/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130204.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, February 4, 2013, Vol. 14, No. 24 Headlines B R A Z I L FIDC BCSUL 2009-1: Moody's Lowers Senior Shares Ratings to 'Caa1' C A Y M A N I S L A N D S AFA PRIVATE: Commences Liquidation Proceedings AFFINIA HOLDINGS: Placed Under Voluntary Wind-Up APC ABSOLUTE: Commences Liquidation Proceedings APC ABSOLUTE MASTER: Commences Liquidation Proceedings C.I. DIRECTORS: Commences Liquidation Proceedings C.I. SECRETARIES: Commences Liquidation Proceedings CAPITAL ALLIANCE: Commences Liquidation Proceedings DGC PENDULUM: Commences Liquidation Proceedings FRONT STREET: Commences Liquidation Proceedings JULIUS BAER: Commences Liquidation Proceedings LIBERTY CAYMAN: Placed Under Voluntary Wind-Up LIMITLESS INC: Commences Liquidation Proceedings LITTLE PLANE: Placed Under Voluntary Wind-Up PARKTON RE: Placed Under Voluntary Wind-Up RIVERSIDE WISDOM: Commences Liquidation Proceedings SCJREP CAYMAN I: Commences Liquidation Proceedings SCJREP CAYMAN II: Commences Liquidation Proceedings YAOLAN LTD: Placed Under Voluntary Wind-Up YMK INVESTMENTS: Placed Under Voluntary Wind-Up J A M A I C A UC RUSAL: Enters Deal With International Banks M E X I C O AXTEL SAB: Fitch Cuts LC Issuer Default Rating to 'RD' AXTEL CREDIT: S&P Raises Corporate Credit Rating to 'B-' SU CASITA: Missed Interest Payments Prompt Moody's Downgrades P E R U REPSOL SA: To Sell Its Peru Liquefied Natural Gas Assets P U E R T O R I C O CLINICA INTERDISCIPLINARIA: Case Summary & Creditors List HILL CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors ROCMEC MINING: AMF Grants Management Cease Trade Order U R U G U A Y BANCO BANDES: Moody's Lowers Deposits Ratings One Notch to 'B3' V E N E Z U E L A SIDETUR DEL TURBIO: Trustee Said to Declare Firm in Default X X X X X X X X * BOND PRICING: For the Week Jan. 28 to Feb. 1, 2013 - - - - - =========== B R A Z I L =========== FIDC BCSUL 2009-1: Moody's Lowers Senior Shares Ratings to 'Caa1' ----------------------------------------------------------------- Moody's America Latina has downgraded to Caa1 (sf) (Global Scale, Local Currency) and Caa1.br (sf) (National Scale) from B3 (sf) (Global Scale, Local Currency) and B1.br (sf) (National Scale) the ratings of the senior shares of the 5th series (Series 2009-1) issued by FIDC BCSul Verax Credito Consignado II (FIDC BCSul or the Issuer), a securitization of payroll deducted loans originated by Banco Cruzeiro do Sul S.A. (BCSul, the originator and seller to the transaction). This rating action concludes the review for possible downgrade commenced on August 21, 2012. Ratings Rationale: The downgrade is based mainly on the following factors: (i) low level of monthly collections received by the FIDC BCSul when compared to the scheduled portfolio cash flows in the period between September 15, 2012 and January 14, 2013 following declaration of liquidation of BCSul on September 14, 2012, (ii) uncertainties surrounding future collection projections of the run-off portfolio due to lack of data about drivers for loan delinquency and about prepayments, and (iii) high probability that the senior shares may not be fully repaid by the final legal maturity date on January 15, 2014. Performance data of the securitized portfolio following the liquidation of BCSul indicates a material deterioration of assets, which highlights the uncertainties surrounding asset integrity. During the period starting September 15, 2012 and ending on January 14, 2013, the BCSul liquidator has transferred collections to the FIDC in three lump sum payments. The amount of actual portfolio collections transferred to the FIDC BCSul (recoveries) is materially lower than the contractual cash flows scheduled to be collected on the run-off portfolio (as provided by Deutsche Bank, the Master Servicer, to the Trustee when the bank's liquidation commenced). Moody's notes that the pool's contractual scheduled cash flows include void assets, and that Moody's has not received to date an updated schedule of expected collections on the run-off portfolio net of the void loans. Actual collections received by the FIDC BCSul are as follows: - Period starting September 15, 2012 and ending November 11, 2012: BRL12,320,448 (48% of contractual scheduled collections) - Period starting November 12, 2012 and ending December 9, 2012: BRL 9,583,855 (76% of contractual scheduled collections) - Period starting December 10, 2012 and ending January 14, 2013: BRL10,922,684 (77% of contractual scheduled collections). For the entire period (starting in September 15, 2012 and ending on January 14, 2013), actual collections were approximately BRL 33 million versus scheduled contractual collections of BRL 52 million, indicating a BRL 19 million shortfall in collections. This represents a 63% recovery rate or a 37% average loss severity. The causes of this cumulative BRL 19 million collection shortfall to date remain unexplained and have not been reconciled. As a result, Moody's cannot determine whether the cause of the cumulative BRL 19 million collection shortfall is due to (i) the BRL 46.9 mm in void assets uncovered, (ii) delinquencies of existing assets, (iii) trapped cash, and/or (iv) non-remittance by the jurisdictions. As a result, projections