/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130221.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, February 21, 2013, Vol. 14, No. 37 Headlines C A Y M A N I S L A N D S ANALYTIC TOTAL: Commences Liquidation Proceedings CARLYLE LOAN: Commences Liquidation Proceedings CLEVER LIMITED: Placed Under Voluntary Wind-Up CMT GLOBAL: Commences Liquidation Proceedings COLDSTREAM ALTERNATIVE: Commences Liquidation Proceedings DIKER MICRO: Commences Liquidation Proceedings EMERALD LIMITED: Commences Liquidation Proceedings FPP (GENERAL PARTNER): Commences Liquidation Proceedings FPP JAPAN: Commences Liquidation Proceedings HUNTER GLOBAL: Commences Liquidation Proceedings HUNTER GLOBAL SRI: Commences Liquidation Proceedings HUTCHISON HARBOUR: Placed Under Voluntary Wind-Up JESSICA CONSULTING: Placed Under Voluntary Wind-Up KCP II OFFSHORE: Commences Liquidation Proceedings OTIS HOLDINGS: Placed Under Voluntary Wind-Up PALISADE MICROCAP: Commences Liquidation Proceedings PICPOINT LIMITED: Commences Liquidation Proceedings PISCES INC: Commences Liquidation Proceedings SSARIS MULTI-MANAGER: Commences Liquidation Proceedings YAMANA GOLD: Commences Liquidation Proceedings C O S T A R I C A * COSTA RICA: Credit Restrictions Neutral for Ratings, Fitch Says J A M A I C A NATIONAL COMMERCIAL: Fitch Puts 'B-' IDR on Watch Negative * JAMAICA: Agrees US$750 Million IMF Loan Terms M A R S H A L L I S L A N D S PARAGON SHIPPING: Completes Debt Restructuring M E X I C O * MORELOS: Moody's Affirms Ba2 Issuer Rating; Outlook is Stable P U E R T O R I C O HOTEL AIRPORT: To Present Plan for Confirmation on March 19 T R I N I D A D & T O B A G O PETROTRIN: Gets Single Offer for GTL Plant X X X X X X X X * LATAM: Airline Mergers No Impact on Airports, Fitch Says * Upcoming Meetings, Conferences and Seminars - - - - - ========================== C A Y M A N I S L A N D S ========================== ANALYTIC TOTAL: Commences Liquidation Proceedings ------------------------------------------------- On Dec. 3, 2012, the sole shareholder of Analytic Total Return Volatility Fund, Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Analytic Investors, LLC c/o Dennis Roy 555 West Fifth Street, 50th Floor Los Angeles California 90013 United States of America Telephone: +1 (213) 787-9761 CARLYLE LOAN: Commences Liquidation Proceedings ----------------------------------------------- On Dec. 4, 2012, the sole shareholder of Carlyle Loan Investment Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 17, 2013, 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, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 CLEVER LIMITED: Placed Under Voluntary Wind-Up ---------------------------------------------- On Dec. 3, 2012, the sole shareholder of Clever Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 15, 2013, will be included in the company's dividend distribution. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 949-7128 CMT GLOBAL: Commences Liquidation Proceedings --------------------------------------------- On Nov. 29, 2012, the sole shareholder of CMT Global Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 17, 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 KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 COLDSTREAM ALTERNATIVE: Commences Liquidation Proceedings --------------------------------------------------------- On Nov. 28, 2012, the sole shareholder of Coldstream Alternative Strategies Fund, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 17, 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 KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 DIKER MICRO: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 4, 2012, the sole shareholder of Diker Micro and Small Cap Offshore Fund, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814-6847 EMERALD LIMITED: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 4, 2012, the sole shareholder of Emerald Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Roberto Alarcon c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands FPP (GENERAL PARTNER): Commences Liquidation Proceedings -------------------------------------------------------- On Nov. 29, 2012, the sole shareholder of FPP (General Partner) Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 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 FPP JAPAN: Commences Liquidation Proceedings -------------------------------------------- On Nov. 29, 2012, the sole shareholder of FPP Japan Fund Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 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 HUNTER GLOBAL: Commences Liquidation Proceedings ------------------------------------------------ On Dec. 4, 2012, the sole shareholder of Hunter Global Investors Offshore Fund Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814-6847 HUNTER GLOBAL SRI: Commences Liquidation Proceedings ---------------------------------------------------- On Dec. 4, 2012, the sole shareholder of Hunter Global