/raid1/www/Hosts/bankrupt/TCRLA_Public/120824.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, August 24, 2012, Vol. 13, No. 169
Headlines
A R G E N T I N A
DOCUMENT MANAGEMENT: Asks for Reorganization Proceedings
FERGEN CONSTRUCCIONES: Creditors' Proofs of Debt Due Sept. 28
INVERSIONES CORPGROUP: S&P Lowers Issuer Credit Rating to 'BB'
LABORATORIO CENTRAL: Requests Opening of Bankruptcy Proceedings
METROGAS SA: Had ARS55.7 Million Net Loss in 2012 First Half
B E R M U D A
BAJA MINING: Had $140.5 Million Net Loss in Second Quarter
B R A Z I L
BANCO CRUZEIRO: Bondholders at Odds With "unfair" Buyback Plan
C A Y M A N I S L A N D S
ARNOTT OPPORTUNITIES FUND: Creditors' Proofs of Debt Due Sept. 13
ARNOTT OPPORTUNITIES MEMBER: Receiving Claims Until Sept. 13
ARNOTT OPPORTUNITIES MASTER: Receiving Claims Until Sept. 13
CAPMARK VII: Moody's Cuts Rating on Class E Securities to 'C'
CARRETTO INTERNATIONAL: Creditors' Proofs of Debt Due Sept. 10
CHS FIXED: Creditors' Proofs of Debt Due Sept. 14
CHT HOLDINGS: Creditors' Proofs of Debt Due Sept. 13
COLVILLE HOLDINGS: Creditors' Proofs of Debt Due Sept. 12
HORIZON SEPARATE: Creditors' Proofs of Debt Due Sept. 4
HORIZON SEPARATE: Members' Final Meeting Set for Sept. 24
MESIROW FINANCIAL: Creditors' Proofs of Debt Due Sept. 13
NEWCASTLE CDO: Moody's Affirms 'C' Rating on Class V Notes
WENTWORTH RESOURCES: Creditors' Proofs of Debt Due Sept. 4
J A M A I C A
* JAMAICA: Local Mining Sector in Decline, PIOJ Data Shows
M E X I C O
MAXCOM TELECOMUNICACIONES: S&P Affirms 'CCC+' Ratings
- - - - -
=================
A R G E N T I N A
=================
DOCUMENT MANAGEMENT: Asks for Reorganization Proceedings
--------------------------------------------------------
Document Management SA asked for reorganization proceedings. The
company defaulted its payments last April 9.
FERGEN CONSTRUCCIONES: Creditors' Proofs of Debt Due Sept. 28
-------------------------------------------------------------
Isaac Jozpe, the court-appointed trustee for Fergen Construcciones
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Sept. 28, 2012.
Mr. Jozpe 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:
Isaac Jozpe
Uriburu 1054
Argentina
INVERSIONES CORPGROUP: S&P Lowers Issuer Credit Rating to 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term issuer
credit rating on Inversiones CorpGroup Interhold Ltda. (Interhold;
formerly called Corp Group Interhold S.A.) to 'BB' from 'BB+'. "In
addition, we removed the ratings from CreditWatch negative, where
we placed them on Dec. 21, 2011. The outlook is stable," S&P said.
The rating action follows the downgrade of Corpbanca to 'BBB+'
from 'A-', Interhold's most important cash contributor.
LABORATORIO CENTRAL: Requests Opening of Bankruptcy Proceedings
---------------------------------------------------------------
Laboratorio Central Argentino SA requested opening of bankruptcy
proceedings. The company defaulted its payments last April 14,
2011.
METROGAS SA: Had ARS55.7 Million Net Loss in 2012 First Half
------------------------------------------------------------
MetroGAS S.A. reported a net loss of ARS55.7 million on
ARS569.2 million of sales for the six months ended June 30, 2012,
compared with a net loss of ARS17.7 million on
ARS546.8 million of sales for the same period of 2011.
During the six months ended June 30, 2012, a financial and holding
loss of ARS48.3 million was recorded compared to a loss of
ARS28.0 million recorded in the same period of the previous year.
According to the Company, such variation in financial and holding
results was mainly due to the higher financial exchange loss
registered during the same period of the present year due to the
higher variation on the exchange rate.
