/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130321.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, March 21, 2013, Vol. 14, No. 57 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Victims Will Benefit From US$300MM Settlement B R A Z I L COSAN LUXEMBOURG: Fitch Assigns 'BB+' Rating to BRL350MM Add-on C A Y M A N I S L A N D S AC2000A LIMITED: Shareholders Receive Wind-Up Report AL RIFAI: Shareholders Receive Wind-Up Report ASHMORE GLOBAL: Shareholders Receive Wind-Up Report AUSTIN CAPITAL: Shareholders Receive Wind-Up Report DF I LTD: Shareholders Receive Wind-Up Report FIRTH HOLDINGS: Shareholders Receive Wind-Up Report GATWICK (FREEHOLD): Shareholders Receive Wind-Up Report HIMALAYAN CAPITAL: Shareholders Receive Wind-Up Report JUPITER FUND: Shareholder Receives Wind-Up Report KRIYA UPROFISH: Shareholders Receive Wind-Up Report MSREF VI: Shareholders Receive Wind-Up Report NATSOURCE MAC 77: Members Receive Wind-Up Report NB CREDIT: Shareholders Receive Wind-Up Report NB CREDIT MASTER: Shareholders Receive Wind-Up Report OCTAVIA HOLDINGS: Shareholders Receive Wind-Up Report RAB INNOVATIONS: Shareholders Receive Wind-Up Report RAB INNOVATIONS (MASTER): Shareholders Receive Wind-Up Report REL VAL: Shareholders Receive Wind-Up Report WEALTH ABSOLUTE: Shareholders Receive Wind-Up Report J A M A I C A DIGICEL GROUP: Launches Hybrid Plan in Guyana JAMAICA RAILWAY: Government Moves Closer to Privatizing Firm M E X I C O GRUPO FAMSA: Fitch Affirms 'B+' Issuer Default Rating P U E R T O R I C O CV STEEL: Case Summary & 20 Largest Unsecured Creditors COSTA BONITA BEACH: Can Hire Carlos E. Gaztambide as Appraiser X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Victims Will Benefit From US$300MM Settlement ------------------------------------------------------------- Jacqueline Palank at The Wall Street Journal reports that in a huge step forward for Robert Allen Stanford's cheated investors and creditors, a settlement aims to break the logjam over who is entitled to US$300 million worth of frozen assets around the world. When Mr. Stanford's Ponzi scheme was exposed in 2009 and his business went under, it spawned a global hunt for his many assets to repay his investors and creditors. But those involved in the search -- U.S. government agencies, a U.S.-court appointed receiver and the liquidators of Stanford's Antiguan bank -- fought in courts across the world over who controlled the various assets, according to WSJ. The report relates that the settlement, disclosed and subject to the approval of several courts in the coming weeks, will resolve the years-long battle. The report relays that it will also speed efforts to return money to those who invested in certificates of deposit issued by Stanford International Bank, a scheme through which Stanford ultimately cheated investors out of US$7 billion. Stanford used investors' cash to further the fraud and fund a lavish lifestyle in which he accumulated real estate, yachts and other assets around the world. The U.S. receiver warned in court papers that if the settlement isn't approved, "millions of dollars in assets that could otherwise be distributed to the victims of the Stanford Ponzi scheme will remain tied up in the courts," the report discloses. WSJ says that some of the specific deal terms include handing over US$44 million of assets frozen in the U.K. to the Antiguan liquidators, which they'll distribute to victims in that court proceeding. The liquidators will get another US$36 million from the U.K. to fund their continued search for more assets, WSJ discloses. The report relates that more than US$132.5 million that was found in Switzerland and US$23 million in Canada will be forfeited to the U.S. Department of Justice, which will allow that to be distributed through the U.S. receivership. Antiguan victims will get another US$60.5 million from Switzerland, the report notes. The settlement doesn't allow the distribution of any of the $300 million in frozen assets to be paid to two government creditors, the Internal Revenue Service and Antiguan government, WSJ notes. The settlement is subject to the approval of the U.S. District Court in Dallas, the Antiguan court and London's Central Criminal Court. Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On Feb. 