Investors SRI Fund Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 16, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814-6847 HUTCHISON HARBOUR: Placed Under Voluntary Wind-Up ------------------------------------------------- On Nov. 27, 2012, the sole shareholder of Hutchison Harbour Ring Holdings Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 8, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ying Hing Chiu Three Pacific Place, Level 28 1 Queen's Road East Hong Kong Telephone: (852) 2980-1988 Facsimile: (852) 2882-6700 JESSICA CONSULTING: Placed Under Voluntary Wind-Up -------------------------------------------------- On Nov. 29, 2012, the sole shareholder of Jessica Consulting Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Dec. 28, 2012, will be included in the company's dividend distribution. The company's liquidator is: MBT Trustees Ltd. P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands Telephone: 945-8859 Facsimile: 949-9793 KCP II OFFSHORE: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 5, 2012, the sole shareholder of KCP II Offshore Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 17, 2013, will be included in the company's dividend distribution. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Telephone: (345) 946 7665 Facsimile: (345) 946 7666 OTIS HOLDINGS: Placed Under Voluntary Wind-Up --------------------------------------------- On Dec. 3, 2012, the sole shareholder of Otis Holdings Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 15, 2013, will be included in the company's dividend distribution. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 949-7128 PALISADE MICROCAP: Commences Liquidation Proceedings ---------------------------------------------------- On Dec. 3, 2012, the sole shareholder of Palisade Microcap Partners (Cayman) Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Dennison Veru c/o Palisade Capital Management, L.L.C. One Bridge Plaza Suite 695, Fort Lee New Jersey 07024 United States of America Telephone: + 1 (201) 585-5433 E-mail: dveru@palcap.com PICPOINT LIMITED: Commences Liquidation Proceedings --------------------------------------------------- On Nov. 22, 2012, the shareholders of Picpoint Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Theodose Melas Kyriazi c/o Bryan Cave 88 Wood Street London EC2V 7AJ Telephone: +4 (420) 3207-1180 PISCES INC: Commences Liquidation Proceedings --------------------------------------------- On Nov. 28, 2012, the sole shareholder of Pisces Inc. resolved to voluntarily liquidate the company's business. The company's liquidator is: UBS Nominees Ltd. c/o Stephen Nelson Telephone: 949-4544 Facsimile: 949-8460 Charles Adams Ritchie & Duckworth Zephyr House, 122 Mary Street PO Box 709, Grand Cayman KY1-1107 Cayman Islands SSARIS MULTI-MANAGER: Commences Liquidation Proceedings ------------------------------------------------------- On Nov. 26, 2012, the sole shareholder of SSARIS Multi-Manager Japan Equity Fund Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 8, 2013, will be included in the company's dividend distribution. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Reference: James Webb Telephone: +1 (345) 814-9208 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, George Town Grand Cayman KY1-1108 Cayman Islands YAMANA GOLD: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 4, 2012, the sole shareholder of Yamana Gold Holdings (Cayman) II Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Roberto Alarcon c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands =================== C O S T A R I C A =================== * COSTA RICA: Credit Restrictions Neutral for Ratings, Fitch Says ----------------------------------------------------------------- Despite credit restrictions sanctioned by the Central Bank of Costa Rica (BCCR) in January, ratings on the country's Financial Institutions will remain stable, according to Fitch Ratings. The reform will not alter the ratings' fundamentals, which are driven by sovereign or institutional support, in the majority of cases. Fitch also foresees that financial institutions whose ratings are based on their intrinsic creditworthiness will be able to sustain the impact of restricted credit growth. The reform enacted by the BCCR places a ceiling of 9% in the accumulated growth rates in credit to, and investments in, the non-financial private sector in both local and foreign currency between the months of February and October by financial institutions regulated by the Superintendencia General de Entidades Financieras (SUGEF), the General Financial Institution Authority. The reform also limits credit expansion in foreign currency by either 6% in entities reporting an accumulated growth of equal or less to 20%, or by 30% of the annual rate for entities surpassing the aforementioned growth. According to the BCCR, these measures respond to the increased external capital flows, motivated partially by interest rate arbitrage, and