/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130627.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, June 27, 2013, Vol. 14, No. 126 Headlines A R G E N T I N A EMPSUR SA: Files for Reorganization Proceedings EXAL SA: Files for Reorganization Proceedings FIDEICOMISO FINANCIERO II: Moody's Rates Four Debt Securities GASTRONOMIA DEL SOL: Creditors' Proofs of Debt Due July 17 HOWELLY SA: Proofs of Claim Verification Deadline on July 2 MENA Y CIA: Proofs of Claim Verification Deadline on June 28 B A R B A D O S * BARBADOS: IMF and World Bank to Review Financial Services Sector B R A Z I L OSX BRASIL SA: Surges as Batista Injects Cash Through Put Option VIVER INCORPORADORA: Moody's Cuts CFR to Caa1 on Weak Liquidity C A Y M A N I S L A N D S ADVANCED MULTI: Members' Final Meeting Set for July 23 ANTHRACITE BALANCED: Shareholder to Hear Wind-Up Report on July 9 CALEDONIA ASIA: Shareholder to Receive Wind-Up Report on July 19 CALEDONIA MASTER: Shareholder to Receive Wind-Up Report on July 19 CLAREVILLE VENTURES: Shareholder to Hear Wind-Up Report on July 9 CORNUCOPIA ALPHA: Members' Final Meeting Set for July 11 JF THREE: Shareholder to Receive Wind-Up Report on July 19 ROSEN OFFSHORE: Shareholders to Receive Wind-Up Report on July 18 SHELF DRILLING: S&P Revises Outlook to Positive & Affirms 'B' CCR TAMRIND REEF: Shareholders to Receive Wind-Up Report on July 19 TECHNISSIMO LTD: Shareholders to Receive Wind-Up Report on Aug. 7 C H I L E SWINGPLANE VENTURES: Loses Rights in Algarobbo Property in Chile M E X I C O SAGICOR FINANCE: S&P Corrects Rating on Debt by Lowering to 'BB-' X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= EMPSUR SA: Files for Reorganization Proceedings ----------------------------------------------- Empsur SA has requested for reorganization approval after failing to pay its liabilities since April 1. The reorganization petition, once approved by the court, will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance 13 in Buenos Aires. Clerk No. 26 assists the court in this case. EXAL SA: Files for Reorganization Proceedings --------------------------------------------- Exal SA has requested for reorganization approval after failing to pay its liabilities since Sept. 28, 2012. The reorganization petition, once approved by the court, will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance 9 in Buenos Aires. Clerk No. 18 assists the court in this case. FIDEICOMISO FINANCIERO II: Moody's Rates Four Debt Securities ------------------------------------------------------------- Moody's Latin America has rated the debt securities and certificates of Fideicomiso Financiero Colservice Serie II, to be issued by Equity Trust Company (Argentina) S.A. - acting solely in its capacity as Issuer and Trustee. The securities for this transaction have not yet been placed in the market. If any assumption or factor Moody's considers when assigning the ratings change before closing, the ratings may also change. - ARS 40,021,804 in Class A Floating Rate Debt Securities of "Fideicomiso Financiero Colservice Serie II", rated A2.ar (sf) (Argentine National Scale) and B2 (sf) (Global Scale, Local Currency) - ARS 482,190 in Class B Floating Rate Debt Securities of "Fideicomiso Financiero Colservice Serie II", rated B2.ar (sf) (Argentine National Scale) and Caa2 (sf) (Global Scale, Local Currency) - ARS 3,254,786 in Class C Fixed Rate Debt Securities of "Fideicomiso Financiero Colservice Serie II", rated Ca.ar (sf) (Argentine National Scale) and Ca (sf) (Global Scale, Local Currency) - ARS 4,460,262 in Certificates of "Fideicomiso Financiero Colservice Serie II", rated C.ar (sf) (Argentine National Scale) and C (sf) (Global Scale, Local Currency) This is the second transaction rated by Moody's backed by receivables originated by Colservice. Ratings Rationale: The ratings are based mainly on the following factors: - The available credit enhancement in the transaction, as an initial subordination of 33.54% for the Class A, 32.74%% for the Class B, 27.33% for Class C and 19.93% for the Certificates (calculated over the nominal amounts of loans assigned to the trust). - The value of the collateral, represented by receivables related to 267 closed-end savings plans (granted with exogenous funds) with a current weighted average LTV of approximately 36.86%. - The ability of Equity Trust Company (Argentina) S.A. to act as trustee - The first-priority security interest on the Mercedes-Benz buses. - The ability of Colservice to act as primary servicer in the transaction - The availability of several reserve funds. Colservice S.A. de Ahorro para Fines Determinados ("Colservice"), acting as seller, will assign to Fideicomiso Financiero Colservice II fixed installments related to 267 closed-end saving plans (granted with exogenous funds) (planes de ahorro cerrados) ("the