/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130621.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, June 21, 2013, Vol. 14, No. 122 Headlines A R G E N T I N A HIDROELECTRICA PIEDRA: S&P Affirms 'B-' Rating; Outlook Negative QBE SEGUROS: Moody's Affirms Global Currency Rating at Ba3 B R A Z I L ROTA DAS BANDEIRAS: Moody's Affirms Ba1 Issuer Ratings C A Y M A N I S L A N D S ADVANCED MULTI: Creditors' Proofs of Debt Due July 18 ALTERNATIVEEDGE SHORT-TERM: Creditors' Proofs of Debt Due July 10 ALTERNATIVEEDGE SHORT-TERM: Shareholders' Meeting Set for July 12 CALEDONIA ASIA: Creditors' Proofs of Debt Due July 18 CALEDONIA ASIA MASTER: Creditors' Proofs of Debt Due July 18 CALIBRE FUND: Placed Under Voluntary Wind-Up CORNUCOPIA ALPHA: Creditors' Proofs of Debt Due July 11 DRAGON BRIGHT: Incurs $908K Net Loss in 2012 FAIRFIELD ARGENIS: Shareholders' Final Meeting Set for July 12 GEOSPHERE DIRECTIONAL: Creditors' Proofs of Debt Due July 16 GEOSPHERE MASTER: Creditors' Proofs of Debt Due July 16 JF THREE: Creditors' Proofs of Debt Due July 17 JT FUND: Commences Liquidation Proceedings PAKPOLEE COMMERCIAL: Creditors' Proofs of Debt Due July 9 PARVUS EUROPEAN: Creditors' Proofs of Debt Due July 9 ROSEN OFFSHORE: Creditors' Proofs of Debt Due July 18 TECHNISSIMO LTD: Creditors' Proofs of Debt Due Aug. 7 J A M A I C A JAMAICA AIR: Shuts Down Airline Operations M E X I C O MAXCOM TELECOMUNICACIONES: S&P Lowers Corp. Credit Rating to 'D' P U E R T O R I C O JVMW PROPERTIES: Secured Creditor Wants Collateral Use Prohibited MJS LAS CROABAS: FDIC-R Has Green Light to Foreclose SABANA DEL PALMAR: FDIC-R Has Green Light to Foreclose T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Joint Working Group to be Reconvened - - - - - ================= A R G E N T I N A ================= HIDROELECTRICA PIEDRA: S&P Affirms 'B-' Rating; Outlook Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' ratings on Argentina-based hydroelectric power generator Hidroelectrica Piedra del Aguila S.A. (HPDA). The outlook remains negative. "The 'B-' ratings on HPDA reflect the high political and regulatory risk the company faces in Argentina, its exposure to potentially poor hydrology in the country's southwest, and high currency mismatch risk--with revenues mostly denominated in Argentine pesos and dollar-denominated debt," said Standard & Poor's credit analyst Andrea Zombory. HPDA's solid competitive position as a low-cost generator, its manageable debt maturity schedule and sizable cash reserves partially offset these negative factors. Standard & Poor's Ratings Services assesses HPDA's business risk profile as "vulnerable" and its financial risk profile as "aggressive," as our criteria define these terms. The high political and regulatory risk in Argentina is reflected in low electricity prices and in the challenges that many power generators face to collect a high percentage of their sales in the spot market. Also, on March 26, 2013, Argentina's secretary of energy issued Resolution 95/2013, introducing changes in the remuneration for electricity that power generators provide. Prior to this date, power generators sold electricity under contracts with large users and in the spot market. They collected payments in full under their large user contracts but collected only a small portion of sales in the spot market. The new resolution does not allow power generators to sell power directly to large users but rather to sell all their output to the wholesale electricity market administrator (CAMMESA). Although S&P do not expect the HPDA's revenues to decline significantly under the resolution, it will closely monitor collections, as potential delays could significantly weaken its cash flow. QBE SEGUROS: Moody's Affirms Global Currency Rating at Ba3 ---------------------------------------------------------- Moody's Latin America affirmed the Ba3 global local currency and the Aa2.ar Argentina national scale insurance financial strength (IFS) ratings of QBE Seguros La Buenos Aires (QBE-La Buenos Aires). The rating outlook remains negative. QBE-La Buenos Aires - - owned by Australian-based QBE Insurance Group Limited (QBE; QBE.AX, senior debt Baa1/negative outlook) -- is a leading property and casualty (P&C) insurer in Argentina, with an overall market share of 7%. Ratings Rationale: According to Moody's, the ratings affirmation primarily reflects the company's improved capitalization under new ownership by QBE. Prior concerns about deteriorating capital adequacy under its former owner, HSBC, driven partly by dividends taken out of the company, had led to a negative outlook in November of 2011. However, QBE has made significant capital contributions to the company over