/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120720.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, July 20, 2012, Vol. 13, No. 144 Headlines A R G E N T I N A AUTOSERVICIO MAYORISTA: Creditors' Proofs of Debt Due Aug. 8 CILIN EXPRESS: Requests Opening of Bankruptcy Proceedings CRISTALMED SRL: Requests Opening of Bankruptcy Proceedings DOLCE GROUP: Creditors' Proofs of Debt Due Aug. 27 GRABO GREEK: Creditors' Proofs of Debt Due Aug. 14 MOMENTO 24 SA: Creditors' Proofs of Debt Due Aug. 6 NUTRAMIN SA: Creditors' Proofs of Debt Due Sept. 5 TRASUP SA: Creditors' Proofs of Debt Due Sept. 6 UNIPLUS TELEFONIA: Creditors' Proofs of Debt Due Aug. 7 B A H A M A S CLICO (BAHAMAS): Parent Company's Bid for Probe Denied B R A Z I L BRENNAND ENERGIA: Moody's Rates BRL165MM Sr. Sec. Debentures 'B1' C A Y M A N I S L A N D S BIORIGIN INGREDIENTS: Shareholder to Hear Report on Aug. 3 CLEPSYDRA SHORT-TERM: Members' Final Meeting Set for July 25 CPMS HOLDINGS: Shareholder to Receive Wind-Up Report on Aug. 10 CREF NO.1 LIMITED: Shareholder to Hear Wind-Up Report on Aug. 10 CREF NO.4 LIMITED: Shareholder to Hear Wind-Up Report on Aug. 10 MK GLOBAL: Shareholder to Receive Wind-Up Report on Aug. 3 TOKYOR FUND: Shareholder to Hear Wind-Up Report on Aug. 2 YINGLIU INT'L: Shareholders' Final Meeting Set for July 24 B E R M U D A I.P.C. (BERMUDA): Creditors' Proofs of Debt Due July 27 I.P.C. (BERMUDA): Member to Receive Wind-Up Report on Aug. 17 J A M A I C A AIR JAMAICA: Gov't Yet to Get Official Word on Brand Decision M E X I C O GRUPO ELEKTRA: Fitch Affirms 'BB' Rating on $550MM Senior Notes T R I N I D A D & T O B A G O * TRINIDAD & TOBAGO: Tourism Economy is Hurting, Minister Admits - - - - - ================= A R G E N T I N A ================= AUTOSERVICIO MAYORISTA: Creditors' Proofs of Debt Due Aug. 8 ------------------------------------------------------------ Juan Kuklis, the court-appointed trustee for Autoservicio Mayorista El Triang SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Aug. 8, 2012. Mr. Kuklis will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 36, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Juan Kuklis Uruguay 390 CILIN EXPRESS: Requests Opening of Bankruptcy Proceedings --------------------------------------------------------- Cilin Express SRL requested the opening of bankruptcy proceedings. CRISTALMED SRL: Requests Opening of Bankruptcy Proceedings ---------------------------------------------------------- Cristalmed SRL requested the opening of bankruptcy proceedings. The company defaulted its payments last March 12. DOLCE GROUP: Creditors' Proofs of Debt Due Aug. 27 -------------------------------------------------- Pablo Alberto Amante, the court-appointed trustee for Dolce Group SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Aug. 27, 2012. Mr. Amante will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 16, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Pablo Alberto Amante Lavalle 1537 Argentina GRABO GREEK: Creditors' Proofs of Debt Due Aug. 14 -------------------------------------------------- Miriam Graciela de Luca, the court-appointed trustee for Grabo Greek SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Aug. 14, 2012. Ms. de Luca will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 28, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Miriam Graciela de Luca Viamonte 1785 Argentina MOMENTO 24 SA: Creditors' Proofs of Debt Due Aug. 6 --------------------------------------------------- Juan Carlos Chacker, the court-appointed trustee for Momento 24 SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Aug. 6, 2012. Mr. Chacker will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 38, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Juan Carlos Chacker Teniente General Juan Domingo Peron 315 Argentina NUTRAMIN SA: Creditors' Proofs of Debt Due Sept. 5 -------------------------------------------------- Olga Ester Fagnani, the court-appointed trustee for Nutramin SA's reorganization proceedings, will be verifying creditors' proofs of claim until Sept. 5, 2012. Ms. Fagnani will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 23, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Olga Ester Fagnani Montevideo 596 Argentina TRASUP SA: Creditors' Proofs of Debt Due Sept. 6 ------------------------------------------------ Miguel Angel Troisi, the court-appointed trustee for Trasup SA's reorganization proceedings, will be verifying creditors' proofs of claim until Sept. 6, 2012. Mr. Troisi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 24, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Creditors will vote to ratify the completed settlement plan during the assembly on June 12, 2013. The Trustee can be reached at: Miguel Angel Troisi