/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130704.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, July 4, 2013, Vol. 14, No. 130 Headlines B R A Z I L BROOKFIELD INCORPORACOES: Fitch Cuts Issuer Default Rating to B+ COSAN SA: Fitch Affirms 'BB+' FC/LC Issuer Default Rating LLX ACU: Fitch Downgrades Rating on BRL750MM Debenture to 'B-' OGX PETROLEO: Moody's Lowers CFR to Caa2 on Poor Performance OGX PETROLEO: S&P Lowers CCR to 'CCC'; Outlook Negative OGX PETROLEO: Fitch Views Turbarao Azul Suspension Neutral to Neg. C A Y M A N I S L A N D S ARCH ONE: Creditors' Proofs of Debt Due July 30 BASSO CREDIT: Creditors' Proofs of Debt Due Aug. 1 BASSO CREDIT HOLDING: Creditors' Proofs of Debt Due Aug. 1 BLUEGOLD GLOBAL: Creditors' Proofs of Debt Due Aug. 1 CAPITAL PROPERTIES: Court Enters Wind-Up Order CENTRAL SPV: Commences Liquidation Proceedings JF TWO: Creditors' Proofs of Debt Due Aug. 1 MAXIMUM ENTERPRISES: Court Enters Wind-Up Order ODIN CDO I NO. 2: Commences Liquidation Proceedings ODIN CDO I NO. 3 Commences Liquidation Proceedings OLD WORLD: Court Enters Wind-Up Order RAB GLOBAL: Placed Under Voluntary Wind-Up RAB GLOBAL (MASTER): Placed Under Voluntary Wind-Up SIGNUM BRONZE: Commences Liquidation Proceedings Y&B FUND: Creditors' Proofs of Debt Due Aug. 1 C O S T A R I C A BANCO DE COSTA RICA: Moody's Assigns Ba1 Deposit Ratings M E X I C O AVANCE Y FORTALECIMIENTO: Moody's Withdraws All Ratings T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Sudden Resignation of CEO Not Surprising CARIBBEAN CEMENT: Will Have Price Increase CL FINANCIAL: State Argues Against Clico Payouts X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== BROOKFIELD INCORPORACOES: Fitch Cuts Issuer Default Rating to B+ ---------------------------------------------------------------- Fitch Ratings has downgraded the long-term foreign and local currency Issuer Default Ratings (IDRs) of Brookfield Incorporacoes S.A. (Brookfield Incorporacoes) and its full subsidiary Brookfield Sao Paulo Empreendimentos Imobiliarios S.A. (Brookfield SP) to 'B+' from 'BB-'. Fitch has also downgraded the companies' long- term national ratings to 'A(bra)' from 'A+(bra)'. In addition, Fitch has withdrawn the ratings of Brookfield SP. The ratings are no longer considered relevant to the agency's coverage following the evaluation of the ratings on the basis of Brookfield Incorporacoes' consolidated position. The Outlook for the corporate ratings is Stable. A full list of rating actions follows at the end of this press release. KEY RATING DRIVERS The downgrades reflect the continued weakening of Brookfield Incorporacoes' operating results above Fitch's initial expectations. The company's credit metrics deteriorated considerably in 2012, and Fitch does not expect they will return to paramaters compatible with the previous ratings in the medium term. The review process of costs of projects in development and the internal controls are underway. This makes possible the recognition of new adjustments, with additional pressure on the operating margins and the company's financial leverage. The positive measures recently adopted by Brookfield Incorporacoes with a view to recover its operating margins are affected by the long business cycle of the industry. These measures seek to increase its operational efficiency, the control and integrated management of project costs, as well as to speed up the homebuyers transfer to banks and monetize a portion of its long term land bank. The strong volatility of the real estate industry and its dependence on favorable macroeconomic conditions were also incorporated in the analysis. Brookfield Incorporacoes' ratings continue to be supported by its conservative liquidity position and by integration and support from the controlling shareholder, Brookfield Asset Management (BAM, IDR 'BBB'), evidenced by the BRL400 million capital increase in November 2012. Cost Overruns & Sales Contract Cancellations Impact Credit Ratios Brookfield Incorporacoes operating results continue to be strongly affected by costs above budget and by high cancellations of sales contracts. In the latest 12 months (LTM) ended March 2013, the company reported adjusted EBITDA of BRL102 million and adjusted EBITDA margin of only 3%. These figures compare with BRL667 million and 18.4% reported in 2011, respectively. This reduction reflects the negative impact of recognition of additional project costs of BRL332 million and BRL193 million of cancellations of sales contracts net of resale. The recovery of operating margins should take longer than initial expectations, making more difficult the improvement of the company's operating results, once projects with lower margins are still in the conclusion phase, and new adjustments may pressure the operating performance. Leverage Likely to Remain High in 2013 Brookfield Incorporacoes' leverage remains high and is not likely to reduce to more conservative parameters in the short term. The higher debt volume to finance its business expansion, combined with the weak generation of EBITDA, resulted in high net debt/EBITDA ratio of 29.3x in the LTM ended March 2013, which is well above Fitch's previous expectations. The company's