/raid1/www/Hosts/bankrupt/TCRLA_Public/121022.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
Monday, October 22, 2012, Vol. 13, No. 210
Headlines
A R G E N T I N A
CERRITO 22: Creditors' Proofs of Debt Due Nov. 26
JUAN C. GUZMAN: Creditors' Proofs of Debt Due Nov. 30
JUAN B JUSTO: Creditors' Proofs of Debt Due Nov. 20
METROGAS SA: Moody's Corrects October 12 Rating Release
SMG SRL: Creditors' Proofs of Debt Due Dec. 12
B E R M U D A
ONEBEACON US: Moody's Affirms '(P)Ba1' Preferred Stock Rating
SEVEN SEAS: Bermuda Products Unaffected by Relocations
B R A Z I L
BR MALLS: Fitch Assigns BB Rating to New USD175MM Perpetual Notes
BR MALLS: Moody's Assigns 'Ba1' Rating to USD Sr. Unsecured Notes
C A Y M A N I S L A N D S
CFG HOLDINGS: Moody's Assigns 'B3' Corporate Family Rating
DSAM GLOBAL: Shareholders Receive Wind-Up Report
EAGLE PEAK: Creditors' Proofs of Debt Due Oct. 24
EIRE PRECINCT: Shareholders' Final Meeting Set for Oct. 26
EIRE THE PEAKS: Shareholders' Final Meeting Set for Oct. 26
FIREBRICK ASIA: Shareholders' Final Meeting Set for Oct. 26
FIREBRICK ASIA MASTER: Final Meeting Set for Oct. 26
GCM RUSSIA: Placed Under Voluntary Wind-Up
GLOBAL PERSPECTIVE: Commences Liquidation Proceedings
GLOBAL PERSPECTIVE: Shareholder Receives Wind-Up Report
OZ WING: Creditors' Proofs of Debt Due Nov. 5
VICTORIA ASSET: Commences Liquidation Proceedings
G R E N A D A
* GRENADA: Does Not Default on Bond Payment
J A M A I C A
CARIBBEAN CEMENT: Declining Jamaican Currency Affects Operations
M E X I C O
CASA DE BOLSA: Moody's Raises Long-Term Issuer Rating to 'Ba3'
P U E R T O R I C O
PABELLON DE LA VICTORIA: Files for Chapter 11 in Puerto Rico
X X X X X X X X
* BOND PRICING: For the Week Oct. 15 to Oct. 19, 2012
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A R G E N T I N A
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CERRITO 22: Creditors' Proofs of Debt Due Nov. 26
-------------------------------------------------
Fernando J. Marziale, the court-appointed trustee for Cerrito 22
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Nov. 26, 2012.
Mr. Marziale will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 50, 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:
Fernando J. Marziale
Av. Callao 930
Argentina
JUAN C. GUZMAN: Creditors' Proofs of Debt Due Nov. 30
-----------------------------------------------------
Victor E. Palma, the court-appointed trustee for Juan C. Guzman y
Cia. SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Nov. 30, 2012.
Mr. Palma will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 1 in
Buenos Aires, with the assistance of Clerk No. 1, 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:
Victor E. Palma
Tte. Gral. Juan D. Peron 1479
Argentina
JUAN B JUSTO: Creditors' Proofs of Debt Due Nov. 20
---------------------------------------------------
Estudio Roberto Quian y Asociados, the court-appointed trustee for
Juan B. Justo Satci's reorganization proceedings, will be
verifying creditors' proofs of claim until Nov. 20, 2012.
The Trustee 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.
Creditors will vote to ratify the completed settlement plan
during the assembly on Sept. 13, 2013.
The Trustee can be reached at:
Estudio Roberto Quian y Asociados
25 de Mayo 168
Argentina
METROGAS SA: Moody's Corrects October 12 Rating Release
-------------------------------------------------------
Moody's Latin America issued a correction to the October 12, 2012
rating release of Metrogas S.A.
Moody's Latin America assigned Caa3 global scale corporate family
rating and Caa3.ar national scale rating to Metrogas S.A. At the
same time Moody's assigned (P)Caa3/Caa3.ar ratings to Metrogas' up
to USD 600 million MTN Program. The outlook for all the ratings is
negative.
Ratings Rationale
Metrogas' Caa3/Caa3.ar ratings primarily reflect Metrogas' tight
liquidity and expected weak financial performance, as well as its
regulatory risk profile.
The Caa3/Caa3.ar ratings consider that Metrogas' liquidity
continues to be extremely weak relative to its debt burden. In
addition, Metrogas' current tariffs and internal cash generation
are insufficient to carry its day to day operations.
In spite of the 2008's announcement of a provisional tariff
increase made by the regulatory authorities, Metrogas' tariffs
have remained frozen for more than 10 years while inflation
continues to steadily erode its margins and cash generation. In
addition, the peso devaluation has exacerbated its liquidity
challenges by increasing the amount of interest payments and
principal payments associated with Metrogas' dollar denominated
debt.
The company has been in a difficult financial position for more
than 2 years, since June 2010 when it announced the suspension of
payments under its then outstanding debt and solicited
reorganization protection ("concurso preventivo"). Since that
time, the company has continued to operate but without making any
payments to its creditors. During this period the company has been
in negotiations with creditors to achieve an acceptable
restructuring agreement.
