/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/121129.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 Thursday, November 29, 2012, Vol. 13, No. 237 Headlines A N T I G U A & B A R B U D A LIAT: Dominica Prime Minister Defends Investment in Airline A R G E N T I N A SUPERVIELLE CREDITOS 67: Moody's Rates ARS19.2-Mil. Certs. 'B2' * ARGENTINA: Fitch Junks Issuer Default Rating; Outlook Negative B R A Z I L BR PROPERTIES: S&P Affirms 'BB' Global Scale Issuer Credit Rating B O L I V I A BANCO ECONOMICO: Moody's Reviews 'B1' Subordinated Debt Rating C A Y M A N I S L A N D S CONOCOPHILLIPS IRAQ: Shareholders Receive Wind-Up Report CONOCOPHILLIPS LNG: Shareholders Receive Wind-Up Report CONOCOPHILLIPS SHAH: Shareholders Receive Wind-Up Report CONOCOPHILLIPS SOUTHEAST: Shareholders Receive Wind-Up Report CONOCOPHILLIPS WORLDWIDE: Shareholders Receive Wind-Up Report CONOCOPHILLIPS YANBU: Shareholders Receive Wind-Up Report DEME INSTITUTIONAL: Shareholder Receives Wind-Up Report DIAMOND NOTCH: Members Receive Wind-Up Report JUNIOR PREFERENCE: Shareholders Receive Wind-Up Report JUNIOR PREFERENCE (TAIWAN) Shareholders Receive Wind-Up Report KBAL I LIMITED: Shareholder Receives Wind-Up Report KERIDA INVESTMENT: Members Receive Wind-Up Report KGOP I LIMITED: Shareholder Receives Wind-Up Report PERISSET INVESTMENTS: Shareholders Receive Wind-Up Report ZLA LTD: Members Receive Wind-Up Report C H I L E BANCO DAVIVIENDA: Moody's Reviews Ba1 Subordinated Debt Rating M E X I C O BANCO INTERNACIONAL: S&P Affirms 'BB/B' Issuer Credit Ratings * PROVINCE OF FORMOSA: Moody's Confirms Caa2/B2 Issuer Ratings * S&P Takes Various Rating Actions on 17 European CDO Tranches P U E R T O R I C O LUAR CLEANERS: Case Summary & 20 Largest Unsecured Creditors T R I N I D A D & T O B A G O CL FIN'L: "Policyholders Expect Gov't to Pay Full Value" X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Dominica Prime Minister Defends Investment in Airline ----------------------------------------------------------- Caribbean360.com reports that Dominica Prime Minister Roosevelt Skerrit has defended the decision of his administration to become a shareholder in the cash-strapped regional airline Leeward Islands Air Transport, known as LIAT, saying the airline is an important contributor to Dominica's tourism industry. St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves, who is also chairman of the airline, has been appealing to regional countries to become shareholders in the Antigua-based airline, whose principal shareholders are Barbados, Antigua and Barbuda and St. Vincent and the Grenadines, according to Caribbean360.com. The report notes that Mr. Skerrit told a news conference that his government would soon disclose just how much it is prepared to invest into the inter-regional airline. "The decision of the government of Dominica to invest in LIAT still stands. We will continue to proceed with it. We believe it is in the best interest of Dominica, it is in the best interest of all the people who have invested their life earnings in the tourism industry in Dominica. They can say all what they want about LIAT. All the criticism we can levy against LIAT, but LIAT is the only carrier that can take us from Dominica to Antigua or St. Vincent to Grenada. If we are prepared to ensure that we have transportation within the region to engender greater spirits of integration, to bring in more tourists to our island, we have to play our part with LIAT," the report quoted Mr. Skerrit as saying. Mr. Skerrit said that if regional governments fail to support LIAT, "you will have greater difficulty in getting the private sector to come forward", the report notes. As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2012, Antigua Observer said that a delegation from Leeward Islands Air Transport, known as LIAT, has held talks with the St. Lucia government urging Castries to invest in the cash-strapped Antigua-based airline. The LIAT delegation, headed by its chairman, Jean Holder and including newly appointed chief executive officer, Ian Brunton, discussed with Prime Minister Dr Kenny Anthony various matters including a proposal to reduce the number of flights to more than eight locations, a move observers say is likely to affect the hospitality industry across the region, according to Antigua Observer. About LIAT Headquartered in V. C. Bird International Airport in Saint George Parish, Antigua, Leeward Islands Air Transport, known as LIAT, operates high-frequency interisland scheduled services serving 22 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. ================= A R G E N T I N A ================= SUPERVIELLE CREDITOS 67: Moody's Rates ARS19.2-Mil. Certs. 