its effects in the appreciation of the local currency, the colon. The measures also seek to contain excessive credit growth particularly that denominated in foreign currency. According to Fitch's estimates, this reform will primarily impact the smaller and private banks and credit and savings unions. The limit enacted by the BCCR, equivalent to 12.2% annualized, is close to the growth rate reported by the domestic banking system during 2012 (13.45%). However, the limit is well below the growth rates achieved by private banks (16.6%) and credit unions (21.57%). Of the 59 institutions comprised in the agency's calculations, at least 35 exceeded credit growth rates of 12.2%, and nine of these institutions were banks. Fitch estimates that interest income foregone by the credit restrictions will have a moderate impact in the results of the financial system. Assuming stability in interest rates and the sustainability of last years' growth rates, foregone gross interest income will be close to 90,000 million of colones (USD 180 millions) or 6% of last year's gross interest income generated by the restricted assets. The median of foregone interests relative to last year's operating income is 12% for those banks exceeding the limit. For credit unions, this ratio is 11%. The temporary nature of the reform, together with the short horizon between its announcement and implementation, impairs the ability of the financial institutions to adjust their strategies to compensate for the credit restrictions. Nonetheless, some entities may delay their investment plans. Residential mortgages and consumer loans, the leading growth sectors, will be the most impacted by the credit restriction, according to Fitch. Additionally, this credit restriction will increase the already elevated exposure to securities issued by the state and the BCCR. The national financial system comprises 59 institutions, including commercial banks and other private financial intermediaries: credit and savings unions, housing mutuals, private finance companies, exchange bureaus, and the Caja de Ande. Restricted credit assets include loans and investments in the non- financial private sector extended by financial intermediaries regulated by SUGEF. As of the fiscal year ended in 2012, these assets accounted for 11,778,746 million of colones (USD 23,557 millons). The measure was enacted by the BCCR on Jan. 30, 2013, effective from Feb. 1, 2013. ============= J A M A I C A ============= NATIONAL COMMERCIAL: Fitch Puts 'B-' IDR on Watch Negative ---------------------------------------------------------- Fitch Ratings has placed National Commercial Bank of Jamaica Limited's long-term foreign and local currency Issuer Default Ratings (IDR) of 'B-' on Rating Watch Negative. KEY RATING DRIVERS The placement of NCBJ's IDRs on Rating Watch Negative reflects the continued downside risks generated by the recent debt exchange announced by the Jamaican Government, given the potential for a more challenging operating environment in the event of an unsuccessful debt exchange or the government's inability to meet other pre-conditions for securing an IMF programme. Despite the former, the bank remains well positioned to manage the fallout from the government's debt restructuring. Around 30% of the bank's assets (1.6x equity) as of Sept. 30, 2012, will be subject to restructuring under the Jamaican debt exchange, leading to a reduction in interest income after settlement on Feb. 22, 2013. Fitch downgraded the sovereign's foreign and local currency IDRs to 'C' from 'B-' on Feb. 12, 2013. The downgrade of Jamaica's sovereign ratings reflected the government's announcement of a domestic debt exchange involving approximately J$860 billion in both foreign currency (FC) and local currency (LC) domestic debt. In Fitch's opinion, the exchange, if completed, would constitute a 'distressed debt exchange' (DDE) in line with its criteria, as the operation adversely affects the original contractual terms of domestic bond holders. Hence, the sovereign's FC and LC IDRs will be lowered to 'Restricted Default' (RD) upon completion of the exchange. RATING DRIVERS AND SENSITIVITIES - VR & IDRs NCBJ's Viability Rating (VR) drives its long-term IDRs. The bank's VR reflects its strong domestic franchise, solid profitability, and adequate capitalization in light of the bank's risk profile. Nevertheless, NCBJ's ratings remain constrained by the sovereign's weak credit profile given high exposure to the Jamaican government, lending concentrations, as well as a challenging operating environment. Investments and loans to the Jamaican government, public entities and entities with a Jamaican government guarantee continued to represent a high proportion of NCBJ's total assets at 52%, or about 3 times (x) its equity, in the fiscal year ended September 2012 (FYE12). Fitch remains concerned about this high asset concentration given the government of Jamaica's weak credit profile. Despite the bank's exposure to