/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130308.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 Friday, March 8, 2013, Vol. 14, No. 48 Headlines C A Y M A N I S L A N D S ADVISERS BOND: Placed Under Voluntary Wind-Up BELVEDERE INVESTMENTS: Placed Under Voluntary Wind-Up CASA TIARA: Members Receive Wind-Up Report CSAM TOTAL: Commences Liquidation Proceedings FORMENTOR HOLDINGS: Placed Under Voluntary Wind-Up GAMBRINUS INVESTMENTS: Commences Liquidation Proceedings HM MVS: Commences Liquidation Proceedings HM MVS CAPITAL: Shareholders Receive Wind-Up Report MERIDIAN PERFORMANCE: Commences Liquidation Proceedings METHANE POWER: Placed Under Voluntary Wind-Up OFFICE PARK: Commences Liquidation Proceedings SILVER SWANS: Placed Under Voluntary Wind-Up SSF III ISLAND: Placed Under Voluntary Wind-Up TREVI OFFSHORE: Commences Liquidation Proceedings TREVI OFFSHORE INVESTORS: Shareholder Receives Wind-Up Report D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Foreign Debt Tops US$13.9BB, 23.7% of GDP J A M A I C A * JAMAICA: Delays Caused by New System Affects Customs Brokers * JAMAICA: S&P Ups Rating to 'CCC+' After Debt Restructuring * JAMAICA: Moody's Cuts Rating on Government Debt to Caa3 M E X I C O * HIDALGO: Moody's Changes Outlook on Ba2 Rating to Positive * MONTERREY: Moody's Changes Ratings Outlook to Negative P U E R T O R I C O PABELLON DE LA VICTORIA: Court Approves Justiniano as Counsel PABELLON DE LA VICTORIA: Court Okays Carlos Cardona as Accountant T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: May Forge Alliance With Grenada X X X X X X X X * Moody's Concludes Review of 8 Banks in Argentina and Bolivia - - - - - ========================== C A Y M A N I S L A N D S ========================== ADVISERS BOND: Placed Under Voluntary Wind-Up --------------------------------------------- On Dec. 7, 2012, the sole shareholder of The Advisers Bond Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 23, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Ben Gillooly 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: (345) 815-1764 Facsimile: (345) 949-9877 BELVEDERE INVESTMENTS: Placed Under Voluntary Wind-Up ----------------------------------------------------- On Dec. 5, 2012, the sole shareholder of Belvedere Investments (Cayman) Limited 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 liquidators are: Rankine McMillan Emily Anne Tibbetts 62 Forum Lane, 2nd Floor, Camana Bay Grand Cayman KY1-1004 Cayman Islands CASA TIARA: Members Receive Wind-Up Report ------------------------------------------ On Jan. 22, 2013, the members of Casa Tiara Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170 George Town Grand Cayman Cayman Islands KY1-1102 CSAM TOTAL: Commences Liquidation Proceedings --------------------------------------------- On Dec. 7, 2012, the sole shareholder of CSAM Total Commodity Return, Ltd. passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by Jan. 30, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 FORMENTOR HOLDINGS: Placed Under Voluntary Wind-Up -------------------------------------------------- On Dec. 13, 2012, the sole member of Formentor Holdings Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 23, 2013, will be included in the company's dividend distribution. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814-7394 Facsimile: (345) 945-3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands GAMBRINUS INVESTMENTS: Commences Liquidation Proceedings -------------------------------------------------------- On Dec. 12, 2012, the sole shareholder of Gambrinus Investments passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, 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 HM MVS: Commences Liquidation Proceedings ----------------------------------------- On Dec. 11, 2012, the shareholders of HM MVS Capital Inc. passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by Jan. 24, 2013, will be included in the company's dividend distribution. The company's liquidator is: Stuarts Walker Hersant P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949-3344 Facsimile: (345) 949-2888 HM MVS CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 25, 2013, the shareholders of HM MVS Capital Inc. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuarts Walker Hersant P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949-3344 Facsimile: (345) 949-2888 MERIDIAN PERFORMANCE: Commences Liquidation Proceedings ------------------------------------------------------- On Dec. 11, 2012, the shareholder of Meridian Performance Partners, Ltd. passed a resolution that voluntarily liquidates the company's business. The company's liquidator is: Meridian Diversified Fund Management, LLC 20 Corporate Woods Blvd., 4th Floor Albany, NY 12211 USA Telephone: (518) 432-1600 e-mail: thickey@mcphedge.com METHANE POWER: Placed Under Voluntary Wind-Up --------------------------------------------- On Dec. 13, 2012, the sole member of Methane Power Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 23, 2013, will be included in the company's dividend distribution. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814-7394 Facsimile: (345) 945-3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands OFFICE PARK: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 13, 2012, the sole shareholder of Office Park Limited passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, 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 SILVER SWANS: Placed Under Voluntary Wind-Up -------------------------------------------- On Dec. 12, 2012, the shareholders of Silver Swans Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 23, 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 Cayman Islands KY1-1102 SSF III ISLAND: Placed Under Voluntary Wind-Up ---------------------------------------------- On Dec. 10, 2012, the sole shareholder of SSF III Island Holding, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Madeleine Welham Telephone: (345) 815-1750 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands TREVI OFFSHORE: Commences Liquidation Proceedings ------------------------------------------------- On Dec. 11, 2012, the sole shareholder of Trevi Offshore Investors Limited passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by Jan. 24, 2013, 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 TREVI OFFSHORE INVESTORS: Shareholder Receives Wind-Up Report ------------------------------------------------------------- On Jan. 25, 2013, the shareholder of Trevi Offshore Investors Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949-3344 Facsimile: (345) 949-2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands ================================== D O M I N I C A N R E P U B L I C ================================== * DOMINICAN REPUBLIC: Foreign Debt Tops US$13.9BB, 23.7% of GDP --------------------------------------------------------------- Dominican Today reports that figures from the Central Bank and the Public Debt General Directorate reveal that Dominican Republic public sector's foreign debt at the close of November 2012 topped US$13.9 billion, or 23.7% of GDP. The preliminary report on the Dominican economy's performance published by the Central Bank also notes that the external debt level rose by US$1.14 billion, compared with December 2011, or 8.9% in relative terms, according to Dominican Today. Dominican Today relates that the report also specifies that the growth of the external debt stemmed mostly from late disbursements for investment projects with multilateral agencies, especially the World Bank and bilateral institutions such as the National Economic and Social Development Bank, as well as the Petrocaribe Agreement. The report adds that of the US$13.9 billion debt, around US$12.9 billion is from the nonfinancial public sector, while US$1.0 billion are from the Central Bank, accounting for 22.0% and 1.7% of GDP respectively, notes Dominican Today. ============= J A M A I C A ============= * JAMAICA: Delays Caused by New System Affects Customs Brokers -------------------------------------------------------------- RJR News reports that customs brokers are complaining of delays in clearing goods due to lingering challenges with the system at the Customs Department, following the implementation of one of the government's revenue measures. Since introduction of General Consumption Tax (GCT) charges on customs user fees there have reportedly been problems with the cargo processing system at Customs, according to RJR News. The report relates that Jacqueline Cole, president of the Customs Brokers and Freight Forwarders Association of Jamaica, said there have been six upgrades of the system in recent days and this is posing a major challenge to importers. "We have to redo our entries on a daily basis, because each day after you have finished the work day and figuring that everything is OK, when you return to work the next morning, there's a new upgrade so we have to be doing the processes. We have to be resubmitting the paper work. . . . As we work though the system there are importers who are experiencing delays and additional costs," the report quoted Mr. Cole as saying. RJR News notes that the Customs Department had said that by Monday of this week it would have ironed out the kinks in its system. It said the changes required significant modification and upgrade to the systems at Customs, the report adds. * JAMAICA: S&P Ups Rating to 'CCC+' After Debt Restructuring ------------------------------------------------------------ Standard & Poor's Ratings Services said that it raised its long- term foreign and local currency sovereign credit