receivables") to finance the purchase of new or used Mercedes Benz buses. The receivables are denominated in Argentine pesos, and will be purchased by the trust at a discount rate of 26%, for the amount of ARS 48.219.042. The closed-end saving plans -granted with exogenous funds- were extended by Colservice to small and medium sized companies, large companies and self-employed individuals in the transportation and tourism industries. The receivables are backed by a first-priority security interest on the vehicles. Overall credit enhancement is comprised of subordination 33.54% for the Class A, 32.74%% for the Class B, 27.33% for Class C and 19.93% for the Certificates. In addition, the transaction benefits from various reserve funds. Moody's considered the credit enhancement provided in this transaction through the initial subordination levels for each rated class, as well as the historical performance of similar portfolios. In addition, Moody's considered factors common to vehicle loan securitizations such as delinquencies, prepayments and losses; as well as specific factors related to the Argentine market, such as the probability of an increase in losses if there are changes in the macroeconomic scenario in Argentina. These factors were incorporated in a cash flow model that takes into account all the relevant features of the transaction's assets and liabilities. Monte Carlo simulations were run, which determine the expected loss for the rated securities. In assigning the rating to this transaction, Moody's assumed a lognormal distribution for defaults on the pool with a 12% mean and a 70% coefficient of variation. Also, Moody's assumed a lognormal distribution for prepayments with a 5% mean and a 70% coefficient of variation. These assumptions are derived from the historical performance to similar portfolios originated by Colservice. Moody's did not give credit for recoveries after a loan defaults. Finally, the default of Colservice acting as a servicer was modeled; in the scenarios where the servicer defaults, Moody's assumed that the defaults on the pool would increase by 20 percentage points. The model results showed 5.14% expected loss for Class A, 19.91% expected loss for Class B, 57.38% for Class C, and 85.65% for the Certificates. Moody's ran several stress scenarios, including increases in the default rate assumptions. If default rates were increased 6% from the base case scenario (that is, if Moody's assumes a mean default rate of 18%), the ratings of the Class A would be downgraded to Caa1 (sf). The ratings for Class B and Class C would be downgraded to Caa3 (sf) and C (sf) respectively. However, the residual class would remain unchanged. Moody's notes that the pool is highly concentrated in the transportation and tourism industry in Argentina. A negative economic environment affecting these sectors may impact a large number of securitized receivables. The pool has also a high concentration by borrower, as the 267 receivables included in the transaction correspond to 75 borrowers. The top 10 borrowers represent 30.20% of the original pool balance. This is mitigated by: i) the fact that the vehicles backing the securitized receivables are, in general, a key component of the borrower's working capital, which is expected to have a lower probability of the default in comparison with other company obligations, ii) the low average loan CLTV of 36.86%, iii) the historical performance of similar pools and the initial subordination which will increase over time due to a turbo-sequential payment structure. Moody's stressed the pool's default rate significantly above the historical observed default rates of similar portfolios. These concentrations result in potential increased volatility for the ratings. Colservice is a company of the Colcar Group and was constituted in 2006 to originate closed-end saving plans for the purchase of Mercedes-Benz buses. Colcar Merbus S.A. ("Colcar") is the largest Mercedes-Benz dealer in Argentina. Colcar is also the largest seller of chassis of buses used for public transportation in Argentina. The company is divided in six business lines: buses, commercial vehicles, cars, equipment, services and spare parts. Moody's believes that Colservice's origination and servicing practices are adequate. Colservice is regulated by the Inspeccion General de Justicia in Argentina and received periodic audits of procedures from Mercedes-Benz. Finally, Moody's also evaluated the servicing arrangements in the transaction. The designed backup servicer at closing is Multiconex S.A., a late payment collection company that provides service to several banks and consumer finance companies in the Argentine market. Multiconex will perform some servicing functions for this transaction: it will contact borrowers on a monthly basis to inform the amounts due and the payment dates. It