of future collections are highly uncertain and volatile. Furthermore, the lack of prepayment data for the current portfolio introduces further uncertainties. If the reported collections received after the bank's intervention include prepayments, the recoveries shown above may be overstated and future collections may be lower. In its base case scenario, Moody's is assuming a 63% recovery rate in line with collections received between September 15, 2012 and January 14, 2013 with no further stresses, assuming a flat DI Rate, and 0% prepayments. Under this scenario, collections are barely sufficient to amortize the senior share by the final legal maturity on January 15, 2014. Any further deterioration in recoveries may result in an unpaid amounts under the certificates by the final legal maturity in January 2014, which constitutes a payment default under Moody's rating definitions. For example, if collections are less than 52% of contractual scheduled cash flows, the senior shares would not fully amortize by the final legal scheduled payment date but they would pay down in full with promised interest at a later point in time. Under Moody's rating methodology, a Caa1 global scale rating implies a 9.5% expected loss on the securities over a one-year time horizon. This rating action concludes the review commenced on August 21, 2012 and which was prompted by the public announcement by Oliveira Trust as Trustee that an audit by Price Waterhouse Coopers in connection with the RAET declared by the Brazilian Central Bank upon BCSul, had found BRL 46.9 million of void loans ("creditos insubsistentes") sold by Banco Cruzeiro do Sul as seller to FIDC BCSul. Subsequently on September 14, 2012, and during the review period, the Brazilian Central Bank decreed the liquidation of BCSul following failure of the tender offer of the bank. ========================== C A Y M A N I S L A N D S ========================== AFA PRIVATE: Commences Liquidation Proceedings ---------------------------------------------- AFA Private Equity Fund I commenced liquidation proceedings on Nov. 16, 2012. Only creditors who were able to file their proofs of debt by Dec. 24, 2012, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands AFFINIA HOLDINGS: Placed Under Voluntary Wind-Up ------------------------------------------------ On Nov. 19, 2012, the shareholders of Affinia Holdings Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 3, 2013, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Allison Kelly Telephone: (345) 949-0355 Facsimile: (345)949-0360 P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands APC ABSOLUTE: Commences Liquidation Proceedings ----------------------------------------------- On Nov. 19, 2012, the shareholder of APC Absolute Return (Offshore) Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Jonathan Paul c/o Maples and Calder, Attorneys-at-law The Center, 53rd Floor 99 Queen's Road Central Hong Kong APC ABSOLUTE MASTER: Commences Liquidation Proceedings ------------------------------------------------------ On Nov. 19, 2012, the shareholder of APC Absolute Return Master Fund resolved to voluntarily liquidate the company's business. The company's liquidator is: Jonathan Paul c/o Maples and Calder, Attorneys-at-law The Center, 53rd Floor 99 Queen's Road Central Hong Kong C.I. DIRECTORS: Commences Liquidation Proceedings ------------------------------------------------- On Nov. 9, 2012, the sole shareholder of C.I. Directors Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 2, 2013, will be included in the company's dividend distribution. The company's liquidator is: Simon Conway c/o Andrew Nembhard Telephone: (345) 914 8779 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands C.I. SECRETARIES: Commences Liquidation Proceedings --------------------------------------------------- On Nov. 9, 2012, the sole shareholder of C.I. Secretaries Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 2, 2013, will be included in the company's dividend distribution. The company's liquidator is: Simon Conway c/o Andrew Nembhard Telephone: (345) 914 8779 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Island CAPITAL ALLIANCE: Commences Liquidation Proceedings --------------------------------------------------- Capital Alliance Private Equity, Ltd. commenced liquidation proceedings. Only creditors who were able to file their proofs of debt by Jan. 4, 2013, will be included in the company's dividend distribution. The company's liquidator is: Sam Oniovosa Plot 1684, Sansui Fafunwa Street Victoria Island Lagos, Nigeria DGC PENDULUM: Commences Liquidation Proceedings ----------------------------------------------- On Nov. 15, 2012, the sole member of DGC Pendulum Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 27, 2012, will be included in the company's dividend distribution. The company's liquidator is: Richard Finlay c/o Gene DaCosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 PO Box 2681 Grand Cayman KY1-1111 Cayman Islands FRONT STREET: Commences Liquidation Proceedings ----------------------------------------------- On Nov. 15, 2012, the sole shareholder of Front Street Agri Fund Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 2, 2013, 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 JULIUS BAER: Commences Liquidation Proceedings ---------------------------------------------- On Nov. 9, 2012, the sole shareholder of Julius Baer Cayman Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 2, 2013, will be included in the company's dividend distribution. The company's liquidator is: Simon Conway c/o Andrew Nembhard Telephone: (345) 914 8779 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Island LIBERTY CAYMAN: Placed Under Voluntary Wind-Up ---------------------------------------------- On Nov. 14, 2012, the sole shareholder of Liberty Cayman Preferred Company resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 27, 2012, will be included in the company's dividend distribution. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands LIMITLESS INC: Commences Liquidation Proceedings ------------------------------------------------ On Nov. 9, 2012, the shareholders of Limitless Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 3, 2013, will be included in the company's dividend distribution. The company's liquidator is: Peter Anderson 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 LITTLE PLANE: Placed Under Voluntary Wind-Up -------------------------------------------- On Nov. 19, 2012, the shareholders of Little Plane Five Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Trident Liquidators (Cayman) Ltd c/o Mrs Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands PARKTON RE: Placed Under Voluntary Wind-Up ------------------------------------------ At an extraordinary general meeting held on Nov. 15, 2012, the members of Parkton Re Ltd resolved to voluntarily wind up the company's operations. The company's liquidators are: Dena Thompson Yohann Regnard P.O. Box 10233 171 Elgin Avenue The Pavilion Building Grand Cayman Cayman Islands Telephone: 914-2266 Facsimile: 949-6021 RIVERSIDE WISDOM: Commences Liquidation Proceedings --------------------------------------------------- Riverside Wisdom World Allocation Fund commenced liquidation proceedings on Nov. 16, 2012. Only creditors who were able to file their proofs of debt by Jan. 3, 2013, will be included in the company's dividend distribution. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Reference: NDL Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647; or Mourant Ozannes Cayman Liquidators Limited Reference: Peter Goulden Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands SCJREP CAYMAN I: Commences Liquidation Proceedings -------------------------------------------------- On Nov. 19, 2012, the shareholder of SCJREP Cayman I, Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Phi Le c/o Secured Capital Investment Management Co., Ltd. 4-1-28 Toranomon, Minato-ku Tokyo 105-001 Japan SCJREP CAYMAN II: Commences Liquidation Proceedings --------------------------------------------------- On Nov. 19, 2012, the shareholder of SCJREP Cayman II, Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Phi Le c/o Secured Capital Investment Management Co., Ltd. 4-1-28 Toranomon, Minato-ku Tokyo 105-001 Japan YAOLAN LTD: Placed Under Voluntary Wind-Up ------------------------------------------ On Nov. 15, 2012, the shareholders of Yaolan Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 24, 2012, will be included in the company's dividend distribution. The company's liquidator is: Matthew J. Estes East Gate Plaza, 4th Floor, Bldg. A Dong Cheng District, Beijing Telephone: (86-10) 6419 8866 Facsimile: (86-10) 6418-2021 Bldg. A, East Gate Plaza, 4th Floor Dong Cheng District, Beijing 100027 PRC YMK INVESTMENTS: Placed Under Voluntary Wind-Up ----------------------------------------------- On Nov. 19, 2012, the shareholders of YMK Investments Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 3, 2013, will be included in the company's dividend distribution. The company's liquidator is: Buchanan Limited c/o Allison Kelly Telephone: (345) 949-0355 Facsimile: (345)949-0360 P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands ============= J A M A I C A ============= UC RUSAL: Enters Deal With International Banks ---------------------------------------------- RJR News reports that UC Rusal has entered into a syndicated credit facility agreement of up to US$400 million with various international banks aimed at the early partial debt prepayment. The financial institutions include ING Bank as the lead arranger, according to RJR News. The report relates that early February UC Rusal intends to prepay the scheduled amortization of principal due in the third and fourth quarters of this year. RJR News notes that following the payment UC Rusal will not have any principal due in 2013 under the US$4.75 billion syndicated facility. UC Rusal has a stake in the Alpart and Kirkvine alumina refineries in Jamaica, the report says. As reported in the Troubled Company Reporter-Latin America on Sept. 28, 2012, RJR News said that Russian aluminum giant UC Rusal, which has a major stake in Jamaica's bauxite/alumina industry, expects to reach a deal with its lenders within six months to refinance part of an US$11 billion debt burden. It will agree to new loan conditions by the end this year before its covenant holiday expires, according to RJR News. =========== M E X I C O =========== AXTEL SAB: Fitch Cuts LC Issuer Default Rating to 'RD' ------------------------------------------------------ Fitch Ratings has downgraded Axtel, S.A.B. de C.V.'s IDRs as: --Local currency Issuer Default Rating (IDR) to Restricted Default 'RD' from 'C'; --Foreign currency IDR to 'RD' from 'C'; --Long Term National Scale Rating to 'RD(mex)' from 'C(mex)'. Fitch's downgrade reflects the company's announcement of the successful completion of the exchange offer, which is considered by Fitch as a distressed debt exchange (DDE). Holders of 51.6% of the US$275 million senior notes due 2017 and 72.5% of US$490 million senior notes due 2019 elected to participate in the exchange. These holders will receive US$249 million of new 7% step-up senior secured notes due 2020, US$22 million of 7% step-up senior secured convertible dollar-indexed notes due 2020, and US$82.6 million of cash for an early tender and cash payment. The exchange results in a recovery of approximately 71% of the principal for holders that elected to tender their old bonds. Fitch has simultaneously taken various rating actions to reflect Axtel's post-exchange capital structure and the fundamental outlook of the company: --Local Currency IDR upgraded to 'B' from 'RD'; --Foreign Currency IDR upgraded to 'B' from 'RD'; --Long Term National Scale rating upgraded to 'BB-(mex)' from RD(mex); --Senior unsecured old notes due 2019 upgraded to 'B-/RR5' from C/RR4'; --Senior unsecured old notes due 2017 assigned a rating of 'B- /RR5'; --Senior secured new notes due 2020 assigned a rating of 'B+/RR3'; --Senior secured convertible new notes due 2020 assigned a rating of 'B+/RR3'. The Rating Outlook is Stable. Axtel's 'B' IDR ratings reflect the successful debt exchange, which resulted in a less levered capital structure. Nevertheless, the company still continues to face a strong competitive environment. After the exchange, Axtel will have US$580 million of debt, which is mainly composed of US$249 million of senior secured notes due 2020, US$22 million of senior secured convertible dollar-indexed notes due 2020 and the outstanding balance of the 2017 and 2019 unsecured notes of US$133 million and US$135 million, respectively. The exchange will reduce pressure on the company's liquidity position, as debt service will be reduced and the debt maturity profile extended. The new secured notes rated at 'B+/RR3' reflect good recovery prospects given default. These notes will be secured by first priority liens on all capital stock of subsidiary guarantors and substantially all assets. Securities rated 'RR3' consider good recovery prospects given default and have characteristics consistent with securities historically recovering 51%-70% of current principal and related interest. Conversely, the remaining old notes rated 'B-/RR5' will be structurally subordinated to senior debt and the covenants have been removed. 'RR5' rated securities have characteristics consistent with securities historically recovering 11%-30% of current principal and related interest. Company's liquidity position will also improve due to the sale and lease back of 883 of towers for approximately $250 million. Annual lease payments for these assets are expected to be approximately US$20 million. The proceeds will be used to cover the US$83 million cash payment associated with the exchange and about US$15 million of fees. An addition US$82 million will be used to prepay a secured syndicated loan of $82 million. The balance will be used for general corporate purposes. Though this transaction is not expected to materially change off-balance sheet leverage ratios, the prepayment of the syndicated loan should improve the financial flexibility of the company, as the covenants for this loan were pressured. After the exchange and considering the effect of the sale and leaseback of towers, Axtel's total debt to EBITDA ratio should improve to 2.7x from 3.7x, while its net debt to EBITDA ratio will decline to approximate 2.1x. Including lease adjusted debt, Axtel's total adjusted debt to EBITDAR ratio should decline to 3.6x from 4.2x. Axtel continues making significant investments in deploying fiber to the home (FTTH) which should contribute to strengthen its service portfolio with a bundle offering of high-end broadband to both residential and corporate customers, as well as Information and Telecommunications Technology (ICT) services to both users. Considering the new capital structure, Fitch incorporates that, in the next few years, Axtel's total debt should remain relatively stable, as the company will fund its capital expenditures with internal generation, resulting in a minimal FCF generation. Fitch expects that adjusted debt to EBITDAR ratio to remain around 3.5x during the next three to four years. SENSITIVITY/RATING DRIVERS A positive rating action is unlikely in the short term given the recent distressed debt exchange but positive factors to credit quality include improvement in the operating performance, margins, FCF generation, competitive environment and competitive position. A negative rating action could be triggered by poor liquidity or weak operating results as a consequence of tougher competition or higher leverage related an adverse ruling of contingent liabilities. AXTEL CREDIT: S&P Raises Corporate Credit Rating to 'B-' -------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Axtel S.A.B. de C.V. (Axtel) to 