ratings on Jamaica to 'CCC+' from 'SD' following the completion of the government's debt restructuring (known as NDX). At the same time, S&P raised its short-term foreign and local currency sovereign credit ratings on Jamaica to 'C' from 'SD'. The outlook on the long-term foreign and local currency sovereign credit ratings is stable. In addition, Standard & Poor's will assign its 'CCC+' rating to Jamaica's new benchmarks bonds, issued at the conclusion of the debt exchange. The new rating will reflect S&P's assessment of the government's continued vulnerability to adverse external shocks, its low level of international reserves, and the risks to a successful implementation of its reform program in conjunction with assistance from the International Monetary Fund (IMF). The failure of a 2010 domestic debt exchange (known as JDX) to achieve sustainable debt reduction highlights the difficulties facing Jamaica. "The ratings on Jamaica reflect the government's still high debt burden, offset somewhat by its improved amortization and cost profile in the short term," said Standard & Poor's credit analyst Joydeep Mukherji. The debt exchange, which the government launched on Feb. 12, 2013, and concluded on Feb. 28, 2013, affected roughly Jamaica dollar (JM$) 860 billion of domestic debt, or just under half of Jamaica's total public debt. The government's external debt was excluded from the transaction. The participation rate in the restructuring was high, at more than 97% of eligible claims. Although the restructuring did not reduce the stock of the government's debt, it lengthened the maturity of the locally issued debt by five years on average and lowered the coupon on it by an average of 2 percentage points. As a result, the government achieved a reduction of interest payments of nearly 1.25% of GDP. However, general government debt remains high at above 140% of GDP. Official estimates indicate that the Jamaican economy contracted around 0.3% in 2012. S&P expects the pace of recovery in the real economy to be slow, despite various proposed reforms the government plans to implement as part of its new agreement with the IMF. GDP may grow by 1%-2% in 2013. Slow growth, and a low level of investment by the private sector, could make it difficult for the government to meet its goal to reduce its debt to 95% of GDP by 2020. The country's net international reserves are around $1.0 billion, down from over $1.9 billion at the beginning of 2012. Low external reserves, along with low prospects for GDP growth, will constrain the 'CCC+' sovereign rating. The stable outlook reflects Standard & Poor's view that the government's ability to improve its financial position has strengthened following the debt restructuring. Lower debt- servicing costs, along with added external funding as part of the planned IMF agreement, should provide more scope for the government to undertake other reforms designed to boost the country's growth rate and strengthen public finances. Success in reversing the recent decline in external liquidity, as well as in embarking on a sustainable long-term path of reducing the government's debt burden, could ease liquidity pressures and support an upgrade of the sovereign. However, if the government does not capitalize on the benefits of the current situation and fails to improve fiscal policies and management, the loss of momentum and resulting failure to reduce its debt could lead to downward pressure on the rating. * JAMAICA: Moody's Cuts Rating on Government Debt to Caa3 --------------------------------------------------------- Moody's Investors Service downgraded Jamaica's government debt rating to Caa3 from B3, concluding the review for downgrade initiated on February 14. The outlook is stable. The downgrade was prompted by the following factors: (1) The debt exchange announced on February 12 affecting US$9.1 billion in domestic debt, equivalent to 54% of total government debt outstanding at year-end 2102, that Moody's considers a distressed exchange; the debt exchange resulted in net present value losses for investors in excess of 10% and is the second distressed debt exchange in three years; (2) The still high debt burden as nominal debt levels remain unchanged since the announced restructuring did not impose any principal haircuts; at a projected 119% of GDP and 470% of revenues, Jamaica's 2013 debt metrics are among the highest of all rated sovereigns; and (3) Expectations of continued slow growth that will make fiscal consolidation efforts more difficult. As part of this rating action, Moody's has lowered Jamaica's country ceiling for foreign-currency bonds to B3 from Ba3 and the country ceiling for foreign-currency bank deposits to Ca from B3. Moody's has also lowered Jamaica's local-currency bond and deposit ceilings to B2 from Baa2. In addition, the