the past year, resulting in improvement in the company's gross underwriting leverage and high-risk assets-to- equity metrics. The rating agency said the continuing negative outlook for the company is now driven by the negative outlook of the Argentine sovereign bond and bank deposit ratings given the credit linkages between financial institutions and sovereign risk. Alejandro Pavlov, VP Senior Analyst and lead analyst for QBE-La Buenos Aires at Moody's explained, "Although QBE-La Buenos Aires is reporting some losses in this current fiscal year, our concerns about the company's capitalization and exposure to risky assets are mitigated given QBE's capital support." QBE-La Buenos Aires' Ba3 IFS rating benefits from two notches of uplift from its stand-alone credit profile due to the company's ownership by, and support from QBE. In Moody's view, the company will continue to benefit from its strong strategic fit as part of QBE, a group whose operations are focused on general insurance worldwide, and who in recent years has increased its commitment to the Latin American and Argentine insurance markets. Moody's noted that given QBE-La Buenos Aires's negative outlook, a rating upgrade is unlikely, but the following factors could lead the outlook to move back to stable from negative: Argentine sovereign rating outlook returning to stable from negative, or explicit parental support (e.g. through significant ongoing risk- transfer intercompany reinsurance or a guarantee or keep-well agreement). Conversely, one or more of the following could contribute to a possible rating downgrade: downgrade of Argentina's government bond rating and/or deterioration in Argentine's operating environment; a reduction in market presence (e.g. to below 4% of the general insurance market); a sustained deterioration in overall profitability with returns on capital consistently below 5%; gross underwriting leverage consistently above 12x; and/or operating losses leading to a decline in capital of 15% or more over a one-year period. The principal methodology used in this rating was Moody's Global Rating Methodology for Property and Casualty Insurers published in May 2010. Headquartered in Buenos Aires, Argentina, QBE-Seguros La Buenos Aires reported a net loss of ARS8.4 million for the third quarter of 2012/13 fiscal year ended March 31, 2013. Its assets totaled ARS 2.5 billion, with company's shareholder's equity of about ARS 520 million as of March 31, 2013. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. =========== B R A Z I L =========== ROTA DAS BANDEIRAS: Moody's Affirms Ba1 Issuer Ratings ------------------------------------------------------ Moody's America Latina affirmed Rota das Bandeiras' issuer ratings of Ba1 on the global scale and Aa2.br on the Brazilian national scale, and the Ba1 and Aa2.br ratings assigned to its BRL1.34 billion senior secured debentures due in 2024. The outlook is stable for all ratings. Ratings Rationale: The Ba1/Aa2.br ratings reflect the essential role that the Rota das Bandeiras' road complex fills in one of the most densely populated and economically critical regions of the country. The ratings also reflect the relatively stable regulatory environment for toll roads operating in the State of Sao Paulo and the manageable level of construction risk. In addition, the financing and legal structures provide the debenture holder baseline protections which include a 1.2x minimum debt service coverage ratio, restrictions on dividend distribution and leverage increases, as well as reserve fund requirements. The inherently start-up nature of this recently awarded concession constrains the rating since evidence of actual operating performance is still limited. The significant investment requirements in the near term could potentially negatively pressure the rating or constrain credit metrics. Rota das Bandeiras reported traffic volumes of 85.9 million car equivalent vehicles in 2012, which was 8.5% higher than in 2011, but still 6% lower than Moody's initial base case from 2010. The 1Q 2013 traffic volumes were up 4.4% from the same period in 2012 with 21.5 million car equivalent vehicles, These results were pretty much in line with Moody's latest revised expectations. Financial performance is expected to continue to be strong in 2013 with traffic volumes estimated to grow by 4.3%, somewhat above the Brazilian GDP expectation of 3.5% forecasted by Moody's Analytics. The increasing cash needs are largely mitigated by the Rota das Bandeiras' current adequate liquidity position, illustrated by the BRL234 million cash outstanding on March 31, 2013, and approximately BRL150 million of cash flows from operations as of FYE 2012. Equity injections