/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130117.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, January 17, 2013, Vol. 14, No. 12 Headlines B E R M U D A D.J.M. (INTERNATIONAL): Member Receives Wind-Up Report EUREKA INSURANCE: Members' Final Meeting Set for Jan. 18 GENAVCO ENTERPRISES: Members' Final Meeting Set for Jan. 22 OAK HOLDCO: Members' Final Meeting Set for Jan. 22 RUBIS LATIN: Sole Member Receives Wind-Up Report SBK MARINE: Members' Final Meeting Set for Jan. 16 TULLETT PREBON: Member to Receive Wind-Up Report on Jan. 17 TULLETT PREBON DATA: Member to Receive Wind-Up Report on Jan. 17 WERDENER (DUSSELDORF): Members' Final Meeting Set for Jan. 22 B R A Z I L MINERVA LUXEMBOURG: Fitch Rates USD500-Mil. Unsecured Notes 'B+' C A Y M A N I S L A N D S ACACIA ASIA: Commences Liquidation Proceedings DAVIDSON KEMPNER: Commences Liquidation Proceedings HAV2 (VIII): Commences Liquidation Proceedings HCP CHONGQING: Commences Liquidation Proceedings HCP HONG KONG: Commences Liquidation Proceedings IVY PARTNERS: Commences Liquidation Proceedings IVY SENTINEL 2/09: Commences Liquidation Proceedings IVY SENTINEL 3/09: Commences Liquidation Proceedings IVY SENTINEL 12/08: Commences Liquidation Proceedings LANAI HOLDING: Commences Liquidation Proceedings MUMBAI HOLDINGS: Commences Liquidation Proceedings MYSTIC RE II: Placed Under Voluntary Wind-Up PALO ALTO: Commences Liquidation Proceedings SORIN MASTER: Placed Under Voluntary Wind-Up SORIN OFFSHORE: Placed Under Voluntary Wind-Up SORIN PLAN: Placed Under Voluntary Wind-Up TATECH FUNDING: Commences Liquidation Proceedings TEMPUS ASIAN: Placed Under Voluntary Wind-Up WITTENHAM INVESTMENT: Placed Under Voluntary Wind-Up J A M A I C A * JAMAICA: ECLAC Predicts Job Cuts in 2013 M E X I C O COMISION DE AGUA: Moody's Downgrades Issuer Rating to 'B2' * ACAPULCO, MX: Moody's Lowers Issuer Ratings to 'Ba2' * MEXICALI, MX: Moody's Lowers Issuer Ratings to 'B1' P U E R T O R I C O ALCO CORP: Association Wants Unsecured Priority ALCO CORP: Nevarez & Sanchez Okayed for Civil Case V E N E Z U E L A * VENEZUELA: Moody's Affirms 'B2' Bond Ratings; Outlook Negative T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Kamla Wants to Boost Tobago Flights X X X X X X X X Upcoming Meetings, Conferences and Seminars - - - - - ============= B E R M U D A ============= D.J.M. (INTERNATIONAL): Member Receives Wind-Up Report ------------------------------------------------------ The member of D.J.M. (International) Ltd. received on Jan. 14, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 6, 2012. The company's liquidator is: Simon J. Payne New Venture House 3 Mills Creek, Pembroke Bermuda EUREKA INSURANCE: Members' Final Meeting Set for Jan. 18 -------------------------------------------------------- The members of Eureka Insurance Ltd. will hold their final meeting on Jan. 18, 2013, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 12, 2012. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM11 Bermuda GENAVCO ENTERPRISES: Members' Final Meeting Set for Jan. 22 ----------------------------------------------------------- The members of Genavco Enterprises Limited will hold their final meeting on Jan. 22, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 13, 2012. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM11 Bermuda OAK HOLDCO: Members' Final Meeting Set for Jan. 22 -------------------------------------------------- The members of Oak Holdco Limited will hold their final meeting on Jan. 22, 2013, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 13, 2012. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM11 Bermuda RUBIS LATIN: Sole Member Receives Wind-Up Report ------------------------------------------------ The sole member of Rubis Latin America Shipping Ltd. received on Jan. 15, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 5, 2012. The company's liquidator is: David Rose 2 Ferry Road St. George's GE01 Bermuda SBK MARINE: Members' Final Meeting Set for Jan. 16 -------------------------------------------------- The members of SBK Marine (Bermuda) Limited will hold their final meeting on Jan. 16, 2013, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 13, 2012. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM11 Bermuda TULLETT PREBON: Member to Receive Wind-Up Report on Jan. 17 ----------------------------------------------------------- The member of Tullett Prebon Technology Services Ltd. will receive on Jan. 17, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 10, 2012. The company's liquidator is: Christopher C. Morris c/o Century House 16 Par-la-Ville Road Hamilton HM08 Bermuda TULLETT PREBON DATA: Member to Receive Wind-Up Report on Jan. 17 ---------------------------------------------------------------- The member of Tullett Prebon Data Services Ltd. will receive on Jan. 17, 2013, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 10, 2012. The company's liquidator is: Christopher C. Morris c/o Century House 16 Par-la-Ville Road Hamilton HM08 Bermuda WERDENER (DUSSELDORF): Members' Final Meeting Set for Jan. 22 ------------------------------------------------------------- The members of Werdener (Dusseldorf) Properties Limited will hold their final meeting on Jan. 22, 2013, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on Dec. 13, 2012. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM11 Bermuda =========== B R A Z I L =========== MINERVA LUXEMBOURG: Fitch Rates USD500-Mil. Unsecured Notes 'B+' ---------------------------------------------------------------- Fitch Ratings has assigned an expected rating of 'B+/RR4' rating to Minerva Luxembourg S.A.'s proposed USD500 million senior unsecured notes due 2023. These notes will be unconditionally guaranteed by Minerva S.A. Proceeds are expected to be used to refinance in part or in whole the outstanding notes due 2017, 2019 and 2022, also issued by Minerva Luxemburg S.A. Minerva's ratings are supported by the company's business position as the second-largest Brazilian exporter of fresh beef and its strong liquidity position. Risks include the company's high product and production concentration in Brazil, which limit its flexibility to respond to regional bans on exports. Similar to other Brazilian protein processors, Minerva is exposed to the unfavorable currency fluctuations and potential disease outbreaks. For the LTM ending Sept. 30, 2012, Minerva's EBITDA increased by 36% to BRL446 million from BRL328 million during 2011. During the same period, EBITDA margins increased to 10.5% from 8.2% in 2011. These improvements fed through to the company's cash flows. Minerva's cash flow from operations (CFFO) was BRL373 million, a significant improvement from negative BRL10 million in 2011. Free cash flow (FCF) was BRL244 million, reversing seven straight years of negative FCF. As of Sept. 30, 2012, Minerva had BRL2.6 billion of total debt and BRL920 million of cash and marketable securities. These levels of debt and cash compare with 2.1 billion of debt and BRL746 million of cash as of Dec. 31, 2011. The increase in total debt is primarily a result of the depreciation of the Brazilian real versus the U.S. dollar during the year, as about 81% of the company's debt as of Sept. 30, 2012 was denominated in USD. Per Minerva's estimation, the total exposure to USD is slightly lower at 74%, due to existing currency swaps. As of Sept. 30, 2012, the company's net leverage was 3.8x. This level of leverage was higher than Fitch's previous expectation of 3.0x for the end of 2012 - a level consistent with the rating category during a positive moment in the beef cycle. During December 2012, Minerva issued BRL470 million of equity, which lowered its pro forma net leverage to 2.7x. Fitch expects Minerva's free cash flow generation to be negative to neutral in 2013. The company's recently announced plans to increase expansion capex and to pursue acquisitions in the Brazilian state of Mato Grosso, Uruguay, Paraguay and Colombia. While these investments should limit deleveraging, they should improve the company's business profile. By 2015, the percentage of Minerva's sales from processed food should increase to about 10% of revenue from 5% during 2012, while its revenues from operations outside of Brazil should increase to 20% - 25% from 12% in 2012. Key Rating Drivers The ratings are likely to remain stable unless cash flow generation and leverage ratios trend different than Fitch's expectations. A positive rating action could be triggered by additional decreases in leverage to about 2.0x in mid cycle. This level of debt reduction is unlikely to be achieved in the short- to-medium term. A negative rating action could occur if net leverage increases to 4.0x on a normalized basis. This could be as a result of either a large debt financed acquisition or asset purchases, or as a result of operational deterioration due to disruptions in exports. Fitch currently rates Minerva and Minerva Luxembourg as follows: Minerva: -- Local currency Issuer Default Rating (IDR) 'B+'; -- Foreign currency IDR 'B+'; -- National scale rating 'BBB+(bra)'; -- BRL200 million outstanding debentures due 2015 'BBB+(bra)'. Minerva Luxembourg: -- Local currency IDR 'B+'; -- Foreign currency IDR 'B+'; -- Senior unsecured notes due in 2017, 2019 and 2022 'B+/RR4'. The Rating Outlook for Minerva and Minerva Luxembourg is Stable. ========================== C A Y M A N I S L A N D S ========================== ACACIA ASIA: Commences Liquidation Proceedings ---------------------------------------------- On Oct. 17, 2012, the shareholder of Acacia Asia Panthera Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 10, 2012, will be included in the company's dividend distribution. The company's liquidator is: Highwater Limited c/o Nicole Weins Telephone: (345) 640 2279 Facsimile: (345) 943 2294 Grand Pavilion Commercial Centre 1st Floor, 802 West Bay Road P.O. Box 31855 Grand Cayman KY1-1207 Cayman Islands DAVIDSON KEMPNER: Commences Liquidation Proceedings --------------------------------------------------- On Oct. 30, 2012, the members of Davidson Kempner Event Driven Equities International Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. 