ratings of Air Jamaica and National Road Operating Company Limited, both tied to the rating of the government of Jamaica, are lowered to Caa3 from B3. The outlook on both entities is stable. Ratings Rationale: On February 12 2013, Jamaica's government announced a debt exchange of its domestic debt which Moody's considers a distressed debt exchange. The government's offer, which did not incorporate haircuts to principal, involved both lower coupon rates as well as maturity extension of 3-5 years for domestic instruments and closed on February 28 with approximately 99% participation rate. This debt exchange follows the one carried on January 2010 which Moody's also categorized as a distressed exchange. Despite net present value losses in excess of 10%, Jamaica exits its most recent debt restructuring with a very high debt burden, raising the specter of yet another debt exchange in the next few years. Jamaica's government debt-to-revenues ratio is the 5th highest among rated sovereigns, and the government dedicates 40% of its revenues to make interest payments. High debt levels are exacerbated by continued fiscal deficits. Last year's fiscal deficit reached 5.5% of GDP, and Moody's expects the deficit will fall below 5% of GDP in 2013 as the government implements greater fiscal consolidation in the context of a new IMF program. However, since the Jamaican government has failed to meet its fiscal targets in seven of its last eight budgets, fiscal sustainability remains an elusive target. Government gross financing needs - fiscal deficits plus amortizations - averaged 20% of GDP in the last five years. Moody's expects financing needs will drop to less than 10% of GDP this year and next as the debt restructuring pushes out upcoming maturities. Moody's projections indicate that the debt burden will rise rapidly starting in 2015, posing credit concerns absent greater growth. Jamaica's growth rate is among the lowest of all countries rated by Moody's averaging just 0.5% annually in the last 10 years - GDP growth was negative in four of the last five years. Low growth is the result of a series of structural factors, including high reliance on a mature industry (tourism) and limitations including high energy costs. As these factors will be hard to change in the medium term they will likely remain a ratings constraint for the foreseeable future. For 2013 Moody's expects that modest growth of 1% of GDP will be insufficient to improve the country's debt metrics. Outlook The stable outlook incorporates the view that Jamaica could enter a third debt exchange over the rating horizon, with losses consistent with a Caa3 rating. What Could Change The Rating Up At present an upgrade is unlikely over the near term. A change in the rating outlook to positive would require improved debt sustainability associated to both effective fiscal consolidation efforts and higher economic growth, conditions that are necessary to support a sustainable drop in government debt metrics. What Could Change The Rating Down Failure to avoid a persistent increase in debt ratios and/or continued low economic growth could lead to another negative rating action. Previous Rating Action Moody's previous action affecting Jamaica's government bond rating was implemented on February 14, 2013, when the rating agency placed Jamaica's government bond ratings on review for possible downgrade. The principal methodology used in this rating was Sovereign Bond Ratings published in September 2008. =========== M E X I C O =========== * HIDALGO: Moody's Changes Outlook on Ba2 Rating to Positive ------------------------------------------------------------ Moody's de Mexico changed the outlook on the State of Hidalgo's A2.mx issuer rating (Mexico National Scale) and Ba2 issuer rating (Global Scale, local currency) to positive from stable. Ratings Rationale: Moody's revised the outlook of the State of Hidalgo's issuer ratings to positive from stable, reflecting Moody's expectation that the state's roughly balanced results along with moderate debt levels will continue in the near to medium term, which could exert upward pressure on the ratings. Over the last five years, Hidalgo has registered roughly balanced results, equivalent, on average, to -0.3% of total revenues. These results reflect the state's consistent efforts to control expenditure growth and initiatives to increase own-source revenues. Moody's estimates a cash financing requirement of around -2% of total revenues in 2012, which is considered low compared to peers. For 2013, Moody's expects the state to return to balance. The stable financial results are underpinned by own-source revenues, which have grown at a compound annual growth rate of 14% over the period 2007-2011. Own source revenues represent 8.5% of Hidalgo's total revenues, above Ba rated peers. Moody's also