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/raid1/www/Hosts/bankrupt/TCRLA_Public/130411.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, April 11, 2013, Vol. 14, No. 71 Headlines B R A Z I L OGX S.A.: Low Production Flow Rates Cues Moody's to Cut CFR to B2 TONON BIOENERGIA: S&P Affirms 'B' CCR; Outlook Stable C O L O M B I A * Three Central Bankers Warn on Financial Stability Risks C A Y M A N I S L A N D S 3DCO OFFSHORE: Creditors' Proofs of Debt Due April 15 ARCHIMEDES FUNDING: Members to Hear Wind-Up Report on April 17 ARCHIMEDES FUNDING: Creditors' Proofs of Debt Due April 15 AROCHEM REFINING: Shareholders Receive Wind-Up Report ATLAS OPERATIONS: Members Receive Wind-Up Report ATLAS OPERATIONS CAYMAN: Members Receive Wind-Up Report BBVA BANCO: Fitch Rates Continental Trustees Securities at 'BB+' BILLION PLUS: Shareholder Receives Wind-Up Report BJC HEALTHCARE: Creditors' Proofs of Debt Due April 15 BJC HEALTHCARE ERISA: Creditors' Proofs of Debt Due April 15 BLUE HERON: Shareholders Receive Wind-Up Report FRM FUND: Shareholder Receives Wind-Up Report GATE SME CLO 2004-2A: Creditors' Proofs of Debt Due April 15 GATE SME 2005-1: Shareholders to Hear Wind-Up Report on April 17 GATE SME 2005-1: Creditors' Proofs of Debt Due April 15 GUNERSBURY LTD: Shareholders to Receive Wind-Up Report on Apr. 15 HOKURIKU INTERNATIONAL: Creditors' Proofs of Debt Due April 15 INVESTMENTS: Shareholders Receive Wind-Up Report KERALA INVESTMENTS: Shareholder Receives Wind-Up Report TULA INVESTMENTS: Shareholder Receives Wind-Up Report J A M A I C A JAMAICA RAILWAY: Expects Turnaround in Financial Performance M E X I C O CORPORACION INTERAMERICANA: Fitch Withdraws 'BB-' Long-Term IDR CORPORACION LINDLEY: S&P Rates $260MM Sr. Unsecured Notes 'BB+' METROFINANCIERA: S&P Lowers Ratings on RMBS Deals T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Fined US$100,000 for Holding Passengers X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== OGX S.A.: Low Production Flow Rates Cues Moody's to Cut CFR to B2 ----------------------------------------------------------------- Moody's Investors Service downgraded OGX Petroleo e Gas Participacoes S.A.'s (OGX) Corporate Family Rating to B2 from B1 and OGX Austria GmbH's senior unsecured notes ratings to B2 from B1 and placed all ratings on review for further downgrade. "The rating downgrade of OGX Petroleo e Gas Participacoes S.A. is driven by continued low production flow rates from the company's initial offshore producing wells, negatively impacting capital productivity and cash flows," commented Gretchen French, Moody's Vice President. "The ratings review for further downgrade reflects the concern over tightening liquidity over the next 12-18 months, with the expected need for OGX to pursue alternative liquidity options in order to build a healthy cash cushion through 2014." Issuer: OGX Petroleo e Gas Participacoes SA Downgrades: Corporate Family Rating, Downgraded to B2 from B1; Placed Under Review for further Downgrade Outlook Actions: Outlook, Changed To Rating Under Review From Negative Issuer: OGX Austria GMBH Downgrades: $2563M 8.5% Senior Unsecured Regular Bond/Debenture, Downgraded to B2 from B1; Placed Under Review for further Downgrade $1063M 8.375% Senior Unsecured Regular Bond/Debenture, Downgraded to B2 from B1; Placed Under Review for further Downgrade Outlook Actions: Outlook, Changed To Rating Under Review From Negative Ratings Rationale: OGX's offshore production flow rates per well have continued to remain below expectations as a result of higher than anticipated geological complexity of the Tubarao Azul field of the Campos Basin offshore Brazil. While initial results remain limited to only three producing wells, compartmentalization of the carbonate reservoir and weaker than expected water drive appears to be a larger challenge for the company than originally anticipated. There is also significant well interference between the first two producing wells, but notably, not the third well, which has also underperformed. This has resulted in increased costs to fully develop the field and reduced recovery assumptions for the reservoir, negatively impacting the company's growth rates and returns. With lower production flow rates, cash flow projections for OGX are weaker than prior projections, despite the benefit of a favorable oil price environment and relatively high realized prices on OGX's production. This has resulted in projections for higher consumption of cash balances and a more constrained liquidity profile over the next 12-18 months, unless OGX pursues alternative liquidity options. These alternative options include potentially selling certain assets. As Moody's has previously noted, OGX has high operating and capital risk concentrations, as it holds 100% working interests in the lion's share of its concessions, and a farm-out a part of certain of its working interest positions could be a meaningful source of additional liquidity for the company. An additional source of liquidity could be the exercise by OGX of its $1 billion put option that was granted by the company's controlling shareholder, Mr. Eike Batista, in October 2012. The put