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 HAV2 (VIII): Commences Liquidation Proceedings ---------------------------------------------- On Nov. 7, 2012, the shareholder of HAV2 (VIII) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. 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 HCP CHONGQING: Commences Liquidation Proceedings ------------------------------------------------ On Oct. 31, 2012, the shareholder of HCP Chongqing QBS CO Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. 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 HCP HONG KONG: Commences Liquidation Proceedings ------------------------------------------------ On Oct. 31, 2012, the shareholder of HCP Hong Kong Fully Co Ltd 1 resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. 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 IVY PARTNERS: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 26, 2012, the members of Ivy Partners Fund I SPV 12/09, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 2, 2012, will be included in the company's dividend distribution. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands IVY SENTINEL 2/09: Commences Liquidation Proceedings ---------------------------------------------------- On Oct. 25, 2012, the members of Ivy Sentinel International Fund SPV 2/09, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 2, 2012, will be included in the company's dividend distribution. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands IVY SENTINEL 3/09: Commences Liquidation Proceedings ---------------------------------------------------- On Oct. 25, 2012, the members of Ivy Sentinel International Fund SPV 3/09, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 2, 2012, will be included in the company's dividend distribution. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands IVY SENTINEL 12/08: Commences Liquidation Proceedings ----------------------------------------------------- On Oct. 25, 2012, the members of Ivy Sentinel International Fund SPV 12/08, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 2, 2012, will be included in the company's dividend distribution. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands LANAI HOLDING: Commences Liquidation Proceedings ------------------------------------------------ On Nov. 6, 2012, the members of Lanai Holding Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 18, 2012, will be included in the company's dividend distribution. The company's liquidator is: Rebecca Hume Telephone: (345) 949.4544 Facsimile: (345) 949.8460 Charles Adams Ritchie & Duckworth P.O. Box 709 122 Mary Street Grand Cayman KY1-1107 Cayman Islands MUMBAI HOLDINGS: Commences Liquidation Proceedings -------------------------------------------------- On Oct. 31, 2012, the shareholders of Mumbai Holdings Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. 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 MYSTIC RE II: Placed Under Voluntary Wind-Up -------------------------------------------- At an extraordinary general meeting held on Sept. 17, 2012, the members of Mystic RE II Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 9, 2012, will be included in the company's dividend distribution. The company's liquidators are: Kevin Poole Damien Austin P.O. Box 10233 171 Elgin Avenue, George Town The Pavilion Building, Cricket Square Grand Cayman KY1 -1002 Cayman Islands Telephone: 914-2249 Facsimile: 949-6021 PALO ALTO: Commences Liquidation Proceedings -------------------------------------------- On Nov. 7, 2012, the shareholder of Palo Alto Energy Offshore Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Nov. 19, 2012, will be included in the company's dividend distribution. 