the Jamaican government, Fitch believes NCBJ is sufficiently capitalized to absorb any unexpected losses related either to the debt exchange or its impaired loans portfolio. The bank's Fitch Core Capital ratio reached 33.7% at FYE12, comparing favorably to international peers (emerging market commercial/universal banks). Although the reduction in interest revenue related to the exchange will negatively affect profitability, Fitch assumes bank management will offset some of this reduction in income with other measures to improve efficiency and funding costs. As a result, Fitch believes profitability will remain positive in FY2013 and continue to compare favorably to international peers. Future rating actions will be highly contingent on a change in Fitch's view of the sovereign given the bank's sizable sovereign exposure. Jamaica's ratings will be raised out of default shortly after Fitch determines that the exchange has been successful and the agency will assign a new rating consistent with Jamaica's prospective credit profile and debt structure. At that point, Fitch will resolve the Rating Watch Negative on NCBJ's IDRs and assess if these could be above, capped or below the sovereign rating. Additionally, a downgrade of the bank's ratings could be driven by an unexpected marked deterioration of asset quality that weakens profitability or capitalization to a level that is no longer consistent with its current peers (emerging market commercial banks with a VR of 'b-', 'b' or 'b+'). Although not Fitch's base case scenario, unexpected deposit instability may also trigger a negative rating action. SUPPORT RATING AND SUPPORT RATING FLOOR The bank's Support rating is constrained by the sovereign's weak credit profile. As such, the Support floor has been downgraded to 'C' from 'B-', in line with the sovereign's ratings although Fitch continues to believe that NCBJ's systemic importance makes the government's propensity to support the bank high despite its weak capacity. NCBJ is the largest bank in the system in terms of assets with more than 40% market share of the commercial banking system in recent years. In 2002, the Jamaican government sold a majority stake in the bank to Advantage Investment Corporation (AIC), one of Canada's largest privately held mutual fund management companies. Fitch has taken these actions on NCBJ's ratings: -- Long-term foreign and local currency Issuer Default Ratings (IDR) of 'B-' placed on Rating Watch Negative; -- Short-term foreign and local currency IDR affirmed at 'B'; -- Viability Rating affirmed at 'b-' -- Support Rating affirmed at '5'; -- Support floor downgraded to 'C' from 'B-'. * JAMAICA: Agrees US$750 Million IMF Loan Terms ----------------------------------------------- BBC News reports that Jamaica has agreed terms with the International Monetary Fund to receive a new US$750 million (GBP483 million) loan. A condition for the IMF loan is the completion of a planned debt swap, according to BBC News. BBC News says Jamaica must get private sector lenders to accept more lenient terms on its existing heavy debt load, equal to 140% of economic output. The report relates that the Jamaican government is also implementing spending cuts and labor market reforms as it seeks to deal with a serious economic crisis. "Over the last three decades, the Jamaican economy has experienced very low economic growth, declining productivity, and reduced international competitiveness. . . . An important factor behind these problems has been Jamaica's unsustainable debt burden, which has undermined confidence and elevated risks to the economic stability," the report quoted Jan Kees Martijn, the head of the IMF's mission to Jamaica, as saying. The report notes that the four-year loan still needs to be approved by the IMF's executive board, which is due to review the terms by the end of March. By then, the report discloses, the government in Kingston will need to have carried out necessary economic and fiscal reforms, and to have won a "high rate of participation of private creditors" in the debt swap. "If this debt is not reduced, Jamaica faces a dismal future," Prime Minister Portia Simpson Miller said on Jamaican TV, explaining the need for the swap, the report relays. BBC News says that about 55% of government spending goes towards paying the nation's debt, while 25% goes on wages. That leaves just 20% for everything else -- including education, security and health. The swap is likely to result in a significantly lower interest rate being paid by Jamaica to its lenders, the report discloses. The relatively high current interest rate reflects the low expectations of lenders that the government will ever be able to repay its existing debts in full, the report relays. BBC News adds that lenders have already been hit once -- it is the second such debt swap by Jamaica in three years. =============================== M A R S H A L L I S L A N D S =============================== PARAGON SHIPPING: Completes