from the shareholder in the amount of BRL557 million over the 2009-2011 period and lower investment cash outlays contributed to the current strong liquidity profile. Moody's believes that this position is sustainable since the existing covenants largely restrict dividend distribution while DSCR<1.3x. Although this ratio at March 31, 2013, was 1.33x Moody's does not anticipate the company paying any dividends over the medium term. Additionally, the concession has a BRL921 million long-term loan commitment approved by the BNDES to support its BRL 745 million capital expenditure plan over the 2013-2017 period, of which just BRL395.5 million had been disbursed by 3/31/2013. The debentures benefit from a 6-month reserve requirement for debt service and a 3-month reserve requirement for operations and maintenance costs; however, these initially cash-funded reserves were replaced by a bank letter of credit in 2013 with HSBC Bank Brasil, S.A. (Baa2, stable), and are renewed every semester. The letter of credit does not contain any material adverse clauses, but the shorter term nature is viewed less favorably. Management is currently in negotiations for the renewal of the letter of credit for the next six months starting July 2013. Albeit lower than initially forecast, the credit metrics remain strong for the Ba1 rating category. For the 12 months ended 3/31/2013, the Cash Interest Coverage ratio was 2.4x, debt service coverage ratio was 1.5x and funds from operations (FFO) to debt was 11.5%. Residual cash flow to capex was 1.2x, as previously anticipated as a result of the delays encountered in the execution of the original investment plan. Management has provided an updated set of projections, where traffic is expected to grow from 85.9 million equivalent vehicles in 2012 to 104,9 million equivalent vehicles by 2017, which equates to annual average growth of 4.4% which appears reasonable. The major risks to the financial projections are traffic volume and tariff adjustments falling below this expectation because of further material delays in carrying out the planned capital expenditures. The credit metrics in 2012 were somewhat lower than in 2011 for FFO to debt and cash interest as a result of increases in outstanding debt and greater cash interest. The amortization schedule of the BRL1.34 billion debentures was structured with a grace period of 30-36 months and principal payments gradually increasing over time towards maturity in order to better match debt service with the expected ramp-up in cash flows of the concession. The first amortization payment occurred in January 2013. Although cash flows are expected to grow going forward, 2013 and 2014 credit metrics are expected to remain at or slightly below FYE 2012 levels as a result of higher debt service, and ongoing capital expenditures. In particular, the Retained Cash Flow (RCF) to Capex ratio should decline to 1.1x in 2014 as a result of the increased capital expenditures and higher levels of debt service. Debt Service coverage should remain around 1.3x, nearing the minimum required 1.2x debt service coverage ratio. As of 3/31/2013, net debt to EBITDA was 4.15x. Moody's revised projections indicate a Cash Interest Coverage ratio in the 2.2- 2.1x range over the next 12-18 months, while funds from operations (FFO) to debt will decline to around 9% as a result of increased borrowings. Moody's expects that the strong financial support of Rota das Bandeiras' shareholders and the regulatory framework in the state of Sao Paulo will remain unchanged, planned investments will occur as scheduled over the 2013-2014 period, and tariff adjustments will continue to be implemented as well. The rating or the outlook could be upgraded should operating performance improve significantly and credit metrics are in line or above projections so that the FFO to debt ratio remains above 15% and the cash interest coverage ratio stays above 3.0x on a sustainable basis. The rating or the outlook could be downgraded if the company fails to comply with the financial covenants including the renewal of the bank letter of credit covering the required reserves for debt service and operational requirements or operational performance falls below expectation, generating weaker credit metrics such that the FFO to debt ratio falls below 10% and the cash interest coverage ratio remains below 2.0x for an extended period. Further delays in executing the capital expenditure plans which would result in penalties or negative impacts in overall financial metrics could exert negative pressure. Concessionaria Rota das Bandeiras S.A. ("CRB" or "Rota das Bandeiras") holds a 30-year concession to operate the toll road services of the Dom