net leverage should decline to around 5.0x only in 2014, at the proportion that the operating margins present some recovery. The company reported potential sales value (PSV) of BRL3 billion in 2010, BRL3.9 billion in 2011 and BRL3.1 billion in 2012. The company's total debt was of BRL4 billion at end March 2013 against BRL3.3 billion in 2011. Over the same period, net debt increased to BRL3 billion, from BRL2.3 billion. This increase reflected the high volume of project launches and working capital needs. Liquidity Supports Ratings The risk of high financial leverage of Brookfield Incorporacoes is mitigated by its significant cash position and high volume of receivables of ready units which can be monetized. At March 31, 2013, the company reported cash and equivalents of BRL954 million for a total debt of BRL4 billion, of which BRL1.2 billion will mature in the short term and BRL2.1 billion will mature by the end of 2014. Considering the corporate debt only, the cash and equivalents corresponded to 136% of the short-term debt. The potential liquidity of receivables of concluded and sold units not linked to debt was of BRL741 million. Brookfield Incorporacoes also benefits from an adequate access to capital and debt markets and should continue to be successful in preserving strong liquidity and lengthening its debt amortization profile. Cash Flow from Operations Should Remain Negative Brookfield Incorporacoes operational cash generation should remain negative in 2013. In LTM ended March 2013, the funds from operations (FFO) were negative BRL439 million, while cash flow from operations (CFFO) was negative BRL836 million. Since 2009, the company has reported negative CFFO due to high working capital needs to support the business growth. Fitch expects that the greater volume of project deliveries, from BRL3.5 billion to BRL4 billion of PSV in 2013, combined with measures to speeding up the transfer of homebuyer credits to the banks, recover the operational cash generation in 2014. Still Low SFH Financings Brookfield Incorporacoes' debt structure remains less conservative due to the high participation of corporate debt. As of March 31, 2013, the corporate debt accounted for 64% of the total debt, as the company financed the business expansion manly with debentures and working capital lines. Fitch expects a more intense utilization of financings from the Housing Financial System (SFH), more adequate for the sector, in 2013 and in 2014. RATING SENSITIVITIES Brookfield Incorporacoes' ratings could be negatively affected by new and relevant project cost adjustments above expectations that negatively affect the company's operating margins and leverage. Factors that result in liquidity reduction or from an unstable environment, that impact the sector fundaments, could also contribute to a downgrade. Positive rating actions can be taken by a significant reduction of leverage ratios, combined with a consistent recovery of operating margins and achievement of positive and robust operating cash flow from operations and preservation of strong liquidity. Fitch has taken the following rating actions: Brookfield Incorporacoes -- Long-term foreign and local currency IDRs downgraded to 'B+' from 'BB-'; -- Long Term National Scale rating downgraded to 'A(bra)' from 'A+(bra); -- BRL100 million first debenture issuance due September 2013 downgraded to 'A(bra)' from 'A+(bra); -- BRL366 million second debenture issuance, first series of BRL285 million due in 2014 and second series of 81 million due in 2016, downgraded to 'A(bra)'from 'A+(bra); -- BRL300 milion third debenture issuance, first series of BRL150 million due in 2015 and second series of BRL150 million due in 2016, downgraded to 'A(bra)'from 'A+(bra)'; -- BRL300 million fourth debenture issuance, first series of BRL76.76 million maturing 2015 and second series of BRL223.24 million maturing in 2016, downgraded to 'A(bra)' from 'A+(bra)'. Brookfield SP -- Long-term foreign and local currency IDRs downgraded to 'B+' from 'BB-' and withdrawn; -- Long-term National Scale rating downgraded to 'A(bra)' from 'A+(bra)' and withdrawn. COSAN SA: Fitch Affirms 'BB+' FC/LC Issuer Default Rating --------------------------------------------------------- Fitch Ratings has affirmed Cosan S.A. Industria e Comercio (Cosan)'s foreign and local currency Issuer Default Rating (IDR) at 'BB+'. Fitch has also upgraded Cosan's national long-term rating to 'AA(bra)' from 'AA-(bra)'. The corporate Ratings Outlook is Stable. The upgrade of the Cosan's national scale rating reflects an improvement in the company's business profile due to its acquisition of Companhia de Gas de Sao Paulo - Comgas during 2012. This acquisition should reduce the volatility of the company's future cash flow generation and has strengthened the company's international rating of 'BB+' within the rating category. A key constrain upon the company's rating at the 'BB+' level is the high level of debt -- BRL5.2 billion -- at the holding company level. KEY RATING DRIVERS Stronger Credit Profile with Raizen Cosan's rating fundamentals have been positively enhanced by the creation of joint ventures with Shell Brazil Holdings BV. These joint ventures, Raizen