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/raid1/www/Hosts/bankrupt/TCRLA_Public/120601.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, June 1, 2012, Vol. 13, No. 109 Headlines A R G E N T I N A ALTO PARANA: Moody's Downgrades CFR to 'B1'; Outlook Negative ALTO PARANA: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Neg CELULOSA ARGENTINA: Fitch Affirms Issuer Default Rating at 'B' FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities 'B3' B E R M U D A BERMUDA COMMERCIAL: Moody's Reviews 'D+' BFSR for Downgrade B R A Z I L CENTRAIS ELECTRICAS: Fitch Lowers Issuer Default Rating to 'C' C A Y M A N I S L A N D S BLACKHAWK FINANCE: Shareholders' Final Meeting Set for July 31 CARA LTD: Members' Final Meeting Set for June 12 FRAMLINGTON ABSOLUTE: Shareholders' Final Meeting Set for June 22 HAMPTON GLOBAL: Shareholders' Final Meeting Set for June 15 KLEROS PREFERRED: Shareholders' Final Meeting Set for June 22 KS FUND: Shareholders' Final Meeting Set for June 22 LIGHTBOX FUND: Shareholders' Final Meeting Set for June 22 LIGHTBOX MASTER: Shareholders' Final Meeting Set for June 22 PENDRAGON ASSET: Members' Final Meeting Set for June 22 PENGANA CAPITAL: Shareholders' Final Meeting Set for June 22 PLEXUS FUND: Shareholders' Final Meeting Set for June 14 RA LTD: Members' Final Meeting Set for June 15 RIVERSIDE PARTNERS: Shareholders' Final Meeting Set for June 13 SURGINSURANCE, LTD: Shareholders' Final Meeting Set for June 13 WEXFORD SPECIAL: Shareholders' Final Meeting Set for June 22 J A M A I C A AIR JAMAICA: "Not to Blame for Caribbean Airline Debts" CABLE & WIRELESS: Incurs $20 Billion at End of March G U A T E M A L A * GUATEMALA: Fitch Affirms LT Foreign Currency Rating at 'BB+' T R I N I D A D & T O B A G O CARIBBEAN CEMENT: Incurs $625 Million Loss in First Quarter - - - - - ================= A R G E N T I N A ================= ALTO PARANA: Moody's Downgrades CFR to 'B1'; Outlook Negative ------------------------------------------------------------- Moody's Latin America has downgraded Alto Parana's local currency Corporate Family Rating to B1 from Ba3. The outlook on the Corporate Family Rating is stable. At the same time, Moody's affirmed the Baa2 foreign currency rating and the Aaa.ar Argentina National Scale Rating on Alto Parana's US$270 million fully guaranteed notes. The outlook on the ratings of these notes remains negative. Ratings Rationale The downgrade of the corporate family rating reflects Moody's view that Alto Parana ultimately cannot be completely de-linked from the credit quality of the Argentinean government (B3, stable), and thus its ratings need to more closely reflect the risk that they share with the sovereign. Moody's believes that there has been no deterioration in the intrinsic credit quality of Alto Parana. However, a weaker sovereign has the potential to create a ratings drag, and therefore it is appropriate to limit the extent to which these issuers are rated higher than the sovereign, in line with Moody's Rating Implementation Guidance "How Sovereign Credit Quality May Affect Other Ratings" published on February 13, 2012. The B1 corporate family rating benefits from an uplift to the company's standalone credit profile provided by the support from Arauco (Baa2, negative) which guarantees its US dollar bonds. Alto Parana remains rated above the sovereign rating at B3 as a reflection of its stronger credit quality, although by this rating action the gap has been reduced. "In order to be rated significantly above the sovereign, an issuer needs not only be fundamentally stronger than the sovereign from a credit perspective, but also demonstrate a degree of insulation from the domestic macroeconomic and financial disruption, which generally accompanies a sovereign default," says Veronica Amendola, a Moody's Vice President, Senior Analyst. "We continue to take into account Alto Parana's superior fundamental credit quality, evidenced by the company's dominant position in the domestic pulp/forestry industry, adequate liquidity, sizeable export base, that currently accounts for more than 50% of total revenue and limited reliance on domestic markets for funding. However, Moody's believes de-linking it further from the sovereign is not appropriate because of the company's assets concentration in Argentina, with material exposure to domestic business, banks and counterparties," Amendola adds. Moody's notes that any downward rating action at the sovereign level would likely result in negative rating actions at Alto Parana, as the agency would seek to maintain the current notching gap in the absence of a significant change in credit quality at Alto Parana. A potential upgrade is not anticipated in the foreseeable future. Alto Parana is the largest forestry company in Argentina. It is engaged in the production of pulp, forestry, wood