The Company's balance sheet at June 30, 2012, showed total assets
of ARS2.566 billion, total liabilities of ARS1.868 billion,
minority interest of ARS880,000, and shareholders' equity of
ARS697.1 million.
Limited Review Report Dated Aug. 8, 2012
In its limited review report to the shareholders, President and
directors of the Company, dated Aug. 8, 2012, Price Waterhouse &
Co., S.R.L., cited, among other things, that the changes in the
economic conditions in Argentina and the changes to the License
under which the Company operates made by the Argentine National
Government, mainly related to the suspension of the original
regime for tariff adjustments, have affected the Company's
economic and financial equation. Management is in the process of
renegotiating certain terms of the License with the Argentine
National Government to counteract the negative impact caused by
the above mentioned circumstances.
The adverse financial conditions that MetroGAS faces as a result
of the situation mentioned above led to MetroGAS' Board of
Directors to approve the Company's filing of a petition for
voluntary reorganization (concurso preventivo) in an Argentine
court on June 17, 2010, which was decreed by such court hearing
the case on July 15, 2010. This circumstance generated an event
of default under the Negotiable Obligation Issue Program of the
Company which resulted in the automatic acceleration of the
outstanding financial debt obligations. Nevertheless, upon the
reorganization filing, an automatic stay was put into place on the
payment of principal and interest on its outstanding debt
obligations.
A copy of the Company's unaudited consolidated interim financial
statements for the six months ended June 30, 2012, is available
for free at http://is.gd/Kiuw2p
About MetroGas
Buenos Aires, Argentina-based MetroGAS S.A., a gas distribution
company, was incorporated on Nov. 24, 1992, and began operations
on Dec. 29, 1992, when the privatization of Gas del Estado S.E.
("GdE") (an Argentine Government-owned enterprise) was completed.
Through Executive Decree No. 2,459/92 dated Dec. 21, 1992, the
Argentine Government granted MetroGAS an exclusive license to
provide the public service of natural gas distribution in the area
of the Federal Capital and southern and eastern Greater Buenos
Aires, by operating the assets allocated to the Company by GdE for
a 35 year period from the Takeover Date (Dec. 28, 1992). This
period can be extended for an additional 10 year period under
certain conditions.
MetroGAS' controlling shareholder is Gas Argentino S.A. ("Gas
Argentino") who holds 70% of the Common Stock of the Company. The
20%, which was originally owned by the National Government, was
offered in public offering and the remaining 10% is under the
Employee Stock Ownership Plan ("Programa de Propiedad Participada"
or "PPP").
Going Concern Doubt
Price Waterhouse & Co. S.R.L., in Buenos Aires, Argentina,
expressed substantial doubt about MetroGas S.A.'s ability to
continue as a going concern, following the Company's 2011 results.
The independent auditors noted of the uncertainties related to the
suspension of the original regime for tariff adjustments and the
Company's petition for voluntary reorganization in an Argentine
Court on June 17, 2010.
=============
B E R M U D A
=============
BAJA MINING: Had $140.5 Million Net Loss in Second Quarter
----------------------------------------------------------
Baja Mining Corp. reported a net loss of US$140.5 million for the
three months ended June 30, 2012, compared with a net loss of
US$5.5 million for the corresponding period last year.
For the six months ended June 30, 2012, the net loss was
US$170.7 million as compared to a net loss of US$48.3 million for
the corresponding six month period of 2011.
No revenues were earned during the three and six month periods
ended June 30, 2012, and 2011, respectively.
The increase in loss between periods was primarily driven by
impairment losses totaling $188.1 million following the
announcement of the forecasted cost overrun of the Boleo Project
during the quarter.
The Company's balance sheet at June 30, 2012, showed
US$877.1 million in total assets, US$790.6 million in total
liabilities, and stockholders' equity of US$86.5 million.
Going Concern
During the six-month period ended June 30, 2012, the Company
incurred a loss of US$170.7 million and as at June 30, 2012, the
accumulated deficit attributable to shareholders amounted to
US$257.5 million. As at June 30, 2012, the Company's consolidated
working capital deficit was US$529,984.