will also instruct borrowers to make payments directly into the trust account. The principal methodology used in this rating was Moody's Approach to Rating Consumer Loan ABS transaction published May 2013. Moody's National Scale Credit 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 credit 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. GASTRONOMIA DEL SOL: Creditors' Proofs of Debt Due July 17 ---------------------------------------------------------- Franco Brindisi, the court-appointed trustee for Gastronomia del Sol SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until July 17, 2013. Mr. Brindisi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 22 in Buenos Aires, with the assistance of Clerk No. 44, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Gastronomia's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Brindisi is also in charge of administering the company's assets under court supervision and will take part in their disposal to the extent established by law. The Trustee can be reached at: Franco Brindisi Peru 367 HOWELLY SA: Proofs of Claim Verification Deadline on July 2 ----------------------------------------------------------- Cristina A. Mattioni, the court-appointed trustee for Howelly SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 2, 2013. Ms. Mattioni will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 10, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Howelly SA's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Mattioni is also in charge of administering the company's assets under court supervision and will take part in their disposal to the extent established by law. The Trustee can be reached at: Cristina A. Mattioni Uruguay 385 MENA Y CIA: Proofs of Claim Verification Deadline on June 28 ------------------------------------------------------------ Rosa Isabel Santos, the court-appointed trustee for Mena y Cia. SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 28, 2013. Ms. Santos will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 35, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Santos is also in charge of administering the company's assets under court supervision and will take part in their disposal to the extent established by law. Creditors will vote to ratify the completed settlement plan during the assembly on April 17, 2014. The Trustee can be reached at: Rosa Isabel Santos Darwin 599 =============== B A R B A D O S =============== * BARBADOS: IMF and World Bank to Review Financial Services Sector ------------------------------------------------------------------ Caribbean360.com reports that the World Bank and the International Monetary Fund are to conduct a comprehensive study of Barbados' financial services sector. A statement from the Central Bank of Barbados said the two Washington-based financial institutions will conduct the financial sector assessment program (FSAP) between July 1 and 17, according to Caribbean360.com. Caribbean360.com notes that this is the third such assessment of the island's financial services sector; the other two evaluations were completed in 2002 and 2008. "On both occasions, the local financial services sector was deemed to be well regulated and generally compliant with the international standards established by the Basel Committee on Banking Supervision (BCBS) and the International Association of Insurance Supervisors (IAIS)," the Central Bank said, the report relays. Caribbean360.com relates that CCB Director of Bank Supervision, Marlene Bayne, explained that the Bank and the Financial Services Commission (FSC) have been jointly preparing for the review since the start of 2012. Ms.Bayne, the report relates, said the preparatory work for the FSAP included a self-assessment of Barbados' compliance with the international standards for banking, insurance and credit unions. Caribbean360.com discloses that the CCB said that the FSAP, "which can be likened to a Central Bank's examination of a commercial bank, is a comprehensive and in-depth analysis of a country's financial sector". =========== B R A Z I L =========== OSX BRASIL SA: Surges as Batista Injects Cash Through Put Option ---------------------------------------------------------------- Rodrigo Orihuela at Bloomberg News reports that OSX Brasil SA (OSXB3), rose the most in a month after billionaire Eike Batista and other shareholders paid almost 30 times the market price to buy stock in the crude shipper as it struggles for cash. According to Bloomberg News, OSX, which plunged 87 percent this year through yesterday, jumped 16 percent to BRL1.58 in Sao Paulo, the steepest gain since May 21. Brazil's benchmark Ibovespa rose 0.6 percent. Batista, who gave OSX the right to sell him as much as $1 billion of its stock at BRL40.14 apiece through March 2014, bought BRL183 million ($83 million) along