'B2' --------------------------------------------------------------- Moody's Investors Service rates Supervielle Creditos 67, which is a transaction that will be issued by Equity Trust S.A. - acting solely in its capacity as Issuer and Trustee. As of November 27, the securities for this transaction have not yet been placed in the market. If any assumption or factor Moody's considers when assigning the ratings change before closing, the ratings may also change. - ARS96,000,000 in Class A Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 67", rated Aaa.ar (sf) (Argentine National Scale) and Ba3 (sf) (Global Scale, Local Currency) - ARS185,600,000 in Class B Floating Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 67", rated Aaa.ar (sf) (Argentine National Scale) and Ba3 (sf) (Global Scale, Local Currency) - ARS19,200,000 in Class C Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 67", rated Aa2.ar (sf) (Argentine National Scale) and B1 (sf) (Global Scale, Local Currency) - ARS19,200,000 in Certificates of "Fideicomiso Financiero Supervielle Creditos 67", rated Aa3.ar (sf) (Argentine National Scale) and B2 (sf) (Global Scale, Local Currency) Ratings Rationale The rated securities are payable from the cash flow coming from the assets of the trust, which is an amortizing pool of approximately 48,812 eligible personal loans denominated in Argentine pesos, with a fixed interest rate, originated by Banco Supervielle, in an aggregate amount of ARS320,028,603.84. These personal loans are granted to pensioners that receive their monthly pensions from ANSES (Argentina's National Governmental Agency of Social Security - Administracion Nacional de la Seguridad Social). The pool is also constituted by loans granted to government employees of the Province of San Luis. Banco Supervielle is the payment agent entity and automatically deducts the monthly loan installment directly from the employee's paycheck and pensioner's payment. Overall credit enhancement is comprised of subordination: 12% for the Class A Fixed Rate Debt Securities, 12% for the Floating Rate Securities, calculated under the occurrence of a special event. And 6% for the Class C Fixed Rate Securities. In addition the transaction has various reserve funds and excess spread. Moody's considered the credit enhancement provided in this transaction through the initial subordination levels for each rated class, as well as the historical performance of Supervielle's portfolio. In addition, Moody's considered factors common to consumer loans securitizations such as delinquencies, prepayments and losses; as well as specific factors related to the Argentine market, such as the probability of an increase in losses if there are changes in the macroeconomic scenario in Argentina. These factors were incorporated in a cash flow model that takes into account all the relevant features of the transaction's assets and liabilities. Monte Carlo simulations were run, which determines the expected loss for the rated securities. Moody's considered factors common to consumer loans securitizations such as delinquencies, prepayments and losses; as well as specific factors related to the Argentine market. These factors were incorporated in a cash flow model in order to determine the expected loss for the rated securities. Finally, Moody's also evaluated the back-up servicing arrangements in the transaction. In assigning the rating to this transaction, Moody's assumed a lognormal distribution for defaults on the main pool with a mean of 2.5% and a coefficient of variation of 50%. Also, Moody's assumed a lognormal distribution for prepayments with a mean of 25% and a coefficient of variation of 70%. These assumptions are derived from the historical performance to date of the Supervielle's pools. Servicer default was modeled by simulating the default of the Banco Supervielle as the servicer consistent with its current rating of B2/Aa3.ar. In the scenarios where the servicer defaults, Moody's assumed that the defaults on the pool would increase by 20 percentage points. The model results showed 0.00% expected loss for Class A Fixed Rate Debt Securities, 0.57% for Class B Floating Rate Debt Securities, 6.69% expected loss for Class C Fixed Rate Debt Securities and 7.20% for the Certificates. Moody's ran several stress scenarios, including increases in the default rate assumptions. If default rates were increased 3 percentage points from the base case scenario for the pool (i.e., mean of 5.5% and a coefficient of variation of 50%), the ratings of Class A Fixed Rate debt securities and Class B Floating Rate debt securities would remain the same. The ratings for Class C Fixed Rate debt securities would likely be downgraded to B2 (sf) and the Certificates would be likely downgraded to B3 (sf). Moody's also considered the risk that a disruption in the flow of payments from ANSES or the Government of San Luis to pensioners and employees respectively, could severely affect the performance of the pool. Moody's believes that the ratings assigned are consistent with this risk. Finally, Moody's also evaluated the back-up servicing arrangements in the transaction. If Banco Supervielle is removed as servicer, Equity Trust S.A. will be appointed as the back-up servicer. The main source of uncertainty for this transaction is the regulatory and legal framework for the automatic deduction loans in Argentina. * ARGENTINA: Fitch Junks Issuer Default Rating; Outlook Negative ---------------------------------------------------------------- Fitch Ratings has downgraded Argentina's long-term foreign currency (FC) Issuer Default Rating (IDR) to 'CC' from 'B' and the short-term IDR to 'C' from 'B'. All securities issued under international law have been downgraded to 'CC' while both FC and local currency (LC) denominated securities issued under Argentine Law have been downgraded to 'B-'. Fitch has also downgraded Argentina's LC IDR to 'B-' from 'B'; the Outlook