In April 2012, the Company determined that the forecasted cost to
complete the Boleo Project could be US$1.667 billion, which
significantly exceeds the Company's available project funding
(US$1.167 billion plus additional cost overrun facilities of
US$100 million).
The Company was unable to finance the funding shortfall within 60
days of identifying the forecasted cost overruns and the Company
is in an Event of Default as defined in the Company's senior
lending agreements. As a result, the Company is unable to access
any of the previously approved senior debt facilities. However,
the Company was successful in negotiating a standstill agreement
with MMB's senior lenders, whereby the lenders agreed to refrain
from exercising rights and remedies available to them under the
senior lending agreements. The original standstill agreement
expired on Aug. 1, 2012, and a second standstill agreement expires
on Sept. 15, 2012.
MMB holds the mineral property rights to the Boleo Project.
The Company was also in default of its borrowing agreements
related to the Korean Development Bank ("KDB") Subordinated debt
and Baja funding loan, due to the fact that MMB's liabilities
exceeded the carrying value of its assets as at June 30, 2012.
Should the Company remain in an Event of Default at the expiration
of any standstill agreement as a result of this (or any other
arising) defaults, the lenders may exercise any combination of
available remedies, including accelerated payment demand of the
debt facilities. The facilities that may be subject to
accelerated payment are the senior debt, the KDB subordinated
debt, the Baja funding loan and those relating to the derivative
liability, all totaling US$491,300 on the consolidated balance
sheet.
Among other factors, as mentioned above, the Company's ability to
continue as a going concern is dependent upon the following
critical factors: (i) the completion of Stage I of the proposed
funding solution by Aug. 20, 2012; (ii) an election by the
Consortium to complete Stage II of the proposed funding solution
prior to Aug. 30, 2012; (iii) approval by the senior lenders of
the proposed funding solution; (iv) reinstatement of the remaining
senior debt facilities and cost overrun facilities; (v) completion
of development of its Boleo Project; and (vi) establishing
profitable operations. The success of these factors cannot be
assured.
A copy of the Condensed Interim Consolidated Financial Statements
dated June 30, 2012, is available for free at:
http://is.gd/qOj9Pf
Baja Mining Corp. was incorporated on July 15, 1985, under the
Company Act of British Columbia. The Company's primary focus is
the development of the El Boleo copper-cobalt-zinc-manganese
deposit (the "Boleo Project") located near Santa Rosalia, Baja
California Sur, Mexico. The Company is a reporting issuer in
Canada and the United States and trades on the Toronto Stock
Exchange, the Frankfurt Stock Exchange and the OTC:QX
International. The Company is domiciled in Canada and its
registered office is 500-200 Burrard Street, Vancouver, British
Columbia, V6C 3L6.
The Company owns a 70% interest in the Project through its wholly
owned Luxembourg subsidiary, Baja International S.… r.l., which
owns 100% of a Luxembourg subsidiary, Boleo International S.…
r.l., which in turn owns 70% of the shares of Minera y Metalurgica
del Boleo, S.A. de C.V. ("MMB"). MMB holds all mineral and
property rights in the Project. The remaining 30% of MMB is owned
by the Consortium, the members of which acquired their interest in
June 2008.
===========
B R A Z I L
===========
BANCO CRUZEIRO: Bondholders at Odds With "unfair" Buyback Plan
--------------------------------------------------------------
Guillermo Parra-Bernal at Reuters reports that bondholders Banco
Cruzeiro do Sul, who stand to lose half of their investment under
a repurchase program, questioned the plan at a creditors meeting,
in an indication that they will press for a sweeter offer.
Investors who attended the meeting in Miami said the buyback,
announced last week as part of efforts to save Cruzeiro from
liquidation, treats them unequally, according to Reuters. The
report relates that the meeting with HSBC Holdings and Bank of
America Corp bankers overseeing the plan left bondholders "with
the feeling that we are bearing most of the losses," said a trader
present at the meeting.
Reuters notes that Cruzeiro do Sul was seized by Brazil's central
bank on June 4 and put under the administration of privately held
deposit guarantee fund FGC the same day. Under terms of the plan
the FGC agreed to repurchase, at an average 49.3% discount, $1.575
billion worth of Cruzeiro bonds maturing between September 2012
and September 2020, Reuters notes.
