/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130701.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 Monday, July 1, 2013, Vol. 14, No. 128 Headlines A R G E N T I N A CUEME CONSTRUCIONES: Creditors' Proofs of Debt Due July 1 LOWE ARGENTINA: Creditors' Proofs of Debt Due July 29 SIA SALUD: Creditors' Proofs of Debt Due July 31 VMC CUERO: Creditors' Proofs of Debt Due Today WELDING ARGENTINA: Creditors' Proofs of Debt Due Aug. 6 B R A Z I L BANCO REGIONAL: S&P Assigns 'BB-' ICR; Outlook Stable CAMARGO CORREA: Fitch Upgrades Issuer Default Rating to 'BB' MRS LOGISTICA: S&P Affirms 'BB+' Global Scale Rating C A Y M A N I S L A N D S BLUE FIN: Shareholder to Receive Wind-Up Report on July 8 CLYDESDALE CLO: Shareholder to Receive Wind-Up Report on July 8 DEKANIA CDO: A.M. Best Affirms 'c' Debt Rating of Class C-1 Notes GLOBECAT LIMITED: Shareholder to Receive Wind-Up Report on July 8 KEY FUND: Shareholder to Receive Wind-Up Report on July 16 KLEROS PREFERRED III: Member to Receive Wind-Up Report on July 19 KLEROS PREFERRED IV: Member to Receive Wind-Up Report on July 19 LB FUND: Shareholders to Receive Wind-Up Report on July 10 LONE CEDAR II: Member to Receive Wind-Up Report on July 26 MARIAN CAPITAL: Members Receive Wind-Up Report C H I L E MASISA SA: Fitch Affirms 'BB' Issuer Default Ratings D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Economy Will Grow 2% This year, 1Q was 0.3% J A M A I C A DIGICEL GROUP: Loses Bid to Enter Burmese Telecoms Market * JAMAICA: Commercial Banks Cut Loans to Government P U E R T O R I C O PUERTO DEL REY: First Amended Joint Plan Declared Effective T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Chairman Looks To Expert Support X X X X X X X X * BOND PRICING: For the Week From June 24 to 28, 2013 - - - - - ================= A R G E N T I N A ================= CUEME CONSTRUCIONES: Creditors' Proofs of Debt Due July 1 --------------------------------------------------------- Mario Suez, the court-appointed trustee for Cueme Construciones SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 1, 2013. Mr. Suez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 9 in Buenos Aires, with the assistance of Clerk No. 18, 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. Mr. Suez 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: Mario Suez Rodriguez Pena 454 Buenos Aires, Argentina LOWE ARGENTINA: Creditors' Proofs of Debt Due July 29 ----------------------------------------------------- Alfredo Luis Palacio, the court-appointed trustee for Lowe Argentina SACIFI de Cinematografia y Television's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 29, 2013. Mr. Palacio will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 39, 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. Mr. Palacio 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: Alfredo Luis Palacio Montevideo 368 Buenos Aires, Argentina SIA SALUD: Creditors' Proofs of Debt Due July 31 ------------------------------------------------ Ana Beatriz Bavo, the court-appointed trustee for Sia Salud SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 31, 2013. Ms. Bavo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 34, 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. Bavo 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: Ana Beatriz Bavo 25 De Mayo 596 Buenos Aires, Argentina VMC CUERO: Creditors' Proofs of Debt Due Today ---------------------------------------------- Estudio Ariel Kiperman & Fabian Gasst, the court-appointed trustee for VMC Cuero Argentino SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until today, July 1, 2013. The Trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 27, 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. The Trustee 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: Estudio Ariel Kiperman & Fabian Gasst Suipacha 570 Buenos Aires, Argentina WELDING ARGENTINA: Creditors' Proofs of Debt Due Aug. 6 ------------------------------------------------------- Alfredo Oscar Legnazzi, the court-appointed trustee for Welding Argentina SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until Aug. 6, 2013. Mr. Legnazzi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 13, 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. The Trustee 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: Alfredo Oscar Legnazzi Cerrito 1136 Buenos Aires, Argentina =========== B R A Z I L =========== BANCO REGIONAL: S&P Assigns 'BB-' ICR; Outlook Stable ----------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' long-term issuer credit rating on Banco Regional S.A.E.C.A. The outlook is stable. The ratings on Banco