option expires on May 1, 2014 and is conditional upon OGX not finding more favorable alternatives for its capital needs, as determined by the majority of OGX's independent board members. Moody's also notes that the company has curtailed its spending, with capital spending projected to be $1.3 billion in 2013 and $800 million in 2014, and has also reduced G&A and G&G costs. The review for downgrade will focus on the company's ability to improve its liquidity profile and its prospects for better capital productivity and production growth. The company hopes to experience better well productivity from the Tubarao Martelo field, which is another carbonate reservoir in the Campos Basin, but where permeability levels are higher than in Tubarao Azul. OGX has already drilled and made the lower completion of six production wells in this field. The first producing well in Tubarao Martelo is expected to come on-stream in late 2013, after the arrival of the FPSO OSX-3 in the third quarter of 2013, which is in the final stages of engineering. If OGX is successful in developing the Tubarao Martelo field, this should meaningfully improve OGX's production and cash flow profile. Nevertheless, while five of the six wells have been tested, there are many risks of bringing contingent oil and gas resources onto production, with inconsistencies inherent to carbonate reservoirs. OGX's B2 Corporate Family Rating is supported by the company's large, world scale resource base, which provides excellent reserves and production growth potential and energy sector experienced management team and board. The B2 Corporate Family rating is restrained by the company's still early stage development status, with only three offshore wells producing, large up-front capital spending, with high staging and execution risk, early stage, small scale and concentrated production operations through the third quarter of 2013, and high front-end leverage, with lack of free cash flow until post 2014. OGX's B2 ratings could be downgraded if the company is not successful in building a stronger liquidity cushion over the next 3-6 months of at least $500 million in additional liquidity. The B2 ratings could also face a downgrade as a result of material delays in the development of the Tubarao Martelo field. While unexpected over the near-term given the rating review, the B2 rating could be upgraded if there is sufficient visibility to OGX maintaining healthy cash balances (minimum cash balances of at least $400 million) and is able to significantly grow its production (toward 50,000 barrels of oil equivalent per day). The principal methodology used in this rating was Global Independent Exploration and Production Industry Methodology published in December 2011. Based in Rio de Janeiro, Brazil, OGX is one of the largest independent exploration and production companies in Latin America. TONON BIOENERGIA: S&P Affirms 'B' CCR; Outlook Stable ----------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit and issue ratings on Tonon Bioenergia S.A. The company has $300 million in bonds outstanding. The outlook on the corporate credit rating remains stable. The ratings affirmation reflects S&P's opinion that the recent acquisition of Paraiso Bioenergia S.A. (not rated) will enable Tonon to increase its crushing capacity and cash flows, despite its somewhat higher debt than S&P previously forecasted. S&P believes Tonon will be able to absorb a higher debt burden without affecting its creditworthiness, given its improved capital structure following the $300 million bond issuance in January 2013, proceeds from which the company will use to refinance short-term and guaranteed debt. =============== C O L O M B I A =============== * Three Central Bankers Warn on Financial Stability Risks --------------------------------------------------------- Bloomberg Business Week reported that Colombian policy makers are monitoring credit indicators to ensure that the lowest interest rate in Latin America doesn't lead to excess risk-taking that could jeopardize the stability of the financial system. The central bank will study the quality of household credit, and the amount of debt that consumers are taking on, when it decides on the future direction of interest rates, bank co-director Cesar Vallejo said in an interview with Business Week in Medellin. "Credit risk would be generated if interest rates are excessively low, or if low interest rates induce debtors to take on more debt than they can handle, or creditors in the financial system fall into the temptation of offering more credit," Mr. Vallejo said, on the sidelines of a conference of the country's banking association Asobancaria. In a separate interview with Business Week at the same event, central bank board member Carlos Gustavo Cano said that leaving borrowing costs low for a prolonged period when inflation accelerates to its target and growth rises to its full potential rate, could generate financial risks. The central bank has cut its policy rate two percentage points since June, to 3.25 percent, the lowest among major economies in the region, as growth cooled and the inflation rate fell to a six- decade low. Even