Reuters says that the meeting left many investors at odds over
what to do, with private banking clients who own Banco Cruzeiro
bonds more willing to accept terms of the buyback than hedge funds
with experience in litigation. The plan requires the approval of
90% of bondholders, the report notes.
Reuters notes that despite the large discount, some bondholders of
Banco Cruzeiro's subordinated bond due in September 2020 may agree
to the buyback to avoid seeing the bank forced into liquidation --
a decision that would wipe out any remaining value for their debt.
Subordinated debt ranks below senior debt and payroll debt if a
company enters bankruptcy or defaults.
Attendees left the meeting "very upset," a bond fund manager
present at the meeting told Reuters.
Reuters recalls that Banco Cruzeiro seizure was the third in the
last year and a half, a sign that years of rapid growth have
resulted in deteriorating funding and liquidity conditions as well
as a relaxation of credit risk and accounting controls among some
mid-sized lenders.
A round of auditing at the bank detected BRL2.25 billion (US$1.12
billion) in losses, of which about BRL1.3 billion came from the
flawed accounting of shares in a fund made of loan-backed
securities on its balance sheet, the report notes.
About Banco Cruzeiro
Banco Cruzeiro do Sul S.A. is headquartered in Sao Paulo, Brazil
and had total unconsolidated assets of BRL9.48 billion (US$4.67
billion) and negative shareholders' equity of BRL2.24 billion
(US$1.1 billion) as of June 4, 2012 per the Special Opening
Balance Sheet published by FGC.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 20, 2012, Moody's Investors Service has downgraded the long-
term global local and foreign currency deposit ratings of Banco
Cruzeiro do Sul S.A. (BCSul) to Ca, from Caa1, and lowered the
bank's foreign currency senior and subordinated debt ratings to Ca
and C, respectively, from Caa1 and Caa2.
===========================
C A Y M A N I S L A N D S
===========================
ARNOTT OPPORTUNITIES FUND: Creditors' Proofs of Debt Due Sept. 13
-----------------------------------------------------------------
The creditors of Arnott Opportunities Fund are required to file
their proofs of debt by Sept. 13, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 27, 2012.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
ARNOTT OPPORTUNITIES MEMBER: Receiving Claims Until Sept. 13
------------------------------------------------------------
The creditors of Arnott Opportunities Member Limited are required
to file their proofs of debt by Sept. 13, 2012, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on July 27, 2012.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
ARNOTT OPPORTUNITIES MASTER: Receiving Claims Until Sept. 13
------------------------------------------------------------
The creditors of Arnott Opportunities Master Fund are required to
file their proofs of debt by Sept. 13, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 27, 2012.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
CAPMARK VII: Moody's Cuts Rating on Class E Securities to 'C'
-------------------------------------------------------------
Moody's has downgraded the ratings of two classes and affirmed the
ratings of nine classes of Notes issued by Capmark VII -- CRE Ltd.
The downgrades are due to increased under-collateralization and
deterioration in the par value tests since last review. The
affirmations are due to the key transaction parameters performing
within levels commensurate with the existing ratings levels. The
rating action is the result of Moody's on-going surveillance of
commercial real estate collateralized debt obligation and
collateralized loan obligation (CRE CDO CLO) transactions.
Moody's rating action is as follows:
Cl. A-1, Affirmed at Aaa (sf); previously on Sep 30, 2010
Confirmed at Aaa (sf)
Cl. A-2, Affirmed at B1 (sf); previously on Sep 30, 2010
Downgraded to B1 (sf)
Cl. B, Affirmed at Caa2 (sf); previously on Sep 30, 2010
Downgraded to Caa2 (sf)
Cl. C, Affirmed at Caa3 (sf); previously on Sep 30, 2010
Downgraded to Caa3 (sf)
Cl. D, Downgraded to Ca (sf); previously on Sep 30, 2010 Confirmed
at Caa3 (sf)
Cl. E, Downgraded to C (sf); previously on Sep 30, 2010 Downgraded
to Ca (sf)
Cl. F, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)
Cl. G, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)
Cl. H, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)
Cl. J, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)
Cl. K, Affirmed at C (sf); previously on Sep 30, 2010 Downgraded
to C (sf)
Ratings Rationale
Capmark VII -- CRE Ltd. is a static (the reinvestment period ended
in August 2011) cash CRE CDO transaction backed by a portfolio of
whole loans (100.0% of the pool balance). As of the August 15,
2012 Trustee report, the aggregate Note balance of the
transaction, including preferred shares, has decreased to $589.7
million from $1.0 billion at issuance, with the paydown directed
to the Class A-1 Notes, as a result of amortization of the
underlying collateral as well as interest reclassified as
principal due to the failure of the par value tests.