Energia S.A and Raizen Combustiveis S.A, are both rated 'BBB' by Fitch. Together, they account for 55% of Cosan's EBITDA. Lower Exposure to the Volatile Sugar and Ethanol Industry Cosan's credit quality has strengthened with the acquisition of the natural gas distributor, Comgas, which now accounts for 29% of the company's EBITDA. The relatively stable cash flow from this business is able to partially offset the inherent volatility of the sugar and ethanol industry. Depending upon sugar and ethanol prices, approximately 60% of the company's EBITDA should come from the following portfolio of relatively stable businesses: 29% natural gas distribution (Comgas), 23% fuel distribution (Raizen Combustiveis), and 8% logistics (Rumo Logistica). Expanding Logistic Portfolio May Avoid Further Deleverage Trend Cosan has successfully reduced its consolidated net leverage ratios since the acquisition of Comgas. As of March 31, 2013, net adjusted leverage, on pro-forma basis, is 2.9x, a decline from 3.7x as of March 31, 2012. Without any other acquisition or relevant investment, Fitch expects the net adjusted leverage ratios to move toward to 2.5x in the next years. In spite of the favorable trend, leverage may not decrease, as Cosan seeks to expand its logistics business. Improving Operational Performance Cosan's consolidated pro-forma EBITDA was BRL3.7 billion for the LTM ended March 31, 2013. The pro-forma analysis considers 12 months of Comgas. The EBITDA compares with a pro-forma EBITDA for the LTM ended March 31, 2012 of BRL2.8 billion. During the LTM, Cosan generated BRL2.4 billion of cash flow from operations (CFFO). With investments of BRL1.7 billion and dividends of BRL375 million, free cash flow was BRL271 million, an increase from BRL187 million in the prior year. Capex at Comgas will likely restrict the level of free cash flow going forward. Key drivers of the increase in Cosan's EBITDA and CFFO were synergies gained through operational improvements in the company's sugar and ethanol businesses, as well as its natural gas business. Solid Liquidity Position and Manageable Debt Amortization Schedule Cosan's solid liquidity position is a key credit consideration. On a consolidated basis, as of March 31, 2013, Cosan had BRL1.4 billion of cash and marketable securities and BRL13,1 billion as total debt, of which BRL1.3 billion is short term debt. At the holding level, Cosan shows manageable debt service coverage due to a debt maturity schedule that is evenly distributed, with debt amortizations of BRL400million in 2014 and BRL160 million from 2015 to 2017. As of March 31, 2013, cash position at the holding was BRL344 million. The company is expected to receive BRL1 billion of dividends from Raizen during the next three years. Pending Negotiations On The Acquisition Of ALL Shares; No Cash Disbursement is Expected Cosan is also negotiating the purchase of a 5.7% stake in America Latina Logistica - ALL, for BRL896.5 million. To fund this party, Cosan is seeking an equity partner so that it will not have to make a cash payment. The transaction is still dependent approval of some signatories to ALL's shareholders agreement, the Brazilian Transport Regulatory Agency (ANTT) and the Brazilian Antitrust Council (CADE). RATING SENSITIVITIES A positive rating action is likely in the medium term horizon if the company is able to manage the growth of its logistic and infrastructure business without increasing leverage. A negative rating action on Raizen's ratings could have an impact on Cosan's ratings. Factors that could also lead to negative rating actions include further acquisitions or investments not contemplated in the current business plan that could result in leverage levels beyond expectations and/or material refinancing needs. Fitch affirms the following ratings Cosan: -- Foreign and local currency IDRs at 'BB+'; -- National scale rating upgraded to 'AA(bra)from 'AA-(bra)'. Cosan Overseas LTD: -- Foreign currency at IDR 'BB+'; -- Perpetual notes at 'BB+'. Cosan Luxembourg S.A: -- Senior Unsecured Notes due in 2018 and 2023 at 'BB+'. LLX ACU: Fitch Downgrades Rating on BRL750MM Debenture to 'B-' -------------------------------------------------------------- On June 28, 2013, Fitch Ratings downgraded the rating on LLX Acu Operacoes Portuarias S.A.'s (LLX Acu) 750 million Brazilian reais debentures to 'B-(Bra)' from 'BBB+(Bra)' and placed it on Rating Watch Negative. The rating action reflects the uncertainty as to the ability of project's sponsors, LLX Logistica S.A. and Centennial Acu (Centennial), both part of EBX Group and majority owned by Mr. Eike Batista, to provide financial support to the project. Over the short term, the project's financial feasibility relies on capital injections from LLX Logistica S.A. and Centennial shareholders. Fitch believes that the project has strong links with all companies of EBX Group and with its main shareholder, Eike Batista, who expressed his formal commitment to support the project. LLX Logistica S.A. has recently announced that it has hired financial advisors to evaluate possible business opportunities and corporate transactions involving the company's assets and its securities. Should LLX