Regional reflect its "strong" business position in the Paraguayan banking system, "weak" capital and earnings, "adequate" risk position, "average" funding, and "adequate" liquidity. The 'BB-' issuer credit rating is at the same level as the bank's 'bb-' stand-alone credit profile (SACP), because Banco Regional does not receive external (group or government) support. Rabobank Financial Institutions Development B.V. owns 40% of the bank and local shareholders own the remainder. CAMARGO CORREA: Fitch Upgrades Issuer Default Rating to 'BB' ------------------------------------------------------------ Fitch Ratings has upgraded the ratings of Brazilian conglomerate Camargo Correa S.A. (Camargo) and its subsidiaries as follows: Camargo: -- Foreign currency Issuer Default Rating (IDR) to 'BB' from 'BB-'; -- Local currency IDR to 'BB' from 'BB-'; -- National scale rating to 'AA-(bra)' from 'A+(bra)'; -- BRL1 billion debentures 2nd issuance (due 2014) to 'AA-(bra)' from 'A+(bra)'. CCSA Finance Limited: -- Foreign currency IDR to 'BB' from 'BB-'; -- Local currency IDR to 'BB' from 'BB-'; -- US$250 million senior unsecured bonds due 2016 to 'BB' from 'BB-'. Fitch has also affirmed Camargo's National short-term credit rating at 'F1(bra)'. The Rating Outlook is Stable The upgrade reflects Camargo's better than expected capital structure, adequate liquidity, and business diversification post execution of the Cimpor acquisition. The Stable Outlook incorporates the view that Camargo's credit profile will remain stable in the medium term. It considers the expectation that Camargo will manage its consolidated net leverage in the range of 4.0x to 4.5x during the short-to-medium term, while maintaining adequate liquidity. Also factored into the Stable Outlook is an expectation that the dividends the company receives from investments in its cement, energy concession (CPFL) and toll road concession (CCR) businesses will remain stable during the next 24 months. Camargo's credit ratings reflect the company's diversified portfolio of operations, solid market position in the industries in which it participates, the medium-term outlook and different degrees of cyclicality related to its core businesses, and adequate liquidity. Camargo's credit ratings also incorporate the structural subordination of the parent company debt to the debt at its operating companies; the company relies on dividends and interest and principal payments from operating subsidiaries to service its debt. The ratings also factor in the company's growth strategy which includes inorganic growth as an important component, as well as its the good track record in executing acquisitions while keeping its capital structure and liquidity relatively stable over the medium term. KEY RATING DRIVERS Business Diversification & Stable Dividend Flow: Camargo's ratings incorporate its broad business diversification and an expectation of continued stable dividend flow from its main business segments. The company's business diversification is reflected in the composition of its 2012 consolidated EBITDA of BRL4.3 billion with the cement, energy, transportation, engineering & construction, and footwear segments representing 43%, 22%, 12%, 12%, and 9%, respectively. The ratings consider the diversification and credit quality of Camargo's dividend flow, with approximately 75% of the company's dividend receipts expected to come from its cement, toll road concession (CCR); and energy concession businesses (CPFL). During 2012, Camargo received dividends of BRL784 million; this dividend flow is expected to remain similar in 2013. Better than Expected Leverage Post-Cimpor Acquisition: On a pro forma basis post-acquisition, the company's consolidated net leverage as of Dec. 31, 2012 was 4.3x, which is lower than Fitch's previous expectations. Camargo had BRL24.8 billion of consolidated debt and BRL6.2 billion of cash and marketable securities at the end of 2012. On a stand-alone basis, Camargo's net leverage in terms of received dividends relative to parent company net debt was 4.2x. The company had BRL3.7 billion of net debt at the holding company as of Dec. 31, 2012 and received BRL784 million of dividends during the year. Fitch expects Camargo's consolidated and on a stand-alone basis net leverage to remain stable during 2013. Adequate Liquidity and Debt Service Coverage: Camargo maintains adequate liquidity with BRL6.2 billion of consolidated cash and marketable securities as of Dec. 31, 2012. The companies directly controlled by Camargo face debt amortizations of BRL2.6 billion during 2013, which is comfortably covered by BRL5.2 billion of cash at these subsidiaries; most of