There are seven assets with a par balance of $107.2 million (24.9%
of the current pool balance) that are considered defaulted
securities as of the August 15, 2012 Trustee report. While there
have been some realized losses on the underlying collateral to
date, Moody's expects more significant losses to occur on the
defaulted securities once they are realized.
Moody's has identified the following parameters as key indicators
of the expected loss within CRE CDO transactions: weighted average
rating factor (WARF), weighted average life (WAL), weighted
average recovery rate (WARR), and Moody's asset correlation (MAC).
These parameters are typically modeled as actual parameters for
static deals and as covenants for managed deals.
WARF is a primary measure of the credit quality of a CRE CDO pool.
Moody's has completed updated assessments for the non-Moody's
rated collateral. The bottom-dollar WARF is a measure of the
default probability within a collateral pool. Moody's modeled a
bottom-dollar WARF of 8,863 compared to 8,759 at last review. The
current distribution of Moody's rated collateral and assessments
for non-Moody's rated collateral is as follows: Baa1-Baa3 (0.8%,
the same as that at last review), Ba1-Ba3 (0.0% compared to 2.5%
at last review), B1-B3 (9.1% compared to 13.7% at last review),
and Caa1-C (90.1% compared to 83.0% at last review).
WAL acts to adjust the probability of default of the collateral in
the pool for time. Moody's modeled to a WAL of 3.9 years compared
to 1.6 years at last review. The current modeled WAL is based on
the assumption about extensions.
WARR is the par-weighted average of the mean recovery values for
the collateral assets in the pool. Moody's modeled a fixed WARR of
53.6% compared to 53.4% at last review.
MAC is a single factor that describes the pair-wise asset
correlation to the default distribution among the instruments
within the collateral pool (i.e. the measure of diversity).
Moody's modeled a MAC of 99.9%, the same as that at last review.
Moody's review incorporated CDOROM(R) v2.8, one of Moody's CDO
rating models, which was released on January 24, 2011.
The cash flow model, CDOEdge(R) v3.2.1.2, was used to analyze the
cash flow waterfall and its effect on the capital structure of the
deal.
Changes in any one or combination of the key parameters may have
rating implications on certain classes of rated notes. However, in
many instances, a change in key parameter assumptions in certain
stress scenarios may be offset by a change in one or more of the
other key parameters. Rated notes are particularly sensitive to
changes in recovery rate assumptions. Holding all other key
parameters static, changing the recovery rate assumption down from
53.6% to 43.6% or up to 63.6% would result in average modeled
rating movement on the rated tranches of 0 to 3 notches downward
and 0 to 4 notches upward, respectively.
The performance expectations for a given variable indicate Moody's
forward-looking view of the likely range of performance over the
medium term. From time to time, Moody's may, if warranted, change
these expectations. Performance that falls outside the given range
may indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. The
decision to take (or not take) a rating action is dependent on an
assessment of a range of factors including, but not exclusively,
the performance metrics.