on the LC IDR is Negative. The Country Ceiling has been downgraded to 'B-' from 'B'. The downgrade of the long-term foreign currency IDR reflects Fitch's view that a default by Argentina is probable. The increased probability that Argentina will not service its restructured debt securities issued under New York law on a timely basis reflects US District Judge Griesa's decision on Nov. 21 to remove the stay order on the ruling that Argentina must pay US$1.33 billion to holdout investors concurrent with or prior to its payments due to holders of the 2005 and 2010 restructured debt. The stay order will be removed with effect from Dec. 15. Argentina is due to pay approximately USD3 billion of GDP-linked warrants on Dec. 15, 2012. A missed payment on the GDP-linked warrants could trigger a cross default on all exchanged debt securities issued under international law. Subsequently, a missed coupon payment of any other external securities would also trigger a cross default on all exchanged bonds issued under international law. Following the US Court of Appeals decision to uphold Judge Griesa's ruling that Argentina breached the 'Equal Treatment Provision' of the original New York-based law bonds that defaulted in 2001, the court remanded the case back to Griesa for specific clarifications on how the ratable payment formula would work and to which third parties the injunctions should apply. On Nov. 21, Judge Griesa explained that the clarifications requested of his court by the superior court 'did not affect the basic ruling that there can be no payments by Argentina to exchange bondholders without an appropriate payment to plaintiffs'. In light of Argentina's official statements that the government will not honor the court's decision and the country's 2005 'Lock Law' which prohibits the government from re-opening the exchange or from conducting any type of settlement with holdouts without prior authorization from Congress, Judge Griesa decided that the stay should be lifted 'at the earliest possible time' so there is more assurance against a possible evasion. The Dec. 15 date 'gives some reasonable time to arrange mechanics' and allow the Appeals Court to consider the merits of the circuit court's clarifications on the two issues at stake. According to the ruling, the payment due to the plaintiffs should be made into an escrow account by Dec. 15 with the provision that it could be adjusted by any modifications that the Court of Appeals may impose subsequently. The Argentine government is in the process of challenging Judge Griesa's decision in the U.S. Appeals Court and has also announced its intention to take the case to the U.S. Supreme Court if needed, although it is not clear if the Supreme Court will agree to preside on the matter. Fitch will continue to monitor how the case evolves and the Argentine government's response in the coming weeks. A missed payment on exchanged debt securities issued under NY law (including the GDP-linked warrants), which remains uncured within the stipulated 30 days grace period, would constitute a default event. In such a scenario, on expiry of the grace period Fitch would move Argentina's FC IDR to 'RD' (Restricted Default) and the bond ratings of the affected securities to 'D' (Default). On the other hand, a positive resolution, under which the Argentine authorities decided to pay the plaintiffs in line with the court ruling, and which therefore allowed the sovereign to continue servicing its NY-law external debt without interruption after the Appeals Court's final ruling, would be reflective of its willingness to pay and lead to a positive rating action on the FC IDR. Fitch's downgrade of Argentina's local currency IDR reflects the sustained deterioration of its credit fundamentals. The uncertainty related to the impact of the U.S. Court ruling is likely to further damage confidence and intensify political and social tensions in the country and undermine growth prospects. Argentina's economy has decelerated sharply in 2012 owing to the increased state intervention. This has been highlighted by the progressive tightening of capital controls, the nationalization of YPF and the inability of certain provinces to access USD to repay their dollar-denominated debt under local law. While the authorities have been able to stabilize international reserves by progressively tightening capital controls, this has come at the expense of increased economic distortions. The sustainability of this strategy is also vulnerable to international commodity prices, especially soy. The concentration of power in the executive continues to undermine policy predictability and contributes to a tense and polarized political climate in Argentina. The recent massive protests indicate a general public dissatisfaction with issues ranging from high inflation, stringent FX controls, weakening infrastructure and corruption allegations. The authorities' disregard for popular protest and their rhetoric suggests that interventionist policies that lead to further concentration of power and increase economic distortions are likely to intensify. As a consequence, further deterioration in Argentina's policy framework is possible, which could adversely impact the country's medium term growth prospects. The steady attempts by Argentine authorities to 'Pesofy' the