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 SORIN MASTER: Placed Under Voluntary Wind-Up -------------------------------------------- On Oct. 31, 2012, the sole shareholder of Sorin Master Fund, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 10, 2012, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Susan Lock Telephone: (345) 815-1889 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands SORIN OFFSHORE: Placed Under Voluntary Wind-Up ---------------------------------------------- On Oct. 31, 2012, the sole shareholder of Sorin Offshore Fund, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 11, 2012, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Susan Lock Telephone: (345) 815-1889 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands SORIN PLAN: Placed Under Voluntary Wind-Up ------------------------------------------ On Oct. 31, 2012, the sole shareholder of Sorin Plan Offshore Fund, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 10, 2012, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Susan Lock Telephone: (345) 815-1889 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands TATECH FUNDING: Commences Liquidation Proceedings ------------------------------------------------- On Oct. 31, 2012, the shareholder of Tatech Funding Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. 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 TEMPUS ASIAN: Placed Under Voluntary Wind-Up -------------------------------------------- On Oct. 31, 2012, the shareholders of Tempus Asian Strategies Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. The company's liquidator is: John Schofield 48 Luk Tei Tong Tsuen Mui Wo, Lantau Island NT, Hong Kong SAR Telephone: 852 2521 1726 WITTENHAM INVESTMENT: Placed Under Voluntary Wind-Up ---------------------------------------------------- On Nov. 5, 2012, the shareholder of Wittenham Investment Management Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 19, 2012, will be included in the company's dividend distribution. The company's liquidator is: Paul Henry Smith Flat A-B, 3 Floor Wyndham Mansion, 32 Wyndham Street Hong Kong Telephone: 852 3655 0578 Facsimile: 852 3655 0501 ============= J A M A I C A ============= * JAMAICA: ECLAC Predicts Job Cuts in 2013 ------------------------------------------ Jamaica Gleaner reports that the United Nations' regional body, ECLAC, and the Jamaica Employers' Federation (JEF) separately warned of possible job cuts in 2013 arising from the expected austerity measures linked to the pending International Monetary Fund (IMF) deal. A new country report by ECLAC, which references the IMF on numerous occasions, indicates that Jamaica's economic activity remains so sluggish that even with a deal, flat growth is predicted in 2013, according to Jamaica Gleaner. "Growth is projected at 0.1 per cent in 2013, assuming that an agreement is signed with IMF. This agreement will likely have a strong emphasis on fiscal restraint and public-sector reform, which could lead to job cuts," said the ECLAC country report released within the context of a growing Latin America, Jamaica Gleaner notes. Jamaica Gleaner discloses that Jamaica's unemployment rate improved from 14.1 per cent in January 2012 to 12.8 per cent July 2012. "Economic conditions have been worsened by the lack of a new agreement with the IMF, which would secure international funding for the balance of payments, as well as other forms of support," said ECLAC, Jamaica Gleaner relays. Jamaica Gleaner notes that JEF President Wayne Chen agreed with ECLAC, arguing that the body made a "sound observation" based on empiricism. Jamaica Gleaner relays that ECLAC also raised concerns that Jamaica, which is already heavily indebted, continues to fund nearly half of its budget with new debt. "It is a matter of concern that while just over 55 per cent of the Budget is expected to be financed by tax revenue, the remaining 45 per cent is to be financed by a combination of debt raised on the domestic financial market and overseas borrowing, when debt is already at very high levels. . . . The Budget was presented on the understanding that fiscal consolidation was necessary to encourage growth, but such consolidation is unlikely," ECLAC said, Jamaica Gleaner relates. The financial damage caused by Hurricane Sandy in October 2012 represents an additional complication, the UN agency said, Jamaica Gleaner says. It commended Jamaica's stable inflation rate but raised concerns about the slipping exchange rate, Jamaica Gleaner adds. ECLAC is one of the United Nations' five regional commissions, created in 1948 to contribute to the economic development of Latin America and strengthen economic ties among countries in the region and with other nations of the world. Later, the scope of its work was broadened to include Caribbean nations. =========== M E X I C O =========== COMISION DE AGUA: Moody's Downgrades Issuer Rating to 'B2' ---------------------------------------------------------- Moody's de Mexico downgraded issuer rating of the Comision de Agua Potable