as the economy has slowed, home prices have risen to record highs and credit growth has begun to pick up after slowing for more than a year. Bloomberg Business Week said Messrs. Vallejo's and Cano's remarks came after central bank Governor Jose Dario Uribe told the banking association that policy makers could set interest rates higher than would be necessary to hit the inflation target, in order to prevent "financial imbalances". Speaking to reporters after his presentation, Mr. Uribe said the "first tool at hand" if there were excessive risk-taking would be regulatory measures such as higher capital requirements for banks. Home prices rose 71 percent in the third quarter from a decade earlier, according to the bank's inflation-adjusted housing price index, while the delinquent payment rate fell to a record low 2.3 percent last year. Home prices are rising faster than nominal gross domestic product, Mr. Uribe said. The central bank repeatedly expressed concern with the pace of credit growth when it raised interest rates nine times between February 2011 and February 2012. Annual credit growth accelerated for a second straight month in January, to 15.4 percent, from 14.6 percent in November. The central bank wants annual inflation back at the 3 percent midpoint of its target range, and doesn't want it to remain at its current levels, Mr. Cano said. Mr. Vallejo forecast that inflation will return to 3 percent in the first half of 2014. Inflation accelerated to 1.99 percent last month, according to the median forecast in a Bloomberg survey of 19 analysts, from a six decade-low of 1.83 percent in February. The central bank unexpectedly stepped up the pace of rate cuts in March, with the first half-point reduction in three years. The move was intended to speed up the elimination of the economy's excess capacity, Mr. Vallejo said. "We hope and expect that with this interest rate we can close the output gap, though there's no guarantee that this is the interest rate that will do it," Mr. Vallejo said. Both Messrs. Vallejo and Cano said that the level of the real, or inflation-adjusted, interest rate played a key role in the decision to cut rates by half a percentage point last month. "One of the main reasons the bank decided to cut 50 basis points was that inflation has been falling faster than nominal rates, which means that instead of real interest rates falling, they were stable or went up," Mr. Cano said, notes the Bloomberg Business Week report. ========================== C A Y M A N I S L A N D S ========================== 3DCO OFFSHORE: Creditors' Proofs of Debt Due April 15 ----------------------------------------------------- The creditors of 3DCO Offshore Ltd. are required to file their proofs of debt by April 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 12, 2013. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands ARCHIMEDES FUNDING: Members to Hear Wind-Up Report on April 17 -------------------------------------------------------------- The members of Archimedes Funding II, Ltd. will receive on April 17, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands ARCHIMEDES FUNDING: Creditors' Proofs of Debt Due April 15 ---------------------------------------------------------- The creditors of Archimedes Funding II, Ltd. are required to file their proofs of debt by April 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 14, 2013. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands AROCHEM REFINING: Shareholders Receive Wind-Up Report ----------------------------------------------------- On March 11, 2013, the shareholders of Arochem Refining Company Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Raymond E. Whittaker Telephone: (345) 946 5125 Facsimile: (345) 946 5126 FCM LTD. PO Box 1982 Grand Cayman Cayman Islands ATLAS OPERATIONS: Members Receive Wind-Up Report ------------------------------------------------ The members of Atlas Operations Ltd. received on April 5, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lisa Cohen c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands ATLAS OPERATIONS CAYMAN: Members Receive Wind-Up Report ------------------------------------------------------- The members of Atlas Operations Cayman Ltd. received on April 5, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lisa Cohen c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands BBVA BANCO: Fitch Rates Continental Trustees Securities at 'BB+' ---------------------------------------------------------------- Fitch Ratings expects to rate BBVA Banco Continental's upcoming five-year U.S. dollar senior unsecured fixed-rate notes 'BBB+(exp)'. The notes -- for an amount to be determined -- will mature in 2018, and interest payments will be made semi-annually. The notes will carry a fixed interest rate to be set at the time of the issuance. KEY RATING DRIVERS BC has a long-term local and foreign currency Issuer Default Ratings (IDR) of 'BBB+'; both of them driven by BC's Viability Rating (VR) currently at 'bbb+'. BC's ratings reflect its strong franchise, solid performance, good profitability, high efficiency, good asset quality, ample reserves, wide and low-cost deposit base, and