Primary sources of assumption uncertainty are the extent of growth
in the current macroeconomic environment and commercial real
estate property markets. While commercial real estate property
values are beginning to move in a positive direction along with a
rise in investment activity and stabilization in core property
type performance, a consistent upward trend will not be evident
until the volume of investment activity steadily increases,
distressed properties are cleared from the pipeline, and job
creation rebounds. The hotel sector is performing strongly and the
multifamily sector continues to show increases in demand. Moderate
improvements in the office sector continue with minimal additions
to supply. However, office demand is closely tied to employment,
where growth remains slow. Performance in the retail sector has
been mixed with lackluster sales driven by discounting and
promotions. However, rising wages and reduced unemployment, along
with increased consumer confidence, is helping to spur consumer
spending. Across all property sectors, the availability of debt
capital continues to improve with increased securitization
activity of commercial real estate loans supported by a monetary
policy of low interest rates. Moody's central global macroeconomic
scenario reflects healthier growth in the US and US growth
decoupling from the recessionary trend in the euro zone, while a
mild recession is expected in 2012. Downside risks remain
significant, although they have moderated compared to earlier this
year. Major downside risks include an increase in the potential
magnitude of the euro area recession, the risk of an oil supply
shock weighing negatively on consumer purchasing power and home
prices, ongoing and policy-induced banking sector deleveraging
leading to a tightening of bank lending standards and credit
contraction, financial market turmoil continuing to negatively
impact consumer and business confidence, persistently high
unemployment levels, and weak housing markets, any or all of which
will continue to constrain growth.
The methodologies used in this rating were "Moody's Approach to
Rating SF CDOs" published in May 2012 and "Moody's Approach to
Rating Commercial Real Estate CDOs" published in July 2011.
CARRETTO INTERNATIONAL: Creditors' Proofs of Debt Due Sept. 10
--------------------------------------------------------------
The creditors of Carretto International Ltd. are required to file
their proofs of debt by Sept. 10, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on July 25, 2012.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
CHS FIXED: Creditors' Proofs of Debt Due Sept. 14
-------------------------------------------------
The creditors of CHS Fixed Income Trends Limited are required to
file their proofs of debt by Sept. 14, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 20, 2012.
The company's liquidator is:
K.D. Blake
PO Box 493 Grand Cayman KY1-1106
Cayman Islands
c/o Dorra Mohammed
Telephone: +1 345-914-4475
Facsimile: +1 345-949-7164
P.O. Box 493 Grand Cayman KY1-1106
Cayman Islands
Telephone: +1 345-949-4800
Facsimile: +1 345-949-7164
CHT HOLDINGS: Creditors' Proofs of Debt Due Sept. 13
----------------------------------------------------
The creditors of CHT Holdings Inc. are required to file their
proofs of debt by Sept. 13, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on July 30, 2012.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
COLVILLE HOLDINGS: Creditors' Proofs of Debt Due Sept. 12
---------------------------------------------------------
The creditors of Colville Holdings Limited are required to file
their proofs of debt by Sept. 12, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 1, 2012.
The company's liquidator is:
Iiing Sieh
36E Estoril Court
55 Garden Road
Hong Kong
c/o Mr. Philip C Pedro
HSBC International Trustee Limited
Compass Point Bermudiana Road
Hamilton HM 11
Bermuda
Telephone: (441) 299-6482
Facsimile: (441) 279-5832
HORIZON SEPARATE: Creditors' Proofs of Debt Due Sept. 4
-------------------------------------------------------
The creditors of Horizon Separate Account Limited are required to
file their proofs of debt by Sept. 4, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on July 19, 2012.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House
5 Park Road
Hamilton HM 09
Bermuda
Telephone: 441-292-7979
HORIZON SEPARATE: Members' Final Meeting Set for Sept. 24
---------------------------------------------------------
The members of Horizon Separate Account Limited will hold their
final meeting on Sept. 24, 2012, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company commenced liquidation proceedings on July 19, 2012.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House
5 Park Road
Hamilton HM 09
Bermuda
Telephone: 441-292-7979
MESIROW FINANCIAL: Creditors' Proofs of Debt Due Sept. 13
---------------------------------------------------------
The creditors of Mesirow Financial Investment Fund (Cayman), Ltd -
G are required to file their proofs of debt by Sept. 13, 2012, to
be included in the company's dividend distribution.
The company commenced liquidation proceedings on July 30, 2012.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
NEWCASTLE CDO: Moody's Affirms 'C' Rating on Class V Notes
----------------------------------------------------------
Moody's Investors Service has affirmed the ratings of all classes
of Notes issued by Newcastle CDO V, Ltd. due to key transaction
parameters performing within levels commensurate with the existing
ratings levels. The rating action is the result of Moody's on-
going surveillance of commercial real estate collateralized debt
obligation (CRE CDO and Re-REMIC) transactions.