y Alcantarillado del Municipio de Acapulco (CAPAMA) to B2 (Global Scale, local currency) from Ba3. In addition, CAPAMA's National Scale rating was downgraded to Ba2.mx from Baa1.mx (Mexico National Scale). The ratings were placed under review for a possible downgrade. At the same time, Moody's affirmed the Baa3/Aa3.mx ratings of CAPAMA's MXN148 million enhanced loan. The State of Guerrero (Ba2/A2.mx, Stable) is a joint obligor of this loan. Ratings Rationale The rating action was prompted by the downgrade of the ratings of the Municipality of Acapulco to B2/Ba2.mx from Ba2/A2.mx. The ratings were placed under review for a possible downgrade. The rating action reflects Moody's assessment that CAPAMA is institutionally, operationally and financially linked to the municipality of Acapulco. As such, in Moody's view CAPAMA's creditworthiness is equivalent to that of Acapulco. The Baa3/Aa3.mx ratings of CAPAMA's MXN148 million enhanced loan from Banorte remain unchanged as these reflect the State of Guerrero's payment obligation and the uplift provided by its pledge of 1% of the state's participation transfers as well as the cash reserves for debt service payment embedded in the structure. What Could Change The Ratings UP/DOWN While Moody's does not expect upward pressure on CAPAMA's issuer ratings, a conclusion of the review of Acapulco's ratings with the confirmation of its issuer ratings would conclude the review on CAPAMA's review with the confirmation of its ratings. An additional downgrade on Acapulco's ratings would trigger a downgrade on CAPAMA's ratings, given the aforementioned structural linkages. An upgrade on the ratings of the State of Guerrero would likely result in an upgrade on the ratings of the loan. Conversely, the loan ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations or the ratings of the State of Guerrero are downgraded. The principal methodologies used in these ratings were "Government-Related Issuers: Methodology Update" published in July 2010, "Mapping Moody's National Scale Ratings to Global Scale Ratings" published in October 2012 and "Enhanced Municipal and State Loans in Mexico" published in January 2011. 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. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings." * ACAPULCO, MX: Moody's Lowers Issuer Ratings to 'Ba2' ------------------------------------------------------ Moody's de Mexico downgraded the Municipality of Acapulco's issuer ratings to Ba2.mx (Mexico National Scale) and to B2 (Global Scale, local currency) from A2.mx and Ba2, respectively. Additionally, the issuer ratings have been placed under review for possible downgrade. At the same time, Moody's downgraded the debt ratings of a MXN 360 million enhanced loan, contracted with Scotiabank to Baa1.mx (Mexican National Scale) and Ba3 (Global Scale, local currency) from Aa3.mx and Baa3, respectively. Ratings Rationale The downgrade to B2/Ba2.mx from Ba2/A2.mx reflects the default of Acapulco on a factoring facility from BBVA Bancomer (cadena productiva) along with a significant liquidity deterioration. Moody's confirmed the default of a short term credit facility, or cadena productiva, of roughly MXN 50 million from Bancomer (approximately 2% of Acapulco's total revenues). Moody's understands that negotiations with the lender are in progress. The placement of the ratings under review for a possible downgrade reflects the uncertainty regarding the outcome of these negotiations. Moody's also recognizes that the municipality's dire liquidity position could exert additional pressures in the short term. Moody's expects to conclude the review in less than three months. The ratings downgrade to Ba3/Baa1.mx from Baa3/Aa3.mx of the MXN 360 million enhanced loan from Scotiabank reflects the downgrade of Acapulco's issuer ratings. The loan enhancements continue to provide a two notch uplift from the global scale issuer ratings. The loan ratings are directly linked to the credit quality of the issuer, ensuring that underlying contract enforcement risks, economic risks and credit culture risks (for which the issuer rating acts as a proxy) are embedded in the enhanced loans ratings. What Could Change The Ratings UP/DOWN While it is unlikely that the ratings will be upgraded in the medium term, the review could conclude with the affirmation of Acapulco's assigned ratings if the municipality fully pays or refinances its outstanding obligation without inflicting any loss to the lenders; continues to fully honor its long-term obligations; and addresses its financial deterioration. Conversely, the ratings could be further downgraded if, throughout the review, Moody's assessment of the expected loss to Acapulco's creditors is higher than that suggested by the current ratings. Given the links between the loan and the credit quality of the obligor, a further downgrade of Acapulco's ratings would trigger a downgrade on the loan ratings. Conversely, a confirmation of Acapulco's issuer ratings would result in a confirmation of the loan ratings. In addition, the ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations. The principal methodologies used in this rating were The Application of Joint-Default Analysis to Regional and Local Governments published in December 2008, Enhanced Municipal and State Loans in Mexico published in January 2011, and Mapping Moody's National Scale Ratings to Global Scale Ratings published in October 2012. 