and chemical products and the management of forestry assets. Industrial plants are located in the province of Misiones, Buenos Aires and Santa F‚. Alto Parana manufactures whitened long fiber cellulose, wood paper pulp, sawn timber, panels and chemistry products. Alto Parana is a company controlled by Industrias Forestales, a corporation belonging to Arauco Group, a Chilean company, engaged primarily in the production of pulp, wood products, and the management of forestry assets in Chile, Argentina, Uruguay and Brazil. ALTO PARANA: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Neg --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Alto Paran S.A. (APSA). The outlook remains negative. "The rating action is part of our regular review," S&P said. "The rating on APSA continues to reflect our belief that the company's 99.97% controlling shareholder, Chile-based Celulosa Arauco y Constitucion S.A. (ARAUCO; BBB/Stable/--) has sufficient economic incentives to support the firm. This is mainly because of APSA's status as a significant foreign subsidiary. ARAUCO fully and unconditionally guarantees the company's $270 million notes due 2017, which make up the bulk of APSA's debt," S&P said. "The company's 'b' stand-alone credit profile reflects the inherent risks of operating in Argentina, the company's narrow, mostly commodity-oriented product mix, and its modest scale compared with rated peers. APSA's competitive cost position in forest management, pulp production, sawmill products, and panels partially mitigate these factors. We assess the company's business risk profile as weak and its financial risk profile as aggressive," S&P said. CELULOSA ARGENTINA: Fitch Affirms Issuer Default Rating at 'B' -------------------------------------------------------------- Fitch Ratings has affirmed the following ratings on Celulosa Argentina S.A. (Celulosa): -- Foreign currency Issuer Default Rating (IDR) at 'B'; -- Local currency IDR at 'B'; -- National scale IDR at 'A(arg)'. The Rating Outlook is Stable. Celulosa's 'B' ratings reflect the company's market position as an integrated pulp, paper and forest products manufacturer in Argentina and Uruguay. While very small in size compared to its peers in the region, Celulosa has a strong market share in its domestic markets, and has a diversified and stable customer base. The company benefits from import tariffs and other agreements, such as a bilateral trade agreement between the governments of Argentina and Brazil that limits Brazilian paper imports and reduces competition in the domestic market. Celulosa's small size makes it more vulnerable to industry cycles due to lower economies of scale and its operating results are exposed to high levels of volatility in international pulp prices. The company is also exposed to double-digit inflation in Argentina and other direct and in-direct sovereign related risks, including devaluation and refinancing risks. Current market conditions prevent Celulosa from rolling out its growth strategy. The company's strategy is to increasingly integrate its operations with the forestry segment and reduce its reliance on third-party suppliers of raw materials (eucalyptus wood). As part of this strategy, the company plans to invest in the forestry division as well as develop new business lines. As of today, 95% of wood purchases are done on a spot basis, exposing the company to prices and volume risks. The company has production assets in Argentina and Uruguay, the latter through its subsidiary Fanapel. Financial results came under pressure over the last year. For the last 12 months (LTM) ended Feb. 29, 2012, Celulosa generated revenues and EBITDA of USD 391 million and USD58 million, respectively. These figures compared to USD 355 million of sales and USD 73 million of EBITDA as of Feb. 28, 2011. Although Celulosa's sales reflected a price increase of 10%, EBITDA margins deteriorated to levels which are expected to continue to impact the company's cash generation over the near term. Celulosa generated USD14 million of CFO for the LTM as of February 2012. The company used this cash flow and new debt issuances to finance capex and preferred dividends. Leverage is low for the rating category. Celulosa's debt levels are currently below targeted levels of USD 200 million, and leverage is expected to increase to 3.6x from the current level of 3.0x assuming the company is able to access the international capital markets to fund its capex plan. Given the negative fundamentals of the industry and adverse financial conditions in the international capital markets, Fitch does not expect the company will increase its debt levels in the near term. As of Feb. 29, 2012, Celulosa had USD173 million of debt, an increase from USD156 million at FYE May 2011. Celulosa's EBITDA is expected to remain at approximately