold to BTB Corporation free and clear of liens. 5. In consideration of the sale and release of the liens which attach the assets to be sold to BTB, the bank will accept payment of $225,000. This agreement is expressly conditioned on the terms of this sale. If the purchase or the terms of the sale change, then the bank will not be bound to get a lower distribution on its secured claim as provided. 8. The bank has also consented to a carve-out of the sales proceeds to provide payment to the Internal Revenue Service in the amount of $117,734 and $163,265 to the Debtor for operations. 9. The bank will withdraw its objection. About Alco Corp. Alco Corporation in Dorado, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 12-00139) on Jan. 12, 2012. It scheduled US$11,200,030 in assets and $7,762,314 in debts. The petition was signed by Alfonso Rodriguez, president. Alco tapped Jimenez Vasquez & Associates, PSC, as accountants. LAUSELL INC: Door Maker Files for Bankruptcy in Puerto Rico ----------------------------------------------------------- Lausell, Inc., filed a bare-bones Chapter 11 petition (Banrk. D.P.R. Case No. 12-02918) on April 17, 2012 in Old San Juan, Puerto Rico. Bayamon, Puerto Rico-based Lausell disclosed $37.7 million in assets and debts of US$24.5 million. Lausell, also known as Aluminio Del Caribe, is a manufacturer of windows and doors. Charles Alfred Cuprill, Esq., at Charles A. Curpill, PSC, serves as counsel to the Debtor. According to the schedules, the Debtor owns 84,460 square feet of land with a building known as the Humacao facilities in Humacao, Puerto Rico. The property is worth US$3.6 million and secures a US$2.8 million debt. The Debtor also owns 12.830 square meter property with three buildings known as the Hato Tejas Facilities (Lausell Division) in Bayamon, Puerto Rico. The Hato Tejas properties are valued at US$4.3 million and secure a US$4.3 million debt. The Debtor has accounts receivable totaling US$3 million. Inventory is worth about US$7 million. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800 http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800 ; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800 http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800 http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 240/629-3300. * * * End of Transmission * * *