Pedro I corridor, a 298-kilometer road in the state of Sao Paulo. The concession was granted by the Agencia Reguladora de Servicos Publicos Delegados de Transporte do Estado de Sao Paulo (ARTESP). Rota das Bandeiras reported net revenues of BRL436 million ($213 million) excluding non-cash construction revenues and EBITDA of BRL345 million ($169 million) for fiscal year 2012. Rota das Bandeiras is an indirect subsidiary of Odebrecht S.A. (Odebrecht; unrated), the family-owned investment holding company for one of the largest non-financial Brazilian conglomerates. Odebrecht's engineering and construction subsidiary, Construtora Norberto Odebrecht (CNO; Baa3; outlook stable), represents over one third of consolidated revenues with 53% represented by its petrochemical subsidiary Braskem, and 13% by other subsidiaries mostly engaged in the infrastructure and energy sectors. The principal methodology used in this rating was Operational Toll Roads published in December 2006. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. ========================== C A Y M A N I S L A N D S ========================== ADVANCED MULTI: Creditors' Proofs of Debt Due July 18 ----------------------------------------------------- The creditors of Advanced Multi Management are required to file their proofs of debt by July 18, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 15, 2013. The company's liquidator is: Advanced Multi Management Advisory Corporation Telephone: (345) 949 7555 c/o H&J Corporate Services (Cayman) Ltd. Anderson Square, 5th Floor, Shedden Road P.O. Box 866 Grand Cayman KY1-1103 Cayman Islands ALTERNATIVEEDGE SHORT-TERM: Creditors' Proofs of Debt Due July 10 ----------------------------------------------------------------- The creditors of Alternativeedge Short-Term Traders Index Tracker Fund Ltd are required to file their proofs of debt by July 10, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 28, 2013. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands ALTERNATIVEEDGE SHORT-TERM: Shareholders' Meeting Set for July 12 ----------------------------------------------------------------- The shareholders of Alternativeedge Short-Term Traders Index Tracker Fund Ltd will hold their final meeting on July 12, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands CALEDONIA ASIA: Creditors' Proofs of Debt Due July 18 ----------------------------------------------------- The creditors of Caledonia Asia Fund are required to file their proofs of debt by July 18, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 27, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler/Kim Charaman Telephone: (345) 943 3100 CALEDONIA ASIA MASTER: Creditors' Proofs of Debt Due July 18 ------------------------------------------------------------ The creditors of Caledonia Asia Master Fund are required to file their proofs of debt by July 18, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 27, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler/Kim Charaman Telephone: (345) 943 3100 CALIBRE FUND: Placed Under Voluntary Wind-Up -------------------------------------------- On May 23, 2013, the Grand Court of Cayman Islands entered an order to wind up the operations of Calibre Fund, SPC. The company's liquidators are: Robin Lee McMahon Keiran Hutchison Ernst & Young Ltd. 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman KY1-1106 Cayman Islands CORNUCOPIA ALPHA: Creditors' Proofs of Debt Due July 11 ------------------------------------------------------- The creditors of Cornucopia Alpha Fund Limited are required to file their proofs of debt by July 11, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 31, 2013. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 PO Box 2681 Grand Cayman KY1-1111 Cayman Islands DRAGON BRIGHT: Incurs $908K Net Loss in 2012 -------------------------------------------- Dragon Bright Mintai Botanical Technology (Cayman) Limited filed on June 17, 2013, its annual report on Form 20-F for the fiscal year ended Dec. 31, 2012. Albert Wong & Co., in Hong Kong, noted that the Group reported a total comprehensive loss of approximately $0.9 million for the year ended Dec. 31, 2012, and had accumulated losses attributable to owners of the Company of approximately $2.3 million at Dec. 31, 2012. "In addition, the Group has a limited operating history and generated revenue US$14,982 in 2012. These conditions raise substantial doubt about the Group's ability to continue as a going concern." The Company reported a net loss of $907,804 on $14.092 of revenue in 2012, compared to a net loss of $1.9 million on $47 of revenue in 2011. The Company's balance sheet at Dec. 31, 2012, showed $2.6 million in total assets, $1.6 million in