USD60 million during FYE 2012. Celulosa's liquidity is tight and exposes the company to refinancing risk. As of February 2012 Celulosa had USD3.7 million of cash and marketable securities and USD85 million of short-term debt. Historically, the company has had a high concentration of its financial debt in the short term and has consistently been able to refinance these trade lines of credit. FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities 'B3' ---------------------------------------------------------- Moody's Latin America has assigned a rating of A3.ar (national scale rating) and B3 (global rating, local currency) to the debt securities of Fideicomiso Financiero Bodere Buenos Aires, a financial trust established under the Argentine Law. Issuer: Deutsche Bank S.A. (Argentina), acting solely as issuer and trustee Fideicomiso Financiero Bodere Buenos Aires, Debt Securities: rated A3.ar (national scale rating) and B3 (global rating, local currency) As of May 30, the securities for this transaction have not yet been placed in the market. If any assumption or factor Moody's considers when assigning the ratings change before closing, the ratings may also change. Rating Rationale The assigned ratings are primarily based in the rating of the Province of Buenos Aires as the obligor under the underlying bonds. The Province of Buenos Aires is currently rated A3.ar (national scale rating) and B3 (global rating, local currency). Any future change in the rating of the Province of Buenos Aires is likely to impact the rating of this transaction. The ratings are also based on the ability of Deutsche Bank S.A. (Argentina) (rated TQ1.ar) to act as trustee for the benefit of bondholders. The underlying assets of the trust are bonds issued by the Province of Buenos Aires on December 30, 2011 in order to pay debts to providers. Cliba Ingenieria Ambiental S.A., a service provider to the Province of Buenos Aires, will assign these bonds to the issuing trust. The rated debt securities will mirror the terms and conditions of the underlying bonds. The amortization schedule and the interest rate of the rated debt securities will replicate that of the underlying bonds. The interest and principal payment dates on the rated securities will occur three business days after the payment date of the underlying bonds. Trust expenses have been sized at closing and will be paid by the arranger directly. The promise to investors is to receive timely interest and principal before legal final, which will occur on January 2, 2014. Since there is no excess spread or overcollateralization in this transaction, any additional or unexpected taxes and/or expenses can affect the repayment of the debt securities. However, if extraordinary expenses or taxes become due, investors will have the right to vote for an early liquidation of the transaction and receive the underlying bonds as payment in kind on a pro rata basis. Moody's notes that there is a risk that a court may declare the assignment of the underlying bonds to the issuing trust void if the seller files for bankruptcy shortly after the assignment date and the price paid for the assets is not considered a "fair market value". However, this risk is mitigated by the fact that the rated securities will be publicly offered. ============= B E R M U D A ============= BERMUDA COMMERCIAL: Moody's Reviews 'D+' BFSR for Downgrade ----------------------------------------------------------- Moody's Investors Service placed all ratings of Bermuda Commercial Bank Limited (BCB) on review for downgrade. BCB is rated Baa3 for long-term deposits and D+ for standalone bank financial strength (BFSR), which translates to a Baseline Credit Assessment of baa3. The bank's short-term rating is Prime-3. Ratings Rationale During its review, Moody's will focus on BCB's risk governance and risk appetite. Moody's noted that BCB has rapidly grown its investment portfolio since the acquisition of the bank by Permanent Investments Limited (Permanent) in April 2010. Specifically, the investment portfolio has grown from 5% of total assets at March 31, 2010 to 45% of total assets at March 31, 2012 with much of the investment portfolio directed towards international bond holdings. Moreover, after the acquisition, BCB engaged one of its minority shareholders, ICM Limited (that also had ties to Permanent), as the bank's portfolio investment advisor. The management of the bank's investment portfolio by ICM, a private investment company, also raises concerns about the risk governance in the management of the portfolio. Notwithstanding the review, Moody's said that BCB's capital position is robust. As well, BCB holds a comparatively small loan portfolio, exposing it to limited risk in this business. Moody's also said that placing all ratings of BCB, including its BFSR under review for