this cash is held within the company's cement division. On a stand-alone basis, Camargo faces debt amortizations of BRL451 million and BRL575 million during 2013 and 2014, which will be covered by the company's received dividends levels, which are expected to remain stable at around BRL800 million per year. Camargo's liquidity is further supported by the company's access to credit, as well as by its capacity to execute non-core assets sales if required. Cement Business Performance Key Credit Factor: The cement division accounted for 30% of Camargo's consolidated revenues and 42% of its EBITDA. Net leverage within this business unit was 4.2x. In Brazil, which is the fourth-largest global cement market, Camargo is the second-largest cement producer with a market share of 20%. Fitch views Camargo's market position in Brazilian cement as solid and sustainable in the medium term due to its scale of operations, with approximately 27 million tons in annual sales, regional diversification within the country, and strong brand recognition. Brazil accounts for 55% of the EBITDA of the company's cement division. Other important regions for the company are Africa, South America (Ex-Brazil), and other markets representing 18%, 17%, and 10% of the cement division EBITDA, respectively. The company maintains 39 cement production units globally with an estimated annual installed production capacity of 38 million tons. Camargo is well positioned to capture growth in the Brazilian market as a result of its expansion of capacity by 5.3 million tons between 2013 and 2016. RATING SENSITIVITIES Camargo's ratings could be affected positively by significant improvement in its cash flow generation, net leverage and liquidity metrics. Fitch would view a combination of the following as negative to credit quality: the company's lack of capacity or willingness to maintain its net financial leverage in line with those levels incorporated in the ratings; adverse macroeconomic trends leading to weaker credit metrics; debt-funded acquisitions; and/or a change in the company's received dividends from those levels incorporated in the ratings. MRS LOGISTICA: S&P Affirms 'BB+' Global Scale Rating ---------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' global scale and 'brAA+' national scale corporate credit ratings on MRS Logistica S.A. (MRS) S&P also affirmed its 'brAA+' national scale ratings on its fourth and fifth debenture issues. The rating affirmation follows S&P's ordinary annual review. The outlook is stable. The ratings on MRS reflect its "satisfactory" business risk profile and "significant" financial risk profile. "The company's business risk profile reflects a favorable tariff model and contract terms with its captive clients, take-or-pay clauses even under an adverse market conditions for its clients, and its strategic importance to its shareholders, which are also the company's main clients and mitigate exposure risk to the volatile iron ore seaborne trade," said Standard & Poor's credit analyst Marcus Fernandes. These factors result in resilient cash flow and strong profitability. MRS' financial risk profile is "significant," despite its strong cash generation; the company has to spend heavily to continue expanding its capacity and efficiency, which it partly funds through new debt issuances. MRS' business risk profile is "satisfactory." Although S&P expects market conditions for iron ore exports to remain challenging due to the uncertain global scenario during 2013, S&P projects MRS' volumes will remain fairly stable. The company regularly improves operations through adequate asset maintenance and equipment upgrades. This is reflected in the company's strong operating ratio (costs and expenses, including depreciation and amortization, as a percentage of revenues) of 67.4% in 2012, resulting in increased operating efficiency and higher profitability compared to its peers. The recent regulatory changes and reduction in the tariff ceiling in 2012 will have little impact on the company's operations since MRS already complies with the new regulation and its tariffs remain below the existing caps. ========================== C A Y M A N I S L A N D S ========================== BLUE FIN: Shareholder to Receive Wind-Up Report on July 8 --------------------------------------------------------- The shareholder of Blue Fin Limited will receive on July 8, 2013, at 10:30 a.m., the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Samit Ghosh Simon Owiti c/o Adam Fox Telephone: 949-7755 Facsimile: 949-7634 CLYDESDALE CLO: Shareholder to Receive Wind-Up Report on July 8 --------------------------------------------------------------- The