economy, the recent intervention in the insurance sector to redirect 15% of their investments to real-economy projects and the recently approved financial system reform are all indications of the trend towards further financial repression or interventionist policies. Sustained economic weakness that heightens fiscal pressures, which in the context of limited financing flexibility could lead to significant erosion of international reserves and greater monetization of the fiscal deficit with adverse repercussions for inflation, would increase downward pressure on the rating. A material escalation of inflation from the already high levels could undermine Argentina's fragile equilibrium as depreciation pressures would mount due to erosion of competitiveness. Alternatively, improvement in the overall policy stance that leads to sustainable growth and greater financing flexibility would stabilize the rating. Improvement in the transparency of official data and normalization of relations with creditors and multilaterals would also buttress confidence. =========== B R A Z I L =========== BR PROPERTIES: S&P Affirms 'BB' Global Scale Issuer Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' global scale and its 'brAA' national scale long-term issuer credit ratings on Brazil-based commercial properties company BR Properties S.A. (BRPR). The outlook is stable. "In addition, we are assigning our 'brAA' national scale debt rating to BRPR's proposed Brazilian reais (R$) 500 million debentures due 2014," S&P said. "The ratings on BRPR reflect our views of the company's 'satisfactory' business profile and 'significant' financial profile," said Standard & Poor's credit analyst Reginaldo Takara. "They also reflect our expectations that the company will keep benefiting from stable cash-flow streams from its quality asset portfolio consisting of properties at favorable locations, primarily in commercial and industrial segments. As a result, we expect occupancy rates to remain high (96% as of September 2012) and fairly resilient to market downturns. We expect revenue growth to come also from rents increasing above the inflation rate (leasing spreads), which indeed has been the case in the past quarters because of favorable office space demand in the regions where the company operates and currently below-market rental prices for many of its properties. The ratings on the debentures are at the same level as the issuer rating because we assume that BRPR will continue reducing its secured debt in 2013, so that debenture holders will not be materially subordinated to secured creditors." "Our stable outlook reflects our expectation that BRPR will adhere to a conservative acquisition strategy in the next several years. We expect projects to become operational in 2013, helping it to dilute operating costs and improve overall asset quality. We could lower the ratings if the company's growth strategy becomes much more aggressive, leading to permanent deterioration of its financial metrics, especially with loan-to-value ratios of more than 50% and EBITDA coverage of less than 1.5x in the next several years. If asset quality or performance deteriorates, either because of acquisitions or market conditions, we could also lower the ratings. We could upgrade BRPR if it keeps improving credit metrics and successfully completes its projects under construction. That would be evident, for instance, by an interest coverage ratio consistently more than 2.0x and a loan-to- value ratio consistently less than 50%," S&P said. ============= B O L I V I A ============= BANCO ECONOMICO: Moody's Reviews 'B1' Subordinated Debt Rating -------------------------------------------------------------- Moody's Investors Service has placed on review for downgrade the global ratings assigned to subordinated debt issued by Banco Economico S.A. (Bolivia), Banco Ganadero S.A., Banco Nacional de Bolivia S.A., and Banco Solidario S.A. (Bolivia) that currently have systemic support incorporated in their ratings. At the same time, Moody's Latin America included in the review for posible downgrade the corresponding national scale ratings. All other ratings and outlooks for these issuers remain unaffected by these rating actions. The rating actions reflect Moody's opinion that the global trend towards imposing losses on junior creditors in the context of future bank resolutions may reduce the predictability of such support being provided to holders of subordinated debt, as junior obligations are expected to absorb losses on behalf of senior creditors and depositors. This view is discussed in the special comment "Supported Bank Debt Ratings at Risk of Downgrade due to New Approaches to Bank Resolution," published in February 2011. LIST OF AFFECTED RATINGS The following subordinated debt ratings were placed on review: Banco Economico S.A. (Bolivia) Long-term global foreign currency subordinated debt rating of B1 Long-term global foreign currency subordinated debt program rating of (P)B1 Long-term Bolivia National Scale foreign currency subordinated debt rating of Aa2.bo Long-term Bolivia National Scale foreign currency subordinated debt program rating of Aa2.bo Banco Ganadero S.A. Long-term global local currency subordinated debt rating of B1 Long-term global foreign currency subordinated debt rating of B1 Long-term