Moody's rating action is as follows:
Class I Floating Rate Notes, Affirmed at Baa3 (sf); previously on
Sep 9, 2011 Downgraded to Baa3 (sf)
Class II Deferrable Floating Rate Notes, Affirmed at B3 (sf);
previously on Sep 9, 2011 Downgraded to B3 (sf)
Class III Deferrable Floating Rate Notes, Affirmed at Caa2 (sf);
previously on Sep 9, 2011 Downgraded to Caa2 (sf)
Class IV-FL Deferrable Floating Rate Notes, Affirmed at Caa3 (sf);
previously on Oct 5, 2010 Downgraded to Caa3 (sf)
Class IV-FX Deferrable Fixed Rate Notes, Affirmed at Caa3 (sf);
previously on Oct 5, 2010 Downgraded to Caa3 (sf)
Class V Deferrable Fixed Rate Notes, Affirmed at C (sf);
previously on Oct 5, 2010 Downgraded to C (sf)
Ratings Rationale
Newcastle CDO V, limited is a static CRE CDO transaction backed by
a portfolio of commercial mortgage backed securities (CMBS)
(47.1%), REIT debt (25.2%), asset backed securities (ABS) (17.0%)
and CMBS rake bonds (10.7%). As of the July 31, 2012 Trustee
report, the aggregate Note balance of the transaction has
decreased to $324.0 million from $500.0 million at issuance, with
the paydown directed to the Class I Notes, as a result of the
combination of principal repayment of collateral and failing of
the par value tests.
There are fifteen assets with a par balance of $45.0 million
(15.2% of the current pool balance) that are considered defaulted
securities as of the July 31, 2012 Trustee report, compared to
fifteen defaulted securities totaling $41.8 million par amount at
last review. Three of these assets (50.4% of the defaulted
balance) are CMBS and twelve assets (49.6%) are ABS. Moody's does
expect significant losses to occur from these defaulted securities
once they are realized.
Moody's has identified the following parameters as key indicators
of the expected loss within CRE CDO transactions: weighted average
rating factor (WARF), weighted average life (WAL), weighted
average recovery rate (WARR), and Moody's asset correlation (MAC).
These parameters are typically modeled as actual parameters for
static deals and as covenants for managed deals.
WARF is a primary measure of the credit quality of a CRE CDO pool.
Moody's has completed updated assessments for the non-Moody's
rated collateral. The bottom-dollar WARF is a measure of the
default probability within a collateral pool. Moody's modeled a
bottom-dollar WARF of 3,337 compared to 3,002 at last review. The
current distribution of Moody's rated collateral and assessments
for non-Moody's rated collateral is as follows: Aaa-Aa3 (4.2%
compared to 3.7% at last review), A1-A3 (3.1% compared to 2.7% at
last review), Baa1-Baa3 (25.9% compared to 29.8% at last review),
Ba1-Ba3 (25.0%, the same as at last review), B1-B3 (12.3% compared
to 10.2% at last review), and Caa1-C (29.5% compared to 28.6% at
last review).
WAL acts to adjust the probability of default of the reference
obligations in the pool for time. Moody's modeled to a WAL of 3.1
years compared to 3.6 years at last review.
WARR is the par-weighted average of the mean recovery values for
the collateral assets in the pool. Moody's modeled a fixed WARR of
17.5% compared to 18.4% at last review.
MAC is a single factor that describes the pair-wise asset
correlation to the default distribution among the instruments
within the collateral pool (i.e. the measure of diversity).
Moody's modeled a MAC of 7.7% compared to 10.4% at last review.
Moody's review incorporated CDOROM(R) v2.8, one of Moody's CDO
rating models, which was released on January 24, 2011.
The cash flow model, CDOEdge(R) v3.2.1.2, was used to analyze the
cash flow waterfall and its effect on the capital structure of the
deal.