improved capital. The IDRs carry a Negative Outlook in line with that of BC's parent (BBVA, rated 'BBB+' by Fitch), acknowledging the potential contagion risk from the ongoing crisis that BBVA faces in Spain. The notes will be rated 'BBB+', at the same level as the bank's IDRs. The notes will rank pari-passu with all of BC's existing and future senior unsecured debt and are senior to BC's existing and future subordinated and junior subordinated debt. The notes will be effectively subordinated to all of BC's secured indebtedness with respect to the value of its assets securing that indebtedness, certain direct, unsecured general obligations that in case of insolvency are granted preferential treatment pursuant to Peruvian law, and all of the existing and future liabilities of BC's subsidiaries, including trade payables. RATING SENSITIVITIES The ratings are sensitive to any changes in BC's VR and IDRs. BC's ratings would benefit from sustained balance sheet strength and consistent performance, as well as a stable economic background. BC's and the notes' ratings would be pressured downwards if the uncertainty surrounding its parent company deepens and affects its access to funding and liquidity or, if BC's operating environment deteriorates significantly, affecting the bank's performance and eroding the bank's reserve and capital cushions. BC will use the proceeds for general business purposes. The bank's leverage will slightly increase in the short run but Fitch expects that gradual debt replacement, continued growth and positive returns, will allow the bank to sustain adequate Fitch core capital levels. Fitch rates BC as follows: -- Long-term foreign currency IDR: 'BBB+', Negative Outlook; -- Short-term foreign currency IDR: 'F2'; -- Long-term local currency IDR: 'BBB+', Negative Outlook; -- Short-term local currency IDR: 'F2'; -- Viability Rating: 'bbb+'; -- Support rating: '2'; -- Support floor: 'BBB-'; -- Senior unsecured debt: 'BBB+'. In addition, the following entities issued securities whose underlying credit risk is that of BBVA Banco Continental; Fitch's ratings of those securities are as follows: -- Continental Trustees (Cayman) Ltd 'BB+'; -- Continental Senior Trustees (Cayman) Ltd 'BBB+'; -- Continental Senior Trustees (Cayman) II Ltd 'BBB+'. BILLION PLUS: Shareholder Receives Wind-Up Report ------------------------------------------------- On March 4, 2013, the shareholder of Billion Plus Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lo Choy Yuk Ching Yvonne 7 Black's Link Repulse Bay Hong Kong BJC HEALTHCARE: Creditors' Proofs of Debt Due April 15 ------------------------------------------------------ The creditors of BJC Healthcare Fund Ltd. are required to file their proofs of debt by April 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 12, 2013. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands BJC HEALTHCARE ERISA: Creditors' Proofs of Debt Due April 15 ------------------------------------------------------------ The creditors of BJC Healthcare Erisa Fund Ltd. are required to file their proofs of debt by April 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 12, 2013. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands BLUE HERON: Shareholders Receive Wind-Up Report ----------------------------------------------- On March 15, 2013, the shareholders of Blue Heron International Limited received the liquidator's report on the company's wind-up proceedings and property disposal. 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) 914 3115 FRM FUND: Shareholder Receives Wind-Up Report --------------------------------------------- The shareholder of FRM Emerging Markets Master Fund SPC received on March 12, 2013, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815-1762 Facsimile: (345) 949-9877 GATE SME CLO 2004-2A: Creditors' Proofs of Debt Due April 15 ------------------------------------------------------------ The creditors of GATE SME CLO 2004-2A First Loss, Ltd. are required to file their proofs of debt by April 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 13, 2013. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands GATE SME 2005-1: Shareholders to Hear Wind-Up Report on April 17 ---------------------------------------------------------------- The shareholders of Gate SME CLO 2005-1 Mezzanine, Ltd. will receive on April 17, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands GATE SME 2005-1: Creditors' Proofs of Debt Due April 15 ------------------------------------------------------- The creditors of Gate SME CLO 2005-1 Mezzanine, Ltd. are required to file their proofs of debt by April 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 14, 2013. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands GUNERSBURY LTD: Shareholders to Receive Wind-Up Report on Apr. 15 ----------------------------------------------------------------- The shareholders of Gunersbury Limited will receive on April 15, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands HOKURIKU INTERNATIONAL: Creditors' Proofs of Debt Due April 15 -------------------------------------------------------------- The creditors of Hokuriku International Cayman Limited are required to file their proofs of debt by April 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 8, 2013. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------ On Feb. 28, 2013, the shareholders of Investments received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Charles Spencer Keeble c/o Campbells Corporate Services Limited Willow House, Floor 4, Cricket Square Grand Cayman Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 KERALA INVESTMENTS: Shareholder Receives Wind-Up Report ------------------------------------------------------- On March 15, 2013, the shareholder of Kerala Investments Limited received the liquidator's report on the company's wind-up proceedings and property disposal. 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) 914 3115 TULA INVESTMENTS: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of Tula Investments and Services Limited received on April 5, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lorraine D. Burrows Edward B. Turner & Co. #10 Petrona House Fowler Street off East Bay Street P.O. Box N-1375 Nassau Bahamas Intertrust Corporate Services (Cayman) Limited 190 Elgin, George Town Grand Cayman KY1-9002 Cayman Islands c/o Kim Charaman Telephone: (345) 914 3207 ============= J A M A I C A ============= JAMAICA RAILWAY: Expects Turnaround in Financial Performance ------------------------------------------------------------ RJR News reported that the Jamaica Railway Corporation (JRC) is projected to see a turnaround in its financial performance this fiscal year. According to RJR News, a Ministry of Finance report on public bodies stated that the Railway Corporation's limited activities will result in it generating a net surplus of J$14 million dollars. The entity racked up a J$31 million dollar deficit in the last financial year. The JRC's operations will be confined to activities necessary to fulfill its contractual arrangements with UC Rusal and the Jamaica Bauxite Mining Limited. In addition, the Corporation will manage its real estate portfolio and provide assistance towards its divestment. 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. * * * The Troubled Company Reporter-Latin America reported on March 21, 2013, that according to RJR News, the Jamaican government is moving closer to finalizing plans for the privatization of the Jamaica Railway Corporation. 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 =========== CORPORACION INTERAMERICANA: Fitch Withdraws 'BB-' Long-Term IDR --------------------------------------------------------------- Fitch Ratings withdraws the following ratings for Corporacion Interamericana para el Financiamiento de Infraestructura (CIFI): --Long-Term IDR 'BB-'; --Short-Term IDR 'B'; --Viability Rating 'bb-'; --Support '5'; --Support Floor 'NF'. Fitch has withdrawn the ratings as CIFI has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for CIFI. CORPORACION LINDLEY: S&P Rates $260MM Sr. Unsecured Notes 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' corporate credit rating on Corporacion Lindley S.A. (Lindley). At the same time, S&P assigned its 'BB+' senior unsecured debt rating to Lindley's proposed $260 million fixed-rate dollar-denominated senior unsecured notes due 2023. The outlook is stable. The 'BB+' ratings on Lindley reflect S&P's assessment of its "satisfactory" business risk profile, "significant" financial risk profile, and "adequate" liquidity. "Our assessment of Lindley's business risk profile as "satisfactory" reflects its solid and established relationship with The Coca-Cola Co. (Coke; AA-/Stable/--) as an exclusive Coke bottler in Peru, its leading position within the Peruvian carbonated soft drinks (CSD) market, an extensive product portfolio with strong brand recognition, and its broad distribution network. The partly offsetting factors are the company's limited geographic diversification, and its relative exposure to volatile commodity prices, such as sugar and food- grade packaging plastics (PET)," S&P said. Following Coke's acquisition of a 38.5% stake in Lindley and Lindley's 2004 acquisition of Embotelladora Latinoamericana S.A., Lindley became the exclusive Coke bottler in Peru. Lindley's current share of the Peruvian CSD market is 70%, enjoys the exclusive right to produce, bottle, and distribute all of Coke's brands. "Lindley's integration in Coke's operations and marketing as well as its strong alignment with Coke's business strategy benefit its business position," said Standard & Poor's credit analyst Luis Martinez. In 2012, Lindley sold 274 million unit cases through 250,000 points of sale, and the CSD sector generated 79% of its revenues. Its Inca Kola and Coca-Cola lead the market and drive the company's business strategy. However, the company has gradually strengthened its product portfolio and has gained strong participation in water, fruit juices, isotonics and energy drinks, which, combined, posted a 16% volume growth during 2012. METROFINANCIERA: S&P Lowers Ratings on RMBS Deals ------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term ratings on five Mexican residential mortgage-backed securities (RMBS) transactions originated and