global foreign currency subordinated debt program rating of (P)B1 Long-term Bolivia National Scale local currency subordinated debt rating of Aa2.bo Long-term Bolivia National Scale foreign currency subordinated debt rating of Aa2.bo Long-term Bolivia National Scale foreign currency subordinated debt program rating of Aa2.bo Banco Nacional de Bolivia S.A. Long-term global foreign currency subordinated debt rating of Ba3 Long-term global foreign currency subordinated debt program rating of (P)Ba3 Long-term Bolivia National Scale foreign currency subordinated debt rating of Aa1.bo Long-term Bolivia National Scale foreign currency subordinated debt program rating of Aa1.bo Banco Solidario S.A. (Bolivia) Long-term global local currency subordinated debt rating of Ba3 Long-term global local currency subordinated debt program rating of (P)Ba3 Long-term global foreign currency subordinated debt program rating of (P)Ba3 Long-term Bolivia National Scale local currency subordinated debt rating of Aa1.bo Long-term Bolivia National Scale local currency subordinated debt program rating of Aa1.bo Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF308721to access the List of the Affected Credit Ratings. This list is an integral part of this press release and identifies each affected issuer. Ratings Rationale The review for downgrade on the Bolivian banks' subordinated debt ratings reflects Moody's revised approach to notching the ratings of these instruments from a bank's standalone credit assessment instead of from its supported deposit rating. Moody's currently incorporates one notch of systemic support in the subordinated debt ratings of the listed Bolivian banks. During the rating review, Moody's will consider removing systemic support from these debt instruments, based on an assessment of the ability and the willingness of local regulators to impose losses on holders of subordinated debt outside a liquidation process. Upon the conclusion of the review and in line with "Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt", published in November 2009, Moody's expects to position the ratings of subordinated debt one notch below the Adjusted Baseline Credit Assessment (Adjusted BCA) , which reflects a bank's stand- alone financial strength including parental and cooperative support. ========================== C A Y M A N I S L A N D S ========================== CONOCOPHILLIPS IRAQ: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Conocophillips Iraq Ltd. received on Nov. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands CONOCOPHILLIPS LNG: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Conocophillips LNG Ventures Ltd. received on Nov. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands CONOCOPHILLIPS SHAH: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Conocophillips Shah Ltd. received on Nov. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands CONOCOPHILLIPS SOUTHEAST: Shareholders Receive Wind-Up Report ------------------------------------------------------------- The shareholders of Conocophillips Southeast Asia New Ventures Ltd. received on Nov. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands CONOCOPHILLIPS WORLDWIDE: Shareholders Receive Wind-Up Report ------------------------------------------------------------- The shareholders of Conocophillips Worldwide LNG, Ltd. received on Nov. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands CONOCOPHILLIPS YANBU: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Conocophillips Yanbu Ltd. received on Nov. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands DEME INSTITUTIONAL: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Deme Institutional Class, Ltd. received on Nov. 26, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Joanne Steven Telephone: (345) 815-1895 Facsimile: (345) 949-9877 DIAMOND NOTCH: Members Receive Wind-Up Report --------------------------------------------- The members of Diamond Notch Opportunities Master Fund, Ltd. received on Nov. 22, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands JUNIOR PREFERENCE: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Junior Preference Share Company Limited received on Nov. 13, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands JUNIOR PREFERENCE (TAIWAN) Shareholders Receive Wind-Up Report -------------------------------------------------------------- The shareholders of Junior Preference Share Company (Taiwan) II Limited received on Nov. 13, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands KBAL I LIMITED: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of KBAL I Limited received on Nov. 23, 2012, 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 KERIDA INVESTMENT: Members Receive Wind-Up Report ------------------------------------------------- The members of Kerida Investment Limited received on Nov. 13, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands KGOP I LIMITED: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of KGOP I Limited received on Nov. 23, 2012, 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 PERISSET INVESTMENTS: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Perisset Investments Limited received on Nov. 22, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Royhaven Secretaries Limited c/o Julie Reynolds Telephone: 945 4777 