As a result of those negotiations, Metrogas offered to creditors a
proposal to deliver New Notes in exchange of their outstanding
claims. The proposal, which was accepted by the majority of
creditors, consists of the issuance of 2 new classes of notes: a
Class A for the equivalent of 53,2% of existing notes and a Class
B, contingent notes, equivalent to 46.8% of existing notes. The
new Class B Notes will become due and payable only if New Class A
Notes are accelerated as a result of the occurrence of an event of
default on or before June 2014. If a default event does not occur
prior to June 2014, the New Class B Notes will be automatically
cancelled.
The negative outlook reflects Metrogas' weak liquidity profile and
Moody's expectations for continued poor internal cash generation.
A rating downgrade could materialize if, in the absence of a
license renegotiation with the government that leads to some level
of tariff relief, the company is unable to execute a strategy to
improve its cash generation in relation to the expected debt
burden arising from its restructuring agreement.
Although unlikely in the short term, a rating upgrade would
require real progress in license renegotiation with the government
and a tariff framework that would allow Metrogas to materially
improve its cash flow coverage metrics. Quantitatively, an up-
grade would require consistently positive levels of free cash flow
in relation to debt and adjusted total debt to EBITDA of below 4.0
times on a sustainable basis.
Metrogas is an Argentinean gas distribution utility, with
operations in the capital city and the southern area of Buenos
Aires Province, which is one of the biggest concession areas in
terms of number of clients with annual revenues of ARS 960
million. Metrogas is controlled by GASA, a holding company that is
controlled by BG Group plc (54.7%); and YPF (45.3%; Caa1, Stable).
SMG SRL: Creditors' Proofs of Debt Due Dec. 12
----------------------------------------------
Estudio Manfredi - Gonzalez Sturla, the court-appointed trustee
for SMG SRL's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Dec. 12, 2012.
The Trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 13 in Buenos Aires, with the assistance of Clerk
No. 26, 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:
Estudio Manfredi - Gonzalez Sturla
Av. Rivadavia 789
Argentina
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B E R M U D A
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ONEBEACON US: Moody's Affirms '(P)Ba1' Preferred Stock Rating
-------------------------------------------------------------
Moody's Investors Service has affirmed the A2 insurance financial
strength (IFS) ratings of the OneBeacon Insurance Group inter-
company pool (OneBeacon Pool) and Baa2 senior debt ratings of its
intermediate parent, OneBeacon U.S. Holdings, Inc. (OneBeacon
U.S.) following the company's announcement that it has entered
into a definitive agreement to sell its runoff business to Armour
Group Holdings Limited (Armour). The transaction is expected to
close during the second half of 2013 and is subject to regulatory
approvals. At the close, OneBeacon will transfer to Armour
designated legal entities within the OneBeacon group (the "run-off
entities"), containing the assets, liabilities (including gross
and ceded reserves), and capital supporting the run-off business.
The rating outlook for OneBeacon's ongoing pooled legal entities
remains stable; however, Moody's has changed the outlook of the
run-off entities (subsidiaries listed below) to negative from
stable.
OneBeacon U.S. is an indirect wholly-owned subsidiary of OneBeacon
Insurance Group, Ltd (NYSE: OB), which, in turn, is an indirect
75%-owned subsidiary of White Mountains Insurance Group, Ltd.
(NYSE: WTM), with the remaining 25% shares publicly owned.
Principal and interest on OneBeacon U.S.'s outstanding senior
notes are guaranteed by WTM.
Ratings Rationale
"The negative outlook of the run-off entities reflects our
expectation, at close of the transaction, of a weakened credit
profile including a long tail run-off casualty business
substantially comprising asbestos and environmental (A&E)
reserves, expected weaker capitalization on a risk-adjusted basis,
and severance of support from the OneBeacon group" said Pano
Karambelas, lead analyst for OneBeacon.
The company expects to recognize a $101 million after-tax GAAP
charge on the disposition of its run-off business, which is
meaningfully sized at approximately 9% of OneBeacon's
shareholders' equity at June 30, 2012. However, Karambelas added,
"the stable outlook on the remaining members of the OneBeacon pool
reflects our view that the planned disposition of the run-off
business removes a significant source of potential adverse loss
development (reserves totaling approximately $2.2 billion on a
gross basis) while allowing the company to focus its commitments
and capital to its specialty lines strategy."
Onebeacon Insurance Group
The A2 IFS rating of OneBeacon's inter-company pool members
reflects the company's strong underwriting capabilities and good
profitability in several low-to-moderate hazard niche specialty
property/casualty segments, strong producer relationships, and
good capitalization. Factors offsetting these strengths include
meaningful though significantly reduced financial leverage, the
company's track record as an active manager of capital, and
execution risk associated with entry into new specialty segments.
Factors that could lead to an upgrade in OneBeacon's ratings
include: financial leverage consistently below 20%; maintenance of
appropriate level of risk capitalization with gross underwriting
leverage less than 3.0x; and earnings coverage consistently above
6x. Factors that could lead to a downgrade in OneBeacon's ratings
include: deterioration in reserve position, equity capital
declines by more than 10% as a result of operating losses;
financial leverage consistently above 30%; or earnings coverage
consistently below 4x.