Cerrito 146 Argentina UNIPLUS TELEFONIA: Creditors' Proofs of Debt Due Aug. 7 ------------------------------------------------------- Teresa N. Fiscina, the court-appointed trustee for Uniplus Telefonia SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Aug. 7, 2012. Ms. Fiscina will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 32, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Teresa N. Fiscina Avenida Montes de Oca 630 Argentina ============= B A H A M A S ============= CLICO (BAHAMAS): Parent Company's Bid for Probe Denied ------------------------------------------------------ Jeffrey Todd at Guardian Business reports that the U.S. attorney for CLICO (Bahamas) Limited has successfully squashed CLICO (Trinidad)'s bid to investigate its activities in an ongoing liquidation. The report relates that Ronald G. Neiwirth, fresh off a hearing in West Palm Beach, Florida, said the motion for a protective order has been successful, effectively thwarting the parent company's move for discovery. According to the report, CLICO (Trinidad) requested a number of documents concerning CLICO (Bahamas), its wholly-owned subsidiary CLICO Enterprises and Florida-based real estate project Wellington Preserve. Craig A. 'Tony' Gomez, a partner at Baker Tilly Gomez in Nassau, and court-appointed liquidator of CLICO (Bahamas), would have been questioned under oath had the discovery been successful, notes Guardian Business. According to Guardian Business, CLICO (Bahamas) is now in the process of selling off parcels of land at Wellington Preserve as part of the entity's liquidation. While the exact motivation behind the parent company's probe is unclear, Guardian Business understands that CLICO (Trinidad) hoped to monitor and perhaps claim the funds earmarked for CLICO (Bahamas), and subsequently Bahamian policyholders. Mr. Neiwirth said if CLICO (Trinidad) wants to pursue a discovery of documents, it will now have to take it up with Bahamian courts, Guardian Business adds. Mr. Neiwirth told Guardian Business that the discovery and subpoena have been distractions to the liquidation, and now that the matter is resolved, stakeholders can go back to business. About Clico (Bahamas) Clico (Bahamas) Limited is a Bahamian company that was involved in life and health insurance, pensions and annuities. * * * As reported by the Troubled Company Reporter on April 30, 2009, Clico (Bahamas) Limited filed for bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code before the U.S. Bankruptcy Court for the Southern District of Florida (Miami). Chapter 15 allows a company to seek protection from creditors in the United States while its primary bankruptcy case is pending in another country. Clico commenced insolvency proceedings before the Commercial Division of the Supreme Court of the Bahamas. The TCR, citing a Bloomberg report, said Clico listed assets and debt of as much as $500 million each. The Company, Bloomberg said, citing court papers, loaned more than $70 million to affiliated companies which Clico's liquidator "believes has found its way into real estate developments." Craig A. Gomez was appointed by the Bahamian court as liquidator of Clico, Bloomberg reported, citing court documents. =========== B R A Z I L =========== BRENNAND ENERGIA: Moody's Rates BRL165MM Sr. Sec. Debentures 'B1' ----------------------------------------------------------------- Moody's America Latina Ltda has assigned B1 local currency rating on the global scale and Baa1.br on the Brazilian national scale to BRL165 million senior secured debentures to be issued by Brennand Energia S.A (BESA, Ba3/A3.br, Stable). The outlook is stable. Ratings Rationale BESA has strong credit metrics for its current Ba3/A3.br corporate family rating, but Moody's expects metrics to deteriorate over the next three years as BESA takes on debt to fund its capital expenditure program. The ratings reflect the company's proven expertise on the construction and operation of small hydro facilities and the relatively stable and predictable cash flows based on existing medium to long-term electricity supply contracts, mostly to free consumers. The B1/Baa1.br ratings of the debentures are one notch lower than the Ba3/A3.br corporate family ratings of BESA to reflect the structural subordination of the debt at the level of the holding company to that of their operating subsidiaries. Lenders to operating subsidiaries generally have superior claims on cash flow generated at the operating level than debt holders at the holding company. The debentures will be fully acquired by Caixa Economica Federal (CEF), subject to final credit approval process, through its Infrastructure Investment Fund (FI-FGTS). CEF is a major Brazilian federal bank, which holds a leading position in the financing of housing and infrastructure projects mainly in the water and sewage, urban transportation and renewable energy sectors. The guarantees for the debentures include: (i) a corporate guarantee of BESA's direct and indirect shareholders while the issuance rating is below A1.br, (ii) the pledge of the shares of Indiavai Energetica S.A. (Indiavai), the holding company which fully controls the small hydroelectric power plant Indiavai (which has 28MW Total Capacity, 24.9MW Assured Energy, with exploitation rights expiring in 2031, and BRL44 million annual revenues), (iii) the pledge of exploitation rights of Indiavai, (iv) the pledge of PPA proceeds from Indiavai, and (v) a 3-month debt service reserve account. Indiavai is fully controlled by BESA. The relatively short track record of the BESA's operating history as a holding company constrains the ratings as do the company's embryonic corporate governance practices, sizeable capital expenditure program and the uncertainties on securing adequate financing to meet their current expansion program. The rating action factors in Moody's expectation that BESA will obtain most of the funding for its capital expenditures program from CEF and BNDES. Management states that the investment program will require around BRL355 million in 2012. The stable outlook reflects Moody's expectation that BESA will secure adequate long-term financing on a timely basis, allowing it to maintain healthy liquidity during the construction and completion phases of the small hydro power plants and wind farms. While Moody's foresees a deterioration of credit metrics from 2012 through 2014 due to the planned expansion, the metrics should remain adequate for the rating category. BESA is a holding company controlled by a diverse number of holding companies that represent the interests of certain members of the Ricardo Brennand family. BESA was formed in 2006 and currently controls eight small hydro-power plants with an installed capacity of 180 MW and assured energy of 130 MW. In 2011, BESA posted net consolidated sales of BRL206 million (US$123 million) and net profit of BRL70 million (US$42 million). Another arm of the Ricardo Brennand family controls Brennand Investimentos S.A. (BISA, Ba3/A3.br, Stable). BISA is a holding company controlled by a group of holding companies. BISA was founded in 2000 and controls two hydro-power plants and five small hydro-power plants with an installed capacity of 155 MW and assured energy of 111 MW. In 2011, BISA posted net sales of BRL178 million (US$107 million) and net profit of BRL69 million (US$41 million). Currently, BISA is very liquid given the slowdown in its capital expenditure program. As of December 31, 2011 BISA held BRL75 million in cash. The ratings could be upgraded if BESA and BISA improve their corporate governance practices. Helpful actions would include the publication of quarterly financial statements the assurance that no material inter-company loans will be executed and extending their track record of operations. Quantitatively, the ratings could be upgraded if the cash-from-operations-before-working- capital (CFO Pre WC) to debt ratio stays above 12% and interest coverage becomes higher than 3.0x both on a sustainable basis. The ratings could be downgraded if BESA and BISA do not secure adequate long-term funding as scheduled or if there is a considerable delay in the construction of the power plants. Ratings could also be downgraded if the company takes on additional capital expenditures so that there is a deterioration in liquidity or leverage increases beyond what Moody's is forecasting. Quantitatively, the ratings could be downgraded if the CFO pre WC to debt ratio falls below 8% and interest coverage becomes lower than 1.8x for a prolonged period. =========================== C A Y M A N I S L A N D S =========================== BIORIGIN INGREDIENTS: Shareholder to Hear Report on Aug. 3 ---------------------------------------------------------- The shareholder of Biorigin Ingredients Ltd. will receive on Aug. 3, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815-1803 Facsimile: (345) 949-9877 CLEPSYDRA SHORT-TERM: Members' Final Meeting Set for July 25 ------------------------------------------------------------ The members of Clepsydra Short-Term Trade Finance Fund Limited will hold their final meeting on July 25, 2012, at 8:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Stokoe c/o Aaron Gardner Telephone: (345) 914 8655 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands CPMS HOLDINGS: Shareholder to Receive Wind-Up Report on Aug. 10 --------------------------------------------------------------- The shareholder of CPMS Holdings will receive on Aug. 10, 2012, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Linburgh Martin Intertrust (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman, KYI-1102 Cayman Islands CREF NO.1 LIMITED: Shareholder to Hear Wind-Up Report on Aug. 10 ---------------------------------------------------------------- The shareholder of CREF No.1 Limited will receive on Aug. 10, 2012, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Linburgh Martin Intertrust (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman, KYI-1102 Cayman Islands CREF NO.4 LIMITED: Shareholder to Hear Wind-Up Report on Aug. 10 ---------------------------------------------------------------- The shareholder of CREF No.4 Limited will receive on Aug. 10, 2012, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Linburgh Martin Intertrust (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman, KYI-1102 Cayman Islands MK GLOBAL: Shareholder to Receive Wind-Up Report on Aug. 3 ---------------------------------------------------------- The shareholder of MK Global Developing Markets Offshore, Ltd. will receive on Aug. 3, 2012, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Sarah Federspiel Telephone: (345) 815-1833 Facsimile: (345) 949-9877 TOKYOR FUND: Shareholder to Hear Wind-Up Report on Aug. 2 --------------------------------------------------------- The shareholder of Tokyor Fund will receive on Aug. 2, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815-1803 Facsimile: (345) 949-9877 YINGLIU INT'L: Shareholders' Final Meeting Set for July 24 ---------------------------------------------------------- The shareholders of Yingliu International Holdings Limited will hold their final meeting on July 24, 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: Du Yingliu Mr. Du Yingliu No.28 Xinxiao Road, Hengshan Huoshan, Anhui Province, PRC ============= B E R M U D A ============= I.P.C. (BERMUDA): Creditors' Proofs of Debt Due July 27 ------------------------------------------------------- The creditors of I.P.C. (Bermuda) Limited are required to file their proofs of debt by July 27, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 9, 2012. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda I.P.C. (BERMUDA): Member to Receive Wind-Up Report on Aug. 17 ------------------------------------------------------------- The member of I.P.C. (Bermuda) Limited will receive on Aug. 17, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on July 9, 2012. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda ============= J A M A I C A ============= AIR JAMAICA: Gov't Yet to Get Official Word on Brand Decision ------------------------------------------------------------- Ingrid Brown at Jamaica Observer reports that the government is yet to be officially informed about the decision to remove the Air Jamaica Limited logo from Caribbean Airlines Limited planes, days after reports that the Civil Aviation Authority in Trinidad had instructed the airline to drop the Air Jamaica brand. "Cabinet has not been notified formally and we have not seen any reports, so I would not want to comment on that," Information Minister Sandrea Falconer told journalists at the weekly Jamaica House press briefing, according to Jamaica Observer. Jamaica Observer says that Sunday Express said earlier that the directive was given because the use of the Air Jamaica brand did not comply with CAL's airline operator's certificate. The report notes that CAL, the article said, is not licensed to operate two brands, despite doing so for over a year, following its acquisition of Air Jamaica routes. It said for CAL to use the Air Jamaica brand, it would have to register a new airline in the name of Air Jamaica, the report says. Jamaica Observer notes that the article said CAL was alerted about the disparity by the CAA a few months ago, as it sought to improve its systems ahead of a planned audit by the International Federal Aviation Authority. The report discloses that CAL's head of Corporate Communications Clint Williams had confirmed that CAL had received recommendations from CAA and that these had been passed to its new line minister, who is in charge of all state enterprises. 