expects debt indicators to remain low at roughly 13% of total revenues, well below the median of Mexican states . Furthermore, Hidalgo has relatively contained pension liabilities. Since 2008 new state employees adhere to the federal pension system which ensures medium term sustainability. Hidalgo has relatively tight liquidity which may hinder the state's capacity to react to unexpected financial shocks. Moody's expects Hidalgo' s net working capital (current assets minus current liabilities) to recover slightly in 2012 from the level of -4.5%of total expenditures recorded in 2011, but will remain below peers. What Could Change The Rating Up/Down The positive outlook reflects the improving trends of financial performance and low debt metrics. Positive rating pressure would result from a) improving liquidity levels b) registering modest cash financing deficits, c) maintaining low debt levels, and c) strengthening of governance and management practices. Hidalgo is well positioned within its current rating and downward rating pressure is not expected over the medium-term. Nevertheless, a shift in fiscal policy, generating larger-than- expected debt levels and sustained decreases in the state's net working capital position, could lead to a revision back to a stable outlook. The principal methodologies used in this rating were Regional and Local Governments published on 18-Jan-2013, and Mapping Moody's National Scale Ratings to Global Scale Ratings published on 9-Oct- 2012. * MONTERREY: Moody's Changes Ratings Outlook to Negative -------------------------------------------------------- Moody's de Mexico affirms Monterrey's issuer ratings at Ba2 (Global Scale, local currency) and A2.mx (Mexico National Scale) and changes the outlook to negative from stable. Ratings Rationale: The change of outlook to negative from stable was prompted by the recent downgrade of the State of Nuevo Leon to Ba2/A2.mx from Ba1/A1.mx and the maintenance of the negative outlook. As capital city of the State of Nuevo Leon, Monterrey plays a strategic role within the state. Monterrey's issuer ratings consider a moderate likelihood that the State would act to prevent a default in the extreme event that the municipality faced acute liquidity stress. Given the state's weakening credit profile, its ability to provide such support to Monterrey is reduced. This is reflected in Monterrey's ratings. Monterrey's credit profile is characterized by a strong local economy, which supports a productive tax base and high levels of own-source revenue that represent a high 48% of operating revenues. The municipality's issuer ratings also reflect high debt levels and tight gross operating balances. According to preliminary results for 2012, net direct and indirect debt stood at 67.3% of operating revenues. Gross operating balances are estimated to be equivalent to 0.6% of operating revenues with a cash financing surplus of around 2.4% of total revenues. What Could Change The Ratings Up/Down While currently Moody's does not expect upward pressure on Monterrey's ratings, the ratings can stabilize if the municipality registers a sustained improvement in its operating margins, which in turn lead to decreasing debt levels. Also, the stabilization of Nuevo Leon's issuer ratings could prompt a review of Monterrey's outlook back to stable. Weakening operating results and a deterioration of consolidated financial results leading to higher debt levels, could exert downward pressure on Monterrey's issuer ratings. A downgrade of the State of Nuevo Leon's issuer ratings (Ba2/A2.mx, negative outlook) could also exert downward pressure on Monterrey's ratings. The methodologies used in this rating were "Regional and Local Governments" published in January 2013, and "Mapping Moody's National Scale Ratings to Global Scale Ratings" published in October 2012. ===================== P U E R T O R I C O ===================== PABELLON DE LA VICTORIA: Court Approves Justiniano as Counsel ------------------------------------------------------------- Pabellon De La Victoria Movimiento Iglesias De Fe (MI FE) Inc. sought and obtained permission from the Bankruptcy Court to employ Gloria M. Justiniano Irizarry, Esq., from Justiniano's Law Office as Chapter 11 counsel. The Debtor said it requires the assistance of counsel to perform property its duties as debtor-in-possession. The firm will assist in, among others, the preparation of the disclosure statement and plan of reorganization, and prosecution of claims and causes of action. The firm has agreed with the Debtor to be paid on an hourly rate of $200 plus $125 for associates and $50 for paralegal, and reimbursement of expenses incurred. The firm has received a $5,800 retainer from the Debtor. The firm attests it is a "disinterested person" as defined in 11 U.S.C. Sec. 101(14). About Pabellon