with other subscribing shareholders yesterday, the Rio de Janeiro-based company said after markets closed, notes the report. Shareholders have another five days to subscribe to the BRL240 million tranche of the put option, after which Batista will buy any remaining stock offered, according to terms of the sale, says Bloomberg News. The report says OSX, the worst performer among Latin American companies worth at least $100 million this year, is cutting costs and refinancing debt after Batista's oil producer OGX Petroleo & Gas Participacoes SA, its main client, missed output targets. The company declined to disclose the amount bought by Batista yesterday or to name the other shareholders that subscribed to the offering in an e-mailed response to questions. OSX had already raised $620 million in other sales related to Batista's put option, notes Bloomberg News. OSX Brasil SA is a shipbuilder controlled by billionaire Eike Batista. VIVER INCORPORADORA: Moody's Cuts CFR to Caa1 on Weak Liquidity --------------------------------------------------------------- Moody's America Latina has downgraded Viver Incorporadora e Construtora S.A.'s corporate family rating to Caa1 from B3 on the global scale and to Caa1.br from B1.br on the Brazilian national scale. Moody's also downgraded Viver's BRL300 million senior secured debentures due in 2016 (First Issuance) to Caa1/Caa1.br from B3/B1.br. The outlook for all ratings remains negative. Ratings downgraded: Viver Incorporadora e Construtora S.A. (Viver) - Corporate Family Rating: to Caa1 from B3 (global scale); to Caa1.br from B1.br (national scale); - BRL300 million 5-year senior secured debentures (First Issuance): to Caa1 from B3 (global scale); to Caa1.br from B1.br (national scale); - Outlook: negative Ratings Rationale: The downgrade of Viver's ratings to Caa1 was prompted by the company's weak liquidity profile driven by increasing execution risks given the limited funding availability for project completion and further working capital pressures from high volumes of contract cancelations. Viver's leverage ratio as measured by gross debt to total capitalization reached of 71.8% in the first quarter of 2013, up from 64% a year earlier. The company reported just BRL50 million in unrestricted cash availability and marketable securities and BRL281 million in receivables from finished units in March 31, 2013, which appears insufficient to cover all of its BRL609 million effective short term debt maturities, of which 67% comprise collateralized liabilities and project related loans that will be repaid once these projects are delivered and 33% refer to corporate debt due over the next 12 months. Additionally, Viver had to report BRL316 million long-term debt as short-term liabilities because of violation of certain financial covenants since waiver negotiations have not been finalized. The negative outlook on the ratings reflects the uncertainty over the company's overall debt restructuring plan, which relies primarily on the successful completion of the planned BRL315 million sale of the "Lagoa dos Ingleses" complex. Once Viver's completes this sale, they will be able to reduce its corporate debt outstanding debt by approximately 50% (equivalent to 15% of its total consolidated debt). Nevertheless, Moody's believes that additional debt restructurings may be necessary for Viver to attain a more manageable debt level, which could be achieved only through further asset divestitures and/or new equity increases. In order to find a more permanent solution to its liquidity challenges and capital structure, Viver is exploring various alternatives including additional asset divestures. Moody's sees a high risk in the execution of the asset monetization strategy as announced by the management, given the current less favorable macro-economic scenario and the low availability of unencumbered assets. Outlook stabilization would require material liquidity improvement and leverage reduction, which could be triggered by the successful completion of the planned asset sales and/or a substantial equity increase. A ratings upgrade would require evidence of sustainable positive operating cash flow generation and consistent improvement in credit metrics, such as gross debt capitalization ratio reduced to below 60% and interest coverage increased to above 2.0 times. Further downward pressure on the ratings could occur if Moody's perceives further deterioration in Viver's liquidity profile or lower availability of construction loans to complete its existing pipeline of projects. A downgrade could also be triggered if the company were to face significant deterioration in the quality of its receivables, especially in a more adverse macro-economic scenario, or if the company engages in a distressed debt exchange that could be perceived as a voluntary out-of-court restructuring. The principal methodology used in this rating was the Global Homebuilding Industry Methodology published in March 2009. 