Logistica fail in strengthening its liquidity position in the next three months, the current rating could be further downgraded. Key Rating Drivers -- Parent Exposure: The rating is based on LLX Acu's stand-alone credit profile, but is limited by the project's exposure to the credit quality of its sponsors LLX Logistica S.A, Centennial Asset Participacoes S.A. (Centennial) and ultimately, Eike Batista. The sponsors' credit quality is currently under scrutiny. Their sister company, OGX Petroleo e Gas Participacoes S.A., was recently downgraded to 'CCC'/'CCC(bra)' by Fitch and the search for strategic partners by some of the EBX Group's companies is a clear indication of its weakening credit profile (See the Fitch release 'Fitch Downgrades OGX to 'CCC/CCC (bra)'; Outlook Negative, June 14, 2013). With a 'CCC' rating, default is a real possibility for OGX, the Group's most important asset, making continued equity support from the sponsors doubtful. -- Weakened Capital Structure: LLX Acu has still been unable to convert short-term bridge loans to long-term, lower-cost financing from BNDES, exposing the project to increased refinance risk. All of LLX Acu's outstanding debt obligations except the debentures are short-term liabilities expiring as early as February 2014. LLX Acu is currently negotiating with BNDES to convert short-term facilities into long-term. -- Weaker Revenue Profile: Revenues are under pressure as a result of the slow pace of LLX Acu's signing of lease contracts with tenants. Furthermore, slowing GDP growth in Brazil and decreased demand from China for exports such as steel, slag, and coal may have a negative impact upon future trade revenues at Brazilian Ports. -- Construction risk: Liquidity constraints and increased CAPEX costs at the Port could result in investment delays at LLX Acu, halting future construction, and leading to a delay in operating revenue from cargo traffic. Rating Sensitivities -- Inadequate Liquidity: LLX Acu's inability to secure additional sources of sufficient equity from sponsors or alternative providers as well as to refinance its short-term obligations that result in the project's default would warrant further rating downgrade. -- Lack of information: Without receipt of additional financial information and a viable funding strategy that supports LLX Acu's prospects for project completion, the rating would further decline. -- Increasing Capex costs: Above-budget CAPEX and construction delays that adversely affect operating cash flow available for debt service would negatively impact the rating. Security The rated debentures are senior unsecured obligations of LLX Acu and will be guaranteed on a senior secured basis by LLX Logistica S.A, Centennial and Mr. Batista. Credit Update LLX Acu's port expects expected to enter operations by late 2014 with 17 km of quay, up to 40 berths, and the ability to receive very large carriers (including Chinamax) thanks to its 26-meter depth. Construction is progressing on the original schedule. To date, management reports that they have signed BRL$90 million in lease contracts. LLX Acu is a privately controlled mixed-model port belonging to the Superporto do Acu complex in the State of Rio de Janeiro (RJ). The Acu Superport (LLX Minas-Rio and LLX Acu) and Industrial Park is planned to be the largest private port and industrial facility in Latin America, covering an area of approximately 13,212 hectares, and expected to become one of the world's busiest ports in cargo tonnage handled. LLX Acu's cash flows are derived from real estate lease contracts within the industrial park at the port, and port cargo traffic once the port installations enter into operations, originally forecast for the second-half of 2014. With a total original project investment of R$4.1 billion, the two-terminals are expected to handle iron ore, oil, steel products, coal and other bulk liquids and solids. OGX PETROLEO: Moody's Lowers CFR to Caa2 on Poor Performance ------------------------------------------------------------ Moody's Investors Service downgraded OGX Petroleo e Gas Participacoes S.A.'s Corporate Family Rating to Caa2 from B2 and OGX Austria GmbH's senior unsecured notes ratings to Caa2 from B2. The rating outlook is negative. This rating action concludes the rating review initiated on April 9, 2013. "The rating downgrade of OGX is driven by weak oil production response and cash flows, negatively impairing asset coverage of the company's senior unsecured notes," commented Gretchen French, Moody's Vice President. "The negative outlook reflects OGX's constrained liquidity profile through 2014." Issuer: OGX Petroleo e Gas Participacoes S.A. Downgrades: Corporate Family Rating, Downgraded to Caa2 from B2 Outlook Actions: Outlook, Changed to Negative from Rating Under Review Issuer: OGX Austria GMBH Downgrades: $2563M 8.5% Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 from B2 $1063M 8.375% Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 from B2 Outlook Actions: Outlook, Changed to Negative from Rating Under Review Ratings Rationale: OGX's Caa2 rating reflects high financial leverage relative to production and cash flows and a weak liquidity profile. OGX's oil production