shareholder of Clydesdale CLO 2003 Limited will receive on July 8, 2013, at 10:30 a.m., the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Samit Ghosh Simon Owiti c/o Adam Fox Telephone: 949-7755 Facsimile: 949-7634 DEKANIA CDO: A.M. Best Affirms 'c' Debt Rating of Class C-1 Notes ----------------------------------------------------------------- A.M. Best Co. has affirmed the debt ratings on multi-tranche collateralized debt obligation (CDO) co-issued by two bankruptcy remote special purpose vehicles: Dekania CDO I, Ltd. and Dekania CDO I, Inc. (collectively known as Dekania I and issuers). Both companies are domiciled in Grand Cayman, Cayman Islands. The outlook for all ratings is stable. (See below for a detailed listing of the ratings.) The principal balance of the rated notes are collateralized by a pool of trust preferred securities, surplus notes and secondary market securities (collectively, the capital securities), primarily issued by small to medium-sized insurance companies. The capital securities are pledged as security to the notes. Interest paid by the issuers of the capital securities are the primary source of funds to pay operating expenses of the issuers and interest on the notes. Repayment of the note principal is primarily funded from the redemption of the capital securities. These rating actions primarily reflect: (1) the current issuer credit ratings (ICR) of the remaining issuers of the capital securities; (2) a stress of up to 250% on the assumed marginal default rates of insurers (derived from Best's Idealized Default Rates of Insurers); (3) the amount of capital securities considered to be in distress; (4) recoveries of 0% after defaults of the capital securities; and (5) qualitative factors such as the effect of interest rate spikes; subordination level associated with each rated tranche; the adjacency of very high investment grade ratings to very low non-investment grade ratings in the transaction's capital structure and the possibility that additional redemptions of highly rated entities will leave lower rated companies in the collateral pool. The ratings could be upgraded or downgraded and/or the outlook revised if there are material changes in the ICR of the remaining insurance carriers and/or an increase in the number of defaulted capital securities. The following debt ratings have been affirmed: Dekania CDO I- -- "aaa" on $120.00 million Class A-1 First Priority Senior Secured Floating Rate Notes, Due 2034 -- "aaa" on $69.00 million Class A-2 Second Priority Senior Secured Floating Rate Notes, Due 2034 -- "a-" on $40.00 million Class B Third Priority Senior Secured Floating Rate Notes, Due 2034 -- "c" on $6.00 million Class C-1 Fourth Priority Senior Secured Fixed/Floating Rate Notes, Due 2034 -- "c" on $30.00 million Class C-2 Fourth Priority Senior Secured Fixed/Floating Rate Notes, Due 2034 -- "c" on $16.30 million Class D Mezzanine Secured Floating Rate Notes, Due 2034 These are structured finance ratings. GLOBECAT LIMITED: Shareholder to Receive Wind-Up Report on July 8 ----------------------------------------------------------------- The shareholder of Globecat Limited will receive on July 8, 2013, at 10:30 a.m., the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Samit Ghosh Simon Owiti c/o Adam Fox Telephone: 949-7755 Facsimile: 949-7634 KEY FUND: Shareholder to Receive Wind-Up Report on July 16 ---------------------------------------------------------- The shareholder of Key Fund Ltd. will receive on July 16, 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: Appleby Trust (Cayman) Ltd. Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands KLEROS PREFERRED III: Member to Receive Wind-Up Report on July 19 ----------------------------------------------------------------- The member of Kleros Preferred Funding III, Ltd. will receive on July 19, 2013, at 9:30 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 KLEROS PREFERRED IV: Member to Receive Wind-Up Report on July 19 ---------------------------------------------------------------- The member of Kleros Preferred Funding IV, Ltd. will receive on July 19, 2013, at 9:45 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 LB FUND: Shareholders to Receive Wind-Up Report on July 10 ---------------------------------------------------------- The shareholders of The LB Fund Ltd will receive on July 10, 2013, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands LONE CEDAR II: Member to Receive Wind-Up Report on July 26 ---------------------------------------------------------- The member of Lone Cedar II, Ltd. will receive on July 26, 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 