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. =========== M E X I C O =========== GRUPO ELEKTRA: Fitch Affirms 'BB' Rating on $550MM Senior Notes --------------------------------------------------------------- Fitch Ratings has affirmed the following ratings of Grupo Elektra, S.A.B. de C.V.: -- Foreign and Local Currency Issuer Default Rating (IDR) at 'BB-'; -- Long-term National Scale Rating at 'A(mex)'; -- Short-term National Scale Rating at 'F2(mex)'; -- USD $550 million senior notes due 2018 at 'BB-'; -- MXN $3 billion long-term Certificados Bursatiles issuances (ELEKTRA10-2 and ELEKTRA11) at 'A(mex)'; -- Short and long-term Certificados Bursatiles program for up to MXN $5 billion at 'F2(mex)' and 'A(mex)', respectively. The Rating Outlook is Stable. Elektra's ratings reflect its operation's geographical diversification, its market position both in the retail and finance business, the latter including Banco Azteca (BAZ; rated 'A(mex)' by Fitch), as well as the linkage between both operations. On the retail side, the ratings are supported by strong growth in revenues, same store sales (SSS) and EBITDA, and by an extensive retail network across Mexico and, increasingly, in countries such as Guatemala, Honduras, Panama, El Salvador, Peru, Brazil and Argentina. Grupo Elektra's retail operations are linked to those of Banco Azteca because of its retail business strategy of selling on credit (approximately 60% of sales). BAZ's stronger credit quality is supported by its management expertise in consumer credit, asset quality, strong liquidity and the credit risk of its portfolio. The ratings incorporate the company's approach of offering financial services to low-income retail customers, a retail division's leverage (retail division's total debt to EBITDA) of 2.5x over the long term. They also take into consideration the controlling ownership by the Salinas family and track record of transactions with related entities. Additionally, the ratings are tempered by the higher business risk profile of the recently acquired payday lending subsidiary, Advance America (formerly NYSE: AEA). Fitch believes that the retail operation, by diversifying geographically across Latin America, somewhat mitigates revenue concentration (operations in Mexico, both retail and financial, still generate about 86% of the Group's consolidated revenues). Fitch expects continued solid sales and EBITDA generation for 2012, based on moderate growth of the Mexican economy. Over the last few quarters, Elektra's SSS grew at a broadly similar rate as the department store segment, as measured by ANTAD, an industry group. As of 1Q'12, measured over last 12 months (LTM), retail sales grew by 10% above previous year's levels. Operating margins stayed generally stable, at 21% in 1Q'12 LTM (1Q'11 LTM: 22%). Banco Azteca's ratings reflect its broad experience and competitive advantage in consumer finance, an ample stream of recurring revenues, adequate capitalization, as well as an ample, stable and diversified base of core customer deposits that allow the bank to maintain a good operating performance and robust liquidity. The ratings also consider the challenges associated in maintaining asset quality metrics amid a less favorable economic environment (although impairment levels and reserve coverage ratios have remained stable during 2011 and early months of 2012), as well as the weak operating efficiency ratios arising from the high management costs in the consumer finance business (cost-to-income ratio of 80.3% in 1Q'12). Core profitability continues to improve and most ratios shows some stability, given better contained credit costs (1Q'12: 63.8% of pre-impairment operating profits) and a higher contribution of other revenues such as fees and trading income. This has allowed Banco Azteca to gradually rebuild the performance ratios from the very weak metrics reported in the 2008 period. BAZ's loan portfolio has gradually diversified, reducing the relative contribution of consumer loans (65.3% of total as of 1Q'12) and increasing the share of commercial loans, although these remain highly concentrated by borrower. Despite the adverse operating environment in recent years, the bank's management has successfully contained its impact on overall asset quality. Past-due loans as of 1Q'12 were 4.76% of total loans (historical peak in 2009: 8.28%), although write-off levels are still high. Borrower concentration is high, although this risk is partially mitigated by conservative collateral requirements. Capital ratios remain reasonable despite material lending resumption in 2010 and 2011 (Fitch core capital accounted for 11.58% of risk weighted assets as of 1Q'12, while the equivalent Mexican regulatory capital ratio was 12.42% of risk weighted assets for the same period). The securities portfolio had moderate credit and market risk, but further enhances the bank's sound funding and liquidity profile. At the same time, Elektra's recent acquisition of Advance America, a cash advance provider with operations mainly in the United States, has lowered creditworthiness. As previously stated by Fitch (Feb 16th, 2012), the acquisition of Advance America, which has a higher business risk profile than Elektra, and the fact that its acquisition was partially funded with debt, weakens the company's credit quality within its rating category. As of 2011, Advance America generated revenues USD $626 million and EBITDA of USD $123 million. For the LTM ended March 31, 2012 