Changes in any one or combination of the key parameters may have
rating implications on certain classes of rated notes. However, in
many instances, a change in key parameter assumptions in certain
stress scenarios may be offset by a change in one or more of the
other key parameters. Rated notes are particularly sensitive to
changes in recovery rate assumptions. Holding all other key
parameters static, changing the recovery rate assumption down from
17.5% to 12.5% or up to 22.5% would result in average modeled
rating movement on the rated tranches of 0 to 1 notch downward and
0 to 1 notch upward, respectively.
The performance expectations for a given variable indicate Moody's
forward-looking view of the likely range of performance over the
medium term. From time to time, Moody's may, if warranted, change
these expectations. Performance that falls outside the given range
may indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. The
decision to take (or not take) a rating action is dependent on an
assessment of a range of factors including, but not exclusively,
the performance metrics.
Primary sources of assumption uncertainty are the extent of growth
in the current macroeconomic environment and commercial real
estate property markets. While commercial real estate property
values are beginning to move in a positive direction along with a
rise in investment activity and stabilization in core property
type performance, a consistent upward trend will not be evident
until the volume of investment activity steadily increases,
distressed properties are cleared from the pipeline, and job
creation rebounds. The hotel sector is performing strongly and the
multifamily sector continues to show increases in demand. Moderate
improvements in the office sector continue with minimal additions
to supply. However, office demand is closely tied to employment,
where growth remains slow. Performance in the retail sector has
been mixed with lackluster sales driven by discounting and
promotions. However, rising wages and reduced unemployment, along
with increased consumer confidence, is helping to spur consumer
spending. Across all property sectors, the availability of debt
capital continues to improve with increased securitization
activity of commercial real estate loans supported by a monetary
policy of low interest rates. Moody's central global macroeconomic
scenario reflects healthier growth in the US and US growth
decoupling from the recessionary trend in the euro zone, while a
mild recession is expected in 2012. Downside risks remain
significant, although they have moderated compared to earlier this
year. Major downside risks include an increase in the potential
magnitude of the euro area recession, the risk of an oil supply
shock weighing negatively on consumer purchasing power and home
prices, ongoing and policy-induced banking sector deleveraging
leading to a tightening of bank lending standards and credit
contraction, financial market turmoil continuing to negatively
impact consumer and business confidence, persistently high
unemployment levels, and weak housing markets, any or all of which
will continue to constrain growth.
The methodologies used in this rating were "Moody's Approach to
Rating SF CDOs" published in May 2012 and "Moody's Approach to
Rating Commercial Real Estate CDOs" published in July 2011.
WENTWORTH RESOURCES: Creditors' Proofs of Debt Due Sept. 4
----------------------------------------------------------
The creditors of Wentworth Resources Limited are required to file
their proofs of debt by Sept. 4, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on July 31, 2012.
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
=============
J A M A I C A
=============
* JAMAICA: Local Mining Sector in Decline, PIOJ Data Shows
----------------------------------------------------------
RJR News reports that data from the Planning Institute of Jamaica
(PIOJ) show that during the April to June quarter, mining and
quarrying declined by 8.7%.
Total bauxite production was down 6.5% as crude production and
alumina output fell 5.2% and 11%, according to RJR News. The
report relates that the PIOJ said that the fall off in crude
bauxite production was impacted by lower global demand.
Alumina production was adversely impacted by efficiency challenges
related to energy use as well as a reduction in demand, RJR News
notes.
===========
M E X I C O
===========
MAXCOM TELECOMUNICACIONES: S&P Affirms 'CCC+' Ratings
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC+' ratings on
Maxcom Telecomunicaciones S.A.B. de C.V. The recovery rating of
'3' on the company's senior secured notes, indicating the
expectation of meaningful 50%-70% recovery in the event of
payment default, remains unchanged. The outlook is negative.
The rating on Maxcom reflects the company's "highly leveraged"
financial risk profile, "vulnerable" business risk profile, and
declining revenues and industry position because of strong
competition from land line, mobile telephony, and cable operators.
Frequent management changes also continue to be a risk.
Additionally, Maxcom's gradually increasing refinancing risk, due
to the December 2014 bond maturity, constrains the rating.
Maxcom's telecom service offerings, including quadruple-play
bundled packages at very competitive prices and expertise in
managing customer credit, are positive credit factors.
***********
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 * * *