Debt Restructuring ---------------------------------------------- Paragon Shipping Inc. on Feb. 19 disclosed that on February 8, 2013, the Company completed its debt restructuring by finalizing the documentation for amendments to the loan agreements with each of its lenders and successfully fulfilling all conditions precedent to these amendments. The Company had previously announced its entry into supplemental agreements with several of its lenders. In January 2013, the Company signed supplemental agreements with HSH Nordbank AG and Nordea Bank Finland Plc, and in February 2013, it finalized the documentation with Commerzbank AG, which completed its debt restructuring. On December 24, 2012, the Company raised $10.0 million though the private placement of 4,901,961 shares of the Company's common stock to Mr. Michael Bodouroglou, the Company's Chairman and Chief Executive Officer, in fulfillment of a condition to its debt restructuring. Under the terms of the private placement, the Company was granted a right to repurchase the shares issued in the private placement, which has now been expired upon the execution of definitive documentation of its debt restructuring. As part of the Company's debt restructuring program, it obtained waivers and agreed to the relaxation of several financial and security coverage ratio covenants, the deferral of a portion of its scheduled quarterly installments and, in the case of its loan agreements with Bank of Ireland and The Bank of Scotland Plc, the extension of the loan agreements to the second quarter of 2017 and to the third quarter of 2015, respectively. In addition, in respect to the loan agreement with The Bank of Scotland Plc, we agreed to a payment of $2.8 million for the full and final settlement of $4.7 million in debt, representing the portion of the loan of one of the syndicate members. This advance payment of $2.8 million was made on December 10, 2012, resulting in a gain from debt extinguishment of $1.9 million that was recorded in the fourth quarter of 2012. Furthermore, the Company extended the availability period of the syndicate facility led by Nordea Bank Finland Plc for nine months, securing the financing of our last Handysize newbuilding drybulk vessel (Hull no. 625) that is expected to be delivered in the fourth quarter of 2013. Overall, by successfully completing its debt restructuring program, the Company reduced its debt repayment requirements for 2013 and 2014 by $44.4 million and $6.9 million, respectively. The disclosure was made in Paragon's earnings release for the year ended Dec. 31, 2012, a copy of which is available for free at http://is.gd/HA1uog Paragon Shipping -- http://www.paragonship.com/-- is a Marshall Islands-based international shipping company with executive offices in Athens, Greece, specializing in the transportation of drybulk cargoes. The Company's current fleet consists of twelve drybulk vessels with a total carrying capacity of 779,270 dwt. In addition, the Company's current newbuilding program consists of two Handysize drybulk carriers that are scheduled to be delivered in 2013 and two 4,800 TEU containerships that are scheduled to be delivered in 2014. =========== M E X I C O =========== * MORELOS: Moody's Affirms Ba2 Issuer Rating; Outlook is Stable --------------------------------------------------------------- Moody's confirmed the issuer ratings of Morelos at Ba2 (Global Scale, local currency) and A2.mx (Mexican National Scale). The outlook of Morelos' issuer ratings was revised to stable. This action concludes the review that was initiated on August 1 and extended on November 13. Ratings Rationale: The confirmation of the State of Morelos' issuer ratings of Ba2/A2.mx reflects Moody's assessment that the state's exposure as a joint obligor to Cuernavaca's defaulted loan is negligible. This is supported by: a) net exposure to this loan is very small with respect to Morelos' revenues, b) there have not been any signs that the bank might claim payment from Morelos and in this remote event, Morelos has expressed its willingness to pay. The loan has an original face value of MXN300 million. The bank BBVA Bancomer called the early amortization of the loan of the Municipality of Cuernavaca (not rated by Moody's) due to certain covenant violations by the municipality. The State of Morelos acts as a joint obligor for this loan. Notwithstanding, Moody's estimates that the net exposure to this loan amount represents less than 1% of Morelos' total revenues which is insignificant relative to the state's financial position and hence does not impact Moody's assessment of its ability to pay. In addition, Morelos has acted as a mediator in the negotiations between the bank and Cuernavaca, which Moody's expects to conclude in the following weeks. The Ba2/A2.mx ratings assigned to the State of Morelos reflect roughly balanced and stable fiscal outcomes, owing to a structural alignment between revenue and expenditures growth which support low debt