total liabilities, and equity of $1.0 million. Dragon Bright Mintai Botanical Technology (Cayman) Limited is a holding company established on Feb. 17, 2011, as an exempted company incorporated with limited liability under the laws of the Cayman Islands. The Company is in the initial stages of developing a business in the forest seedling industry. Its main business is the mass propagation and sale of bamboo-willow seedlings and its secondary business is the sale of bamboo-willows as wood pulp generated from our trial bamboo-willow tree plantation business. FAIRFIELD ARGENIS: Shareholders' Final Meeting Set for July 12 -------------------------------------------------------------- The shareholders of Fairfield Argenis Healthcare Fund Ltd. will hold their final meeting on July 12, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on May 28, 2013. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands GEOSPHERE DIRECTIONAL: Creditors' Proofs of Debt Due July 16 ------------------------------------------------------------ The creditors of Geosphere Directional Fund Ltd. are required to file their proofs of debt by July 16, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 29, 2013. The company's liquidators are: Keiran Hutchison Robin Lee Mcmahon c/o Barry MacManus Telephone: (345) 814 8997 Facsimile: (345) 814 8529 Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands GEOSPHERE MASTER: Creditors' Proofs of Debt Due July 16 ------------------------------------------------------- The creditors of Geosphere Directional Master Fund Ltd. are required to file their proofs of debt by July 16, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 29, 2013. The company's liquidators are: Keiran Hutchison Robin Lee Mcmahon c/o Barry MacManus Telephone: (345) 814 8997 Facsimile: (345) 814 8529 Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands JF THREE: Creditors' Proofs of Debt Due July 17 ----------------------------------------------- The creditors of JF Three Holdings Corp. II are required to file their proofs of debt by July 17, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 31, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943 3100 JT FUND: Commences Liquidation Proceedings ------------------------------------------ On May 28, 2013, the shareholders of JT Fund Management Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Tse Sum Chi Joyce Hoi Ching Mansion, Flat 6, 13th Floor 5 Hoi Ching Street, Sai Wan Ho Hong Kong PAKPOLEE COMMERCIAL: Creditors' Proofs of Debt Due July 9 --------------------------------------------------------- The creditors of Pakpolee Commercial Investments Limited are required to file their proofs of debt by July 9, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 30, 2013. The company's liquidator is: Chan Mei Lan KPMG Prince's Building, 8th Floor 10 Chater Road, Central Hong Kong c/o Samuel Wan Telephone: +852 (2140) 2306/ +852 2522 6022 Facsimile: +852 (2869) 7357/ +852 2869 7357 PARVUS EUROPEAN: Creditors' Proofs of Debt Due July 9 ----------------------------------------------------- The creditors of Parvus European Plus Master Fund are required to file their proofs of debt by July 9, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 30, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands ROSEN OFFSHORE: Creditors' Proofs of Debt Due July 18 ----------------------------------------------------- The creditors of Rosen Offshore Limited are required to file their proofs of debt by July 18, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 3, 2013. The company's liquidators are: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands TECHNISSIMO LTD: Creditors' Proofs of Debt Due Aug. 7 ----------------------------------------------------- The creditors of Technissimo Ltd. are required to file their proofs of debt by Aug. 7, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 31, 2013. The company's liquidators are: Stuart Brankin Desmond Campbell Telephone: (345) 949 5586 c/o Aston Corporate Managers, Ltd. P.O. Box 1981 Grand Cayman, KY1-1104 Cayman Islands ============= J A M A I C A ============= JAMAICA AIR: Shuts Down Airline Operations ------------------------------------------ Julian Richardson at Jamaica Observer reports that Jamaica Air Shuttle has closed its airline operations, after failing to bring investors on board to purchase its grounded planes. The carrier in February disclosed that it was temporarily suspending operations after an overseas-based partner and owner of the aircraft pulled out of the business, according to Jamaica Observer. At the time, the report relates, the company had planned to put together a consortium of investors to purchase the two 12-seater