'B-' from 'SD'. At the same time, S&P assigned a 'B' issue-level ratings and recovery ratings of '2' to the company's $249 million senior secured bonds due 2020 and $22 million peso-denominated senior secured convertible dollar-indexed bonds due 2020. The recovery rating of '2' indicates S&P's expectation of a very high recovery of 90%-100% if Axtel were to default. S&P is also withdrawing the 'D' ratings on the outstanding balance under its $275 million and $490 million bonds due 2017 and 2019, at the issuer's request. The outlook is stable. The upgrade reflects Axtel's completion of the 65% subpar exchange of its $275 million and $490 million outstanding bonds due 2017 and 2019 for $249 million in senior secured bonds, $22 million in senior convertible secured bonds, and $83 million in cash. In S&P's view this will improve the company's capital structure and liquidity. "The exchange reduces Axtel's principal debt by about $225 million, extends maturity dates to 2020, and reduces the company's interest expenses given lower debt levels, improving its financial flexibility," said Standard & Poor's credit analyst Marcela Duens. In addition, the sale and leaseback of approximately 890 towers to American Tower Corp. for $250 million will improve Axtel's cash position, allowing it to pay down its outstanding syndicated term loan, freeing it from acceleration covenants and allowing it to continue investing in its network. SU CASITA: Missed Interest Payments Prompt Moody's Downgrades ------------------------------------------------------------- Moody's de Mexico downgraded the ratings on the BRHCCB 08U Class A1 certificates that HSBC Mexico, S.A. Institucion de Banca Multiple, Grupo Financiero HSBC, Division Fiduciaria, acting solely as trustee, has issued. This rating action concludes the review for possible downgrade. The complete rating action is as follows: Originator: Hipotecaria Su Casita, S.A. de C.V. Sociedad Financiera de Objeto Multiple E.N.R. Servicer: Patrimonio, S.A. de C.V. Sociedad Financiera de Objeto Limitado, SOFOL. Issuer: HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC, Division Fiduciaria, acting solely as trustee. BRHCCB 08U Class A1, ratings downgraded to B3.mx (sf) from A2.mx (sf); previously on Jun 28, 2012 Downgraded to A2.mx (sf) and Remained On Review for Possible Downgrade (Mexican National Scale) and to B3 (sf) from Ba2 (sf); previously on Jun 28, 2012 Downgraded to Ba2 (sf) and Remained On Review for Possible Downgrade (Global Scale, Local Currency). Ratings Rationale: Moody's rating action is based mainly on: (a) the recurring missed interest payments on the BRHCCB 08U Class A1 certificates since June 2012, and (b) the continued weak level of collections since the servicing transfer to Patrimonio from Su Casita in February 2012. The interest payment defaults on Class A1 BRHCCB 08U persist since the last review in June 2012. The factors that are negatively affecting the transaction are lower interest collections and higher transaction expenses. After the servicing transfer to Patrimonio in February 2012, gross interest collections have declined by approximately 28% as compared to the average level of interest collections in the months prior to the servicing transfer. Moody's maintained the certificates on review for possible downgrade to determine whether the level of collections would revert to the levels seen prior to the servicing transfer after the review period. Instead, delinquencies increased and collections remained low after the servicer transfer. Nearly 39% of the total original pool is either more than 90 days past due or in real-estate-owned status. In addition, monthly collection expenses (including servicing fee, life/insurance premiums, SHF swap premiums and mortgage insurance premiums) have increased after the servicing transfer and have now stabilized at MXN4.5 million monthly. Prior to the transfer, monthly collection expenses were lower (approximately MXN4 million). Most of the increase is due to the higher servicing fee paid to Patrimonio. The lower level of collections combined with the higher collection expenses are resulting in significantly lower amounts available to distribute under the interest waterfall, resulting in recurring interest shortfalls. Per the distribution report sent by the common representative, as of the last reported month (December 2012), the cumulative interest shortfall of UDIs 800,629 represents 1.2% of the Class A1 current balance of UDIs 65.03 million or 0.4% of the original Class A1 balance. Moody's expects that interest shortfalls will continue in the future due to the weak pool performance and higher expenses. Under the assumption that Class A1 will receive just 70% of its scheduled monthly interest payments during its remaining life, the estimated cumulative interest shortfalls on Class A1 will represent approximately 3.0% of its original balance. The rating action reflects the possibility of such an interest shortfall during the life of the Class A1 certificates. With respect to the sensitivity of the ratings, if during the course of monitoring this certificate, Moody's were to instead assume that the projected cumulative interest shortfalls on Class A1 will represent more than 5.0% of its original balance (instead of the 3.0% projected), the