downgrade indicates that the long-term ratings could be lowered by more than one notch. Moody's last rating action on Bermuda Commercial Bank Limited was on January 30, 2008 when Moody's confirmed the ratings of BCB at D+ for standalone BFSR and Baa3 and Prime-3, respectively, for long- and short-term deposits. The methodologies used in this rating were "Bank Financial Strength Ratings: Global Methodology" published in February 2007, "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: Global Methodology" published in March 2012, and "Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt" published in November 2009. Bermuda Commercial Bank Limited is headquartered in Hamilton, Bermuda with assets of US$535 million at March 31, 2012. =========== B R A Z I L =========== CENTRAIS ELECTRICAS: Fitch Lowers Issuer Default Rating to 'C' -------------------------------------------------------------- Fitch Ratings has taken the following rating actions on Centrais Eletricas Matogrossenses S.A. (Cemat), a subsidiary of Rede Energia S.A.: Cemat -- Local and foreign currency Issuer Default Ratings (IDRs) downgraded to Restricted Default ('RD') from 'C'; -- Long-term national scale rating downgraded to 'RD(bra)' from 'C(bra)'. Fitch also rates Rede Energia and its subsidiary Centrais Eletricas do Para S.A. (Celpa) as follows: Rede Energia -- Local and foreign currency IDRs 'C'; -- Long-term national scale rating 'C(bra)'; -- USD575 million perpetual notes long-term international rating 'C/RR4'; -- BRL370 million debenture issuance due in 2015 'C(bra)'. Celpa -- Local and foreign currency IDRs 'D'; -- Long-term national scale rating 'D(bra)'; -- USD250 million senior unsecured notes due in 2016 long-term international rating 'C/RR4'. The rating actions reflect Fitch's view that the debt exchange of certain of Cemat's financial obligations, including its 2nd and 4th local debentures issuances, are distressed debt exchanges under Fitch's 'Distressed Debt Exchange Criteria', published Aug. 12, 2011. Although the investors agreed with the new conditions of these issuances, Fitch understands that they resulted in a significant change in the original contractual terms, aiming at avoiding an event of default. =========================== C A Y M A N I S L A N D S =========================== BLACKHAWK FINANCE: Shareholders' Final Meeting Set for July 31 -------------------------------------------------------------- The shareholders of Blackhawk Finance Limited will hold their final meeting on July 31, 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: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands CARA LTD: Members' Final Meeting Set for June 12 ------------------------------------------------ The members of Cara Ltd. will hold their final meeting on June 12, 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: Jeffrey D. Johnstone c/o Broadhurst LLC P.O. Box 2503 40 Linwood Street Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949-7237 Facsimile: (345) 949-7725 FRAMLINGTON ABSOLUTE: Shareholders' Final Meeting Set for June 22 ----------------------------------------------------------------- The shareholders of Framlington Absolute Return UK Master Ltd will hold their final meeting on June 22, 2012, at 8:45 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 HAMPTON GLOBAL: Shareholders' Final Meeting Set for June 15 ----------------------------------------------------------- The shareholders of Hampton Global Emerging Markets Master Fund Limited will hold their final meeting on June 15, 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: 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 KLEROS PREFERRED: Shareholders' Final Meeting Set for June 22 ------------------------------------------------------------- The shareholders of Kleros Preferred Funding IX, Ltd. will hold their final meeting on June 22, 2012, at 8:30 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 KS FUND: Shareholders' Final Meeting Set for June 22 ---------------------------------------------------- The shareholders of KS Fund will hold their final meeting on June 22, 2012, at 9:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 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 LIGHTBOX FUND: Shareholders' Final Meeting Set for June 22 ---------------------------------------------------------- The shareholders of Lightbox Fund, Ltd will hold their final meeting on June 22, 2012, at 4:00 p.m., to receive 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 House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands LIGHTBOX MASTER: Shareholders' Final Meeting Set for June 22 ------------------------------------------------------------ The shareholders of Lightbox Master Fund, Ltd will hold their final meeting on June 22, 2012, at 4:00 p.m., to receive 