De La Victoria Pabellon De La Victoria Movimiento Iglesias De Fe (MI FE) Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-08223) in Ponce, Puerto Rico, on Oct. 16, 2012. Bankruptcy Judge Edward A. Godoy oversees the case. Gloria M. Justiniano Irizarry, Esq., at Justiniano's Law Office, in Mayaguez, Puerto Rico, serves as counsel. The Debtor estimated assets and debts of $10 million to $50 million. Banco Popular De Puerto Rico has $14 million in unsecured claims. The petition was signed by Evelyn Dominguez Ramos, president. PABELLON DE LA VICTORIA: Court Okays Carlos Cardona as Accountant ----------------------------------------------------------------- Pabellon De La Victoria Movimiento Iglesias De Fe (MI FE) Inc., sought and obtained permission from the U.S. Bankruptcy Court to employ Carlos Cardona Crespo as external accountant. The accountant, will among other things, provide these services: a. provide assistance in preparing monthly reports of operations, b. prepare the necessary financial statements; and c. assist the debtor in any/all financial and accounting pertaining to, or in connection with the administration of the estate. The firm's rates are: Professional Rates ------------ ----- Carlos Cardona Crespo $60/hr Associates $35/hr Carlos Cardona Crespo attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Pabellon De La Victoria Pabellon De La Victoria Movimiento Iglesias De Fe (MI FE) Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-08223) in Ponce, Puerto Rico, on Oct. 16, 2012. Bankruptcy Judge Edward A. Godoy oversees the case. Gloria M. Justiniano Irizarry, Esq., at Justiniano's Law Office, in Mayaguez, Puerto Rico, serves as counsel. The Debtor estimated assets and debts of $10 million to $50 million. Banco Popular De Puerto Rico has $14 million in unsecured claims. The petition was signed by Evelyn Dominguez Ramos, president. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: May Forge Alliance With Grenada --------------------------------------------------- RJR News reports that Grenada Prime Minister Dr. Keith Mitchell has hinted that Caribbean Airlines Limited might be granted flag carrier status by his government soon. The issue came up earlier this week during informal talks with Caribbean Airlines Chairman Rabindra Moonan, as both men discussed the role the airline could play in deepening relations between Grenada and Trinidad. Dr. Mitchell said the issue of granting flag carrier status to Caribbean Airlines will be referred to the Grenada Airlift Committee, according to RJR News. The report relates that Caribbean Airlines currently operates several international flights to Grenada from North America. There are two weekly services to New York out of Grenada and this is increased according to demand during the peak seasons of summer and Christmas, RJR News notes. Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News notes that Trinidad Express reported that the arrears were built up over the last six weeks as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January 2007. =============== X X X X X X X X =============== * Moody's Concludes Review of 8 Banks in Argentina and Bolivia -------------------------------------------------------------- Moody's Latin America downgraded the ratings assigned to subordinated debt issued by Banco de Galicia y Buenos Aires S.A. and Banco Supervielle S.A. Moody's also downgraded the ratings assigned to subordinated debt issued by Banco Economico S.A. (Bolivia), Banco Ganadero S.A., Banco Nacional de Bolivia S.A., Banco Solidario S.A. (Bolivia) and Banco FIE S.A. At the same time, Moody's confirmed the ratings assigned to junior subordinated debt issued by Banco Macro S.A. These rating actions conclude the review for downgrade initiated on these ratings on October 26, 2012 in the case of the Argentine banks, and November 27, 2012 in the case of the Bolivian financial institutions. Moody's has removed systemic support from these banks' subordinated debt instruments, placing them one notch below their respective adjusted baseline credit assessments in the case of subordinated debt. The outlook on the affected subordinated and junior subordinated debt ratings of the Argentine banks is negative, following the negative outlook on the sovereign rating. In the case of the Bolivian banks, all the subordinated debt ratings carry stable outlooks. All other ratings and outlooks for these issuers remain unaffected by these rating actions. The following subordinated debt ratings were downgraded: Banco de Galicia y Buenos Aires S.A. Long-Term Global Foreign Currency Subordinated Debt Rating to Caa1 from B3, negative outlook Long-Term National Scale Foreign Currency Subordinated Debt Rating to Ba1.ar from A2.ar Banco Supervielle S.A. Long-Term Global Foreign Currency Subordinated Debt Rating to Caa1 from