/raid1/www/Hosts/bankrupt/TCRLA_Public/120829.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
Wednesday, August 29, 2012, Vol. 13, No. 172
Headlines
A N T I G U A & B A R B U D A
REDJET: Outlines Plans to Repay Creditors
B E R M U D A
FOCUS RECOVERY: Creditors' Proofs of Debt Due Aug. 31
FOCUS RECOVERY: Members' Final Meeting Set for Sept. 21
IDDF PARTNERSHIP I: Creditors' Proofs of Debt Due Aug. 31
IDDF PARTNERSHIP I: Members' Final Meeting Set for Sept. 25
IRISH HOLDINGS I: Creditors' Proofs of Debt Due Aug. 31
IRISH HOLDINGS I: Members' Final Meeting Set for Sept. 25
IRISH HOLDINGS II: Creditors' Proofs of Debt Due Aug. 31
IRISH HOLDINGS II: Members' Final Meeting Set for Sept. 25
SMART HOME: Creditors' Proofs of Debt Due Aug. 31
SMART HOME: Members' Final Meeting Set for Sept. 21
B R A Z I L
BANCO BILBAO: S&P Affirms 'BB+/B' Issuer Credit Ratings
DIAGNOSTICOS DA AMERICA: Fitch Holds Rating on 2018 Notes at BB+
C A Y M A N I S L A N D S
CHINA MEDICAL: Court Enters Wind-Up Order
CJ 2001A: Creditors' Proofs of Debt Due Sept. 17
COLUMBIA RESEARCH: Creditors' Proofs of Debt Due Sept. 13
CQS GLOBAL: Members' Final Meeting Set for Sept. 10
CZECH GLASS: Creditors' Proofs of Debt Due Sept. 12
MONSOON INDIA: Commences Liquidation Proceedings
SYTRARB FUND: Court Enters Wind-Up Order
SZ99A LIMITED: Creditors' Proofs of Debt Due Sept. 24
J A M A I C A
WINDALCO: UC Rusal to Maintain Ties With Jamaica
* JAMAICA: Attempts to Raise US$4BB Via Fixed Rate Instrument
M E X I C O
URBI DESARROLLOS: Moody's Affirms 'Ba3' CFR; Outlook Negative
- - - - -
===============================
A N T I G U A & B A R B U D A
===============================
REDJET: Outlines Plans to Repay Creditors
-----------------------------------------
RJR News reports that a proposal outlining how Airone
Caribbean/Airone Ventures Limited plans to repay creditors has
been finalized but passengers and others owed should not expect to
get all their money back.
Word coming out of Barbados is that they can collect at least 25%,
according to RJR News.
The report notes that this was confirmed by Anthony Audain, the
attorney-at-law for trustee Grenville Phillips, under whose
control the airline rests.
Mr. Audain confirmed that the proposal was filed a week ago and it
will now be left to the creditors to accept what is offered or the
low-cost carrier will officially go under, RJR News says.
About REDjet
REDjet (Airone Caribbean/Airone Ventures Limited) is a startup
low-cost carrier (LCC) based at the Grantley Adams International
Airport in Christ Church, Barbados, near Bridgetown.
Incorporated in Barbados, the privately owned airline features a
fleet of McDonnell Douglas MD-82 and MD-83 aircraft.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 26, 2012, RJR News related that REDjet's decision to
suspend all flights came a day after the airline announced the
addition of its new route to Antigua and Barbuda. REDjet
officials are calling on the Barbadian government for close to
$8,000,000 in assistance, and to receive the same subsidies as
other airlines, RJR News noted. The report disclosed that Mr.
Maharaj said governments cannot continue to expose themselves as
a guarantor to private enterprises.
=============
B E R M U D A
=============
FOCUS RECOVERY: Creditors' Proofs of Debt Due Aug. 31
-----------------------------------------------------
The creditors of Focus Recovery Fund Ltd. are required to file
their proofs of debt by Aug. 31, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 15, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
FOCUS RECOVERY: Members' Final Meeting Set for Sept. 21
-------------------------------------------------------
The members of Focus Recovery Fund Ltd. will hold their final
general meeting on Sept. 21, 2012, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on Aug. 15, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
IDDF PARTNERSHIP I: Creditors' Proofs of Debt Due Aug. 31
---------------------------------------------------------
The creditors of IDDF Partnership I Holdings, Limited are required
to file their proofs of debt by Aug. 31, 2012, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 2, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
IDDF PARTNERSHIP I: Members' Final Meeting Set for Sept. 25
-----------------------------------------------------------
The members of IDDF Partnership I Holdings, Limited will hold
their final general meeting on Sept. 25, 2012, at 9:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced wind-up proceedings on Aug. 2, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
IRISH HOLDINGS I: Creditors' Proofs of Debt Due Aug. 31
-------------------------------------------------------
The creditors of Irish Holdings I, Limited are required to file
their proofs of debt by Aug. 31, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 2, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
IRISH HOLDINGS I: Members' Final Meeting Set for Sept. 25
---------------------------------------------------------
The members of Irish Holdings I, Limited will hold their final
general meeting on Sept. 25, 2012, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on Aug. 2, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
IRISH HOLDINGS II: Creditors' Proofs of Debt Due Aug. 31
--------------------------------------------------------
The creditors of Irish Holdings II, Limited are required to file
their proofs of debt by Aug. 31, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 2, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
IRISH HOLDINGS II: Members' Final Meeting Set for Sept. 25
----------------------------------------------------------
The members of Irish Holdings II, Limited will hold their final
general meeting on Sept. 25, 2012, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on Aug. 2, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
SMART HOME: Creditors' Proofs of Debt Due Aug. 31
-------------------------------------------------
The creditors of Smart Home Reinsurance 2005-2 Limited are
required to file their proofs of debt by Aug. 31, 2012, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 10, 2012.
The company's liquidator is:
John C. McKenna
CA of Finance & Risk Services Ltd.
Suite 502, 26 Bermudiana Road
Hamilton HM 11
Bermuda
SMART HOME: Members' Final Meeting Set for Sept. 21
---------------------------------------------------
The members of Smart Home Reinsurance 2005-2 Limited will hold
their final general meeting on Sept. 21, 2012, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced wind-up proceedings on Aug. 10, 2012.
The company's liquidator is:
John C. McKenna
CA of Finance & Risk Services Ltd.
Suite 502, 26 Bermudiana Road
Hamilton HM 11
Bermuda
===========
B R A Z I L
===========
BANCO BILBAO: S&P Affirms 'BB+/B' Issuer Credit Ratings
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
and 'B' short-term issuer credit ratings (ICR) on Banco Bilbao
Vizcaya Argentaria Uruguay S.A. (BBVA Uruguay). The outlook is
stable.
The issuer credit ratings on BBVA Uruguay reflect the bank's
"strong" business position, "weak" capital and earnings,
"adequate" risk position, "average" funding, and "adequate"
liquidity. "The ratings also reflect our view of the bank's status
of moderately strategic subsidiary of Spain-based Banco Bilbao
Vizcaya Argentaria S.A. (BBB+/Negative/A-2), which owns 100% of
the bank's equity," S&P said.
DIAGNOSTICOS DA AMERICA: Fitch Holds Rating on 2018 Notes at BB+
----------------------------------------------------------------
Fitch Ratings has affirmed the following ratings of Diagnosticos
da America S.A. (DASA):
-- Foreign and Local currency Issuer Default Rating (IDR) at
'BB+';
-- Outstanding unsecured notes due 2018 at 'BB+';
-- National Scale rating at 'AA (bra)';
-- Local debentures issuance due to 2016 at 'AA (bra)'.
In addition, Fitch affirms the following rating of DASA's
subsidiary:
-- DASA Finance Corporation IDR at 'BB+'.
The corporate Rating Outlook is Stable.
DASA's credit ratings reflect its positive track record of strong
and growing operating cash flow generation combined with low
leverage levels. The ratings are also supported by the company's
leading position in the Brazilian medical diagnostics industry and
a strong and diversified portfolio of services. DASA continues to
be managed with a conservative financial strategy, which uses a
mix of debt and equity to fund growth. Further factored into
DASA's ratings is its presence in many areas of the diagnostic
industry and its cash flow diversification with multiple
counterparties.
Considerations that limit DASA's ratings are its recently changed
business model, with greater focus on medical excellence and
efficiency that in the short term should lead to pressure on
operating margins and free cash flow generation. The recurring
changes in the company's operational strategies and in its
management team have also been incorporated as rating constraints.
DASA's ratings are also limited by the rapid consolidation of the
diagnostic industry, competitive pressures, and the need to manage
reputational risks.
Strong Business Position
As the leading provider of diagnostic services in Brazil, DASA is
able to provide an array of services not offered by its
competitors. DASA is the largest company in a fragmented industry
with an estimated 11% market share. Its size, recognized
reputation, multibrand portfolio, and broad geographic
diversification are competitive advantages. Besides the
outpatient and impatient services, which represent around 84% of
the company's revenues, DASA also operates lab-to-lab services
(10% of its revenues) and offers services to public entities (i.e.
governments). DASA's mix of services is distributed between
clinical analysis and imaging tests (57%/43%). The company's
strategy is to increase its share of imaging services because of
their higher profitability; nevertheless, the greater market
opportunities are still related to clinical analysis testing,
which should continue to support the current mix level going
forward.
Change in Business Model; Short-Term Impact on Margins
Fitch sees as credit positive DASA's current shareholders with
long-term focus, and strong and conservative track record in
managing business in the healthcare industry. Over the last five
years, the company's management has passed through different
phases due to the influence of its main shareholder. At this
stage, DASA' strategy is focused on long-term medical excellence
and quality of service combined with adequate profitability.
DASA has taken several initiatives to improve customer service,
medical excellence and efficiency, which have had an effect on
cost and expenses. Over the last three quarters, DASA's operating
margins have been pressured by the ramp-up of several new patient
service centers (PSCs), integration costs, equipment replacement,
and call center changes. Fitch expects EBITDA to decline to
BRL500 million in 2012 from BRL538 million in 2011, before
rebounding in 2013. Fitch does not expect any relevant
acquisition in the short term as DASA is focused on organic growth
and the restructuring process, which should continue through 2013.
Free Cash Flow Under Pressure in 2012
DASA generated BRL538 million of EBITDA during 2011. For the
latest 12-month (LTM) period ended on June 30, 2012, EBITDA
reached BRL503 million, which was strongly affected by several
factors related to the restructuring. Per Fitch's expectations
going forward, DASA's margins should be in the range of 21%-23%,
reflecting its new business model, a divergence from past target
of 23%-25%. For the LTM ended June 30, 2012, DASA posted BRL243
million of funds from operations (FFO) and BRL209 million as cash
flow from operations (CFFO). During the period, free cash flow
(FCF) generation was negative BRL229 million. Fitch does not
expect DASA to significantly recover its FCF in 2012, as capex
should be around BRL250 million.
Leverage Remains Adequate; Weak Liquidity
DASA has a good track record of maintaining an adequate capital
structure, demonstrated by its four-year (2008-2011) average net
debt/EBITDA ratio of 1,8x. As of June 30, 2012, the company's net
debt/EBITDA ratio stood at 2.0x, compared to 1.7x and 1.5x, in
2011 and 2010, respectively. As previously mentioned this
slightly increase in leverage reflects the lower EBITDA
generation. Fitch expects the company's 2012 total debt/EBITDA
ratio to be approximately 2.0x.
As of June 30, 2012, DASA's total consolidated debt was BRL1.1
billion, which primarily consists of BRL711 million of local
debentures, BRL158 million of commercial paper, and BRL59 million
of senior notes. DASA has a low level of cash relative to short-
term debt, a risk mitigated to a degree by the low volatility of
its cash flow generation. As of June 30, 2012, cash and
marketable securities were BRL135 million while short-term debt
was BRL229 million.
Approval from CADE of MD1's Merger Still Pending
Fitch expects a favorable outcome of DASA's merger with MD1
Diagnosticos S.A from the anti-trust authority CADE with few
restrictions on operations in Rio de Janeiro. In October 2011,
DASA signed a reversibility agreement with CADE, in which CADE
stated that the company could carry on with the incorporations but
had to keep the brands separated. DASA is still operating with
the nine different companies from MD1. A full range of synergies
should be reached as soon as they are able to integrate all
operations. At the moment, the supply-chain and logistics are
already integrated but further improvements in synergies are
expected.
Favorable Outlook for the Brazilian Healthcare Industry
DASA's business model is expected to continue to benefit from the
long-term positive fundamentals of the under-penetrated Brazilian
healthcare market. The improved socio-economic environment during
the last few years has increased Brazilian per capita GDP levels
and has lowered unemployment. These factors have enabled many
people to switch from public healthcare to private healthcare.
For 2012 and 2013, Fitch expects an increase in GDP of 2.5% and
4.5%, respectively. The availability of a larger number of
diagnostic tests, as well as an aging population, should also
support the increase of sector demand over the next few years.
Key Rating Drivers
Ratings upgrades could occur as a result of a successful outcome
from the current change in business strategy, leading to
sustainable operating margins and CFFO. Ratings downgrades would
most likely be driven by large debt-financed acquisitions that
move the company's capital structure away from historical levels,
a change in management's strategy with regard to the conservative
capital structure, and/or a deterioration in the company's
reputation and leading market position.
===========================
C A Y M A N I S L A N D S
===========================
CHINA MEDICAL: Court Enters Wind-Up Order
-----------------------------------------
On July 27, 2012, the Grand Court of Cayman Islands entered an
order to wind up the operations of China Medical Technologies,
Inc.
The company's liquidators are:
Kenneth M. Krys
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237, KY1-1205, George Town
Grand Cayman
Cayman Islands; and
Cosimo Borrelli
Borrelli Walsh
Admiralty Centre, Tower 1, Level 17
18 Harcourt Road
Hong Kong
CJ 2001A: Creditors' Proofs of Debt Due Sept. 17
------------------------------------------------
The creditors of CJ 2001A Limited are required to file their
proofs of debt by Sept. 17, 2012, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 3, 2012.
The company's liquidators are:
Samit Ghosh
Simon Owiti
P.O. Box 1109 Grand Cayman KY1-1102
Cayman Islands
c/o Isabel Mason
Telephone: 949-7755
Facsimile: 949-7634
COLUMBIA RESEARCH: Creditors' Proofs of Debt Due Sept. 13
---------------------------------------------------------
The creditors of Columbia Research Market Neutral (Offshore), Ltd.
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 31, 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
CQS GLOBAL: Members' Final Meeting Set for Sept. 10
---------------------------------------------------
The members of CQS Global Distressed Value Opportunities Feeder
Fund Limited will hold their final general meeting on Sept. 10,
2012, to receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
CZECH GLASS: Creditors' Proofs of Debt Due Sept. 12
---------------------------------------------------
The creditors of Czech Glass Holdings Ltd. 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. 2, 2012.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
Mourant Ozannes
c/o Christine Fletcher
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647; or
Mourant Ozannes Cayman Liquidators Limited
c/o Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
MONSOON INDIA: Commences Liquidation Proceedings
------------------------------------------------
On July 26, 2012, the members of Monsoon India Relationship Cayman
Fund Ltd. resolved to voluntarily liquidate the company's
business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Gautam Prakash
c/o Maples and Calder, Attorneys-at-law
PO Box 309, Ugland House
Grand Cayman KY1-1104
Cayman Islands
SYTRARB FUND: Court Enters Wind-Up Order
----------------------------------------
On July 30, 2012, the Grand Court of Cayman Islands entered an
order to wind up the operations of Sytrarb Fund.
The company's liquidators are:
Mark Longbottom
Jess Shakespeare
Kinetic Partners (Cayman) Limited
Harbour Centre, 42 North Church Street
PO Box 10387, George Town
Grand Cayman KY1-1004
Cayman Islands
SZ99A LIMITED: Creditors' Proofs of Debt Due Sept. 24
-----------------------------------------------------
The creditors of SZ99A Limited are required to file their proofs
of debt by Sept. 24, 2012, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 3, 2012.
The company's liquidator is:
Trident Liquidators (Cayman) Ltd
c/o Mrs. Eva Moore
Trident Trust Company (Cayman) Limited
Telephone: (345) 949 0880
Facsimile: (345) 949 0881
P.O. Box 847, One Capital Place
Shedden Road, George Town
Grand Cayman KY1-1103
Cayman Islands
=============
J A M A I C A
=============
WINDALCO: UC Rusal to Maintain Ties With Jamaica
------------------------------------------------
RJR News reports that Russian aluminum giant UC Rusal has signaled
its intention to maintain ties with Jamaica.
UC Rusal said despite current macro-economic volatility the
aluminum industry has strong fundamentals for long-term growth,
according to RJR News.
The report relates that the company said its demand for aluminum
may rise significantly to about two million tones annually.
According to the Russian conglomerate, it considers Jamaica as an
important reserve base, the report notes.
The company said this is in line with its continued investment in
the Windalco operations and 35% stake in Alpart.
About WINDALCO
West Indies Alumina Company is situated on the island of Jamaica
in the Caribbean. The company comprises two alumina refineries
(Ewarton Works and Kirkvine Works), a shipping port (Port
Esquivel) and also bauxite mines in Schwallenburgh (Ewarton) and
Russell Place (Kirkvine) and farms in Manchester and St. Ann.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 8, 2010, Jamaica Gleaner said that West Indies Alumina
Company will end its bauxite production in Jamaica and make 762
permanent jobs redundant. The report related that the redundancy
exercise comes a year after the company suspended production at
its Kirkvine, Manchester, and Ewarton, St. Catherine, refineries
because of reduced demand for aluminium on the world market. The
company is 93% owned by Russian entity, UC Rusal.
* JAMAICA: Attempts to Raise US$4BB Via Fixed Rate Instrument
-------------------------------------------------------------
RJR News reports that the Jamaican government will attempt to
raise $4 billion for the 2012/2013 Budget.
This will be done by way of a fixed rate investment instrument,
according to RJR News. The report relates that in a bid to
attract investors the instrument will have an interest rate of
7.5%.
It will mature in November 2017, RJR News notes.
===========
M E X I C O
===========
URBI DESARROLLOS: Moody's Affirms 'Ba3' CFR; Outlook Negative
-------------------------------------------------------------
Moody's de Mexico has lowered Urbi Desarrollos Urbanos, S.A.B. de
C.V.'s national scale senior unsecured debt rating to Baa1.mx,
from A3.mx. Moody's also affirmed Urbi's Ba3 global scale senior
unsecured debt rating, Ba3 corporate family rating, short-term MX-
2 national scale rating (Not Prime, global scale), local and
foreign currency. The rating outlook was revised to negative from
stable.
Ratings Rationale
These actions reflected the deterioration in Urbi's operating and
financial performance in the last three quarters to a point in
which its credit and operating metrics forced the company to
obtain waivers in some of its local peso denominated construction
financing. Furthermore, although the industry's outlook remains
very positive, the rapid and substantial transformation to a new
stage of sustainable growth which is focused on vertical
construction, and the higher number of rules, policies and
requirements that must be met to access subsidies and mortgages,
has significantly increased the need for greater investment in
processes and technologies in the short term. This has translated
into longer construction cycles, which have temporarily increased
working capital needs for housing developers. The changes in the
industry have affected all of Urbi's peers, however the
deterioration in Urbi's operating and financial performance has
been greater as a result of the company's maintained aggressive
geographic expansion plans and through partners, without the
necessary infrastructure, that outpaced its ability to title units
and lead to an increase in negative cash flow and leverage. At
6/30/2012, the company had negative cash flows of MXN$2.95
billion.
Moody's does note that these challenges have led the company to
consolidate its operations and focus on neutral cash flow
generation over the next six quarters, with no growth projected in
its sales volume, with the expectation of maintaining and
improving liquidity indicators and strengthening its balance sheet
metrics.
The negative outlook reflects the challenges that the company will
face in executing its business consolidation strategy of flat
growth and focus on neutral cash flow over the next six quarters.
It also reflects Moody's concerns over the company's continued
profitability and liquidity strength and its ability to project
them. The company expects that this strategy will lead to a
reversal of its deteriorating operating and financial performance
and lead to strengthening its liquidity and balance sheet
indicators.
The current ratings continue to reflect Urbi's position as one of
the largest homebuilders in Mexico in terms of units titled, and
its focus on the affordable entry-level and low-middle income
housing classes, where the greatest demand lies. The company has
solid margins and fixed charge coverage metrics. Urbi also has
good geographic diversification with a strong presence in the
metropolitan areas of Mexico City, Monterrey, Guadalajara and the
most dynamic medium size cities in the country. These strengths
are counterbalanced by Urbi's leverage measures, specifically net
debt/EBIDTA which have weakened as result of the company's
maintenance of an aggressive expansion in the midst of a
significant transformation in the industry. Furthermore, the
company's ability to project its liquidity and profitability has
weakened over the last three quarters.
Moody's stated that a return to a stable would be predicated upon
the company successfully executing its strategic plan over the
next six quarters, which includes flat growth and neutral cash
flow generation while strengthening its balance sheet. Furthermore
the company should at a minimum maintain its current earnings
margins and fixed charge coverage while maintaining a debt to
EBITDA ratio of less than 4x. Urbi should also maintain its
current industry position with no missteps in implementing its
Alternativa Urbi (rent-to-own) program. Conversely, a rating
downgrade would result from debt to EBITDA on a consistent basis
close to 4.5x, fixed charge coverage falling consistently below
2.0x (including capitalized interest), and operating margins
falling below 20%. A downgrade could also result from any
liquidity hiccups, including the generation of large negative cash
flows, falling out of the top ten homebuilders in terms of units
sold, missteps in the Alternativa Urbi (rent-to-own) program, as
well as from an adverse shift in the Mexican Government's housing
policy.
The following rating was downgraded with a negative outlook:
Urbi Desarrollos Urbanos, S.A.B. de C.V. -- National scale senior
unsecured debt rating to Baa1.mx, from A3.mx
The following ratings were affirmed with a negative outlook:
Urbi Desarrollos Urbanos, S.A.B. de C.V. -- Senior unsecured debt
rating at Ba3 (global local and foreign currency); corporate
family rating at Ba3; senior unsecured MTN program at (P) Ba3
(global local currency); commercial paper program at Not Prime/MX-
2 (global local currency/national scale)
Moody's last rating action with respect to Urbi took place on
January 25, 2012 when Moody's assigned a (P)Ba3 global scale
foreign currency rating to Urbi's proposed US$ senior unsecured
debt issuance.
Urbi Desarrollos Urbanos is a publicly traded, fully integrated
homebuilder engaged in the development, construction, marketing
and sale of affordable housing in Mexico. The firm reported total
assets of approximately $48 billion Mexican pesos and equity of
approximately $18.5 billion Mexican pesos at June 30, 2012.
***********
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 * * *