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. Headquartered in Sao Paulo, Brazil, Viver is an integrated homebuilder historically focused on high-rise construction for the middle and mid-high income families primarily in the Sao Paulo state. The company is also involved in real estate developments for commercial, tourism and the low income residential segments. In the last twelve months ended March 31, 2013, Viver reported net revenues of BRL212 million (USD106 million) and net losses of BRL482 million (USD241 million). ========================== C A Y M A N I S L A N D S ========================== ADVANCED MULTI: Members' Final Meeting Set for July 23 ------------------------------------------------------ The members of Advanced Multi Management will hold their final meeting on July 23, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Advanced Multi Management Advisory Corporation Telephone: +3 (315) 305 2809 / 03 ANTHRACITE BALANCED: Shareholder to Hear Wind-Up Report on July 9 ----------------------------------------------------------------- The shareholder of Anthracite Balanced Company (JR-20) Limited will receive on July 9, 2013, at 12:00 noon, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Simon Conway c/o Aaron Gardner Telephone: (345) 914 8655 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands CALEDONIA ASIA: Shareholder to Receive Wind-Up Report on July 19 ---------------------------------------------------------------- The shareholder of Caledonia Asia Fund will receive on July 19, 2013, at 8:45 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. 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 MASTER: Shareholder to Receive Wind-Up Report on July 19 ---------------------------------------------------------------- The shareholder of Caledonia Asia Master Fund will receive on July 19, 2013, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. 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 CLAREVILLE VENTURES: Shareholder to Hear Wind-Up Report on July 9 ----------------------------------------------------------------- The shareholder of Clareville Ventures, Ltd. will receive on July 9, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Michael Lubin Telephone: (345) 815 1793 Facsimile: (345) 949 9877 CORNUCOPIA ALPHA: Members' Final Meeting Set for July 11 -------------------------------------------------------- The members of Cornucopia Alpha Fund Limited will hold their final meeting on July 11, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 PO Box 2681 Grand Cayman KY1-1111 Cayman Islands JF THREE: Shareholder to Receive Wind-Up Report on July 19 ---------------------------------------------------------- The shareholder of JF Three Holdings Corp. II will receive on July 19, 2013, at 9:15 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. 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 ROSEN OFFSHORE: Shareholders to Receive Wind-Up Report on July 18 ----------------------------------------------------------------- The shareholders of Rosen Offshore Limited will receive on July 18, 2013, at 4:00 p.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 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 SHELF DRILLING: S&P Revises Outlook to Positive & Affirms 'B' CCR -------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its outlook on Cayman Island-based oilfield services company Shelf Drilling Holdings Ltd. to positive from stable. At the same time, S&P affirmed its 'B' long-term corporate credit rating on Shelf Drilling. The positive outlook reflects S&P's view that Shelf Drilling is building up a good track record of solid operating performance on the back of a better-than-anticipated performance in the first quarter of 2013. This has led S&P to revise upward some of its base-case assumptions. In particular, S&P now forecasts pro forma Standard & Poor's-adjusted EBITDA to be more than $300 million in 2013 and 2014. S&P notes positively that pro forma EBITDA in the first quarter of 2013 was $120 million, fuelled by robust marketed utilization of 97%. S&P also assumes the average day rate to gradually improve throughout 2013; it was $107,000 on a weighted- average basis in the first quarter of 2013. "Our current assessment of Shelf Drilling's business risk profile as "vulnerable" is based on the company's lack of audited financial information, limited established operating business track record as a stand-alone entity, and its participation in the competitive, fragmented, and capital-intensive oil and gas service industry. The "jack-up" segment in which it operates has historically been even more volatile than the oil and gas industry overall," S&P said. In addition, the company's