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. =========== B R A Z I L =========== COSAN LUXEMBOURG: Fitch Assigns 'BB+' Rating to BRL350MM Add-on --------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to Cosan Luxembourg S.A.'s proposed BRL350 million add-on issuance in a reopening of its BRL500 million senior unsecured notes issue due 2018 to new and existing investors. The notes will be unconditionally and irrevocably guaranteed by Cosan S.A. Industria e Comercio and will rank equally with all Cosan's unsecured indebtedness. Net proceeds will be used to prepay a portion of Cosan's BRL3.3 billion debentures issued to finance the acquisition of Comgas. KEY RATING DRIVERS Cosan's ratings reflect the increasing contribution of a more diversified asset portfolio and more predictable cash flow businesses on a consolidated basis, which partially soften the impacts of the volatility of the sugar and ethanol industry. Cosan's ratings fundamental has been positively enhanced by the creation of a joint-venture with Shell Brazil Holdings BV (Raizen), under conservative financial terms, and it is strongly linked to Raizen's credit profile, given the relevance of this joint venture compared to Cosan's consolidated performance (55% of 2013 EBITDA, as per Fitch estimates). Cosan's pro forma credit ratios, considering the last 12 months (LTM) EBITDA of Comgas, its robust liquidity position and its manageable debt profile further support the ratings. The high volatile sugar & ethanol industry fundamentals, exposure to climatic conditions and challenges related to the ethanol's industry dynamics in Brazil, currently strongly linked to gasoline regulated prices and governmental policies related to this issue, are further incorporated into the ratings. Increased Diversification & Lower Exposure to Sugar & Ethanol: Comgas' acquisition was strategically positive for Cosan, as it contributes to broader business diversification and should lessen its cash flow volatility. This transaction also enhanced Cosan's presence in the energy segment, which, together with logistics, are the main focus on the company's business plan going forward. As per Fitch's estimates, the contribution of more stable business for Cosan's cash flow should range from 52% in the 2011/2012 harvest period to the 65%-75% range in the next three years, depending on the sugar and ethanol prices behavior and speed of planned expansion projects. Fitch estimates Cosan's 2013 EBITDA breakdown by segment as follows: 35% natural gas distribution, 32% sugar and ethanol, 19% fuel distribution, 8% logistics and 6% others. Leverage on a Declining Trend as Expected: Cosan's pro forma net debt/EBITDA considering Comgas' LTM EBITDA is 3.2x, despite lower than historical EBITDA margins of the acquired company in that period, due to some cost mismatches to be passed through its tariffs. Considering a normalized EBITDA for Comgas, Cosan's pro forma net leverage on a consolidated basis would be around 3.1x. This ratio compares favorably with the 3.3x pro forma net leverage ratio as of March 2012. Fitch's debt calculations also consider rescheduled taxes net of credits to be received from ExxonMobil, pension fund obligations (mostly migrated from Comgas) and intercompany loans. Considering the mid-point of the sugar and ethanol price cycle, Fitch estimates that Cosan should maintain its net leverage around 3.0x while preserving a robust liquidity position to reduce the risks related to the inherent cyclicality of some of its businesses. Robust Liquidity Essential to Support Ratings: Cosan has maintained robust liquidity. As of Dec. 31, 2012, its consolidated cash position amounted to BRL2.3 billion and covered its short-term debt of BRL1.8 billion by 1.3x. Considering also cash flow from operations (CFFO), the cash+CFFO/short-term debt ratio would be strong at 3.0x. Debt maturity profile was adequately distributed, with concentration in the long term. Fitch expects that Cosan will continue to adequately manage its short-term debt maturities and to preserve a robust liquidity, in order to be prepared for occasional market downturns. The favorable terms of the financing line obtained to finance the Comgas acquisition, characterized by an eight-year tenor with a two-year grace period, also positively contributed to the company's financial profile. Increased Cash Flow Generation: Cosan presented a robust operational performance on a consolidated basis in the LTM period ended December 2012. Net revenues, EBITDA and CFFO amounted to BRL27.3 billion, BRL2.5 billion and BRL3.1 billion, respectively, which compare positively to BRL24.1 billion, BRL2.1 billion and BRL2 billion reported in March 2012, excluding the non-recurring effects of the creation of Raizen (BRL3.2 billion). Cosan's EBITDA expansion reflects, among other factors, the strong performance of the fuel distribution activities, which benefited from advances in the gas stations rebranding process and a favorable product mix and higher operational margins in the sugar, ethanol and cogeneration business, driven mainly by a greater crushing volume, adequate price hedging strategy and increased cogeneration revenues in that period. The beginning of consolidation of the