serviced by Metrofinanciera S.A.P.I. de C.V. SOFOM E.N.R. and placed them on CreditWatch with negative implications. At the same time, S&P placed the ratings on other two Metrofinanciera's RMBS deals on CreditWatch negative. On April 3, a notice published via Emisnet said some Metrofinanciera bank accounts were frozen because of legal process against the company; among those accounts are the ones holding collections belonging to the trusts. Therefore, these amounts were not transferred to the trust's accounts and will not be distributed to make debt-service payments in the next payment date. Metrofinanciera and the trustees started a notification process, seeking borrowers to make their mortgages payments directly into the trusts' accounts, but it is uncertain how quickly this process will evolve. Given the uncertainty regarding resolution of this legal process, to then release the amounts to the trusts, and regarding the success and speed of the notification process by Metrofinanciera and the trustees, S&P expects the transactions may experience liquidity shortfalls in the near term. S&P therefore is placing its ratings on CreditWatch with negative implications. METROCB 05U and MFCB 05U deals have partial credit guarantees (PCGs) provided by Sociedad Hipotecaria Federal S.N.C. (SHF; mxAAA/Stable/mxA-1+) and cash reserve accounts that can mitigate the liquidity shortfalls for the following payment date. If the PCGs and the cash reserves are sufficient to cover interest payments while the legal process is resolved, and borrowers begin making their monthly payments directly into the trusts' accounts, S&P could affirm its ratings. If not, S&P will lower its ratings by several notches to reflect a potential missed interest payment. Although METROCB 04U and MTOFCB 08 transactions have both PCGs and cash reserves that can mitigate short-term liquidity shortfalls, S&P is lowering the ratings because of the operational risks the transactions are encountering no longer correspond, in S&P's opinion, to an 'mxAAA' rating level. S&P is also placing these ratings on CreditWatch with negative implications. METROCB 06U and MTROCB 08U have cash in their reserve accounts that may cover interest payment for the next payment date, but might not be sufficient for the following ones in case most of the collections continue to be deposited into Metrofinanciera's accounts. Finally, MTROCB 07U does not have, via PCGs or cash reserves, enough room to mitigate liquidity shortfalls in the near term. S&P therefore believes it likely that this transaction might not fully meet the interest payment scheduled for May 2, so S&P is lowering its rating and placing it on CreditWatch with negative implications. If sufficient collections from the current period are transferred into the trust accounts, and are available to make interest payments on the certificates (if the legal process is at least partly resolved or the notification process moves quickly and is effective), S&P could affirm the rating; otherwise, it could again lower its rating, reflecting the risk of an imminent missed interest payment. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LOWERED AND PLACED ON CREDITWATCH NEGATIVE Metrofinanciera - Bursatilizaciones de Hipotecas Residenciales Series Maturity Rating Outs. Amount Date To From (mil.) METROCB 04U 11/11/2033 mxAA (sf) mxAAA (sf) 30.57 UDIs / CW Neg METROCB 06U 11/14/2033 mxBB (sf) mxBBB (sf) 50.01 UDIs / CW Neg Metrofinanciera - Bursatilizaciones de Hipotecas Residenciales II Series Maturity Rating Outs. Amount Date To From (mil.) MTROCB 07U 12/1/2033 CCC+ (sf) B (sf) 148.44 UDIs / CW Neg MTROCB 07U 12/1/2033 mxB (sf) mxBBB- (sf) 148.44 UDIs / CW Neg MTROCB 08U 4/1/2033 B- (sf) B (sf) 162.97 UDIs / CW Neg MTROCB 08U 4/1/2033 mxBB (sf) mxBBB- (sf) 162.97 UDIs / CW Neg MTROFCB 08 6/1/2039 mxAA (sf) mxAAA (sf) MXN356.08 / CW Neg RATINGS PLACED ON CREDITWATCH NEGATIVE Metrofinanciera - Bursatilizaciones de Hipotecas Residenciales Series Maturity Rating Outs. Amount Date To From (mil.) METROCB 05U 2/20/2034 mxA+(sf) mxA+ (sf) 41.23 UDIs /Watch Neg MFCB 05U 10/24/2033 mxBBB+(sf) mxBBB+(sf) 52.64 UDIs /Watch Neg =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Fined US$100,000 for Holding Passengers ----------------------------------------------------------- The Gleaner reported that the Trinidad and Tobago-owned Caribbean Airlines (CAL) has been fined US$100,000 for violating United States federal rules after it prevented passengers from disembarking from one of its planes delayed on the tarmac at the John F. Kennedy International Airport last August. According to The Gleaner, the United States Department of Transportation (DOT) said the plane was delayed for more than four hours and that CAL failed to provide customers with food and water until almost four hours after the plane left the gate during the tarmac delay. The DOT ordered the carrier to cease and desist from further violations, the report added. About Caribbean Airlines 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 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 =============== * 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 * * *