levels are materially below original expectations as a result of higher than anticipated geological complexity of the Tubarao Azul field, as well as the Tubarao Tigre, Tubarao Gato and Tubarao Areia fields, of the Campos Basin offshore Brazil. The future development of these fields has been suspended, with near term offshore development focus on the Tubarao Martelo field, also in the Campos Basin. OGX is expected to have tight liquidity over the next 12-18 months, with the expectation that it will need to pursue alternative liquidity options in order to meet its operating and financial obligations. While OGX is expected to complete the sale of a 40% stake in its Tubarao Martelo field in the coming months, the company will still need to pursue additional liquidity options in order to meet its funding needs through 2014. A key source of liquidity would be the exercise by OGX of its $1 billion put option that was granted by the company's controlling shareholder, Mr. Eike Batista, in October 2012. However, it is not clear if Mr. Batista can meet the full amount of the put obligation. The put option expires on May 1, 2014 and is conditional upon OGX not finding more favorable alternatives for its capital needs, as determined by OGX's independent board members. Other sources of liquidity could be additional asset sales or joint venture/partnership arrangements. Near term obligations include payment obligations to affiliate company OSX (unrated) related to long-term lease contracts on three floating, production, storage and offloading units (FPSO), with only one FPSO, the OSX-3, expected to support cash flow generation post 2014, assuming the successful development of the Tubarao Martelo field and given the recent announcement that production from Tubarao Azul could cease in 2014. OGX will also make an immediate payment of roughly $449 million to OSX, most of which will be used for the payment of the construction costs for the FPSO OSX-3 and wellhead platform WHP-2, that will be used in the Tubarao Martelo field. OGX is considering redeploying the FPSO OSX-1 in another field and OSX is pursuing the sale of OSX-2, which once sold will terminate the lease obligation of OGX. OGX's Caa2 ratings could be downgraded if the company is not successful in building a stronger liquidity cushion (visibility to minimum liquidity of at least $100 million). While unexpected over the near-term given the negative outlook, the Caa2 rating could be upgraded if OGX is able to improve its liquidity profile, while also demonstrating prospects for better capital productivity and production growth. The principal methodology used in this rating was Global Independent Exploration and Production Industry Methodology published in December 2011. Based in Rio de Janeiro, Brazil, OGX is an independent exploration and production company with operations in Latin America. OGX PETROLEO: S&P Lowers CCR to 'CCC'; Outlook Negative ------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on OGX Petroleo e Gas Participacoes S.A. (OGX) to 'CCC' from 'B-'. The outlook remains negative. The downgrade is primarily based on the company's recently announced sharply lower production development plan. According to the announcement, the three wells at the Tubarao Azul field may cease production by 2014 due to the company's lack of currently available technology that would economically allow it to further increase its production curve. In addition, OGX cancelled the orders for new oil platforms, and it won't develop the Tubarao Tigre, Tubarao Gato, and Tubarao Areia fields. Tubarao Martelo field will be the only oil field that OGX is planning to develop. "In our view, this lower portfolio base will hurt OGX's operating performance, its liquidity, and its ability to reach production levels and associated cash generation to cover its debt levels. The company's liquidity will weaken during next few months because it will have to pay $449 million to its sister company OSX Brasil S.A. (OSX), given the cancellations in orders and some contracts revisions. We expect OGX to require additional external funding to soften a cash crunch at the end of 2013 and beginning of 2014," S&P said. "According to our criteria, we assess OGX's management and governance as "weak," due to negative assessment of the company's strategic positioning and risk management. Management's ability to convert strategic decisions into constructive actions significantly lag those of its peers, in our view, and OGX has frequently revised downward, sometimes very abruptly, its production plans," S&P noted. OGX PETROLEO: Fitch Views Turbarao Azul Suspension Neutral to Neg. ------------------------------------------------------------------ Fitch Ratings views OGX Petroleo e Gas Participacoes S.A.'s (OGX) decision to cease the development of its Turbarao Azul Field as neutral to negative for the company's credit quality given the already sluggish production performance and tightening liquidity position. On July 1, 2013, OGX announced its intention to suspend the development of this field due to technical limitations resulting from the compartmentalization of the formation, which makes it uneconomical to develop with today's