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 House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands PENDRAGON ASSET: Members' Final Meeting Set for June 22 ------------------------------------------------------- The members of Pendragon Asset Management Limited will hold their final meeting on June 22, 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: Michael Pearson c/o Amanda Kong Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Telephone: +1 (345) 814 2298 PENGANA CAPITAL: Shareholders' Final Meeting Set for June 22 ------------------------------------------------------------ The shareholders of Pengana Capital Global Volatility Limited will hold their final meeting on June 22, 2012, at 9:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 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 PLEXUS FUND: Shareholders' Final Meeting Set for June 14 -------------------------------------------------------- The shareholders of Plexus Fund Limited will hold their final meeting on June 14, 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: 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 RA LTD: Members' Final Meeting Set for June 15 ---------------------------------------------- The members of RA Ltd SPC will hold their final meeting on June 15, 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: Richard Finlay c/o Gene DaCosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands RIVERSIDE PARTNERS: Shareholders' Final Meeting Set for June 13 --------------------------------------------------------------- The shareholders of Riverside Partners Ltd. will hold their final meeting on June 13, 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 SURGINSURANCE, LTD: Shareholders' Final Meeting Set for June 13 --------------------------------------------------------------- The shareholders of Surginsurance, Ltd. will hold their final meeting on June 13, 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 Jessop PO Box 2185 Grand Cayman KY1-1105 Cayman Islands WEXFORD SPECIAL: Shareholders' Final Meeting Set for June 22 ------------------------------------------------------------ The shareholders of Wexford Special Situations 1996 Limited will hold their final meeting on June 22, 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: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 ============= J A M A I C A ============= AIR JAMAICA: "Not to Blame for Caribbean Airline Debts" ------------------------------------------------------- Trinidad Express reports that Dennis Lalor, the head of the divestment team involved of the sale of Air Jamaica Limited to the Trinidad-based Caribbean Airlines, has rejected claims that the airline's multi-million-dollar debt is to blame for CAL's current financial problems. "The government of Jamaica assumed all liabilities of Air Jamaica, providing CAL a clean slate as it relates to Air J's operations," Mr. Lalor told the Jamaica Observer newspaper, according to Trinidad Express. This was done to ensure that CAL would have no disadvantages when it got the Air Jamaica brand, Mr. Lalor added, Trinidad Express notes. "In addition, the Government of Jamaica provided CAL with cash of over US$17 million, which represented tickets prepaid for by customers not yet flown," the report quoted Mr. Lalor as saying. As reported in the Troubled Company Reporter-Latin America on May 24, 2012, Jamaica Observer said that Air Jamaica Limited's divestment team is crafting a response to the growing criticisms being leveled at the company and its owners, Caribbean Airlines Limited. The Gleaner said that Air Jamaica Limited continues to incur losses under its new owner, Caribbean Airlines Limited. Still, Air Jamaica's US$38 million loss was a 75% improvement over the previous year when the airline lost some US$150 million, the project manager on the divestment committee and a union expert said. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2010, Trinidad and Tobago Caribbean Airline on May 1, 2010, acquired Air Jamaica for US$50 million and operated six Air Jamaica aircraft and eight of its routes. Jamaica got a 16% stake in the merged operation, with CAL owning 84%. According to a TCR-LA report on June 29, 2009, RadioJamaica News said the Jamaican government indicated it will name a buyer for cash- strapped Air Jamaica. RadioJamaica related the airline has been hemorrhaging over US$150 million per annum and the government has had to foot the massive bill. In addition, RadioJamaica said, Air Jamaica currently has over US$600 million in loans outstanding. CABLE & WIRELESS: Incurs $20 Billion at End of March ---------------------------------------------------- RJR News reports that losses at Cable and Wireless rose from $6 billion to over $20 billion at the end of March. The company was forced to write off a significant portion of its