levels. The ratings also capture governance and management practices in line with Ba rated states and Morelos' credit challenges related to uncertainties surrounding unfunded pension liabilities and a relatively narrow liquidity position. What Could Change The Rating Up/Down The continuation of an adequate fiscal policy that results in balanced consolidated results, low debt metrics and sound liquidity levels, along with the implementation of measures to address unfunded pension liabilities, could exert upward pressure on the ratings. Conversely, a shift in fiscal policy resulting in significant cash financing requirements, increases in debt metrics and further weakening of liquidity could exert downward pressure on the ratings. The principal methodologies used in this rating were Regional and Local Governments published on 18-Jan-2013, Enhanced Municipal and State Loans in Mexico published on 27-Jan-2011, and Mapping Moody's National Scale Ratings to Global Scale Ratings published in 9-Oct-2012. ===================== P U E R T O R I C O ===================== HOTEL AIRPORT: To Present Plan for Confirmation on March 19 ----------------------------------------------------------- Hotel Airport Inc. is now slated to seek approval of its bankruptcy exit plan after it obtained approval of the explanatory disclosure statement filed in November. The Bankruptcy Court as a result scheduled a hearing to consider confirmation of the Plan on March 19, 2013, at 2:00 p.m. The Debtor is soliciting votes on the Plan. Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on/or before 14 days prior to the date of the hearing on confirmation of the Plan. Any objection to confirmation of the Plan will be filed on/or before 21 days prior to the date of the hearing on confirmation of the Plan. Objections to claims must be filed 45 days prior to the hearing on confirmation. The Plan will be substantially funded by the Debtor's assets and income from the operation of its business. The Plan contemplates the assumption of the lease contract with the Puerto Rico Ports Authority under Bankruptcy Code Section 365. The assumption is part of the stipulation which provide for the curing of defaults through payments and withdrawal of funds which are underway. At the time of filing of this bankruptcy case, the Debtor was involved in the eviction litigation with the PRPA. This litigation has been settled. The Plan treats claims and interests as follows: * Holders of allowed administrative expense priority claims, which are unclassified, will be paid in full on the effective date of the Plan. * General unsecured creditors were listed in the Debtor's schedules in the total amount of $155,666,718. The bulk of this debt ($155,500,000) arises out of HAI being a co-obligor with its parent company, CAF, regarding loans secured by property owned by non-debtor parties. These loans made to the related companies are secured by property held by them, and are being paid according to the debt-service agreed between the creditor and the respective principal debtor. Hence, the Debtor will not be making payments on said claims, but will remain as a guarantor in case of default. * The other unsecured claims are to be paid 100% of their allowed amounts, without interest, in 36 monthly installments starting 30 days after the Effective Date. * Stockholders (Class 4) will retain their interest in stock, but will receive no dividends until payments to unsecured creditors are concluded. * FirstBank's secured claim (Class 5) is secured with a mortgage encumbering the Debtor's main asset -- its lease contract with PRPA -- and virtually all the other assets. The PoC 5 filed by this creditor shows a balance of $9,635,213, which has been reduced through postpetition payments. The Debtor will maintain the debt service agreed upon with FirstBank, with any modification that may be agreed upon with said creditor. A copy of the Amended Disclosure Statement is available at: http://bankrupt.com/misc/HAI.doc189.pdf About Hotel Airport Hotel Airport Inc., in San Juan, Puerto Rico, is a wholly-owned subsidiary of Caribbean Airport Facilities Inc. ("CAF"). HAI was organized on Feb. 20, 2003, under the corporate laws of Puerto Rico by parties unrelated to the Debtor's current directors or shareholders. Under its original management, and owners, during 2003 and the first six months of 2004, HAI was engaged in the restoration and refurbishing of the San Juan Airport Hotel located in the Luis Mu�oz Mar�n International Airport in Carolina, Puerto Rico. Operations commenced in July 2004. The hotel consists of 125 rooms, a restaurant, various meeting spaces and supporting facilities in an area of approximately 60,000 square feet. During the year ending June 30, 2009, HAI's management, decided to discontinue the Casino operations, and on July 7, 2009, said operation was closed. The casino property and equipment amounting to $967,399 was liquidated and the proceeds applied to the outstanding loan with Firstbank. HAI leases the hotel facilities from the Puerto Rico Port Authority under a lease agreement executed on March 27, 2007, and subsequently amended on various occasions. HAI filed for Chapter 11 bankruptcy (Bankr. D.P.R. Case No. 11-06620) on Aug. 5, 2011. Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo Munoz, PSC, in San Juan, P.R., serves as bankruptcy counsel. Francisco J. Garrido Molina serves as its accountant, and RS & Associates as external auditors to perform auditing services. The Debtor disclosed US$8,547,993 in assets and US$171,169,392 in liabilities as of the Chapter 11 filing. The petition was signed by David Tirri, its president. =============================== T R I N I D A D & T O B A G O =============================== PETROTRIN: Gets Single Offer for GTL Plant ------------------------------------------ Julien Neaves at Trinidad Express reports that there has been one expression of interest in the failed gas-to-liquids (GTL) plant at Petroleum Company of Trinidad and Tobago (Petrotrin)'s Pointe-a- Pierre refinery but company chairman Lindsay Gillette remains "dubious" that the facility will ever work. The Public Accounts Enterprises Committee (PAEC) examined the accounts of the company for the years ended 2008, 2009, 2010 and 2011, according to Trinidad Express. The report relates that Petrotrin President Khalid Hassanali said 2009 and 2010 were the only two years for the period that the company made no profit because the investment in the GTL plant was written off at $1.2 billion for each year. Mr. Gillette noted that with the GTL project, a joint venture with World GTL, Petrotrin put up all the money while its foreign partner had most of the say, Trinidad Express notes. Mr. Gillette, the report relays, stressed that the project "went wrong from the beginning" and after spending $2.8 billion of taxpayers' money there was still no working plant. Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on June 9, 2010, Trinidad Express related that four members of Petrotrin submitted their resignation letters. According to the report, Malcom Jones resigned as chairman of Petrotrin and from the State boards. The report related board members Lawford Dupres, who chaired the National Petroleum board, attorney Kerwin Garcia and Andrew McIntosh had also resigned. Prime Minister Kamla Persad-Bissessar, the report noted, said that Cabinet had ordered a forensic audit of Petrotrin as there were "grounds for suspicion of misconduct" at Petrotrin similar to what may have transpired at special-purpose State enterprise UDeCOTT. The report said that the company was experiencing serious financial difficulties resulting in high cost overruns of its refinery upgrade. The situation was exacerbated by a US$12 billion lawsuit by World GTL Inc. against Petrotrin, the report added. =============== X X X X X X X X =============== * LATAM: Airline Mergers No Impact on Airports, Fitch Says ---------------------------------------------------------- The merger announcement of two of the largest North American air carriers, American Airlines and US Airways, is not likely to adversely affect Latin American and Caribbean rated airports, according to Fitch. Fitch considers the merger, even if causing future changes and reductions to frequencies, is unlikely to negatively impact the Latin American rated airports' projected traffic performance and/or revenues. With respect to the Caribbean airports, "both airlines serve different destinations and market sources, and present limited or no overlapping on their routes. Fitch envisages no credit implications to rated airports at this point in time", says Omar Valdez, AD at Fitch. Current market participation of American Airlines and US Airways in Latin American rated airports is low when compared to other carriers servicing international routes. According to the most recent information provided to Fitch by issuers, current frequencies are expected to remain constant in the Latin America region, while the addition of new routes is anticipated. In Caribbean airports rated by Fitch, however, the two airlines have a greater participation, where the average dependency on US passengers is calculated at 71%. Positively, market diversification at these airports is adequate, with no single air carrier enplaning above 20% of international seat capacity. In addition, Fitch believes that any possible unattended demand could be readily absorbed by other carriers, as Caribbean airports benefit from an established tourist base with steady enplanements, and an ample air carrier diversification. Overall current passenger traffic in the region continues to grow steadily, in line with our 2013 Outlook expectations, and providing for better prospects with respect to air traffic volumes going forward. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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, Julie Anne L. Toledo, 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 * * *