Facsimile: 945 4799 P O Box 707 Grand Cayman KY1-1107 Telephone: 945-4777 Facsimile: 945-4799 ZLA LTD: Members Receive Wind-Up Report --------------------------------------- The members of ZLA Ltd. received on Nov. 12, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Zephyr Management, Inc. c/o Gene DaCosta Telephone: (345) 814 7398 Facsimile: (345) 945 3902 PO Box 2681 Grand Cayman KY1-1111 Cayman Islands ========= C H I L E ========= BANCO DAVIVIENDA: Moody's Reviews Ba1 Subordinated Debt Rating -------------------------------------------------------------- Moody's Investors Service has placed on review for downgrade the ratings assigned to subordinated debt issued by Banco de Chile, Bancolombia S.A., Banco Davivienda S.A., Banco GNB Sudameris S.A., Banco de Credito del Peru, Banco Internacional del Peru - Interbank and Industrial Subordinated Trust that currently have systemic support incorporated in their ratings. All other ratings and outlooks for these issuers and guarantors remain unaffected by these rating actions. The rating actions reflect Moody's opinion that the global trend towards imposing losses on junior creditors in the context of future bank resolutions may reduce the predictability of such support being provided to holders of subordinated debt, as junior obligations are expected to absorb losses on behalf of senior creditors and depositors. This view is discussed in the special comment "Supported Bank Debt Ratings at Risk of Downgrade due to New Approaches to Bank Resolution," published in February 2011. LIST OF AFFECTED RATINGS The following subordinated debt ratings were placed on review: Banco de Chile: Foreign currency subordinated debt rating of A1 Bancolombia S.A.: Foreign currency subordinated debt rating of Baa3 Banco Davivienda S.A.: Foreign currency subordinated debt rating of Ba1 Banco GNB Sudameris S.A.: Foreign currency subordinated debt rating of Ba2 Banco de Credito del Peru: Local and foreign currency subordinated debt ratings of Baa3 Banco Internacional del Peru -- Interbank: Foreign currency junior subordinated debt rating of Ba3 (hyb) Industrial Subordinated Trust, guaranteed by Banco Industrial S.A.: Foreign currency subordinated debt rating of Ba2 Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF308720to access the List of the Affected Credit Ratings. This list is an integral part of this press release and identifies each affected issuer. Ratings Rationale The review for downgrade on the banks' subordinated debt ratings reflects Moody's revised approach to notching the ratings of these instruments from a bank's standalone credit assessment instead of from its deposit rating including systemic support. Moody's currently incorporates one or two notches of systemic support in the subordinated and junior subordinated debt ratings of the listed banks. During the rating review, Moody's will consider removing systemic support from these debt instruments, based on an assessment of the ability and the willingness of local regulators to impose losses on holders of subordinated debt outside a liquidation process. Upon the conclusion of the review and in line with "Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt", published in November 2009, Moody's expects to position the ratings of senior subordinated debt one notch below the Adjusted Baseline Credit Assessment (Adjusted BCA), which reflects a bank's stand-alone financial strength including parental and cooperative support. Junior subordinated debt ratings may be positioned two notches below the Adjusted BCA while deeply subordinated junior debt may be positioned three notches below the adjusted BCA. Last Rating Actions The last rating action on Banco de Chile was on May 2, 2012, when Moody's assigned Prime-1 rating to Banco de Chile's proposed US commercial paper note program. The last rating action on Bancolombia S.A. was on 4 September 2012, when Moody's rated the bank's proposed subordinated debt issuance. The last rating action on Banco Davivienda S.A. was on 27 June 2012, when Moody's rated Davivienda's proposed subordinated debt issuance. The last rating action on Banco GNB Sudameris S.A. was on July 19, 2012, when Moody's rated GNB's proposed subordinated debt issuance. The last rating action on Banco de Credito del Peru was on 16 August 2012, when Moody's upgraded the bank's foreign currency deposit ratings following the upgrade of the country ceilings for Peru. The last rating action on Banco Internacional del Peru - Interbank was on 20 September 2012, when Moody's assigned Baa3 to Interbank's proposed US dollar senior notes. The last rating action on Industrial Subordinated Trust was on 12 July 2011, when Moody's assigned the Ba2 subordinated debt rating to the Trust's new notes, guaranteed by Banco Industrial S.A. The last rating action on Banco Industrial S.A. was on 13 July 2012 when Moody's upgraded the bank's standalone financial strength and baseline credit assessment to D+ from D and to ba1 from ba2, respectively, and affirmed all other ratings. The principal methodology used in these banks' ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. =========== M E X I C O =========== BANCO INTERNACIONAL: S&P Affirms 'BB/B' Issuer Credit Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB/B' issuer credit ratings on Banco Internacional de