MARIAN CAPITAL: Members Receive Wind-Up Report ---------------------------------------------- The members of Marian Capital received on May 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. Philippe De Patoul is the company's liquidator. ========= C H I L E ========= MASISA SA: Fitch Affirms 'BB' Issuer Default Ratings ---------------------------------------------------- Fitch Ratings has affirmed Masisa S.A.'s ratings as follows: -- Foreign and local currency Issuer Default Ratings (IDRs) at 'BB'; -- National scale rating of Bond Line No. 355, No. 356, No. 439, No. 440,No. 560, No. 724 and No. 725 at 'A-(cl)'; -- Short-term rating at 'F1(cl)'; -- Long term national scale rating at 'A- (cl)'. The Rating Outlook is Stable. Fitch has also downgraded Masisa's equity rating to 'Primera Clase Nivel 3' from 'Primera Clase Nivel 2' KEY RATING DRIVERS Masisa's ratings reflect its sound business position within Latin America as a leading producer of wood boards with 3.4 million of cubic meters installed capacity. The company's operations are concentrated in Chile, Brazil, Argentina, Venezuela, and Mexico. Masisa has Placentro retail stores and commercial offices in Peru, Colombia and Ecuador, and exports to countries outside the region such as the United States. The ratings further incorporate Masisa's ownership of 224,000 hectares of plantations in South America, which along with its forestry land, had an accounting value of USD967 million as of March 31, 2013. The ratings are constrained by the company's large exposure to Venezuela and Argentina. Combined these markets represented 53% of Masisa's consolidated LTM EBITDA as of March 31, 2013. Challenges in these markets include non-stable currencies, political interference as well as foreign currency transference restrictions. Masisa's net leverage is moderate with a net debt/EBITDA of 3.4 times (x) as of Mar. 31, 2013, in line with the average of last five years. Fitch has downgraded Masisa's equity rating given its moderate stock liquidity, as it has a market presence of 85% and USD86.5thd average traded volume during the last year. Since the beginning of 2013, Masisa has not been part of the IPSA (Indice de Precios Selectivo de Acciones). EBITDA GROWTH DESPITE CLOSURE OF MONTENEGRO MDP PLANT Masisa's EBITDA reached USD241 million during the LTM ended March 31, 2013, an increase from USD224 million as of Dec. 31, 2012, while its EBITDA margins improved to 17.6% from 16.6%. Latin American markets continue to show favorable dynamics, with volume growth in nearly all markets, with the exception of Argentina. In response to improved market conditions, Masisa has implemented a pricing increase. The company has also benefited from a turnaround in the U.S. housing market, which has increased its demand for MDF moldings. These improvements helped the company offset the loss of EBITDA due to a fire at its Montenegro MDP plant in Brazil. The main challenges faced by Masisa are increased competition in the MDP segment in Chile and MDF segment in Brazil. During 2012 panels sales increased 4.7% due to a 14.24% increase in average prices, which more than offset a 1.2% decline in volumes. Sales of other products, including MDF moldings, sawn wood, energy and doors increased 20.2%. INCREASE IN NET DEBT As of March 31, 2013 Masisa had USD991 million of consolidated debt and USD164 million of cash and marketable securities, resulting in USD827 million net debt. This figure compares with USD724 million as of Dec. 31, 2012. Masisa's higher net debt position is primarily due to bridge loans taken to finance the acquisition of Rexcel MDP assets in Mexico, among other investments, and the appreciation of the Chilean peso against the dollar. Masisa maintains a 100% hedge of local currency fluctuation against the U.S. dollar. As of March 2013, USD700 million, or 70% of Masisa's consolidated debt is long term. This debt consists of USD439 million of bonds, USD241 million of bank debt and USD19 million of financing leases. MANAGEABLE LIQUIDITY PROFILE Masisa should meet short-term debt obligations with a combination of cash, debt refinancing and capital increases. As of March 31, 2013, Masisa had USD291 million of short-term debt. Masisa's Board of Directors approved a USD100 million capital increase. During the second half of 2013, Masisa is expected to go to the international markets to place a USD300 million bond for debt refinancing. To bolster liquidity the company is also considering selling non-strategic forestry assets. SIGNIFICANT CAPEX PROGRAM Masisa's capex program has been oriented toward strengthening its Mexican operations due to the strong