Beech 99 aircraft they were forced to ground, and resume business. However, that did not materialize, Christopher Read, the airline's managing director told the Business Observer. "It was a particularly difficult period to be reaching out to investors," the report quoted Mr. Read as saying. "Right after our temporary closure was the International Monetary Fund (IMF) debacle and then the National Debt Exchange (NDX) sucked another whole set of liquidity out of the country," said Mr. Read, noting that a number of persons the company had lined up as investors were significantly impacted by the debt exchange." "People had virtually committed, but found that they were $300 million poorer," Mr. Read said, the report relates. The report discloses that Jamaica Air Shuttle, which offered domestic and regional flights, employed around 35 persons, including flight crews and ground handlers. The staff members were all made redundant. The company was negatively impacted by difficult market conditions and a confluence of shocks -- including the first debt exchange, the general election and the Tivoli incursion -- that caused it to miss some of its early targets, the report relays. The report notes that Mr. Read, however, remains confident about the viability of the sector in Jamaica, saying that it is integral to economic recovery. =========== M E X I C O =========== MAXCOM TELECOMUNICACIONES: S&P Lowers Corp. Credit Rating to 'D' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Maxcom Telecommunications S.A.B. de C.V. (Maxcom) to 'D' from 'CC'. At the same time, S&P lowered its issue rating on Maxcom's outstanding $200 million senior secured notes due 2014 to 'D' from 'CC'. The recovery rating on this debt instrument remains unchanged at '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. "The downgrade reflects the company's failure to pay the coupon payment on its $200 million senior secured notes by the scheduled June 15, 2013 due date, and our expectation that it will not pay within the next five business days, which we view as a default under our timeliness of payments criteria, even though, under the guidelines of the indenture of the senior secured notes, the company has a 30-day grace period in which it can make payment," said Standard & Poor's credit analyst Marcela Duenas. ===================== P U E R T O R I C O ===================== JVMW PROPERTIES: Secured Creditor Wants Collateral Use Prohibited ----------------------------------------------------------------- Banco Popular de Puerto Rico asked the U.S. Bankruptcy Court for the District of Puerto Rico to prohibit JVMW Properties Management Corp. from using the cash collateral securing its prepetition indebtedness. According to BPPR, it should not be forced, through the non- consented use of its cash collateral, to place its property and collateral at substantial risk by essentially 'financing' a bankruptcy proceeding that appears to have minimum, if any, probability of reorganization and where the likelihood of BPPR recovering on the used cash collateral is remote. BPPR told the Bankruptcy Court that the Debtor has not requested an order authorizing the use of cash collateral, yet, upon information sufficient to form a belief, the Debtor has used, without any authorization, the cash collateral of BPPR after the Petition Date. BPPR also filed a separate motion asking the Bankruptcy Court to lift the automatic stay and allow BPPR to continue and conclude a foreclosure process commenced prior to the Petition Date. In response to BPPR's motion, the Debtor argued that the motions, under which BPPR claims to be entitled to all proceeds derived from the Debtor's real property, will be denied upon the misleading allegations, which clearly lack specificity in defining the particular properties and rent proceeds over which cash collateral protections are to be afforded. The Debtor further argued that BPPR is not entitled to all postpetition rent proceeds from the Debtor's properties. Mont Blanc's Condominium Council of Owners joined in the Debtor's response. Mont Blanc agreed with the Debtor's statement that failure to pay the operating expenses will cause extreme hardship and actual and impending irreparable losses and damages that will preclude the Debtor's reorganization under Chapter 11. Responding to the Debtor and Mont Blanc, BPPR maintained that it holds a valid security interest over the cash collateral generated by its real estate collateral. That security interest, according to BPPR, extends to rents and cash collateral generated postpetition as provided by Section 552(b)(2) of the Bankruptcy Code which explicitly sets forth the requirements to have a valid security interest over cash collateral that is, as in this case, composed of rents. A hearing on BPPR's motions was set for June 19, 2013. Luis C. Marini-Biaggi, Esq., and Nayuan Zouairabani, Esq., at O'Neill & Borges LLC, in San Juan, Puerto Rico, serves as counsel for BPPR. Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC, in Guaynabo, Puerto Rico, represents the Debtor. Luis R. Vivas Ugartemendia, Esq., in Guaynabo, Puerto Rico, serves as counsel for Mont Blanc. JVMW Properties Management Corp filed a Chapter 11 petition (Bankr. D.P.R. Case No. 13-02532) on April 1, 2013. The petition was signed by Julio Blanco D'Arcy, as president. The Debtor scheduled assets of $15,694,947 and liabilities of $25,782,161. MJS LAS CROABAS: FDIC-R Has Green Light to Foreclose ---------------------------------------------------- Bankruptcy Judge Enrique S. Lamoutte in Puerto Rico granted the Federal Deposit Insurance Corporation, as receiver for Westernbank Puerto Rico, relief from the automatic stay in the Chapter 11 case of MJS Las Croabas Properties, Inc., to permit FDIC-R to enforce its loan documents against the Debtor including, without limitation, a foreclosure of the Debtor's property in a district action. Judge Lamoutte said FDIC-R has proven there is no equity in the Property and the Debtor has failed to prove that it can successfully reorganize in a reasonable amount of time. A copy of the Court's May 29, 2013 Opinion and Order is available at http://is.gd/BpNHHqfrom Leagle.com. In a separate order also on May 29, Judge Lamoutte denied the Debtor's Motion for Turnover of Property and granted FDIC-R's motion to excuse turnover, pursuant to 11 U.S.C. section 543(d)(1). FDIC-R argued that "the interests of creditors . . . would be better served by permitting a custodian to continue in possession, custody, or control" of the Debtor's Property. A copy of the Court's May 29 Opinion and Order is available at http://is.gd/pG2OWsfrom Leagle.com. The Debtor financed the construction and development of The Ocean Club at Seven Seas entirely with financing obtained from Westernbank with the loans that constitute the outstanding debt that is the subject of FDIC-R's proof of claims. On April 30, 2010, the Puerto Rico Commissioner of Financial Institutions closed Westernbank and FDIC-R was appointed receiver of Westernbank. On March 15, 2012, FDIC-R filed a Complaint in the U.S. District Court for the District of Puerto Rico seeking to enforce its loan documents against the Debtor including, without limitation, a foreclosure of the Property. On April 30, 2012, FDIC-R won appointment of a receiver for the Debtor's Property. When the Debtor filed for Chapter 11, it owed FDIC-R a total of roughly $20,478,704.36 for the loan granted to MJS Las Croabas, Inc. The Mortgage Deeds securing the MJS Loan and reflecting FDIC-R's first priority liens in the Property are perfected. In addition, the Debtor provided a Guarantee of the amounts owed by a related debtor, Sabana del Palmar, Inc., Case No. 12-6177 ESL, U.S. Bankruptcy Court for the Middle District of Puerto Rico to FDIC-R, and the debt owed pursuant to the guarantee was approximately $40,709,406 as of the Petition Date. FDIC-R holds approximately 79% of the unsecured claims in this case. MJS Las Croabas Properties, Inc., is a real estate company formed in 2004 for the purpose of purchasing real property and constructing residential units for marketing and resale to third parties in a development located in Fajardo, Puerto Rico known as The Ocean Club at Seven Seas. The Property is worth $7,150,000 and consisted of 66 remaining unsold units plus two undeveloped adjacent lots. Of the remaining 66 Units, 7 had been approved by the Court for sale but none of the sales had closed. MJS Las Croabas Properties is a corporation wholly owned by Gulfcoast Irrevocable Trust XIII. It has no employees. Michael Scarfia, Sr., is the sole officer of MJS Las Croabas Properties and the sole trustee and beneficiary of Trust XIII. Mr. Scarfia is an experienced real estate developer. MJS Las Croabas Properties, Inc., filed for Chapter 11 protection (Bankr. D.P.R. Case No. 12-05710) on July 19, 2012. SABANA DEL PALMAR: FDIC-R Has Green Light to Foreclose ------------------------------------------------------ Bankruptcy Judge Enrique S. Lamoutte granted the Federal Deposit Insurance Corporation, as receiver for Westernbank Puerto Rico, relief from the automatic stay in the Chapter 11 case of Sabana Del Palmar, Inc., allowing FDIC-R to enforce its loan documents against the Debtor including, without limitation, a foreclosure of the Debtor's property. Judge Lamoutte said FDIC-R has proven there is no equity in the Debtor's Property and the Debtor has failed to prove