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. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". * MEXICALI, MX: Moody's Lowers Issuer Ratings to 'B1' ----------------------------------------------------- Moody's de Mexico downgraded the issuer ratings of the Municipality of Mexicali to Baa2.mx (Mexico National Scale) and to B1 (Global Scale, local currency) from A3.mx and Ba3 respectively. Additionally, the outlook for Mexicali's ratings was revised to negative from stable. At the same time, Moody's downgraded the debt ratings of the municipality's MXN814 million (original face value) enhanced loan, contracted with Banobras to A2.mx (Mexican National Scale) and Ba2 (Global Scale, local currency) from A1.mx and Ba1, respectively. Ratings Rationale The downgrade to B1/Baa2.mx from Ba3/A3.mx reflects the recording of operating and financial imbalances and the deterioration of an already tight liquidity position. Gross operating balances decreased to -12.3% of operating revenues in 2011 from -1.4% in 2009. As a result of this deterioration, the municipality has also recorded cash financing requirements that averaged 10.7% of total revenues over the last three years. Mexicali faces important operating expenditure pressures stemming from higher general services and rigidities to cut personnel services. As of September 2012, this trend has not been reverted, and Moody's expects negative gross operating and consolidated financial results for year-end 2012. While the municipality plans to reform regulations related to its civil service to ease structural rigidities, additional expenditure and income measures, which are difficult to implement in an electoral year, are needed in order to reverse the negative trend. "As a result of the cash financing requirements recorded in the last few years, liquidity measured by net working capital to total expenditures stood at a very low -13.5% at the end of 2011. Mexicali`s low cash balances have led to a substantial increase of accounts payable and short-term debt," explained Mar�a del Carmen Mart�nez-Richa, a Moody's Analyst. Total direct and indirect debt was equivalent to 42% of operating revenues in 2011, a level in line with B-rated Mexican municipalities, with short-term debt equivalent to 17.8% of total debt as of September 2012. Moody's estimates that debt levels will increase to around 62% of operating revenues. Current liquidity pressures increase the risks that Mexicali will have difficulty in paying its outstanding short-term debt in May 2013. The negative outlook reflects Mexicali's challenges to rebalance operating and financial performance and to strengthen its very tight liquidity. The negative outlook also considers Mexicali's high exposure to short-term debt. Moody's will monitor Mexicali's capacity to pay this upcoming obligation and avoid further short- term debt increases. The ratings downgrade of the MXN 814 million enhanced loan reflects the downgrade of Mexicali's issuer ratings. While the loan enhancements continue to provide a two-notch uplift from the global scale issuer ratings, per Moody's methodology on rating enhanced loans, the loan ratings are directly linked to the credit quality of the issuer, which ensures that underlying contract enforcement risks, economic risks and credit culture risks (for which the issuer rating acts as a proxy) are embedded in the enhanced loans ratings. What Could Change The Ratings UP/DOWN While currently Moody's does not anticipate upward pressure on the ratings, if Mexicali increases its gross operating balances, significantly reduces cash financing requirements and liquidity is greatly improved, the outlook could be revised back to stable. Under a scenario where Mexicali's capacity to pay its short-term debt is weakened further, and the city fails to rebalance operating and consolidated financial results while continuing to show very poor liquidity, Moody's would likely downgrade the municipality's issuer ratings. Given the links between the loan and the credit quality of the