assets, according to RJR News. The report relates that it is the biggest loss ever recorded by a listed company and has caused its auditor KPMG to raise questions regarding the continued operations. RJR News notes that KPMG in its opinion said due to continued losses "uncertainty exists about the company's continuation as a going concern". The results also show that stockholders of the company, had a deficit to the tune of $14 billion, RJR News says. Cable and Wireless said it is currently evaluating the impact of a possible delisting from the stock exchange, but at the same time, it is assessing options to maintain its listing by restoring its capital base, RJR News discloses. The report notes that on the matter of its continued losses, Cable and Wireless says it remains committed to returning to profitability but that seems to depend to a great extent, on the impact, recent regulatory changes to the telecoms sector will have on its competitiveness. Other factors highlighted to help return to profits include a greater focus on data and business services, the revamping of marketing campaigns woven with cost reduction strategies, RJR News says. Cable and Wireless reportedly stated that it received a letter from its parent company, indicating that financial support will be provided in the foreseeable future, RJR News adds. ================= G U A T E M A L A ================= * GUATEMALA: Fitch Affirms LT Foreign Currency Rating at 'BB+' -------------------------------------------------------------- Fitch Ratings has assigned a long-term foreign currency rating of 'BB+' to Guatemala's USD700 million global bond (5.75% coupon) maturing June 6, 2022. The rating is in line with Guatemala's foreign currency Issuer Default Rating. Guatemala's 'BB+' ratings are supported by the country's record of macroeconomic stability, solid debt repayment and its low public and external debt burdens relative to 'BB' peers. Despite Guatemala's history of conservative fiscal management, significant fiscal consolidation will be difficult to achieve due to expenditure rigidity and the scope of structural problems the country faces. Nonetheless, Guatemala's financing needs remain lower than its peers supported by its low debt burden and that a significant portion of its external debt is owed to multilateral institutions. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN CEMENT: Incurs $625 Million Loss in First Quarter ----------------------------------------------------------- Ishena Robinson at Jamaica Observer reports that Trinidad Cement Limited Group subsidiary Caribbean Cement Company Limited has reported a consolidated loss for this year's first quarter, though the group will have to restart debt payment in December as per the terms of an agreement with lenders. In a consolidated unaudited financial report for the quarter ended in March, Carib Cement said it had a loss of $625 million for the first quarter of 2012, compared with a $374-million loss before tax credits for the same period last year, according to Jamaica Observer. The report relates that the company said this has resulted in equity for the (TCL) Group now holding a negative position of $216 million. "Consequently, it is critical for Carib Cement to generate positive cash flows from operations by the end of 2012," said the financial report, Jamaica Observer notes. Jamaica Observer says that parent company Trinidad Cement Limited increased its support to Carib Cement during the quarter, according to the report. This was possible through a moratorium the TCL Group received on its debt servicing obligations last January, which has postponed payments until this December, according Jamaica Observer. The report says that the TCL Group's current liabilities exceed its current assets by over $1 billion as of the most recent quarter. Jamaica Observer discloses that Carib Cement's revenue for the quarter increased by over 11%, up from the $2.1 billion reported at the end of March last year. This growth was largely as a result of price adjustments, as well as an increase in exports resulting from a strike this year at TCL, the report relays. However, operating costs counteracted the jump in revenue, said Carib Cement, Jamaica Observer notes. About Caribbean Cement Caribbean Cement Company Limited manufactures and sells cement. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 18, 2011, Caribbean Cement Company Limited has incurred a JM$608.08 million loss in the three months ended April to June 2011 from JM$217.95 million loss in the same period last year. The company incurred JM$857.56 million loss in the six months ended January to June 2011 from a JM$213.40 million in the same period 2010. Caribbean Cement posted a JM$1.58 billion loss in the year ended 2010. *********** 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 * * *