fleet of 38 rigs is relatively old, with an average time in service of 31 years, and has limited diversification by depth. However, these constraints are partly mitigated by Shelf Drilling's sizable backlog of contracts ($1.7 billion at the end of the first quarter of 2013), its sound market position as the No. 3 jack-up driller in the world, its geographic diversification, and its management's significant industry experience. Due to the improved performance seen in the first quarter of 2013, S&P now anticipates stronger credit metrics than before. These include funds from operations to debt of between 20% and 30% and debt to EBITDA of between 2x and 3x in 2013 and 2014, respectively. (Under S&P's criteria, it treats preferred equity as debt-like in calculating these ratios). Although the above ratios are robust for the current ratings, S&P also takes into consideration the volatility of Shelf Drilling's cash flows, its view of its aggressive financial policies, and its private equity ownership, which together caps S&P's assessment of Shelf Drilling's financial risk profile at "aggressive." S&P also anticipates that free operating cash flow (FOCF) will be negative in 2013, due to high working capital outflows to settle the working capital balance with Transocean post the acquisition, as well as large capital expenditures totalling $230 million (of which some will be covered by lump sum cash mobilization fees). In 2014, S&P forecasts that FOCF will be positive. S&P considers it positive that Shelf Drilling will not have any financial maintenance covenants under its senior term loan. The issue rating on the first-lien $75 million term loan facility is 'B+'. The recovery rating on the term loan is '2', indicating S&P's expectation of substantial recovery (70%-90%) in the event of a payment default. The issue rating on the $475 million senior secured notes is 'B'. The recovery rating on the senior secured notes is '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. The recovery rating on the term loan is primarily supported by first-lien security on at least 27 of the total 38 rigs and by pledges on the equity of five restricted subsidiaries owning five of the company's remaining 11 rigs. The recovery rating on the senior secured notes is supported by second-lien ranking on the same security package. However, the recovery rating on the term loan and senior secured notes is constrained by substantial jurisdictional risk because the rigs are located in the waters of several different jurisdictions throughout Africa, Asia, and the Middle East. The senior secured notes' documentation includes restrictions on additional indebtedness subject to a 3.25x total net leverage ratio and a 2.0x fixed-charge coverage ratio. Pro forma for the transaction, the net leverage ratio is 2.0x, which would allow for some additional borrowing under the documentation. The documentation also includes covenants that restrict dividend payments such that they cannot exceed an income basket of 50% of consolidated net income. Income starts to accumulate from the first quarter after the issuance of bonds. In assigning recovery ratings, S&P simulates a hypothetical default scenario. S&P considers that the key risk Shelf Drilling faces is its ability to secure contracts on the rigs as existing contracts expire. Furthermore, S&P believes the company has exposure to volatility in market rates as contracts come up for renewal, and has limited flexibility to reduce underlying operating costs without taking rigs out of operation. S&P also assumes relatively high maintenance capex. S&P assumes these pressures would depress Shelf Drilling's utilization and day rates, revenues and profitability, and lead to a hypothetical payment default in 2014. S&P believes that Shelf Drilling would remain a going concern in the event of a default because of its good market position in the jack-up drilling rigs business; its distinct operating activities; and the contract-based nature of its drilling activities, which provides short- to medium-term earnings visibility. The positive outlook on Shelf Drilling reflects S&P's view that Shelf Drilling is developing a good track record of solid operational performance. On a pro forma basis, S&P views a sustainable adjusted ratio of FFO to debt (including preferred equity) of 12%-20% as commensurate with the current ratings, but S&P anticipates that this ratio will be higher in 2013 and 2014. S&P will review the positive outlook at some point over the next 12 months. "We could raise the ratings by one notch, if and when Shelf Drilling has built up a good operating track record. This could follow continued high utilization and day rates (on the back of favorable oil price and industry conditions), the backlog increasing toward two years' worth of revenue, and continued strong profitability. Raising