obligor, an upgrade of the Municipality of Mexicali issuer ratings would likely result in an upgrade of the ratings on the MXN 814 million enhanced loan. Conversely, a downgrade of Mexicali's issuer ratings could also exert downward pressure on the debt ratings of the loan. In addition, the ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations. Credit ratings incorporate Moody's macroeconomic outlook and its implications on key variables that may include but not be limited to interest rates, inflation, economic growth, unemployment, performance of counterparties, credit availability, sector level changes in competitive conditions, supply/demand and margins, and issuer specific changes in capital structure, competitive positioning, governance, risk profile, and liquidity. Unexpected changes in such variables may lead to changes in the credit rating level, potentially by several notches. Further information on the sensitivity of the rating to specific assumptions is included in this disclosure. The methodologies used in this rating were "Regional and Local Governments Outside the US," published in May 2008, "The Application of Joint Default Analysis to Regional and Local Governments," published in December 2008, "Enhanced Municipal and State Loans in Mexico" published in January 2011 and "Mapping Moody's National Scale Ratings to Global Scale Ratings" published in October 2012. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuerswithin 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. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings." ===================== P U E R T O R I C O ===================== ALCO CORP: Association Wants Unsecured Priority ----------------------------------------------- Association de Camioneros is asking the U.S. Bankruptcy Court for the District of Puerto Rico to consider in the next hearing its opposition to Alco Corporation's Chapter 11 Plan. The Association is composed of drivers to receive payment once the companies pay the Association. The Association also asks that the Court determine the Debtor's debt as unsecured priority debt. The Association relates that the debt was paid with a check that has no funds, which constitutes a felony in the Commonwealth of Puerto Rico. About Alco Corp. Alco Corporation in Dorado, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 12-00139) on Jan. 12, 2012. Carmen D. Conde Torres, Esq., and C. Conde & Associates represent the Debtor in its restructuring effort. Alco tapped Jimenez Vasquez & Associates, PSC, as accountants. The Debtor scheduled $11.2 million in assets and $7.76 million in debts. The petition was signed by Alfonso Rodriguez, president. The Plan considers the full payment of all administrative, secured creditors and priority claims and a 50% dividend to the general unsecured creditors on monthly installments within 5 years from the effective date. ALCO CORP: Nevarez & Sanchez Okayed for Civil Case -------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico authorized Alco Corporation to employ Jose A. Sanchez Alvarez and the Law Firm of Nevarez & Sanchez Alvarez PSC as special counsel. The special counsel is expected to continue its representation in civil case filed with the Puerto Rico Court of First Instance, in which the Bankruptcy Court allowed the modification of automatic stay in order to continue the state court litigation until final judgment and other matters that may specifically assign. The hourly rates of the firm's personnel are: Mr. Alvarez $225 Laura E. Alonzo-Monrouzeau $150 To the best of the Debtor's knowledge, Mr. Alvarez and the firm do not hold nor represent any interest adverse to the Debtor or the estate in the matters upon which they are to be engaged. About Alco Corp. Alco Corporation in Dorado, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 12-00139) on Jan. 12, 2012. Carmen D. Conde Torres, Esq., and C. Conde & Associates represent the Debtor in its restructuring effort. Alco tapped Jimenez Vasquez & Associates, PSC, as accountants. The Debtor scheduled $11.2 million in assets and $7.76 million in debts. The petition was signed by Alfonso Rodriguez, president. The Plan considers the full payment of all administrative, secured creditors and priority claims and a 50% dividend to the general unsecured creditors on monthly installments within 5 years from the effective date. ================= V E N E Z U E L A ================= * VENEZUELA: Moody's Affirms 'B2' Bond Ratings; Outlook Negative ---------------------------------------------------------------- Moody's Investors Service changed Venezuela's outlook to negative from stable and affirmed the B1 local currency and B2 foreign currency government bond ratings. The negative outlook reflects