agricultural land development business, conducted through the subsidiary Radar, also contributed with an incremental EBITDA of BRL96 million. Pending Negotiations on Acquisition of ALL Shares: Cosan is also negotiating the purchase of a 5.7% stake on America Latina Logistica (ALL), for BRL896.5 million, which was not incorporated in Fitch's financial projections. The transaction is still dependent upon the approval of other signatories of ALL's shareholders agreement and also from the Brazilian Transport Regulatory Agency (ANTT) and the Brazilian Antitrust Council (CADE). In case the acquisition is concluded, Fitch estimates that Cosan's consolidated net debt/EBITDA ratio on a pro forma basis would range between 3.0x and 3.3x depending on the funding strategy for this transaction. RATING SENSITIVITIES A positive rating action could be driven in the medium term by lower than expected leverage, coupled with the maintenance of more stable and predictable cash flows. Any action related to Raizen's ratings could have an impact on Cosan's ratings. Factors that could lead to a negative rating action include further acquisitions or investments not contemplated in the current business plan that could result in leverage levels beyond expectations and/or material refinancing needs. Should net leverage exceed Fitch expectations and be above 3.5x on a recurring basis, it would trigger a negative rating action. Fitch currently rates Cosan as: Cosan: -- Foreign and local currency Issuer Default Ratings (IDRs) 'BB+'; -- National scale rating 'AA-(bra)'. Cosan Overseas: -- Foreign currency IDR 'BB+'; -- Perpetual notes 'BB+'. The Rating Outlook of the corporate ratings is Stable. ========================== C A Y M A N I S L A N D S ========================== AC2000A LIMITED: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Jan. 30, 2013, the shareholders of AC2000A Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Voluntary Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands AL RIFAI: Shareholders Receive Wind-Up Report --------------------------------------------- On Jan. 22, 2013, the shareholders of Al Rifai Private Placement received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Adel Guenena c/o RLG Holdings Ltd - DFM Management Le Montaigne, 7 Ave de Grande Bretagne Monte Carlo Monaco 98000 Telephone: (961) 137 1333 ASHMORE GLOBAL: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 25, 2013, the shareholders of Ashmore Global Emerging Markets Fund, Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: George Peter Grunebaum c/o Chris Tsutsui 61 Aldwych, London, WC2B 4AE Telephone: +44 (0)20 3077 6260 AUSTIN CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 22, 2013, the shareholders of Austin Capital Next Generation Offshore Fund, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Friedman 3801 North Capital of Texas Highway Suite E-240-89, Austin Texas, 78746 USA Telephone: +1 (512) 600 5225 E-mail: dfriedman@acminvestment.com DF I LTD: Shareholders Receive Wind-Up Report --------------------------------------------- On Jan. 25, 2013, the shareholders of DF I, Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: George Peter Grunebaum c/o Chris Tsutsui 61 Aldwych, London, WC2B 4AE Telephone: +44 (0)20 3077 6260 FIRTH HOLDINGS: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 31, 2013, the shareholders of Firth Holdings Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Campbells Directors Limited Willow House, Floor 4, Cricket Square P.O. Box 268, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 6268 Facsimile: (345) 945 2877 GATWICK (FREEHOLD): Shareholders Receive Wind-Up Report ------------------------------------------------------- On Jan. 26, 2013, the shareholders of Gatwick (Freehold) Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K.D. Blake c/o Nicola Wright Telephone: (345) 815 2621/ (345) 949 4800 Facsimile: 345-949-7164 P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands HIMALAYAN CAPITAL: Shareholders Receive Wind-Up Report ------------------------------------------------------ On Jan. 23, 2013, the shareholders of Himalayan Capital received the liquidator's report on the company's wind-up proceedings and property disposal. 