growth potential of the market, as per-capita consumption of boards is low and the housing deficit is high. Between 2013 and 2015, Masisa plans to invest USD600 million. Key investments include the acquisition of Rexcel and Arclin's assets, new coating capacity in Chile and Brazil, and potentially additional organic growth in Mexico. Financing should be with a USD100 million capital increase, USD300 million of cash from operations (Ex-Venezuela), and USD200 million of proceeds from the divestiture of non-strategic forestry assets. Masisa's financial strategy is to maintain its capital structure and not to increase leverage due to higher capex. STABLE PERFORMANCE EXPECTED FOR REMAINDER OF 2013 During 2013, Masisa's EBITDA should range between USD230 million and USD240 million and net leverage should be around 3.5x. Chile and Brazil should represent about 45% of EBITDA. The key drivers of EBITDA improvement vis-a-vis 2012 should be a better product mix and favorable demand conditions in Brazil, Mexico and Chile. Competitive pressure will remain high in Brazil and Chile, which will limit price increases. In Argentina, sales should decline due to weak macroeconomic conditions. Volumes should rise in Venezuela, but sales revenues should decline due to the devaluation of the currency during February. Better conditions in the U.S. should facilitate higher export volumes. RATING SENSITIVITIES Negative rating actions could occur if debt levels increase, operating cash flow weakens, or the political environment in Argentina or Venezuela deteriorates further. Absent significant debt reduction, positive rating actions are not likely in the short term due to Masisa's reliance upon Venezuela and Argentina for around 50% of its EBITDA. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Economy Will Grow 2% This year, 1Q was 0.3% ----------------------------------------------------------------- Dominican Today reports that the International Monetary Fund's (IMF) technical team which visited the country this week as part of the post-monitoring program reiterated that the Dominican economy will grow 2% this year. "A gradual recovery of the real GDP growth is expected for the rest of 2013 at an annual rate of 2 percent and reach 3.6 percent in 2014," said a statement the from the IMF team led by Przemek Gajdeczka, according to Dominican Today. The report notes that the recent increase in international reserves, the preliminary agreement to modify taxes on gold exports and lower fiscal deficits, have reduced short-term vulnerability. "Significant risks that may arise in the global environment, such as external shocks that could hurt trade and the number of tourists, gold exports could fall, or the recent capital flows could be reversed," the statement added, the report relays. Dominican Today notes that the statement by the IMF delegation adds that first quarter growth was 0.3%, after rising nearly 4 percent in each of the four quarters in 2012, on taxes and weak private sector confidence. ============= J A M A I C A ============= DIGICEL GROUP: Loses Bid to Enter Burmese Telecoms Market --------------------------------------------------------- RJR News reports that Digicel Group Limited has lost out on its bid to enter the Burmese telecoms market. The report relates that the company was part of a consortium bidding for one of two mobile licenses that were auctioned by the country. The licenses were awarded to Norway's Telenor and the Qatari firm Ooredoo, according to RJR News. The report notes that the move opens up one of the world's last untapped mobile phone markets. It is estimated that just nine per cent of Burma's 60 million people has mobile phones, the report relates. Digicel Group said it is disappointed, but remains committed to explore commercial opportunities in Burma, and will be evaluating these on an ongoing basis, the report says. Digicel Group had joined with YSH Finance Limited, a joint venture between First Myanmar Investment Company, and Yoma Strategic Holdings, Quantum Strategic Partners to bid for one of two mobile licenses up for grabs, RJR News notes. Digicel Group, with regional headquarters in Jamaica, entered the Panama market in 2008. * * * As reported in the Troubled Company Reporter on Sept. 7, 2012, Moody's Investors Service assigned a Caa1 rating to Digicel Group Limited's proposed US$700 million senior unsecured notes due 2020. Net proceeds will be used to repurchase the entire tranche of the DGL 9.125%/9.875% senior PIK toggle notes due 2015 (US$415 million outstanding) and a portion of the 8.875% senior notes due 2015 (US$1 billion outstanding) via tender offers. * JAMAICA: Commercial Banks Cut Loans to Government --------------------------------------------------- RJR News reports that commercial banks have cut loans to the government, partly as lending risks increase, and as the government itself cuts back on loans. Bank of Jamaica (BoJ) data show loans to the government fell 10 per cent in the year to the end of March, according to RJR News. RJR News discloses that with the decline, loans to the government from commercial banks amounted to J$22 billion dollars at the end of March, compared to more than J$25 billion dollars last year. ===================== P U E R T O R I C O ===================== PUERTO DEL REY: First Amended Joint Plan Declared Effective ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico confirmed the First Amended Joint Chapter 11 Plan proposed by Puerto Del Rey, Inc., Firstbank Puerto Rico, and purchaser PBF-TEP Acquisitions, Inc. In minutes of proceedings held on May 30, 2013, the Court concluded that, among other things: 1. there is no pending contested issue regarding creditor United Surety & Indemnity Company, and other parties-in- interest; 2. there are no objections that the plan be deemed to provide adequate information; and 3. the Debtor's request to determine that a separate disclosure statement is not necessary, is granted. The Court stated that the Plan is effective as of May 30. In this relation, the Court ordered that upon the confirmation order, the clerk will change the caption of the case to read: In re Marina OldCo. (formerly In re Puerto Del Rey, Inc. aka Marina Puerto del Rey). Charles A. Curprill, P.S.C. Law Offices represents the Debtor. Reichard & Escalera, and Hollad & Knifht LLP are co-counsel for FirstBank of Puerto Rico. Fernandez, Collins, Cuyar & Pla, and O'Melveny & Myers LLP are co-counsel for PBF-TEP Acquisitions, Inc. The Plan The Plan filed on May 23, 2013, contemplates and is predicated upon the entry of an order approving (i) the sale of substantially all of the Debtor's assets, and other transactions, pursuant to which the purchaser will fund the Plan, and (ii) in conjunction therewith, the Cacimar Agreement, which encompasses global settlement of issues by and among the purchaser, the Additional Disclosure Entities, FirstBank and the PdR Group Members related to the purchased assets. For avoidance of doubt, no act or action by any party from and after the Effective Date will impair or otherwise modify, alter, or undermine in any respect the validity of the sale or the Definitive Documentation. Under the Plan, the holders of claims in Class 1 (Priority Non-Tax Claims), Class 3 (BPPR Secured Claim) and Class 4 (General Unsecured Claims) are not impaired as that term is defined in Section 1124 of the Bankruptcy Code; and are presumed to have accepted the Plan. Holders of Claims in Class 2 (FirstBank Secured Claim) and Class 6 (Equity Interests) are impaired. However, FirstBank has agreed to accept, on the Effective Date, direct cash payment from the Purchaser in the amount of $40,750,000 (comprised of $2,000,000 from JPMorgan Chase Bank, N.A. deposited by the purchaser in escrow with JPMorgan pursuant to a separate agreement, and $38,750,000 from the purchaser, in full and final satisfaction of the FirstBank Secured Claim, and FirstBank is deemed to have accepted the Plan pursuant to such settlement. Holders of Claims in Class 5 (Intercompany Claims and Insider Claims) will not receive or retain any property on account of the claims A copy of the Plan is available for free at http://bankrupt.com/misc/PUERTO_plan_1amended.pdf About Puerto del Rey Puerto del Rey, Inc., a/k/a Marina Puerto Del Rey, filed a petition for Chapter 11 protection (Bankr. D.P.R. Case No. 12-10295) on Dec. 28, 2012, in Old San Juan, Puerto Rico, owing $43 million to secured lender First Bank Puerto Rico Inc. The 22-acre facility in Fajardo, Puerto Rico, has 918 wet slips and dry storage for 600 boats. Bankruptcy was designed to forestall creditors from attaching assets. In its amended schedules, the Debtor disclosed $99.9 million in assets and $44.6 million in liabilities as of the Petition Date. The Charles A. Cuprill, PSC Law Offices, in San Juan, Puerto Rico, represents the Debtor as counsel. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Chairman Looks To Expert Support ---------------------------------------------------- RJR News reports that Phillip Marshall, Caribbean Airlines' new chairman, has turned to former BWIA bosses for help as he and the interim board try to sort out deficiencies and other burning issues at the entity. Trinidad's Newsday newspaper said Mr. Marshall has sought help from two former Chief Executives of the defunct BWIA - Ian Bertrand and Conrad Aleong as well as a former vice-president, Michael Dolsingh, according to RJR News. RJR News, citing sources, discloses that Mr. Marshall called on these experts to facilitate several workshops for the benefit of the new board, as well as members of the executive management team. Mr. Dolsingh was asked to accompany Trinidad's Trade Minister Vasant Bharath during his visit to Jamaica for talks with Transport Minister Dr. Omar Davies on the challenges facing CAL in the Air Jamaica operations, the report 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. =============== X X X X X X X X =============== * BOND PRICING: For the Week From June 24 to 28, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Argentine International Bond 7.82 12/31/2033 EUR 58.15 Argentine International Bond 7.82 12/31/2033 EUR 57.65 Venezuela International Bond 7 3/31/2038 USD 71.25 Cia Energetica de Sao Paulo 9.75 1/15/2015 BRL 72.5 Petroleos de Venezuela SA 5.5 4/12/2037 USD 60.5 Gol Finance 8.75 USD 76.5 Argentine International Bond 8.28 12/31/2033 USD 56 Renhe Commercial Holdings Co Ltd 11.75 5/18/2015 USD 66 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 60 Provincia de Buenos Aires/Argentina 10.87 1/26/2021 USD 69.92 EDENOR 9.75 10/25/2022 USD 52 Banco Bonsucesso SA 9.25 11/3/2020 USD 73 Emerald Plantation Holdings Ltd 6 1/30/2020 USD 67.5 Bank Austria Creditanstalt Finance Cayman Ltd 1.61 EUR 49.88 Capex SA 10 3/10/2018 USD 74 China Forestry Holdings Co Ltd 10.25 11/17/2015 USD 42 CLISA 9.5 12/15/2016 USD 61.5 Provincia de Buenos Aires/Argentina 9.37 9/14/2018 USD 68.33 Banco Macro SA 9.75 12/18/2036 USD 72.7 BES Finance Ltd 5.58 69.67 Bank Austria Creditanstalt Finance Cayman Ltd 2 1.83 EUR 48 Provincia de Buenos Aires/Argentina 9.62 4/18/2028 USD 63.28 Argentine International Bond 8.28 12/31/2033 USD 62.13 Sifco SA 11.5 6/6/2016 USD 57.68 Transer S. 8.87 12/15/2016 USD 52.5 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 61.13 JinkoSolar Holding Co Ltd 4 5/15/2016 USD 58.62 ESFG International Ltd 5.753 EUR 57.48 Provincia de Mendoza Argentina 5.5 9/4/2018 USD 74.28 BCP Finance Co Ltd 4.2 EUR 45.17 Transer S.A 9.75 8/15/2021 USD 48 Argentine International Bond 8.28 12/31/2033 USD 58.13 BCP Finance Co Ltd 5.54 EUR 45 Edenor 10.5 10/9/2017 USD 51.25 Argentine International Bond 1.18 12/31/2038 ARS 45.72 BES Finance Ltd 3.03 EUR 74.25 MetroGas SA 8.87 12/31/2018 USD 68.63 Argentina Bocon 23/15/2014 ARS 38.45 Edenor 9.75 10/25/2022 USD 49.13 Argentine International Bond 7.82 12/31/2033 EUR 45 Transer S.A 9.75 8/15/2021 USD 46 Banco Finantia International Ltd 2.45 7/26/2017 EUR 44.05 BES Finance Ltd 4.5 EUR 61.5 Punch Taverns Finance B Ltd 6.9 6/30/2028 GBP 62.13 Argentine International Bond 4.3 12/31/2033 JPY 36 Bolivarian Republic of Venezuela 7 3/31/2038 USD 69.19 Provincia de Buenos Aires/Argentina 10.8 1/26/2021 USD 70.25 Argentine International Bond 4.3 12/31/2033 JPY 36.5 China Forestry Holdings Co Ltd 10.25 11/17/2015 USD 42 Argentine International Bond 8.28 12/31/2033 USD 58.13 Renhe Commercial Holdings Co Ltd 11.75 5/18/2015 USD 66.38 Puerto Rico Conservation 6.5 4/1/2016 USD 67.61 Capex SA 10 3/10/2018 USD 71.75 Argentine International Bond 9 11/29/2018 USD 74 City of Buenos Aires Argentina 3.98 3/15/2018 USD 68.75 Caixa Geral De Depositos Finance 1.01 EUR 35.45 Banco Macro SA 9.75 12/18/2036 USD 71 Gol Finance 8.75 USD 73.13 Provincia de Buenos Aires/Argentina 9.37 9/14/2018 USD 68.5 ERB Hellas Cayman Islands Ltd 9 3/8/2019 EUR 26.38 MetroGas SA 8.87 12/31/2018 USD 71.25 Argentine International Bond 8.28 12/31/2033 USD 57.75 Banif Finance Ltd 1.58 EUR 44 Argentine International Bond 0.45 12/31/2038 JPY 8 Banco BPI SA/Cayman Islands 4.15 11/14/2035 EUR 53.5 Provincia de Buenos Aires/Argentina 9.62 4/18/2028 USD 63.25 Almendral Telecomunicaciones SA 3.51 2/15/2014 CLP 44.24 Banco Bonsucesso SA 9.25 11/3/2020 USD 70.75 Banco Macro SA 9.75 12/18/2036 USD 71 Provincia del Chaco 4 11/4/2023 USD 54 BCP Finance Bank Ltd 5.0 13/31/2024 EUR 72.63 Formosa Province of Argentina 5 2/27/2022 USD 61.63 CAM Global Finance 6.08 12/22/2030 EUR 69.63 Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 69.99 Aguas Andinas SA 4.15 12/1/2026 CLP 72.27 Provincia del Chaco 4 12/4/2026 USD 25.88 Talca Chillan Sociedad Concesionaria SA 2.75 12/15/2019 CLP 66.57 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 58.32 Provincia de Mendoza Argentina 5.5 9/4/2018 USD 74.13 Petroleos de Venezuela SA 5.37 4/12/2027 USD 64.15 Quinenco SA 3.5 7/21/2013 CLP 12.87 Metro S.A. 5.5 7/15/2027 CLP 3.0 *********** 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 * * *