consolidated debt to EBITDA (including bank deposits), has diminished to 8.2x, compared to 9.9x over the same period the previous year. Nonetheless, with regards to the retail operation's leverage (which excludes BAZ and other financial businesses); Fitch estimates that total debt to EBITDA (1Q12 LTM) is about 2.5x (about 3.4x adjusted debt to EBITDAR), higher than the same period the previous year. Fitch also estimates that this ratio is around 2.5x (about 2.3x for covenant purposes), on a pro forma basis, when Advance America's operations and debt related to its acquisition are taken into account. The ratings incorporate that, over the long term, total debt to EBITDA, excluding BAZ and other Latin American financial businesses, should fluctuate around 2.5x. The prospect of leverage above 2.5x could pressure the ratings. Fitch also anticipates that Elektra will not allocate further funds to Advance America in the future. As of March 2012, the retail business' total debt (excluding BAZ and other financial businesses) amounted to MXN$13.9 billion, 26% above the same period in 2011. This amount does not take into account the MXN$2.7 billion Certificados Bursatiles Fiduciarios issuance (DINEXCB-12) by Intra Mexicana, a subsidiary, which took place in 2Q12, nor the assorted bank debt totaling MXN$ 1.35 billion which came due in 2Q12. Debt is made up of bank loans, debt issuances and structured issuances. Furthermore, Fitch estimates off-balance sheet debt related to operating leases at about MXN$ 13.8 billion, when taking into account Advance America's leases. Elektra has paid annual dividends of about MXN $480 million and Fitch expects that this amount will grow moderately. Key Rating Drivers Positive: Future developments that may, individually or collectively, lead to positive rating actions include: A sustained decrease in leverage, as well as a sustained improvement in Banco Azteca's credit profile. Negative: Future developments that may, individually or collectively, lead to negative rating actions include: An accelerated increase in debt, without a corresponding increase in EBITDA on the commercial division, a decrease in EBITDA generation or an increase in debt due to Advance America's operations or contingencies, as well as deterioration in Banco Azteca's creditworthiness. Fitch also rates the following entities: -- Banco Azteca de Guatemala, S.A. 'BBB+(gtm)' and 'F2(gtm)'; -- Banco Azteca (Panama), S.A. 'BBB(pan)' and 'F3(pan)'; -- MXN $2.7 billion Certificados Bursatiles Fiduciarios issuance (DINEXCB-12) by Intra Mexicana, a subsidiary of Grupo Elektra, 'AA-(mex)'. =============================== T R I N I D A D & T O B A G O =============================== * TRINIDAD & TOBAGO: Tourism Economy is Hurting, Minister Admits ---------------------------------------------------------------- Trinidad & Tobago Newsday reports that Trinidad & Tobago Minister of Tourism Stephen Cadiz admitted that the Tobago tourism economy is hurting badly but government is committed "to making sure that we not only revive the tourism business with international arrivals to Tobago but have it really and truly prosper". After seeing the figures on arrivals for Tobago, the issues affecting Tobago are the air-bridge and sea-bridge which are still problems as is the woefully inadequate terminal building at the ANR Robinson International Airport which cannot meet the standards or capacity of what the sector is looking forward to, according to Trinidad and Tobago. The report notes that Mr. Cadiz said the government loans guarantee program will be launched within days and also the tourism support fund for businesses in the Tobago sector that are suffering as a result of the low arrivals. The challenges are not insurmountable but that they are putting a lot of effort into tourism to make sure it is a viable industry not only for Tobago but for Trinidad and Tobago, the report relates. The report notes that another issue that was discussed was the disconnection between what the Tobago House of Assembly (THA) was doing and what the Tourism Development Company (TDC) was doing as far as marketing was concerned. The report notes that it has to cease Mr. Cadiz added and the efforts must be coordinated into one plan so that the money will be well spent since both parties are trying to attract the same tourists. He indicated that we are closer to a new budget, which in itself provides a great opportunity to look at both the THA and the TDC in order to marry what they have been doing so that greater benefit and value comes to the country in the end. The marketing and promotions according to Mr. Cadiz was not particularly focused for Tobago, it has been spread too wide, the report adds. *********** 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 * * *