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 JUPITER FUND: Shareholder Receives Wind-Up Report ------------------------------------------------- On Jan. 29, 2013, the shareholder of Jupiter Fund SPC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Sophie Raven 228 Marmion Street Cottesloe WA 6011 Australia Telephone: +6 (140) 000 7906 Facsimile: +6 (189) 286 3786 KRIYA UPROFISH: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 31, 2013, the shareholders of Kriya Uprofish Macro Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alric Lindsay Telephone: (345) 926 1688 Artillery Court, Shedden Road P.O. Box 11371, George Town Grand Cayman KY1-1008 Cayman Islands MSREF VI: Shareholders Receive Wind-Up Report --------------------------------------------- On Jan. 22, 2013, the shareholders of MSREF VI River Two, Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rebecca Hume Telephone: 949 4544 Facsimile: 949 7073 Charles Adams Ritchie & Duckworth Zephyr House, 2nd Floor, 122 Mary Street PO Box 709 Grand Cayman KY1-1107 Cayman Islands NATSOURCE MAC 77: Members Receive Wind-Up Report ------------------------------------------------ On Jan. 23, 2013, the members of Natsource MAC 77 Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Beverly Mathias c/o Citco Trustees (Cayman) Limited P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands NB CREDIT: Shareholders Receive Wind-Up Report ---------------------------------------------- On Jan. 28, 2013, the shareholders of NB Credit Arbitrage Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. 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 NB CREDIT MASTER: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 28, 2013, the shareholders of NB Credit Arbitrage Master Fund Ltd. received the liquidator's report on the company's wind- up proceedings and property disposal. 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 OCTAVIA HOLDINGS: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 22, 2013, the shareholders of Octavia Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rebecca Hume Telephone: 949 4544 Facsimile: 949 7073 Charles Adams Ritchie & Duckworth Zephyr House, 2nd Floor, 122 Mary Street PO Box 709 Grand Cayman KY1-1107 Cayman Islands RAB INNOVATIONS: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Jan. 22, 2013, the shareholders of Rab Innovations Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: +1 (345) 769 9351 RAB INNOVATIONS (MASTER): Shareholders Receive Wind-Up Report ------------------------------------------------------------- On Jan. 22, 2013, the shareholders of RAB Innovations (Master) Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: +1 (345) 769 9351 REL VAL: Shareholders Receive Wind-Up Report -------------------------------------------- On Jan. 22, 2013, the shareholders of Rel Val Special Purpose Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. 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 WEALTH ABSOLUTE: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Jan. 23, 2013, the shareholders of Wealth Absolute Return SPC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands ============= J A M A I C A ============= DIGICEL GROUP: Launches Hybrid Plan in Guyana --------------------------------------------- RJR News reports that Digicel Group has launched its Hybrid Plan in Guyana. The offer combines pre-paid and postpaid features, according to RJR News. The report relates that subscribers will receive minutes for voice calls and SMS for a fixed monthly fee. Digicel Group, the report notes, said if the customer exceeds the allotted amount, the account will automatically switch to pre- paid. The Hybrid offering includes five tariff plan options and is also available for business customers, RJR News relates. RJR News says that companies pay a flat-rate postpaid fee for employees and once this is exhausted, the employees top up as usual for their personal use. Digicel Group, with regional headquarters in Jamaica, entered the Panama market in 2008. * * * As reported in the Troubled Company Reporter on Sept. 7, 2012, Moody's Investors Service assigned a Caa1 rating to Digicel Group Limited's proposed US$700 million senior unsecured notes due 2020. Net proceeds will be used to repurchase the entire tranche of the DGL 9.125%/9.875% senior PIK toggle notes due 2015 (US$415 million outstanding) and a portion of the 8.875% senior notes due 2015 (US$1 billion outstanding) via tender offers. JAMAICA RAILWAY: Government Moves Closer to Privatizing Firm ------------------------------------------------------------ RJR News reports that the Jamaican government is moving closer to finalizing plans for the privatization of the Jamaica Railway Corporation. Dr. Omar Davies, Minister of Transport, Works and Housing has asked the enterprise team overseeing the exercise to provide a report on when it will begin seeking proposals from investors to operate the railway, according to RJR News. Dr. Davies said plans to privatize the JRC remain on track, RJR News relates. "It is still on and the enterprise team is working hard. I have asked them for a timetable in terms of how putting out a request for proposal, etc., but the work is continuing," the report quoted Dr. Davies as saying. The Jamaica Railway Corporation was established under the Jamaica Railway Corporation Act. The corporation is established to control the expenditure of the corporation whether on revenue or capital account; to ensure that the annual revenues of the corporation are sufficient to meet all charges properly chargeable to revenue; and to direct and control any expansion or extension of the railway and the construction of any new railway. * * * As reported in the Troubled Company Reporter-Latin America on August 20, 2010, RadioJamica said that the Transport Minister has confirmed the resignation of Harold Brady, as Chairman of the Board of the Jamaica Railway Corporation. The report related that Mr. Brady's departure comes more than two months before the October 31 expiration of the life of the Board of the JRC. According to RadioJamiaca, Mr. Brady's resignation caused some concern among government officials, as his departure brought an abrupt halt to the Transport Ministry's plans to divest the "failing" JRC as quickly as possible. The report recounts that the Railway Corporation ceased operations several years ago and is now on the list of entities to be merged and retained by the Transport Ministry. =========== M E X I C O =========== GRUPO FAMSA: Fitch Affirms 'B+' Issuer Default Rating ----------------------------------------------------- Fitch Ratings has affirmed the following ratings of Grupo Famsa, S.A.B. de C.V.: -- Foreign currency Issuer Default Rating (IDR) at 'B+'; -- Local currency IDR at 'B+'; -- Long-term national scale rating at 'BBB(mex)'; -- Short-term national scale rating at 'F3(mex)'; -- USD200 million senior unsecured notes due in 2015 at 'B+/RR4'; -- MXN1 billion Certificados Bursatiles issuance due 2014, 'BBB(mex)'. -- MXN1 billion short-term Certificados Bursatiles programs at 'F3(mex)'. The Rating Outlook is Stable. FAMSA's ratings reflect its market position in the Mexican retail sector, geographic and product diversification, broadly stable operating cash flow generation by the retail operation, and a linkage with its banking subsidiary, Banco Ahorro Famsa (BAF; or the bank), rated 'BBB(mex)'/Negative Outlook by Fitch. On the other hand, the ratings are constrained by low-single digit Same Store Sales (SSS). The 'RR4' rating reflects an expected recovery of between 30% and 50% in case of default. KEY RATING DRIVERS Fitch expects for the Mexican retail operations to show low organic growth (with any increases in revenues coming mostly from store and bank openings), for the U.S. division to continue generating positive EBITDA, and for the banking operation to continue facing pressure in its capital adequacy. FAMSA plans to increase total revenues by about 7% to 9% and to open 15 stores/banks and 30 standalone banks in Mexico. Improving EBITDA The downsizing of FAMSA USA's footprint resulted in consolidated EBITDA growing 35.4% for 2012. Consolidated revenues shrank 8.4%, among other reasons, due to a slowdown in loan approval due to a fire at the issuer's main call center. However, this trend appears to have reverted. FAMSA USA's recent store closures in the West Coast (California, Nevada and Arizona), have resulted in lower revenues, but allowed for U.S. EBITDA generation to reach MXN122 million, its first positive results since 2009, as the western operations were unprofitable. Recently, the firm has tried to improve its category mix, attempting to deemphasize lower margin categories, such as electronics, and focusing on more profitable categories, such as furniture. The firm has also tried to broaden its geographic footprint within Mexico, while at the same time undertaking store closures and pursuing targeted store openings. FAMSA competes directly with larger Mexican retail chains such as Coppel and Elektra, which also target the low-income segment of the population. BAF Credit Quality Weakening Currently, BAF's rating has a Negative Outlook, due to deterioration in its loan portfolio. If BAF's creditworthiness deteriorates it could pressure FAMSA's ratings. FAMSA's financial division, BAF (about 45% of FAMSA's total assets), has good brand equity and competitive position in consumer finance, mainly in northeastern Mexico. Its financial performance is constrained by its high loan-impairment charges (2012: 89.6% of pre-impairment operating profit), however, BAF is addressing it and still shows a reasonable capital adequacy. In addition, BAF continues with a lower cost of funding by a diversified and growing base of customer deposits. BAF also shows an intrinsic growth of its loan portfolio, although customers' sensitivity to a weak economic environment continues to be a limiting factor. Lower Leverage In previous years, FAMSA's leverage levels were high, a result of negative cash flow from the U.S. operations. Currently, debt to EBITDA and adjusted debt to EBITDAR ratios for 2012 (excluding bank deposits) has fallen to 2.4x and 3.6x, respectively (2011: 3.4x and 4.7x). Including bank deposits, these ratios are 7.7x and 7.5x for 2012. Since most of the positive effects from the U.S. store closures are already present in current levels, Fitch expects them to remain constant in the short-to-medium term. Liquidity should be manageable. Most large maturities come due in 2014 and 2015. The company has not issued dividends for the last few years and it is projecting about MXN350 million of Capex for 2013. For year-end 2012, FAMSA's debt amounted to MXN5.6 billion and bank deposits totaled MXN12 billion. FAMSA's debt is comprised by senior notes, national short- and long-term issuances and bank loans. Short-term debt as of Dec. 31, 2012 was about MXN2 billion, with cash holdings of about MXN1.5 billion. RATING SENSITIVITY Credit quality could be negatively affected by a deterioration in BAF's creditworthiness, by revenue-increasing efforts which might result in lower profit margins, by lowered EBITDA generation by FAMSA USA in 2013 that results in higher leverage levels, as well as by deterioration in the quality of the loan portfolio. Conversely, creditworthiness would benefit from increased EBITDA generation, from lower debt levels and from SSS more in line with industry. ===================== P U E R T O R I C O ===================== CV STEEL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: CV Steel Fab of PR, Inc. P.O. Box 7994 Ponce, PR 00732 Bankruptcy Case No.: 13-02061 Chapter 11 Petition Date: March 16, 2013 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Debtor's Counsel: Nilda M. Gonzalez Cordero, Esq. P.O. Box 3389 Guaynabo, PR 00970 Tel: (787) 721-3437 E-mail: ngonzalezc@ngclawpr.com Scheduled Assets: $5,297 Scheduled Liabilities: $4,257,235 A copy of the Company's list of its 20 largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/prb13-02061.pdf The petition was signed by Miguel A. Cedeno Rodriguez, president. COSTA BONITA BEACH: Can Hire Carlos E. Gaztambide as Appraiser -------------------------------------------------------------- Costa Bonita Beach Resort, Inc. sought and obtained permission from the U.S. Bankruptcy Court to employ Engr. Carlos E. Gaztambide of Carlos E. Gaztambide & Associates as appraiser. The Debtor says its plan of reorganization calls for the payment of debt to DF Servicing LLC and other creditors with the transfer to DF of some of the Debtor's residential units and Debtor needs to retain an appraiser to conduct an appraisal of the properties. Engr. Gaztambide's engagement is to be for $20,000, payable on the basis of $5,000 upon the approval of the application and 15 monthly payments of $1,000 after the submission of his appraisal report, with meetings, court appearances and other related work on the basis of $150 per hour. The Debtor attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Costa Bonita Beach Resort Costa Bonita Beach Resort, Inc., owns 50 apartments at the Costa Bonita Beach Resort in Culebra, Puerto Rico. It filed a bankruptcy petition under Chapter 11 of the Bankruptcy Code for the first time (Bankr. D.P.R. Case No. 09-00699) on Feb. 3, 2009. During this case, the Court entered an Opinion and Order finding that the Debtor satisfied all three (3) prongs of the Single Asset Real Estate, and, as such is a SARE case subject to 11 U.S.C. Sec. 362(d)(3). The Court also entered an Order modifying the automatic stay to allow creditor DEV, S.E., to continue in state court proceedings for the removal of the illegal easement and the restoration of DEV, S.E.'s land to its original condition by the Debtor. The first bankruptcy petition was dismissed on May 10, 2011 on the grounds that the Debtor failed to comply with an April 21, 2011 Order and the Debtor's failure to maintain adequate insurance. The case was subsequently closed on Oct. 11, 2011. Costa Bonita Beach Resort filed a second bankruptcy petition (Bankr. D. P.R. Case No. 12-00778) on Feb. 2, 2012, in Old San Juan, Puerto Rico. In the 2012 petition, the Debtor said assets are worth $15.1 million with debt totaling $14.2 million, including secured debt of $7.8 million. The apartments are valued at $9.6 million while a restaurant and some commercial spaces at the resort are valued at $3.67 million. The apartments serve as collateral for the $7.8 million while the commercial property is unencumbered. Bankruptcy Judge Enrique S. Lamoutte presides over the 2012 case. Charles Alfred Cuprill, Esq., serves as counsel in the 2012 case. The petition was signed by Carlos Escribano Miro, president. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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 * * *