technologies. The reduction in anticipated production volumes due to the abandonment of Turbarao Azul Field will increase the company's cash needs, as operational expenses are expected to remain largely unchanged while production volumes are reduced. Fitch currently rates OGX 'CCC/CCC(bra)', with a Negative Outlook. OGX's liquidity will be pressured by the lease obligations related to three floating, production, storage and offloading platforms (FPSOs), OSX-1, OSX-2, and OSX-3, while only one will actually be producing; OSX-3 at Turbarao Martelo Field. OSX-1 is currently connected to the three wells which production will be suspended. OSX-2 is expected to be delivered by year end and OGX will begin making lease payments for this unit in January 2014. These units could potentially be used by OGX in another location. OGX's cash needs could be estimated at approximately USD300 million in 2014, assuming the full exercise of the put option, a capex of USD1.5 billion (including the USD449 million payment to OSX), and the collection from Petronas of USD250 million this year and USD500 million in 2014. The potential underperfomance of Turbarao Martelo Field (with a targeted level of 5,000 to 7,000 barrels per day), the unavailability of the put option and/or invoices from Petronas could pressure OGX's credit quality. OGX's cash needs could be higher, if any of the above mentioned conditions do not materialize. OGX's outstanding USD3.7 billion bonds limit the company's ability to raise additional debt. The company could potentially recur to asset sales to cover any cash needs. On June 14, 2013, Fitch downgraded OGX's foreign currency Issuer Default Rating to 'CCC' from 'B-', due to increased uncertainty about the willingness and ability of OGX controlling shareholder Mr. Eike Batista to honor the company's USD1 billion put option. Funding for OGX's capex program is vital to increasing oil production, so a default on the put option would further tighten the company's liquidity position. ========================== C A Y M A N I S L A N D S ========================== ARCH ONE: Creditors' Proofs of Debt Due July 30 ----------------------------------------------- The creditors of Arch One Finance Limited are required to file their proofs of debt by July 30, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 10, 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 BASSO CREDIT: Creditors' Proofs of Debt Due Aug. 1 -------------------------------------------------- The creditors of Basso Credit Opportunities Fund Ltd. are required to file their proofs of debt by Aug. 1, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 31, 2013. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands BASSO CREDIT HOLDING: Creditors' Proofs of Debt Due Aug. 1 ---------------------------------------------------------- The creditors of Basso Credit Opportunities Holding Fund Ltd. are required to file their proofs of debt by Aug. 1, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 31, 2013. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands BLUEGOLD GLOBAL: Creditors' Proofs of Debt Due Aug. 1 ----------------------------------------------------- The creditors of Bluegold Global Fund Inc are required to file their proofs of debt by Aug. 1, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 4, 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 CAPITAL PROPERTIES: Court Enters Wind-Up Order ---------------------------------------------- On June 3, 2013, the Grand Court of the Cayman Islands entered an order to wind up the operations of Capital Properties Ltd. The company's liquidator is: Margot Macinnis c/o KRyS Global, Governors Square Building 6, 2nd Floor, 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Noku Mhlanga Telephone (345) 947 4700 CENTRAL SPV: Commences Liquidation Proceedings ---------------------------------------------- At an extraordinary meeting held on June 21, 2013, the members of Central SPV Company Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited PO Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands JF TWO: Creditors' Proofs of Debt Due Aug. 1 -------------------------------------------- The creditors of JF Two Holdings Corp. are required to file their proofs of debt by Aug. 1, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 12, 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 MAXIMUM ENTERPRISES: Court Enters Wind-Up Order ----------------------------------------------- On June 3, 2013, the Grand Court of the Cayman Islands entered an order to wind up the operations of Maximum Enterprises Inc. The company's liquidator is: Margot Macinnis c/o KRyS Global, Governors Square Building 6, 2nd Floor, 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Noku Mhlanga Telephone (345) 947 4700 ODIN CDO I NO. 2: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary meeting held on June 20, 2013, the members of Odin CDO I (Cayman Islands No.2) Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited PO Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands ODIN CDO I NO. 3 Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on June 20, 2013, the members of Odin CDO I (Cayman Islands No.3) Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited PO Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands OLD WORLD: Court Enters Wind-Up Order ------------------------------------- On June 3, 2013, the Grand Court of the Cayman Islands entered an order to wind up the operations of Old World Properties Ltd. The company's liquidators are: Kenneth Krys Margot MacInnis KRyS Global Governors Square, Building 6, 2nd Floor 23 Lime Tree Bay Avenue PO Box 31237, Grand Cayman, KY1-1205 Cayman Islands RAB GLOBAL: Placed Under Voluntary Wind-Up ------------------------------------------ On June 7, 2013, the sole shareholder of RAB Global Mining and Resources Fund Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Avalon Management Limited Reference: GL Telephone: +1 (345) 769 4422 Facsimile: +1 (345) 769 9351 Landmark Square, 1st Floor 64 Earth Close, West Bay Beach PO Box 715, George Town Grand Cayman KY1-1107 Cayman Islands RAB GLOBAL (MASTER): Placed Under Voluntary Wind-Up --------------------------------------------------- On June 10, 2013, the sole shareholder of Rab Global Mining and Resources (Master) Fund Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Avalon Management Limited Reference: GL Telephone: +1 (345) 769 4422 Facsimile: +1 (345) 769 9351 Landmark Square, 1st Floor 64 Earth Close, West Bay Beach PO Box 715, George Town Grand Cayman KY1-1107 Cayman Islands SIGNUM BRONZE: Commences Liquidation Proceedings ------------------------------------------------ At an extraordinary meeting held on June 20, 2013, the members of Signum Bronze Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited PO Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands Y&B FUND: Creditors' Proofs of Debt Due Aug. 1 ---------------------------------------------- The creditors of Y&B Fund Limited are required to file their proofs of debt by Aug. 1, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 7, 2013. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 ================== C O S T A R I C A ================== BANCO DE COSTA RICA: Moody's Assigns Ba1 Deposit Ratings -------------------------------------------------------- Moody's Investors Service has assigned a standalone bank financial strength rating of D+ and a standalone baseline credit assessment of baa3 to Banco de Costa Rica (BCR), 100% owned by the Republic of Costa Rica. Moody's has also assigned Baa3 and Prime-3 long and short term local currency deposit ratings, respectively, as well as Ba1 and Not Prime long and short term foreign currency deposit ratings, to Banco de Costa Rica. The outlook on all ratings is stable. The following ratings were assigned to Banco de Costa Rica: Bank financial strength: D+ Long term local currency deposits: Baa3 Short term local currency deposits: Prime-3 Long term foreign currency deposits: Ba1 Short term foreign currency deposits: Not Prime Rating Rationale: Moody's said that the D+ standalone BFSR and baa3 BCA assigned to Banco de Costa Rica reflect the bank's dominant franchise in both corporate and retail banking, its well managed and stable asset quality, as well as its superior local funding access aided by the government guarantee on its deposit obligations. These characteristics are also supported by BCR's solid tangible capitalization and proactive management that is highly focused on improving the bank's internal controls, risk management, and corporate governance. Key constraints to the bank's standalone rating are the limitations to its profitability as a result of relatively high operating leverage and a relatively high corporate tax rate of 30% coupled with additional mandatory transfers to support government- sponsored programs in line with its public sector mandate. Nevertheless, the bank's returns have improved during the past two years owing to good control of credit and operating costs. Moody's noted the risk that the government could use BCR to lend to less creditworthy segments of the economy for the purpose of financial inclusion or to the public sector for its own financial needs, particularly as the bank has relatively high lending limits for public sector entities. To date, however, the bank has limited its public sector lending exposure to around 30% of Tier 1 capital, much closer to the 20% related party lending limit for private sector banks. Given its close financial and business linkages with the government, including large securities holdings, BCR's standalone ratings will be limited by the government's bond rating, said Moody's. Other key risks to BCR's standalone creditworthiness are its large, though diminishing, single borrower concentrations that are commensurate with a predominantly commercial loan book as well as exposure to additional credit and foreign exchange risk related to foreign currency loans made to local currency earners. The Baa3 long term local currency deposit rating assigned to BCR reflects the standalone BCA of baa3 as well as Moody's assumption of full support from the government, its 100% parent, because of its ownership, the government guarantee of its obligations under Article 4 of the Financial System Law, as well as its public mandate and the importance of its deposit and loan franchise. As