the ratings would also depend on us being able to obtain audited financial information on the company, its owners pursuing supportive financial policies, and liquidity remaining at least "adequate." We would also consider Shelf Drilling achieving FFO to debt of between 20% and 30% to be a supporting factor," S&P added. S&P could revise the outlook back to stable if it sees FFO to debt falling to between 12% and 20%, or if day rates, utilization levels, the backlog amount, or profitability are lower than its revised base-case assumptions. More aggressive financial policies would also put pressure on the ratings. TAMRIND REEF: Shareholders to Receive Wind-Up Report on July 19 --------------------------------------------------------------- The shareholders of Tamrind Reef Enterprises Ltd. will receive on July 19, 2013, at 11:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Universal Directors Limited Providence House, East Wing East Hill Street, Nassau Bahamas TECHNISSIMO LTD: Shareholders to Receive Wind-Up Report on Aug. 7 ----------------------------------------------------------------- The shareholders of Technissimo Ltd. will receive on Aug. 7, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. 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 ========= C H I L E ========= SWINGPLANE VENTURES: Loses Rights in Algarobbo Property in Chile ---------------------------------------------------------------- Swingplane Ventures, Inc. on June 24 provided an update on certain corporate matters. The Company has, in its recent Form 8-K filed with the Securities and Exchange Commission, reported the loss of any rights and interest in the Algarobbo property in Chile. The Company was unable to reach an agreement with the Optionors of the property that it could fulfill and therefore the funds that were placed in trust to pay the property taxes were returned to the Company by its Chilean legal counsel and the extension of default to July 1, 2013 granted by the Optionors lapsed due to the requirement for the Company paying approximately $55,000 for the 2013 taxes by June 15, 2013. "I want to express my regret to all the stockholders that we could not reach an agreement that we could fulfill on the Algarobbo. We have advised the property owners that we remain interested if we could come to terms that might be able to be met in regard to a funding schedule and we remain hopeful that the Optionors might reconsider and allow us to present another offer. However, at this time the Company has defaulted and has no further rights or interest in the project," Carlos De la Torre, Swingplane President and Director, said. "Due to the loss of the project, the Company has taken down its website for revision and expects to have the website back up by the end of the month. "Management is hoping to have technical data on a potential acquisition of a gold project in Mexico this week, which will be reviewed by a consulting geologist and hopefully will lead to a property visit and an agreement to put the project back into production. The acquisition will only be undertaken if the Company is confident that it can meet the terms of any negotiated agreement. The project to be reviewed has defined reserves and so if the Company can reach an agreement, funding should be easier to attract." Further updates will be provided as information becomes available. Based in Santiago, Chile, Swingplane Ventures, Inc. -- http://www.swingplaneventuresinc.com-- is an exploration stage company that engages in the exploration and production of mineral properties in Chile. The company primarily explores for copper. It holds interests in the Algarrobo property that consists of 32 tenures covering a total area of 6,161 hectares located to the north of Santiago, in the III Region, Chanaral province, Chile. =========== M E X I C O =========== SAGICOR FINANCE: S&P Corrects Rating on Debt by Lowering to 'BB-' ----------------------------------------------------------------- Standard & Poor's Ratings Services corrected its rating on Sagicor Finance Ltd.'s senior unsecured debt by lowering it to 'BB-' from 'BB'. The rating remains on CreditWatch negative. Under S&P's current hybrid criteria, subordinated notes from companies with speculative-grade issuer credit ratings (ICRs) are rated two notches below the ICR for subordination, but S&P's rating on the notes was only one notch below its ICR on Sagicor Life Inc. (guarantor of Sagicor Finance's debt). The rating action corrects this error. The notes rank subordinate to Sagicor Life's policy obligations. RATINGS LIST Sagicor Finance Ltd. To From Senior unsecured debt rating BB-/Watch Neg BB/Watch Neg =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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/ *********** 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 * * *