that it can successfully reorganize in a reasonable amount of time. A copy of the Court's May 29, 2013 Opinion and Order is available at http://is.gd/mZWuFjfrom Leagle.com. In a separate ruling also on May 29, Judge Lamoutte denied Sabana del Palmar's Motion for Turnover of Property, and granted FDIC-R's motion to excuse turnover. A copy of the Court's May 29, 2013 Opinion and Order is available at http://is.gd/Efx3hQfrom Leagle.com. FDIC-R's expert established that the Property is currently valued at $9,920,000 for purposes of the Motion for Relief. The Debtor financed the construction and development of the Property with financing obtained from Westernbank with the loans that constitute the outstanding debt that is the subject of FDIC-R's proof of claims. On April 30, 2010, the Puerto Rico Commissioner of Financial Institutions closed Westernbank and the FDIC-R was appointed receiver of Westernbank. On March 15, 2012, the FDIC-R filed a Complaint in the U.S. District Court for the District of Puerto Rico seeking to enforce its loan documents against the Debtor including, without limitation, a foreclosure of the Property. On July 3, 2012, at the behest of FDIC-R, the District Court appointed a receiver over the Debtor's Property. When it filed for bankruptcy, the Debtor owed FDIC-R $32,070,760 on a loan secured by, inter alia, a first priority mortgage lien on the Property -- First Loan -- and an additional $8,698,961 on a loan secured by an additional lien in, inter alia, the Property -- Second Loan. The balance owed takes into consideration roughly $27,000,000 paid by the debtor towards the construction loan. FDIC-R is a first-priority secured creditor and that its liens in the Property are perfected. The Debtor submitted a sketch of a plan of reorganization wherein Debtor proposes to sell the unsold units of the Property over a three-year period. The Debtor's Sketch of Plan involves managing the Property and apportioning a percentage of the proceeds of the sales of the units of the Property to unsecured creditors. Further, the Sketch of Plan is contingent on the Debtor obtaining post-petition financing and giving super-priority status to the proposed lender. About Sabana Del Palmar Sabana Del Palmar, Inc., is a real estate company formed in 1996 for the purpose of purchasing real property and constructing 150 residential units for marketing and resale to third parties in a development located in Bayamon, Puerto Rico, known as Mirabella Village & Club. The Property consists of the 69 remaining unsold units (150 were constructed, and 81 were subsequently sold). Of the remaining 69 units, 19 have been approved by the Court for sale. However, the sales had not closed. Sabana Del Palmar is a corporation wholly-owned by Gulfcoast Irrevocable Trust IV. It has no employees. Michael Scarfia, Sr., is the sole officer of Sabana Del Palmar and the sole trustee and beneficiary of Trust IV. Mr. Scarfia is an experienced real estate developer. Sabana Del Palmar, dba Mirabella Village & Club, filed for Chapter 11 bankruptcy (Bankr. D.P.R. Case No. 12-06177) on Aug. 5, 2012. Carmen D. Conde Torres, Esq., at C.Conde & Assoc., serves as the Debtor's counsel. In its petition, the Debtor scheduled assets of US$262,415 and liabilities of US$49,594,964. 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/prb12-06177.pdf The petition was signed by Mr. Scarfia as president. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Joint Working Group to be Reconvened -------------------------------------------------------- RJR News reports that arising from a high level meeting to discuss the future of the Air Jamaica Limited brand under the control of Caribbean Airlines Limited it has been decided that the Joint Working Group be reconvened. It will comprise Jamaican and Trinidadian officials, according to RJR News. Dr. Omar Davies, Minister of Transport and Works, said the team will look into issues concerning the Air Jamaica brand including marketing and airlift, RJR News notes. Caribbean Airlines Limited -- 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. In 2010, Port of Spain and Kingston agreed to a deal that allowed the Jamaica government to own 16% of CAL as part of the conditions for CAL taking over the lucrative routes of Air Jamaica. The deal also allows for Trinidad and Tobago agreeing to a US$300 million transition plan for CAL to acquire and operate six Air Jamaica aircraft and eight of its routes. * * * 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 said 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 noted 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. *********** 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 * * *