increased political uncertainty and associated risks to the Venezuelan economy and government finances following President Chavez's failure to attend his inauguration ceremony on January 10. Notwithstanding the government's decision not to call new elections, as was arguably required by the Constitution, a political transition appears to be imminent -- if it is not underway already. Ratings Rationale Venezuela is heavily exposed to transition risk because of the weakness of its institutions coupled with the concentration of power in the person of President Chavez. While this risk is already incorporated in the current ratings, the negative outlook reflects the increased likelihood of a downward rating migration should transition risks crystallize, resulting in a deterioration of other credit fundamentals. The current situation has revived the possibility that an opposition candidate may take over the presidency and with it begin to usher in economic reforms that could improve Venezuela's credit picture in the medium term. However, regardless of who succeeds Chavez, and which part of the political spectrum they represent, this potential opportunity is outweighed in the shorter term by risks associated with the political transition. The transition comes at a particularly challenging time for the Venezuelan economy, which experienced a marked deterioration in a number of key macroeconomic indicators last year, particularly the fiscal deficit. Increased spending in advance of last year's presidential and regional elections has left the government highly overextended. Moody's estimates that the 2012 fiscal deficit equaled nearly 11% of GDP, up from 4% in 2011. While GDP grew by 5.5%, this was driven in large part by the increase in spending. In addition, the currency is increasingly overvalued, as reflected in the sharp rise in the black market exchange rate. With Chavez' successor, whoever he may be, likely to face significant challenges to his authority, Moody's believes it will be difficult for him to make the economic policy adjustments necessary to address these growing imbalances. The negative outlook also considers the risk of civil unrest. The longer the current impasse remains, the more likely this becomes. The opposition will not stand idly by if they perceive the Chavistas to be attempting to solidify their grasp on power through extra-constitutional means. Depending upon the pace at which events unfold going forward, the rating and outlook could potentially be revisited well before the expiration of the 12-18 month time horizon normally associated with an outlook. The rating could face further downward pressure if the next president fails to implement meaningful policy adjustments to reduce macroeconomic imbalances and distortions, or if civil unrest threatens the stability of the government. The outlook could be stabilized if the new president demonstrates that he has firmly established his authority and implements changes to current policies sufficient to stabilize the economy. The principal methodology used in this rating was Sovereign Bond Ratings published in September 2008. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Kamla Wants to Boost Tobago Flights ------------------------------------------------------- Elizabeth Williams at Trinidad Express reports that a plan for the revival of the tourism sector in Tobago has come not only from the Tobago House of Assembly, but Prime Minister Kamla Persad- Bissessar. Ms. Persad-Bissessar said she has already spoken to State carrier Caribbean Airlines towards improving the airbridge between Trinidad and Tobago, according to Trinidad Express. The report relates that Ms. Persad-Bissessar said while the service of United Kingdom-based Virgin Atlantic to Tobago was lost for this summer, there was a ray of hope on the horizon to revitalize the ailing tourism sector in the sister island. "I have already spoken with Caribbean Airlines and we will see how we can pick up the slack, so the people of Tobago will not lose from this mismanagement of Mr (Orville) London," the report quoted Ms. Persad- Bissessar as saying. Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News notes that Trinidad Express reported that the arrears were built up over the last six weeks as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January 2007. =============== X X X X X X X X =============== Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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., Washington, D.C., 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 2013. 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$775 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 A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *