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/raid1/www/Hosts/bankrupt/TCRLA_Public/130328.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 28, 2013, Vol. 14, No. 62 Headlines B A H A M A S SANDALS RESORTS: Reaches Agreement With Bahamian Government B R A Z I L BANCO DAYCOVAL: Fitch Upgrades Issuer Default Ratings From 'BB+' GRUPO REDE: Bondholders Unlikely to Derail Takeover Plan C A Y M A N I S L A N D S AFFINIA HOLDINGS: Members Receive Wind-Up Report F. LEE HOLDINGS: Members Receive Wind-Up Report FACILITAS LTD: Sole Shareholder Receives Wind-Up Report GOLDEN ARCHES: Members Receive Wind-Up Report I-FUTURE LIMITED: Members Receive Wind-Up Report MV MV LIMITED: Members Receive Wind-Up Report PACIFIC PHARMA: Members Receive Wind-Up Report PEACEFUL HOPE: Members Receive Wind-Up Report RAB EXTERNAL: Shareholders Receive Wind-Up Report SEVENWOOD LIMITED: Members Receive Wind-Up Report SILVER SWANS: Members Receive Wind-Up Report SOVEREIGN 8: Members Receive Wind-Up Report SOVEREIGN 18: Members Receive Wind-Up Report STORM LAKE: Members Receive Wind-Up Report SUPERVIEW HOLDINGS: Members Receive Wind-Up Report THADDEUS CAPITAL: Shareholders Receive Wind-Up Report TRYALL INVESTMENTS: Shareholders Receive Wind-Up Report P U E R T O R I C O COSTA BONITA: Plan Exclusivity Extended by 90 Days X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ============= B A H A M A S ============= SANDALS RESORTS: Reaches Agreement With Bahamian Government ----------------------------------------------------------- RJR News reports that the Butch Stewart-led Sandals Resorts International chain has reached an agreement with the Bahamian government that will help alleviate the cost of running its resort on the island of Great Exuma. RJR News, citing The Travel Weekly, notes that Sandal Resorts Chief Executive Officer Adam Stewart said details of the agreement will be released over the next two weeks. Gordon 'Butch' Stewart, the founder of Sandals, last year said the Sandals Emerald Bay on Great Exuma was in a dire situation because of high operating costs and insufficient airlift, according to RJR News. RJR News relates that the hotel chain said its effort involved looking to the Bahamas government for solutions. According to Adam Stewart, the people of Great Exuma believe that Sandals is the catalyst to put the island on the map and have worked with the company to help keep the resort open, RJR News adds. =========== B R A Z I L =========== BANCO DAYCOVAL: Fitch Upgrades Issuer Default Ratings From 'BB+' ---------------------------------------------------------------- Fitch Ratings has taken the following rating actions on Banco Daycoval S.A.: -- Long-term foreign and local currency Issuer Default Ratings (IDRs) upgraded to 'BBB-' from 'BB+'; Outlook Stable; -- Short-term foreign and local currency IDRs upgraded to 'F3' from 'B'; -- Viability rating upgraded to 'bbb-' from 'bb+'; -- Support rating affirmed at '5'; -- Support rating floor affirmed at 'No Floor'; -- Long-term national rating upgraded to 'AA(bra)' from 'AA- (bra)'; Outlook Stable; -- Short-term national rating affirmed at 'F1+(bra)'; -- Senior unsecured USD notes due March 2015, foreign currency rating upgraded to 'BBB-' from 'BB+'; -- Senior unsecured USD notes due January 2016, foreign currency rating upgraded to 'BBB-' from 'BB+'. KEY RATING DRIVERS Daycoval's rating upgrades reflect the bank's consistent track record of performance, maintained in different cycles of local economy, higher business diversification and comfortable liquidity and capitalization positions. The bank has recorded consistent profitability, even during stress scenarios, sustained by an adequate asset pricing, strong cost control and low funding cost. It is also worth its prudent liquidity management and adequate assets and liabilities management that help to mitigate the burden of a less diversified funding base compared to larger peers. Daycoval has been successful in expanding its operations and increasing profitability since mid-2009. In view of the high delinquency in credits to small and medium-sized companies in 2012, the bank addressed its growth to consumer credit, mainly to the lower risk payroll discount loans. The expansion into this segment helps to better dilute debtor concentrations and also its income sources. Profitability remains good and better than other midsize banks -- despite lower leverage -- due to better efficiency and good pricing of credit risk, which should continue to have an influence on its results, despite higher credit provisions can reduce profitability over the short and medium-term. In Fitch view the recent spike in credit costs may persist in the short term while the recently expanded portfolio matures and also given the less vigorous economic activity in Brazil seen since 2012. Daycoval has been successful to preserve its profitability ratios based on effective cost controls and improved margins benefited by lower funding costs in the recent past years Fitch expects that despite such increase on credit costs, that the bank will be able to post good profitability ratios in time with its historic average. The higher market delinquency in 2012 resulted in a significant deterioration of the bank's credit quality, which showed impaired loan ratio at 7.1% of the total in 2012, against the 3.3% recorded in 2011; while its 90 days past due loan ratio increased to 2% (0.7% in 2011). The deterioration was more intense than in other mid-size banks, despite being offset by higher margins and restrained by a portfolio reduction in lower-size companies. Given the good quality of the collateral and the effective workout of troubled loans; credit losses should be limited while its ample capital base and good profitability levels bodes well to help create additional loan loss provisions if required. Daycoval has been also relatively successful in increasing and lengthening its funding base, as well as in reducing its cost, with special emphasis on the strong increase of 'letras financeiras' (Financial Bills) in 2012. Nevertheless, its funding remains concentrated per client and with wholesale characteristics. However, the bank's conservative administration of assets and liabilities and its strong cash position fairly mitigate the liquidity risk. As such, the ample liquidity cushion managed by the bank and the relative shorter term of their loans bodes well to match expected short term maturities on their funding. Capitalization ratio (basically Tier 1) and Fitch core capital remain solid, due to the good profitability, in as well as the portfolio stability in 2012. As of December of 2012 the Fitch Core Capital ratio stood at an ample 17.2% roughly in line with the average of the last two years and above the average of banks with VR on the 'bbb' range. That current capital ratios may be underpinned not only with the internal capital generation of the bank, but also, thanks to the recent and expected conversion into capital of some previously issued convertible deposits certificates. RATING SENSITIVITIES Given its current business model, with asset and liability concentrations inherent to its size, including the wholesale funding, further upgrades to Daycoval ratings are limited. Such positive changes will be contingent on significant reduction of the concentration in its funding and a successful diversification into recent market as loans to individual in a sustained manner. The ratings could be negatively impacted by a continued asset quality deterioration which result in pressures on the bank's results (ROA below 2%) and on capital (Fitch core capital lower than 11%), which may be triggered by larger than expected asset quality deterioration and/or aggressive asset growth or cash dividend policy. Originated in 1968, Daycoval is controlled by the Dayan family and has been listed on the Sao Paulo's exchange (BM&FBovespa) since 2007. GRUPO REDE: Bondholders Unlikely to Derail Takeover Plan -------------------------------------------------------- Anna Flavia Rochas at Reuters reports that opposition from foreign bondholders is unlikely to stop the takeover of Brazilian power holding company Grupo Rede Energia SA by two rivals, several sources with direct knowledge of the situation said. The process should be concluded ahead of a court-mandated deadline in July, and the buyout plan by Equatorial Energia SA and CPFL Energia SA may help limit losses for bondholders, the sources said, according to Reuters. However, the report relates that bondholders are fighting a proposal that would restructure Grupo Rede's debt and cut the value of their holdings by 85%. The report says that cash-strapped Grupo Rede, which has BRL4.4 billion (US$2.2 billion) in debts, has been struggling since energy regulator Aneel seized eight of its units in August in an effort to prevent it from halting electricity service in six states. The units, power distributors in different parts of Brazil, are all suffering from serious financial and operational problems, the report relates. Reuters says that equatorial and CPFL are in the process of acquiring Grupo Rede for the symbolic price of BRL1 (US$0.49) plus assumed debt. The report relates that they have the exclusive right to conduct takeover talks with the government and Grupo Rede's creditors. This exclusivity has prevented rivals Energisa SA and Copel, as Cia Paranaense de Energia SA is known, from presenting formal bids, though they have made a preliminary proposal, the report notes. The sources expect the sale to be concluded by June. Reuters notes that Grupo Rede has long been considered a takeover target as the Brazilian government and private companies boost their market share in power distribution, a segment in which bigger scale offsets the outlook for lower revenue in coming years. A report released by financial consultancy firm Apsis said Grupo Rede's seized units need investments of about BRL3 billion (US$1.5 billion) through 2017 to escape bankruptcy, Reuters notes. Reuters discloses that the recovery plan presented by Equatorial and CPFL estimates capital expenditures of at least BRL1.8 billion in the first years. With court backing, Reuters says that Equatorial and CPFL proposed a so-called haircut of 85% to holders of about US$500 million of dollar-denominated debt in a restructuring plan announced. Given the steep haircut and chances that state development bank BNDES will be fully repaid, bondholders are expected to push back, said a source currently working for them, Reuters discloses. One key concern, said the source, is that the government could press local debtholders to approve Grupo Rede's restructuring proposal in order to dilute any opposition by foreign bondholders, Reuters relates. However, Reuters relays that there seems to be little cohesion among the latter, who might not object to Grupo Rede ending up in the hands of two strong local players. Last year's decision to seize Grupo Rede came after the group's chairman and largest shareholder, Jorge Queiroz Jr., failed to sell part or all of his 54% stake, Reuters recalls. Mr. Queiroz's stake was once valued at US$600 million by some analysts. A source with direct knowledge of the preliminary Energisa-Copel proposal said the companies had been given only partial access to Grupo Rede documents and plan to propose a smaller discount to bondholders, Reuters notes. To overcome potential divergences and opposition from other Grupo Rede creditors such as Caixa Economica Federal's FI-FGTS workers' severance fund, Equatorial and CPFL are trying to convince the fund to convert BRL712 million of debt into shares of Grupo Rede, sources involved in the talks said, Reuters notes. Talks between the potential buyers and BNDES are also taking place, the second source said, Reuters adds. ========================== C A Y M A N I S L A N D S ========================== AFFINIA HOLDINGS: Members Receive Wind-Up Report ------------------------------------------------ On Jan. 15, 2013, the members of Affinia Holdings 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 KY1-1102 Cayman Islands F. LEE HOLDINGS: Members Receive Wind-Up Report ----------------------------------------------- On Jan. 15, 2013, the members of F. Lee Holdings 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 KY1-1102 Cayman Islands FACILITAS LTD: Sole Shareholder Receives Wind-Up Report ------------------------------------------------------- On Feb. 25, 2013, the sole shareholder of Facilitas Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Anita Rampersad Telephone: (345) 949 2001 Facsimile: (345) 949 7097 Scotiabank & Trust (Cayman) Ltd. #6 Cardinall Avenue Scotiabank Building, 3rd Floor PO Box 501 Grand Cayman KY1-1106 Cayman Islands GOLDEN ARCHES: Members Receive Wind-Up Report --------------------------------------------- On Jan. 15, 2013, the members of Golden Arches 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 KY1-1102 Cayman Islands I-FUTURE LIMITED: Members Receive Wind-Up Report ------------------------------------------------ On Jan. 15, 2013, the members of I-Future 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 KY1-1102 Cayman Islands MV MV LIMITED: Members Receive Wind-Up Report --------------------------------------------- On Jan. 15, 2013, the members of MV MV 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 KY1-1102 Cayman Islands PACIFIC PHARMA: Members Receive Wind-Up Report ---------------------------------------------- On Jan. 15, 2013, the members of Pacific Pharma 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 KY1-1102 Cayman Islands PEACEFUL HOPE: Members Receive Wind-Up Report --------------------------------------------- On Jan. 15, 2013, the members of Peaceful Hope Holdings 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 KY1-1102 Cayman Islands RAB EXTERNAL: Shareholders Receive Wind-Up Report ------------------------------------------------- On Feb. 5, 2013, the shareholders of Rab External Managers 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 SEVENWOOD LIMITED: Members Receive Wind-Up Report ------------------------------------------------- On Jan. 15, 2013, the members of Sevenwood 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 KY1-1102 Cayman Islands SILVER SWANS: Members Receive Wind-Up Report -------------------------------------------- On Jan. 23, 2013, the members of Silver Swans 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 KY1-1102 Cayman Islands SOVEREIGN 8: Members Receive Wind-Up Report ------------------------------------------- On Jan. 14, 2013, the members of Sovereign 8 Ltd 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 KY1-1102 Cayman Islands SOVEREIGN 18: Members Receive Wind-Up Report -------------------------------------------- On Jan. 15, 2013, the members of Sovereign 18 Ltd 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 KY1-1102 Cayman Islands STORM LAKE: Members Receive Wind-Up Report ------------------------------------------ On Jan. 15, 2013, the members of Storm Lake 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 KY1-1102 Cayman Islands SUPERVIEW HOLDINGS: Members Receive Wind-Up Report -------------------------------------------------- On Jan. 15, 2013, the members of Superview Holdings 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 KY1-1102 Cayman Islands THADDEUS CAPITAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 31, 2013, the shareholders of Thaddeus Capital Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Green Staff Ventures Ltd P.O. Box 957, Offshore Incorporations Centre Road Town, Tortola British Virgin Islands TRYALL INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------------- On Jan. 18, 2013, the shareholders of Tryall Investments received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945 8859 Facsimile: 949 9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands ===================== P U E R T O R I C O ===================== COSTA BONITA: Plan Exclusivity Extended by 90 Days -------------------------------------------------- Costa Bonita Beach Resort, Inc., on March 4, 2013, sought and obtained an order extending for 90 days its deadline to file an amended plan and disclosure statement. 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 * * *