certificates would like be downgraded by one notch to Caa1 (sf) on the global scale. Moody's notes that the Class A1 certificates benefit from a strong level of credit enhancement of 82.1% in the form of overcollateralization and subordination from the Class A2 and Class B certificates, neither of which receive principal payments until the Class A1 pays down in full. This credit enhancement of 82.1% compares to Moody's projection of pool lifetime losses of 33.9% as a percent of the current pool balance (the product of a severity of 52% and projected lifetime defaults of 65.2% as a percent of the current pool). Even if Moody's were to assume a severity of 100%, it would project lifetime losses 65.2% of the current pool, which is well below Class A1's credit enhancement of 82.1%. This implies that while Class A1 will most likely continue to suffer interest shortfalls (with high uncertainty regarding their ultimate repayment), there is a high likelihood that Class A1 will receive all principal payments due. In the current dual waterfall definition, the remaining principal collections can be used to pay interest shortfalls only after the Class A group (A1 and A2) are paid in full. Moody's notes that as of this date, investors have not approved any amendments to modify the transaction to allow the use of principal collections to make interest payments, which would increase the likelihood of timely interest payments on Class A1. The principal methodology used in this rating was "Moody's Approach to Monitoring Residential mortgage-Backed Securitizations in Mexico" published in August 2009. Other Factors used in this rating are described in: "Moody's Approach to Rating Structured Finance Securities in Default" published in November 2009. Moody's considered the servicer's practices and considers them adequate. ======= P E R U ======= REPSOL SA: To Sell Its Peru Liquefied Natural Gas Assets -------------------------------------------------------- Trinidad Express reports that Spanish energy giant Repsol SA is negotiating the sale of a block of liquefied natural gas assets, including its stake in Pt Fortin-based Atlantic LNG, with more than one international bidder and expects to finalize a deal in the coming weeks, a source with knowledge of the matter said. Repsol SA is selling LNG assets based in Canada, Trinidad and Tobago and Peru in a drive to remove debt from its balance sheet and improve its chances of keeping an investment grade rating, Canada's Financial Post reported, according to Trinidad Express. Earlier, newspaper Cinco Dias said Repsol SA would likely announce the sale of the assets to Royal Dutch Shell after a board meeting, Trinidad Express notes. Trinidad Express discloses that Repsol has not provided an official valuation of the LNG interests but in a presentation in August said they had off-balance sheet debt of EUR3.6 billion and gross debt of one billion euros. China's Sinopec, Russia's Gazprom, GAIL Ltd of India and GDF Suez of France - in consortium with China's sovereign wealth fund CIC - have been tipped as other potential bidders, the Financial Post said, Trinidad Express notes. Trinidad Express relays that Goldman Sachs is advising Repsol SA on the sale, which the oil firm has said it wants to carry out in one block rather than hiving off the assets, in which it is not the sole shareholder. However, some analysts have expressed doubts that the company could fetch interest for the whole block, particularly from a company like Shell, Trinidad Express notes. "We find the logic of such a deal difficult from Shell's perspective. We would not expect it to show much interest in Repsol's stakes in either Atlantic LNG or Canaport, but there may be some synergy on Peru LNG," said Peter Hutton of RBC Capital Markets in the Financial Post, Trinidad Express adds. ===================== P U E R T O R I C O ===================== CLINICA INTERDISCIPLINARIA: Case Summary & Creditors List --------------------------------------------------------- Debtor: Clinica Interdisciplinaria De Psiquiatria Avanzada Inc. aka CIPA Inc. 650 Lloveras Edif Centro Plaza, Suite 101 San Juan, PR 00909-2113 Bankruptcy Case No.: 13-00561 Chapter 11 Petition Date: January 29, 2013 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Carlos Rodriguez Quesada, Esq. LAW OFFICE OF CARLOS RODRIGUEZ QUES P.O. BOX 9023115 San Juan, PR 00902-3115 Tel: (787) 724-2867 E-mail: cerqlaw@coqui.net Scheduled Assets: $1,813,991 Scheduled Liabilities: $1,738,882 A copy of the Company's list of its three largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/prb13-00561.pdf The petition was signed by Carlos Augusto Caban Pacheco, president. HILL CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Hill Construction, Corp. P.O. Box 9750 San Juan, PR 00908 Bankruptcy Case No.: 13-00601 Chapter 11 Petition Date: January 29, 2013 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Alexis Fuentes Hernandez, Esq. FUENTES LAW OFFICES P.O. Box 9022726 San Juan, PR 00902-2726 Tel: (787) 722-5216 Fax: (787) 722-5206 E-mail: alex@fuentes-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/prb13-00601.pdf The petition was signed by CARMEN RIOS, authorized agent. ROCMEC MINING: AMF Grants Management Cease Trade Order ------------------------------------------------------ Rocmec Mining Inc. on Jan. 30 disclosed that it has been granted a management cease trade order by its principal regulator, the Autorite des marches financiers, and as such, the AMF has accepted the Corporation's request for such MCTO. As previously announced on January 24, 2013 by way of press release, the application for the MCTO was made by the Corporation in respect to the late filing of the Corporation's annual financial statements, accompanying management's discussion and analysis and related CEO and CFO certifications for the financial year ended September 30, 2012, which were to be filed at the latest on January 28, 2013. The MCTO restricts all trading in securities of the Corporation, whether direct or indirect, by the Chief Executive Officer, the Chief Financial Officer and the directors of the Corporation until such time as the 2012 Annual Financial Statements have been filed by the Corporation. The MCTO does not affect the ability of shareholders who are not insiders of the Corporation to trade their securities. However, the applicable Canadian securities regulatory authorities could determine, in their discretion, that it would be appropriate to issue a general cease trade order against the Corporation affecting all of the securities of the Corporation. As previously announced, the Corporation was not in a position to timely file the 2012 Annual Financial Statements, primarily as a result of the time and costs required for auditors in Peru to complete the audit of the annual financial statements, such audit being required due to the mining operations conducted by Rocmec during the financial year ended September 30, 2012 on the Rey Salomon property located in Peru. Rocmec's board of directors and its management confirm that they are working expeditiously to meet Rocmec's obligations relating to the filing of the 2012 Annual Financial Statements and the Corporation continues to expect to file the 2012 Annual Financial Statements on or about February 25, 2013. The Corporation confirms that it will satisfy the provisions of the alternative information guidelines under Policy Statement 12- 203 respecting Cease Trade Orders for Continuous Disclosure Defaults for so long as it remains in default as a result of the late filing of the 2012 Annual Financial Statements. During the period of default, Rocmec will issue bi-weekly default status reports in the form of further press releases, which will also be filed on SEDAR. The Corporation confirms that there are no insolvency proceedings against it as of the date of this press release. The Corporation also confirms that there is no other material information concerning the affairs of the Corporation that has not been generally disclosed as of the date of this press release. Rocmec is active in the exploration and the development of gold resources in Quebec and Peru. ============= U R U G U A Y ============= BANCO BANDES: Moody's Lowers Deposits Ratings One Notch to 'B3' --------------------------------------------------------------- Moody's Investors Service downgraded Banco Bandes Uruguay S.A.'s deposit ratings in local and foreign currency, to B3 from B2, in the global scale, and to Baa3.uy from Baa1.uy, in the national scale. Moody's also changed the outlook of the deposits ratings to negative, from stable. At the same time, Moody's affirmed Bandes' standalone financial strength rating of E, which maps to a standalone credit assessment of caa1. The following ratings were downgraded, with a negative outlook: Long Term Global Local Currency Deposit Rating to B3 Long Term Global Foreign Currency Deposit Rating to B3 Long Term National Scale Local Currency Deposit Rating to Baa3.uy Long Term National Scale Foreign Currency Deposit Rating to Baa3.uy The following rating was affirmed, with a stable outlook: Bank Financial Strength Rating of E Ratings Rationale: The downgrade of Bandes' deposit ratings reflects Moody's assessment of a lower, though still high, probability of parental support from the bank's ultimate parent, the Venezuelan government, which reflects uncertainties about the support that Bandes Venezuela would provide to its Uruguayan subsidiary. The negative outlook on the bank's deposit ratings is in line with the outlook on the Venezuelan government bond rating, which Moody's changed to negative from stable on January 15, 2013. Bandes's B3 deposit rating incorporates one notch of uplift from the bank's standalone credit assessment of caa1. Moody's rates B2 the Venezuelan Government bonds, with a negative outlook. In affirming Bandes' E standalone financial strength rating, Moody's mentioned the bank's modest business volume and limited franchise in Uruguay, as well as its persistent losses, despite a gradually improving operating income. Moody's also pointed out that the bank's large nationwide network continues to affect Bandes' efficiency, and thus its profitability. Bandes caters to Uruguayan retail clients and small and medium sized entities, yet as a subsidiary of the Venezuelan government development bank, Banco de Desarrollo Economico y Social de Venezuela (Bandes Venezuela), the bank could benefit from Venezuela's recent entry into Mercosur, and the potential for trade-related and other businesses that the alliance could generate. Banco Bandes Uruguay S.A. is located in Montevideo, Uruguay, and reported UR$7.1 billion in assets and Ur$954 million in shareholders' equity as of year-end 2012. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. ================= V E N E Z U E L A ================= SIDETUR DEL TURBIO: Trustee Said to Declare Firm in Default ----------------------------------------------------------- Nathan Crooks & Corina Pons at Bloomberg News report that Siderurgica del Turbio SA, the Venezuelan steelmaker taken over by the government in 2010, was found to be in default, creating a fresh opportunity for bondholders to demand immediate repayment. Deutsche Bank Trust Company Americas, the trustee for the $75 million of outstanding bonds issued by the Caracas-based steel producer known as Sidetur, said in a Jan. 30 letter to creditors that a technical default occurred because a reserve account maintained by the company wasn't fully funded, according to Russell Dallen, the head trader at Caracas Capital Markets, and Ray Zucaro at SW Asset Management LLC, according to Bloomberg News. Bloomberg News notes that they said they received the trustee's notice because they own some of the debt. The technical default offers another chance for debtholders to vote to demand they immediately be repaid in full, an opportunity that first surfaced when the company was taken over because of a change-of-control clause in the bonds, Mr. Dallen said, Bloomberg News discloses. The securities, which Fitch Ratings cut to seven steps below investment grade in November, last traded at 85 cents on the dollar on Jan. 22 to yield 16, according to prices compiled by Trace, the bond price reporting system of the Financial Industry Regulatory Authority, Bloomberg News relays. Bloomberg News discloses that Venezuela's government, which nationalized Sidetur in 2010 and seized its assets in October, said last year it would determine a 'fair' price for the company that it would pay. Venezuelan President Hugo Chavez has seized companies in the energy, food, metals, cement and banking industries since first taking office in 1999 as part of his plan to create a socialist country, Bloomberg News. President Hugo Chavez's takeover of FertiNitro in October 2010 handed bond investors windfall profits the next year because of a clause requiring a payout above face value in the event of a nationalization, Bloomberg News recalls that says. =============== X X X X X X X X =============== * BOND PRICING: For the Week Jan. 28 to Feb. 1, 2013 ---------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-$DIS 8.28 12/31/2033 USD 59.65 ARGENT-$DIS 8.28 12/31/2033 USD 60.75 ARGENT-$DIS 8.28 12/31/2033 USD 61.63 ARGENT-$DIS 8.28 12/31/2033 USD 61.63 ARGENT-$DIS 8.28 12/31/2033 USD 63.25 ARGENT-PAR 1.18 12/31/2038 ARS 42.04 ARGENT-EURDIS 7.82 12/31/2033 EUR 45 ARGENT-EURDIS 7.82 12/31/2033 EUR 60 ARGENT-EURDIS 7.82 12/31/2033 EUR 60.5 ARGENT- JPYDIS 4.33 12/31/2033 JPY 35.5 ARGENT- JPYDIS 4.33 12/31/2033 JPY 36 ARGENT- JPYPAR&GDP 0.45 12/31/2038 JPY 8 ARGNT-BOCON PRE9 2 3/15/2014 ARS 50 BANCO MACRO SA 9.75 12/18/2036 USD 72.5 BANCO MACRO SA 9.75 12/18/2036 USD 71.88 BANCO MACRO SA 9.75 12/18/2036 USD 71.88 CAPEX SA 10 3/10/2018 USD 75 CAPEX SA 10 3/10/2018 USD 73.25 CIA LATINO AMER 9.5 12/15/2016 USD 70 EMP DISTRIB NORT 9.75 10/25/2022 USD 46.05 EMP DISTRIB NORT 10.5 10/9/2017 USD 36.85 EMP DISTRIB NORT 9.75 10/25/2022 USD 44.5 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 67 METROGAS SA 8.875 12/31/2018 USD 69.13 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.87 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.88 PROV BUENOS AIRE 9.375 9/14/2018 USD 70.91 PROV BUENOS AIRE 9.375 9/14/2018 USD 70.7 PROV BUENOS AIRE 10.875 1/26/2021 USD 72.7 PROV BUENOS AIRE 10.875 1/26/2021 USD 72.31 PROV DE FORMOSA 5 2/27/2022 USD 62.63 PROV DE MENDOZA 5.5 9/4/2018 USD 73.78 PROV DEL CHACO 4 12/4/2026 USD 27.75 PROV DEL CHACO 4 11/4/2023 USD 55.13 TRANSENER 9.75 8/15/2021 USD 39 TRANSENER 9.75 8/15/2021 USD 38.75 TRANSENER 8.875 12/15/2016 USD 41.01 BRAZIL ------ CESP 9.75 1/15/2015 BRL 74.7 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 59.5 BANCO BPI (CI) 4.15 11/14/2035 EUR 65.13 BCP FINANCE CO 4.239 EUR 42 BCP FINANCE CO 5.543 EUR 43 BES FINANCE LTD 4.5 EUR 64.83 BES FINANCE LTD 5.58 EUR 67.5 CAM GLOBAL FIN 6.08 12/22/2030 EUR 61 CHINA FORESTRY 10.25 11/17/2015 USD 53 CHINA FORESTRY 10.25 11/17/2015 USD 53.13 CHINA SUNERGY 4.75 6/15/2013 USD 57.87 ERB HELLAS CAYMA 9 3/8/2019 EUR 50.75 ESFG INTERNATION 5.753 EUR 53.19 GOL FINANCE 8.75 USD 77.25 GOL FINANCE 8.75 USD 74.88 JINKOSOLAR HOLD 4 5/15/2016 USD 60 LUPATECH FINANCE 9.875 USD 45 LUPATECH FINANCE 9.875 USD 43.5 PUBMASTER FIN 6.962 6/30/2028 GBP 62.76 PUBMASTER FIN 8.44 6/30/2025 GBP 64 SUNTECH POWER 3 3/15/2013 USD 49.5 SUNTECH POWER 3 3/15/2013 USD 50.4 BRAZIL ------ CESP 9.75 1/15/2015 BRL 74.7 CHILE ----- ALMENDRAL TEL 3.5 12/15/2014 CLP 42.34 CHILE 3 1/1/2042 CLP 65.9 CHILE 3 1/1/2042 CLP 65.9 CHILE 3 1/1/2040 CLP 67.41 CHILE 3 1/1/2040 CLP 67.41 COLBUN SA 3.2 5/1/2013 CLP 24.86 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 58.5 PUERTO RICO CONS 6.5 4/1/2016 USD 69.48 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 69 PETROLEOS DE VEN 5.375 4/12/2027 USD 72.25 *********** 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 * * *