In a separate transaction, OneBeacon announced its plan to sell
OneBeacon pool member Essentia Insurance Company to Markel
Corporation. The proposed transaction is expected to close in 1Q13
subject to regulatory approvals.
The following ratings were affirmed with a stable outlook:
Altantic Specialty Insurance Company -- insurance financial
strength at A2;
Essentia Insurance Company -- insurance financial strength at A2;
Homeland Insurance Company of New York -- insurance financial
strength at A2;
OneBeacon U.S. Holdings, Inc. -- senior unsecured debt at Baa2;
OneBeacon U.S. Holdings, Inc. -- provisional senior unsecured
debt at (P)Baa2; provisional subordinated debt at (P)Baa3;
provisional junior subordinated debt at (P)Baa3; provisional
preferred stock at (P)Ba1;
OneBeacon U.S. Holdings Trust I, II, III -- provisional trust
preferred securities at (P)Baa3.
The following ratings were affirmed and the outlook was changed to
negative from stable:
The Camden Fire Insurance Association -- insurance financial
strength at A2;
The Northern Assurance Company of America -- insurance financial
strength at A2;
OneBeacon America Insurance Company -- insurance financial
strength at A2;
OneBeacon Insurance Company -- insurance financial strength at
A2;
OneBeacon Midwest Insurance Company -- insurance financial
strength at A2;
Potomac Insurance Company -- insurance financial strength at A2.
The principal methodology used in this rating was Moody's Global
Rating Methodology for Property and Casualty Insurers published in
May 2010.
OneBeacon Insurance Group, Ltd. is a Bermuda-domiciled insurance
holding company. For 2011, OneBeacon reported total premiums
earned of approximately $1.0 billion and net income of $55
million. GAAP shareholders' equity was $1.15 billion at 6/30/12,
compared to $1.11 billion at 12/31/11.
White Mountains Insurance Group, Ltd. (NYSE: WTM) is a Bermuda-
domiciled insurance holding company. For 2011, WTM reported net
premium volume of nearly $2.0 billion and net income of $809
million. WTM's consolidated shareholders' equity was $4.3 billion
at June 30, 2012.
SEVEN SEAS: Bermuda Products Unaffected by Relocations
------------------------------------------------------
Trinidad Express reports that Bermuda consumers of Seven Seas
products will not be affected by the relocations of the company's
operations from Hull, England to London.
Earlier, John Redman, managing director of Seven Seas, said that
over the next two to three years, it will be relocating its
operations to London -- a move that has become necessary because
of "continuing difficult economic conditions," according to
Trinidad Express.
The reports notes that although this means the city of Hull will
lose a company of iconic status, Mr. Redman said: "Seven Seas has
been a leading health brand for 77 years and we have to take
action now to ensure that it remains successful in the years
ahead."
In Trinidad and Tobago, consumers of Seven Seas products including
One-A-Day and High Strength Cod Liver Oil, Joint Care, Multibionta
and Haliborange will continue to have access to the products, the
company said, the report relays.
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B R A Z I L
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BR MALLS: Fitch Assigns BB Rating to New USD175MM Perpetual Notes
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to BR Malls International
Finance Limited's (Finco) proposed perpetual notes of up to USD175
million. The notes will be unconditionally and irrevocably,
jointly and severally, guaranteed by BRMALLS Participacoes S.A.
(BRMALLS) and its subsidiaries: ECISA Engenharia, Comercio e
Industria Ltda., ECISA Participacoes Ltda., and Proffito Holding
Participacoes S.A. Proceeds will be used to refinance existing
debt as part of the company's liability management program.
Fitch currently rates BR MALLS and its fully owned subsidiary,
Finco, as follows:
BR MALLS Participacoes S.A. (BRMALLS):
-- Foreign currency Issuer Default Rating (IDR), 'BB';
-- Local currency IDR, 'BB';
-- Long-term national scale rating, 'AA-(bra)';
-- BRL320 million local debentures, first and second tranches
due in 2014 and 2016, respectively, 'AA-(bra)'.
BR Malls International Finance Limited (Finco):
-- Foreign currency IDR at 'BB';
-- USD175 million perpetual notes, 'BB'.
-- USD230 million perpetual notes, 'BB'.
The Rating Outlook is Stable.
BRMALLS' ratings reflect its dominant business position as the
largest shopping center operator in Brazil. The company's
portfolio consists of 48 shopping centers as of June 30, 2012,
generating stable and predictable cash flows from a diversified
geographical property revenue base. The company has low working
capital requirements and renters are responsible for most
maintenance expenses. The ratings also factor in BRMALLS' organic
and inorganic growth strategy, and the potential delayed effects
of integrating acquired assets and/or leasing new developments.
These factors are partially offset by the company's adequate cash
position, large pool of unencumbered assets, and successful track
record in selecting and assimilating acquisitions while
maintaining a stable credit profile.
The Stable Outlook reflects the expectation that BRMALLS will
continue to deliver positive operating results based on its strong
market position, the quality of its assets, and its proven ability
to implement its growth strategy while increasing cash flow
generation. These expectations are contingent on the company
maintaining good liquidity and an adequate capital structure while
it pursues its growth objectives.
Business Model Conducive To Stable and Growing Cash Flow
Generation:
BRMALLS' revenues are stable as a result of its lease portfolio
that provides it with a base of fixed-rent income with staggered
lease expirations. The company's growth trajectory can be seen in
its revenues for 2010, 2011, and the latest 12 months (LTM) to
June 30, 2012 with BRL546 million, BRL862 million, and BRL992
million achieved, respectively. BRMALLS' EBITDA for the LTM
period ended June 30, 2012 was BRL791 million, which compares
positively with its EBITDA levels of BRL431 million and BRL319
million in 2010 and 2009, respectively. The company's EBITDA
margins have remained stable at around 80% during the 2010-2012
period. BRMALLS' EBITDA for 2012 is expected to be around BRL900
million.
Debt Refinancing Incorporated In Ratings; Incremental Debt
Increase Not Expected:
BRMALLS is currently implementing a debt refinancing plan to
reduce its financial costs and improve its debt repayment profile.
This plan includes the announced re-tap of the USD230 million
perpetual bonds issued in January 2011. The total add-in will be
up to USD175 million and the transaction proceeds will be used to
call the company's other perpetual bonds issued in November 2007
(USD175 million). The company is also planning the issuance of a
local currency structured finance transaction of up to BRL500
million to refinance current debt and improve its debt repayment
schedule. The placements of both transactions are expected to be
completed during October 2012.
Gross leverage is expected to remain stable. The company's gross
leverage measured as the total debt to EBITDA ratio -- including
liabilities related to shopping mall acquisitions -- was 5.3 times
(x) at the end of June 2012. The ratings incorporate the view
that BRMALLS' gross leverage would remain in the 5x to 6x range in
the medium term. By the end of June 2012, the company's total
debt was BRL4.2 billion. The main components of the company's
total debt were bank loans (30%), perpetual bonds denominated in
U.S. dollars (20%), Real Estate Credit Certificates (19%); local
debentures maturing in 2014 and 2016 (10%), and liabilities
related to shopping mall acquisitions for BRL476 million (11%).
Liquidity Has Declined But Remains Manageable:
The company's cash position has declined to BRL436 million during
the LTM to June 30, 2012 from BRL1.3 billion in June 2011. This
decrease was driven primarily by the company's development and
acquisition capex totaling approximately BRL2 billion. Including
liabilities related to shopping mall acquisitions, BRMALLS faces
debt amortizations of approximately BRL539 million during the next
12 month period ending June 30, 2013. These payments are expected
to be paid with a combination of cash on balance sheet, internal
cash flow generation and debt refinancing.
By the end of June 2012, the company exhibited a total gross
leaseable areas (GLA) and owned GLA of 1,513,000 square meters and
856 thousand, respectively, with a property value of approximately
BRL13 billion. BRMALLS also maintains good levels of unencumbered
assets; approximately 40% of the company's owned GLA are available
and free of any lien that the company could use in the future to
access liquidity.
The ratings factor-in the expectation that BRMALLS will maintain
adequate gross leverage of around 5.5x debt/EBITDA over the next
two years and sufficient liquidity while implementing its growth
program. An upgrade or Positive Outlook could occur as a result
of a high cash position relative to the company's short-term debt,
and an improvement in the company's interest coverage and debt
service coverage ratios. Conversely, a combination of the
following factors could lead to a negative rating action:
aggressive capex and adverse macroeconomic trends leading to
weaker credit metrics and significant distributed dividends and
increasing vacancy rates financed by debt.
BR MALLS: Moody's Assigns 'Ba1' Rating to USD Sr. Unsecured Notes
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to the US dollar
senior unsecured perpetual notes of BR Malls International Finance
Limited and affirmed other existing ratings of BR Malls
Participacoes, S.A. The rating outlook remains stable.
Ratings Rationale
The rating action incorporates BR Malls' position as the largest
owner and manager of shopping centers in Brazil. The company's
portfolio boasts high occupancy levels, north of 97% on a
consistent basis, with a well-diversified presence throughout
Brazil and more importantly, a keen strategy in targeting all
income segments in its customer base. The rating is also supported
by BR Malls' demonstrated good execution in the debt and equity
markets.
BR Malls' continued strong operating performance and profitability
is underpinned by Brazil's robust retail industry. The sector is
growing exponentially, supported by a rising middle class and its
increased spending power. Low unemployment rates, higher labor
wages, and greater access to credit have all contributed to the
growth in Brazil's middle class. This income segment reached 95
million in 2011, representing over half of the country's
population. Moody's believes these positive demographic trends
coupled with solid domestic demand will help sustain retail sales
growth going forward.
The company also has a well-laddered debt maturity profile with
only R$116 million and R$285 million coming due for the remainder
of 2012 and 2013, respectively. Given the company's strong cash
position, these debt obligations are even more manageable. As of
the end of the second quarter, BR Malls had R$436 million in cash
which includes current marketable securities.
These credit strengths are tempered by the BR Malls' aggressive
growth strategy, the greater risks and volatility associated with
its floating rate debt, and the limitations associated with its
jointly owned assets.
The stable rating outlook reflects Moody's expectation for
continued strong operating performance in light of the favorable
retail sector fundamentals in Brazil, the benefits from BR Malls'
size and established presence, and its experienced management
team. The outlook also reflects the company's modest leverage and
manageable upcoming debt maturities.
Upward ratings movement would be predicated upon BR Malls'
continued successful execution of their growth strategy, fixed
charge coverage (interest expense, capitalized interest and
principal amortization) above 1.8x on a consistent basis; an
increase in unencumbered assets as the company continues to grow;
and an increase in majority ownership of its joint ventures.
Conversely a downgrade would result should fully loaded fixed
charge coverage remain below 1.4x on a sustained basis,
development exceed 15% of gross assets, or debt to gross assets be
consistently above 40%.
The following ratings was assigned with stable outlook:
BR Malls International Finance Limited:
-- US $464 million senior unsecured perpetual notes at Ba1
The following ratings were affirmed with a stable outlook:
BR Malls Participacoes S.A.:
-- R$300 million senior unsecured debentures at Ba1/Aa2.br
-- R$50 million senior unsecured debenture first series due 2014
at Ba1/Aa2.br
-- R$270 million senior unsecured debenture second series due
2016 at Ba1/Aa2.br
-- Corporate family rating at Ba1/Aa2.br
Moody's last rating action with respect to BR Malls Participacoes,
S.A. was on January 3, 2012 when Moody's assigned a national scale
rating of Aa2.br to the company's senior unsecured debt issuance
of R$ 300 million (Ba1 global scale rating).
BR Malls Participacoes, S.A. is based in Rio de Janeiro and is the
largest owner and manager of shopping centers in Brazil. The
company owns interests in 48 malls diversified across 32 cities in
Brazil plus has six projects under development as of June 30,
2012.
The principal methodology used in this rating was Moody's Approach
for REITs and Other Commercial Property Firms published in July
2010.
Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.
==========================
C A Y M A N I S L A N D S
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CFG HOLDINGS: Moody's Assigns 'B3' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has assigned a corporate family rating
of B3 and a b3 baseline credit assessment (BCA) to CFG Holdings,
Ltd. (Cayman Islands) ("CFG Holdings"), a wholly-owned
intermediate holding company of Caribbean Financial Group
Holdings, L.P. (Delaware) ("Caribbean Financial"), as well as to
its 100% owned subsidiary CFG Finance LLC (Delaware) ("CFG
Finance").
Moody's has also assigned a B3 foreign currency senior secured
debt rating to US$ 175 million of fixed rate secured notes to be
issued by CFG Holdings and CFG Finance LLC, as co-issuer and
guarantor, due in 2019, subject to final documentation. The notes
will be fully and unconditionally guaranteed, both severally and
jointly, by Caribbean Financial, its ultimate parent, as well as
by its existing and future operating subsidiaries, with certain
exceptions. The notes will be used primarily to replace the
existing secured revolving facility provided by Wells Fargo Bank
N.A.
The outlook on all ratings is stable.
The following ratings have been assigned to CFG Holdings and CFG
Finance:
Foreign currency corporate family rating: B3, stable outlook
Foreign currency senior secured debt rating: B3, stable outlook
Rating Rationale
CFG Holdings' B3 CFR and B3 senior secured foreign currency debt
ratings represent Moody's opinion of the company's consolidated
credit risk, equivalent to the weighted average of all debt
classes within the company's capital structure and as such
reflects the predominance of senior secured obligations in the
company's debt structure.
CFG Holdings' ratings reflect the company's low earnings
generation capacity and monoline franchise as a lender to low and
middle-income individuals in developing markets on an unsecured
basis. The ratings also reflect the company's high leverage and
refinancing risk, low standalone liquidity, as well as a lack of
funding diversification, as it is entirely dependent upon a
revolving credit facility from Wells Fargo, its former owner.
Management is seeking to address the funding diversification and
refinancing risk issues through the proposed bond issue, although
the higher cost this debt is expected to entail will likely weigh
on earnings at least over the near term. The company also has
negative tangible common equity, per Moody's global finance
company methodology, the result of a very low proportion of common
stock and relatively high goodwill and intangibles carried on its
balance sheet.
The B3 rating is also indicative of the company's multi-country
expansion in developing markets including continued growth in
Panama and Trinidad. While the company's asset quality metrics are
satisfactory to date, Moody's said that it is unclear whether they
will be sustainable as the company expands in its various
jurisdictions and given the company's relatively short track
record under its current ownership.
Positive risk factors underlying CFG Holdings' ratings are its
established market presence under the Island Finance and
Financiera El Sol brands for 20 years or more in the countries
where it operates, aegis of the former Norwest Financial and more
recently Wells Fargo. The ratings also reflect CFG's geographic
diversification and management expertise both in the industry and
in the region which provide the company with a flexible platform
for future growth. CFG nevertheless faces strong competition from
much larger institutions in all of its markets, particularly banks
that have the advantage of cheap retail-based funding, large
branch infrastructures and financial resources to invest in
technology upgrades, as well as greater depth of management and
operations.
The principal methodology used in this rating was Moody's Finance
Company Global Rating Methodology published in March 2012.
Based in the Cayman Islands, CFG Holdings Ltd is a wholly-owned
intermediate holding company of Caribbean Financial Group
Holdings, LP, engaged in granting consumer and sales finance loans
through its company operations located in Central America and the
Caribbean. Incorporated in August 2006 in the state of Delaware
Caribbean Financial is 96.45% owned by Irving Place Capital (IPC),
a private equity firm. As of June 2012, Caribbean Financial
reported US$350 million in assets, US$291 million in loans and
US$147 million in shareholder's equity.
DSAM GLOBAL: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of DSAM Global Value Fund, Ltd. received on
Oct. 15, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Gene DaCosta
Telephone: (345) 814 7765
Facsimile: (345) 945 3902
PO Box 2681 Grand Cayman KY1-1111
Cayman Islands
EAGLE PEAK: Creditors' Proofs of Debt Due Oct. 24
-------------------------------------------------
The creditors of Eagle Peak Offshore Ltd. are required to file
their proofs of debt by Oct. 24, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 13, 2012.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
EIRE PRECINCT: Shareholders' Final Meeting Set for Oct. 26
----------------------------------------------------------
The shareholders of Eire Precinct (Freehold) Limited will hold
their final meeting on Oct. 26, 2012, at 8:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
EIRE THE PEAKS: Shareholders' Final Meeting Set for Oct. 26
-----------------------------------------------------------
The shareholders of Eire The Peaks (Freehold) Limited will hold
their final meeting on Oct. 26, 2012, at 8:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
FIREBRICK ASIA: Shareholders' Final Meeting Set for Oct. 26
-----------------------------------------------------------
The shareholders of Firebrick Asia Fund will hold their final
meeting on Oct. 26, 2012, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
FIREBRICK ASIA MASTER: Final Meeting Set for Oct. 26
----------------------------------------------------
The shareholders of Firebrick Asia Master Fund will hold their
final meeting on Oct. 26, 2012, at 9:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
GCM RUSSIA: Placed Under Voluntary Wind-Up
------------------------------------------
On Sept. 11, 2012, the sole shareholder of GCM Russia
Opportunities Fund resolved to voluntarily wind up the company's
operations.
Only creditors who were able to file their proofs of debt by
Oct. 16, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Ogier
c/o Kim Sheehan
Telephone: (345) 815-1819
Facsimile: (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
GLOBAL PERSPECTIVE: Commences Liquidation Proceedings
-----------------------------------------------------
On Sept. 3, 2012, the sole shareholder of Global Perspective Fund,
Ltd. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Oct. 18, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
GLOBAL PERSPECTIVE: Shareholder Receives Wind-Up Report
-------------------------------------------------------
The shareholder of Global Perspective Fund, Ltd. received on
Oct. 19, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
OZ WING: Creditors' Proofs of Debt Due Nov. 5
---------------------------------------------
The creditors of Oz Wing Cayman Limited are required to file their
proofs of debt by Nov. 5, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Sept. 13, 2012.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
PO Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
Grand Cayman KY1-1104
Cayman Islands
VICTORIA ASSET: Commences Liquidation Proceedings
-------------------------------------------------
On Sept. 10, 2012, the shareholder of Victoria Asset Holdings
Limited resolved to voluntarily liquidate the company's business.
The company's liquidator is:
Roger Colyer
12 Castle Street
St Helier
Jersey, JE2 3RT
Telephone: +44 1534 847000
Facsimile: +44 1534 847001
12 Castle Street St Helier
Jersey, JE2 3RT
=============
G R E N A D A
=============
* GRENADA: Does Not Default on Bond Payment
-------------------------------------------
Caribbean360.com reports that Grenada has managed to boost
international investor confidence by making its overdue coupon
payment on its US$193 million bond due 2025 before the expiry of
the 30-day grace period the country was given when it missed the
scheduled September 15 payment.
On October 12, the government of Grenada sent funds to its paying
agent that were sufficient to pay holders of its bond in full for
the interest owed to them since the missed payment, according to
Caribbean360.com.
The report relates that this payment came a few days the
government castigated Wall Street-based credit ratings agency
Standard & Poor's Ratings Services for publicly stating on the
international markets that it considered Grenada to be in default
on its debt obligation and lowering the island's foreign currency
sovereign credit ratings to 'SD' (selective default) from 'B-/B'.
However, the report discloses that in light of the payment, S&P
made an about turn and upgraded Grenada's status, although not to
previous levels.
=============
J A M A I C A
=============
CARIBBEAN CEMENT: Declining Jamaican Currency Affects Operations
----------------------------------------------------------------
RJR News reports that Caribbean Cement Company Ltd. has admitted
that the declining value of the Jamaican currency was adversely
affecting its operations.
Anthony Haynes, General Manager of the Carib Cement, said that the
movement in the exchange rate was affecting up to 70% of the
company's costs, according to RJR News. The report relates that
citing the cost of energy which is factored in US dollars, Mr.
Haynes this was "directly affected by the foreign exchange rates."
Mr. Haynes, RJR News notes, said the sliding dollar would also
have an impact on the company's debt, which was accumulated to
carry out its expansion and modernization program.
On the export side, Mr. Haynes said there were some positives for
the company, since the sliding dollar results in more being earned
when the earnings are converted to Jamaican dollars, the report
discloses. Mr. Haynes, the report relays, added however that this
was not enough to compensate for the losses.
The report relates that Mr. Haynes was also careful not to reveal
figures for the total losses being experienced at the moment given
that the company will soon be releasing financial results to the
stock exchange, but he pointed out that in June, the total foreign
exchange translation losses for Carib Cement was almost J$300
million.
Caribbean Cement Company Limited manufactures and sells cement.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2011, Caribbean Cement Company Limited has incurred a
JM$608.08 million loss in the three months ended April to June
2011 from JM$217.95 million loss in the same period last year.
The company incurred JM$857.56 million loss in the six months
ended January to June 2011 from a JM$213.40 million in the same
period 2010. Caribbean Cement posted a JM$1.58 billion loss in
the year ended 2010.
===========
M E X I C O
===========
CASA DE BOLSA: Moody's Raises Long-Term Issuer Rating to 'Ba3'
--------------------------------------------------------------
Moody's Investors Service upgraded Casa de Bolsa Ve Por Mas, S.A.
de C.V. (CB BX+, formerly Casa de Bolsa Arka, S.A.)'s long term
global local currency issuer rating to Ba3 from B2. The short term
global local currency Not Prime issuer rating was affirmed. At the
same time, Moody's de Mexico upgraded CB BX+'s long and short term
Mexican National Scale ratings to A3.mx and MX-2 from Baa3.mx and
MX-3, respectively. The outlook on all these ratings is stable.
Ratings Rationale
CB BX+'s Ba3 issuer rating takes into account the company's
standalone credit strength of b2 as well as group support
considerations. The b2 standalone credit strength reflects CB
BX+'s modest franchise value on a standalone basis as shown by its
small scale in absolute and relative terms and limited ability to
generate consistent core earnings over time. Moreover, the rating
is constrained by execution risks resulting from the company's
shift in strategy and business focus, as it transitions to a more
diversified brokerage operation from its current foreign exchange
brokerage services. This strategic shift will likely result in
changes to the company's customer base, sales staff, risk
management practices and controls.
The ratings are balanced by the incorporation of CB BX+ within
Grupo Financiero Ve por Mas (GF BX+) and the business and
operational synergies that the company may derive from other
entities belonging to the group. Management's decision to focus on
a low-risk operation such as agency trading on behalf of third
parties is another positive credit consideration as it implies a
low dependence on proprietary trading and a relatively low risk
profile, with expected low capital consumption rate.
The Ba3 local currency issuer rating, therefore, benefits from two
notches of uplift due to Moody's assessment of group support, as
the company becomes an integral part of GF BX+ and relevant for
its market strategy. The rating also incorporates the expected
close links with Banco BX+, which Moody's rates D-/ba3 for
standalone financial strength and Ba3 for local currency deposits.
Though integration costs are still high, CB BX+'s market share and
business potential would be fairly limited, if not for the revenue
and cost synergies expected from being part of GF BX+.
CB BX+ is headquartered in Mexico City. As of June 30, 2012 it
reported US$1.7 million in pre-tax income and held around Mx$61
billion of assets under management.
Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.
The principal methodology used in this rating was Global
Securities Industry Methodology published in December 2006.
The last rating action on CB BX+ was on September 18, 2009 when
Moody's assigned first time ratings to Casa de Bolsa Arka, S.A.
The period of time covered in the financial information used to
determine the rating is between December 31, 2008 and June 30,
2012.
The sources and items of information used to determine the rating
include 2011 and 2012 interim financial statements (source: Casa
de Bolsa Ve por Mas, S.A. de C.V., Grupo Financiero Ve por Mas);
year-end 2011 audited financial statements (source: Casa de Bolsa
Ve por Mas, S.A. de C.V., Grupo Financiero Ve por Mas, audited by
Galaz, Yamazaki, Ruiz Urquiza, S.C. member of Deloitte Touche
Tohmatsu Limited); financial statements and information on market
position (source: CNBV).
====================
P U E R T O R I C O
====================
PABELLON DE LA VICTORIA: Files for Chapter 11 in Puerto Rico
------------------------------------------------------------
Pabellon De La Victoria Movimiento Iglesias De Fe (MI FE) Inc.,
filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-08223) in
Ponce, Puerto Rico, on Oct. 16.
The Debtor has filed an application to employ Gloria M. Justiniano
Irizarry, Esq., at Justiniano's Law Office, in Mayaguez, Puerto
Rico, as counsel.
The Debtor estimated assets and debts of $10 million to
$50 million. Banco Popular De Puerto Rico has $14 million in
unsecured claims.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Oct. 15 to Oct. 19, 2012
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
ARGENT-$DIS 8.28 12/31/2033 USD 65.9
ARGENT-$DIS 8.28 12/31/2033 USD 73.3
ARGENT-$DIS 8.28 12/31/2033 USD 73.8
ARGENT-PAR 1.18 12/31/2038 ARS 40.8
ARGENT- DIS 7.82 12/31/2033 EUR 45
ARGENT- DIS 7.82 12/31/2033 EUR 66
ARGENT- DIS 7.82 12/31/2033 EUR 66.8
ARGENT- DIS 4.33 12/31/2033 JPY 44
ARGENT- PAR 0.45 12/31/2038 JPY 15
ARGENT- PAR&GDP 0.45 12/31/2038 JPY 8
ARGNT-BOCON PRE9 2 3/15/2014 ARS 57
BANCO MACRO SA 9.75 12/18/2036 USD 72.5
BANCO MACRO SA 9.75 12/18/2036 USD 73.3
BANCO MACRO SA 9.75 12/18/2036 USD 71
CAPEX SA 10 3/10/2018 USD 67
CAPEX SA 10 3/10/2018 USD 71.8
CIA LATINO AMER 9.5 12/15/2016 USD 60
EMP DISTRIB NORT 9.75 10/25/2022 USD 48
EMP DISTRIB NORT 9.75 10/25/2022 USD 46.6
EMP DISTRIB NORT 10.5 10/9/2017 USD 95
PROV BUENOS AIRE 9.625 4/18/2028 USD 60
PROV BUENOS AIRE 9.625 4/18/2028 USD 60.4
PROV BUENOS AIRE 9.375 9/14/2018 USD 69.4
PROV BUENOS AIRE 10.875 1/26/2021 USD 69.6
PROV BUENOS AIRE 9.375 9/14/2018 USD 69.6
PROV BUENOS AIRE 10.875 1/26/2021 USD 69.7
PROV DE FORMOSA 5 2/27/2022 USD 63.9
PROV DE MENDOZA 5.5 9/4/2018 USD 74.2
PROV DEL CHACO 4 12/4/2026 USD 30.4
PROV DEL CHACO 4 11/4/2023 USD 57
TRANSENER 9.75 8/15/2021 USD 46.3
TRANSENER 9.75 8/15/2021 USD 44.6
TRANSENER 8.875 12/15/2016 USD 49.5
BRAZIL
------
CESP 9.75 1/15/2015 BRL 72.4
REDE EMPRESAS 11.125 USD 44
REDE EMPRESAS 11.125 USD 38
REDE EMPRESAS 11.125 USD 43
CAYMAN ISLAND
-------------
BCP FINANCE BANK 5.01 3/31/2024 EUR 63.4
BCP FINANCE BANK 5.31 12/10/2023 EUR 65.9
BCP FINANCE CO 5.543 EUR 37.7
BCP FINANCE CO 4.239 EUR 37.3
BES FINANCE LTD 5.58 EUR 52.8
BES FINANCE LTD 4.5 EUR 61.3
CAM GLOBAL FIN 6.08 12/22/2030 EUR 56.5
CHINA FORESTRY 10.25 11/17/2015 USD 55.1
CHINA FORESTRY 10.25 11/17/2015 USD 55.1
CHINA SUNERGY 4.75 6/15/2013 USD 52.1
EFG ORA FUNDING 1.7 10/29/2014 EUR 69.6
ESFG INTERNATION 5.753 EUR 39.7
GOL FINANCE 8.75 USD 73
GOL FINANCE 8.75 USD 71.9
HIDILI INDUSTRY 8.625 11/4/2015 USD 68.9
HIDILI INDUSTRY 8.625 11/4/2015 USD 70
JINKOSOLAR HOLD 4 5/15/2016 USD 35
LDK SOLAR CO LTD 4.75 4/15/2013 USD 65.1
LUPATECH FINANCE 9.875 USD 56
LUPATECH FINANCE 9.875 USD 55.3
RENHE COMMERCIAL 13 3/10/2016 USD 50.9
RENHE COMMERCIAL 13 3/10/2016 USD 53.5
RENHE COMMERCIAL 11.75 5/18/2015 USD 55.1
RENHE COMMERCIAL 11.75 5/18/2015 USD 55.1
SUNTECH POWER 3 3/15/2013 USD 47
SUNTECH POWER 3 3/15/2013 USD 46.9
CHILE
-----
CGE DISTRIBUCION 3.25 12/1/2012 CLP 10.1
CHILE 3 1/1/2042 CLP 66.4
CHILE 3 1/1/2042 CLP 66.4
CHILE 3 1/1/2040 CLP 67.7
CHILE 3 1/1/2040 CLP 67.7
CHILE 3 1/1/2032 CLP 74.5
CHILE 3 1/1/2032 CLP 74.5
COLBUN SA 3.2 5/1/2013 CLP 50.7
QUINENCO SA 3.5 7/21/2013 CLP 12.6
PUERTO RICO
-----------
PUERTO RICO CONS 6.5 4/1/2016 USD 64
PETROLEOS DE VEN 5.5 4/12/2037 USD 60.9
PETROLEOS DE VEN 5.375 4/12/2027 USD 62.4
VENEZUELA
---------
VENEZUELA 7 3/31/2038 USD 72.4
VENEZUELA 7 3/31/2038 USD 72.5
***********
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 * * *