B3, negative outlook Long-Term National Scale Foreign Currency Subordinated Debt Rating to Ba1.ar from A2.ar Banco Economico S.A. (Bolivia) Long-term global foreign currency subordinated debt rating to B2 from B1, outlook stable Long-term global foreign currency subordinated debt program rating to (p)B2 from (p)B1, outlook stable Long-term Bolivia National Scale foreign currency subordinated debt rating to Aa3.bo from Aa2.bo Long-term Bolivia National Scale foreign currency subordinated debt program rating to Aa3.bo from Aa2.bo Banco Ganadero S.A. Long-term global local and foreign currency subordinated debt rating to B2 from B1, outlook stable Long-term global foreign currency subordinated debt program rating to (p)B2 from (p)B1, outlook stable Long-term Bolivia National Scale local and foreign currency subordinated debt rating to Aa3.bo from Aa2.bo Long-term Bolivia National Scale foreign currency subordinated debt program rating to Aa3.bo from Aa2.bo Banco Nacional de Bolivia S.A. Long-term global foreign currency subordinated debt rating to B1 from Ba3, outlook stable Long-term global foreign currency subordinated debt program rating to (p)B1 from (p)Ba3, outlook stable Long-term Bolivia National Scale foreign currency subordinated debt rating to Aa2.bo from Aa1.bo Long-term Bolivia National Scale foreign currency subordinated debt program rating to Aa2.bo from Aa1.bo Banco Solidario S.A. (Bolivia) Long-term global local currency subordinated debt rating to B1 from Ba3, outlook stable Long-term global local currency subordinated debt program rating to (p)B1 from (p)Ba3, outlook stable Long-term global foreign currency subordinated debt program rating to (p)B1 from (p)Ba3, outlook stable Long-term Bolivia National Scale local currency subordinated debt rating to Aa2.bo from of Aa1.bo Long-term Bolivia National Scale local currency subordinated debt program rating to Aa2.bo from of Aa1.bo Banco FIE S.A. Lon term global local currency debt rating to B2 from B1, outlook stable Long-term Bolivia National Scale local currency subordinated debt program rating to Aa3.bo from Aa2.bo The following subordinated debt ratings were confirmed: Banco Macro S.A. Long-Term Global Foreign Currency Subordinated Debt Rating of Caa3 (hyb), negative outlook Long-Term National Scale Foreign Currency Subordinated Debt Rating of Caa1.ar (hyb) Ratings Rationale: In notching the subordinated debt ratings from the adjusted baseline credit assessments, Moody's noted the global trend towards imposing losses on junior creditors in the context of future bank resolutions, which reduces the predictability of systemic support being provided to subordinated debt holders. The removal of systemic support for subordinated debt is consistent with recent actions Moody's has taken elsewhere, including Colombia, Brazil, Mexico, Chile, Peru, Canada, and several European countries, reflecting Moody's view that there is an increased likelihood that subordinated debt holders would be subject to burden sharing if support were required. Moody's notes that Argentine banking regulators have the legal ability to impose losses on subordinated debt holders under Argentine banking regulations (Com. A5369) that allow a financial entity under liquidity or solvency distress to impose losses on subordinated debt holders or convert subordinated debt into shares. In the case of Bolivia, banking regulators have the legal ability to impose losses on any and all liabilities of an intervened financial entity in case of non-payment under the Bolivian Banking Law, although subordinated debt may not be converted into capital under any circumstances. The outlook on all affected subordinated debt ratings of the Argentine banks is now negative, following the negative outlook on the sovereign rating. In the case of the Bolivian banks, all subordinated debt ratings carry a stable outlook. Baseline Credit Assessments Baseline credit assessments incorporate the intrinsic financial strength of banks, excluding any assessment of systemic or parental support. Adjusted baseline credit assessments incorporate Moody's assessment of the probability of parental support. In the case of all these banks, the baseline credit assessment equals the adjusted BCA because none of the banks' ratings currently benefit from uplift due to parental support. The following baseline credit assessments/adjusted baseline credit assessments remain unchanged: Banco de Galicia y Buenos Aires S.A.: b3/b3 Banco Supervielle S.A.: b3/b3 Banco Economico S.A.: b1/b1 Banco Ganadero S.A.: b1/b1 Banco Nacional de Bolivia S.A.: ba3/ba3 Banco Solidario S.A.: ba3/ba3 Banco FIE S.A.: b1/b1 Banco Macro S.A.: b3/b3 The principal methodology used in these ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. *********** 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 * * *