Costa Rica S.A. (BICSA). The outlook remains stable. The stand-alone credit profile (SACP) is 'bb'. "The ratings reflect our assessments of BICSA's 'adequate' (as our criteria define the term) business position, capital and earnings, and risk position, as well as our view of its 'average' funding and 'adequate' liquidity. We consider BICSA as a government- related entity (GRE) in the Republic of Costa Rica (foreign and local currency ratings BB/Stable/B) because of a shareholding structure through which the country's two largest public banks wholly own BICSA. However, we base the ratings on BICSA solely on its SACP, rather than on expected extraordinary support from the government of Costa Rica," S&P said. "The 'bb' anchor draws on our Banking Industry Country Risk Assessment (BICRA) methodology and our view of the weighted average economic risk in the countries in which the bank has exposure through its loan book. A BICRA is scored on a scale from '1' to '10', ranging from the lowest risk banking systems (group '1') to the highest risk (group '10'). BICSA operates mainly Costa Rica, Panama, (which accounts for around 70% of its total loan portfolio exposure) and other countries in Central America. As a result, its weighted economic risk is '6'. The common factor driving this economic risk score is low income levels in the countries where the bank operates, which affect these countries' vulnerability to external shocks, and debt and payment capacity in countries with weak rule of law. The industry risk for Costa Rica, from which its two sole government-owned banks are based, is '7'. The banking system has very high credit risk, based on its high portion of dollar-denominated loans and relatively aggressive underwriting standards. Moderate credit growth and the absence of asset price bubbles partially mitigate these factors. With regard to industry risk, Costa Rica's banking industry includes a significant presence of government-owned banks, and this causes significant market distortions. Limited access to foreign markets and a narrow local debt and capital markets continue to challenge the system. Nonetheless, its retail deposit base is stable and has shown consistent growth," S&P said. "The stable outlook on BICSA reflects our expectation that the bank will maintain an 'adequate' RAC despite its exposure to the riskier and smaller Central American economies in which it operates, reflecting its conservative earnings retention policy," said Standard & Poor's credit analyst Arturo Sanchez. "The outlook also reflects the bank's lower loan portfolio exposure in Costa Rica, which has not changed our view of its blended economic risk score." "We could lower the ratings on BICSA if its RAC ratio falls below 7% as a result of lower internal capital generation or changes in the bank's retention earnings policy. We could also take a negative rating action on the bank if economic conditions in the countries in which it operates hamper its quality of earnings and risk position. On the contrary, we could raise the ratings if the bank's risk position improves due to higher exposure in less risky economies or its RAC ratio increasing above the 10% level," S&P said. * PROVINCE OF FORMOSA: Moody's Confirms Caa2/B2 Issuer Ratings -------------------------------------------------------------- Moody's Latin America confirmed the issuer ratings of the Province of Formosa at Caa2/B2.ar. Moody's Latin America also confirmed the debt ratings of the Province of Formosa at Caa3/Caa2.ar. The outlook of Formosa's issuer rating and debt rating remains negative. This action concludes the review that was initiated on October 17. Ratings Rationale The confirmation of the Province of Formosa's issuer ratings of Caa2 (Global Scale, local currency) and B2.ar (Argentinean National Scale, local currency) and debt ratings of Caa3 (Global Scale, foreign currency) and Caa2.ar (Argentinean National Scale, foreign currency) follows the US dollar 5% coupon Co-participation Tax Revenue Secured Notes due 2022 bondholder assembly held on November 9. A majority of 86.5% of bondholders agreed to receive future principal and interest payments in Argentinean pesos converted at the exchange rate published by Banco de la Nacion Argentina, a state-owned bank. In Moody's view, the revised repayment terms qualify as a distressed exchange and therefore Formosa is considered to be in default in its debt. The terms of the agreement meet Moody's definition of a distressed exchange because they will result in economic losses for bondholders relative to the original promise. Based on the spread between current market and official exchange rates, Moody's estimates losses in the range of 20-30%. The Caa3 debt rating incorporates Moody's expectation that bondholders may likely incur further losses under the revised repayment terms if the market exchange rate continues to increase relative to the benchmark rate. The negative outlook on Formosa follows the negative outlook assigned to Argentina's B3 local and foreign currency government bond ratings. The outlook reflects the ongoing deterioration in Argentina's operating environment, including a decelerating economy and rising fiscal and foreign exchange pressures. Despite the intrinsic financial characteristics of Argentinean provinces and municipalities, the lack of consistent and predictable policies at the national level affects the institutional framework under which provinces and municipalities operate and ultimately ties their credit quality to that of the Sovereign. What Could Change The Rating Up/Down Moody's does not expect upward pressures in the Province of Formosa's ratings in the near to medium term. Notwithstanding, a change of the sovereign outlook back to stable could lead to a change in Formosa's outlook back to stable. The province could be further downgraded if Moody's assessment on the expected loss to bondholders is greater than the loss implied in the current assigned ratings. * S&P Takes Various Rating Actions on 17 European CDO Tranches -------------------------------------------------------------- Standard & Poor's Ratings Services took various credit rating actions on 17 European collateralized debt obligation (CDO) tranches. Specifically, S&P (i) placed on CreditWatch negative its ratings on six tranches; (ii) lowered its ratings on 10 tranches; and (iii) raised its rating on one tranche. "The rating actions on these 17 tranches follow our recent rating actions on the underlying collateral or swap counterparty. Under our criteria applicable to transactions such as these, we would generally reflect changes to the rating on the collateral or swap counterparty in our rating on the tranche," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Reports included in this credit rating report are available at" http://standardandpoorsdisclosure-17g7.com ===================== P U E R T O R I C O ===================== LUAR CLEANERS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Luar Cleaners, Inc. Box 50109 Toa Baja, PR 00950-0109 Bankruptcy Case No.: 12-09294 Chapter 11 Petition Date: November 25, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Gerardo L. Santiago Puig, Esq. SANTIAGO PUIG LAW OFFICES Doral Bank Plaza Suite 801 33 Resolucion St. San Juan, PR 00920 Tel: (787) 777-8000 Fax: (787) 767-7107 E-mail: gsantiagopuig@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb12-09294.pdf The petition was signed by Raul Palacios Velez, president. Related entity that earlier filed a Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Raul Palacios Velez 12-05485 07/12/2012 =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: "Policyholders Expect Gov't to Pay Full Value" -------------------------------------------------------- Keino Swamber at Trinidad Express reports that attorneys for the CLICO United Policyholders Group are contending that they have a continuing legitimate expectation that Government will pay them the full value due on their Executive Flexible Premium Annuities (EFPA). Queen's Counsel Peter Knox told Justice Joan Charles in the Port of Spain High Court that the policyholders are seeking to enforce that legitimate expectation, according to Trinidad Express. The report relates that Mr. Knox submitted that no evidence has been presented to the court to prove that this government could not afford to keep the promise made by the previous administration, in 2009, that policyholders' investments in Colonial Life Insurance Company (Trinidad) Limited (CLICO) would be safe and, if there were any deficit in the company's statutory fund, that Government would make up the deficit. Mr. Knox said government did not communicate why they could not do better for the policyholders, the report notes. Trinidad Express says that as part of their judicial review challenge, the policyholders are also seeking an interim court order that Government give details of the assets of CLICO which have been sold and how the proceeds of the sales were applied. The report discloses that Mr. Knox said that government has acted irrationally by not providing them with the information requested. Additionally, the lawsuit also seeks to compel Government to give details of the EFPA policyholders who have been paid in full since January 2009, the report says. In response, attorney for the State Russell Martineau SC said the legal action had its genesis in the collapse of the insurance giant in 2009, the report adds. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Nov. 29-30, 2012 MID-SOUTH COMMERCIAL LAW INSTITUTE 33rd Annual Bankruptcy & Commercial Law Seminar Nashville Marriott at Vanderbilt, Nashville, Tenn. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 1, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 4-8, 2012 AMERICAN BANKRUPTCY INSTITUTE ABI/SJUSL Mediation Training Symposium St. John's University, Queens, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Jan. 24-25, 2013 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Four Seasons Hotel Denver, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 7-9, 2013 AMERICAN BANKRUPTCY INSTITUTE Caribbean Involvency Symposium Eden Roc Renaissance, Miami Beach, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 17-19, 2013 AMERICAN BANKRUPTCY INSTITUTE Advanced Consumer Bankruptcy Practice Institute Charles Evans Whittaker Courthouse, Kansas City, Mo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 20-22, 2013 AMERICAN BANKRUPTCY INSTITUTE VALCON Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ Apr. 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. *********** 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 * * *