BCR's baa3 BCA is equal to the Baa3 government rating, the bank's supported ratings do not derive any additional uplift at this time. The assigned Ba1 long term foreign currency deposit rating is constrained by the Ba1 country ceiling for foreign currency deposits in Costa Rica. The principal methodology used in this rating was Moody's Global Banks methodology published on May 31, 2013. Banco de Costa Rica was established in 1877 by the Costa Rican government and is the oldest financial institution in the country. It is the second largest bank, after Banco Nacional de Costa Rica, with a market share of 20% in loans and 22% in deposits. BCR is also a leading securities and insurance broker and pension and mutual fund manager through its 100%-owned subsidiaries BCR Valores Puesto de Bolsa S.A., BCR Corredora de Seguros S.A, BCR Sociedad Administradora de Fondos de Inversion S.A., and BCR Operadora de Pensiones S.A. BCR reported total consolidated assets of $7.5 billion (CRC 3.8 trillion), equity of $730 million (CRC 372 billion) and net income of $63 million (CRC 31.9 billion), as of December 31, 2012. Consolidated figures include those of BICSA (Ba1, stable), the bank's Panamanian subsidiary. =========== M E X I C O =========== AVANCE Y FORTALECIMIENTO: Moody's Withdraws All Ratings ------------------------------------------------------- Moody's de Mexico has withdrawn Avance y Fortalecimiento Integral, S.A. de C.V. Sociedad Financiera de Objeto Multiple, Entidad No Regulada's ratings including: (i) long term local currency corporate family rating (CFR) of Caa1; (ii) long and short term global local currency (GLC) issuer ratings of Caa1 and Not Prime, respectively; and (iii) long and short term Mexican National Scale issuer ratings of Caa1.mx and MX-4. The outlook on all the ratings before the withdrawal was stable. Ratings Rationale: Moody's has withdrawn Avance's ratings for its own business reasons. 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. Avance is headquartered in Chihuahua, Chihuahua and reported total assets of Mx$52.4 million ($4.1 million), gross loans of Mx$36.6 million and shareholders' equity of Mx$13.5 million as of September 2012. The period of time covered in the financial information used to determine Avance's rating is between December 31, 2008 and September 30, 2012 (source: Moody's and Issuer's financial statements). The following ratings assigned to Avance were withdrawn: Long term local currency corporate family rating of Caa1 Long term global local currency issuer ratings of Caa1 Short term global local currency issuer ratings of Not Prime Long term Mexican National Scale issuer ratings of Caa1.mx Short term Mexican National Scale issuer ratings of MX-4 =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Sudden Resignation of CEO Not Surprising ------------------------------------------------------------ RJR News reports that Dr. Omar Davies, Minister of Transport and Works, said he is not surprised by the sudden resignation of acting Chief Executive Officer of Caribbean Airlines Limited, Robert Corbie. Mr. Corbie released a statement to CAL staff members, indicating that he tendered his resignation and the Board accepted it with immediate effect, according to RJR News. The report discloses that CAL's vice president of operations, Captain Jagmohan Singh, has been appointed to oversee day-to-day operations. 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. CARIBBEAN CEMENT: Will Have Price Increase ------------------------------------------ RJR News reports that Caribbean Cement Company Limited said it will hike the price of cement this July 6. The price of Carib Cement OPC and Carib Cement Plus products, will increase by an average of 1 percent, according to RJR News. The report relates that Carib Cement said, the increase is due to movements in the exchange rate which has been impacting its input costs. Caribbean Cement Company Limited manufactures and sells cement. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 18, 2011, Caribbean Cement Company Limited has incurred a JM$608.08 million loss in the three months ended April to June 2011 from JM$217.95 million loss in the same period last year. The company incurred JM$857.56 million loss in the six months ended January to June 2011 from a JM$213.40 million in the same period 2010. Caribbean Cement posted a JM$1.58 billion loss in the year ended 2010. CL FINANCIAL: State Argues Against Clico Payouts ------------------------------------------------ Jensen LaVende at Trinidad Express reports that state attorneys will continue their arguments as to why 250 policyholders of failed insurance giant Colonial Life Insurance Company (Trinidad) Limited (CLICO) should not benefit from a High Court ruling that they receive 100 per cent of their investments and three per cent interest per annum from the company. The attorneys began their arguments before Appeal Court judges led by Chief Justice Ivor Archie, Gregory Smith and Rajendra Narine, according to Trinidad Express. The report notes that the attorneys -- Queen's Counsel Allan Newman, former attorney general Senior Counsel Russell Martineau, Kelvin Ramkissoon and Kerry Ann Oliverie -- are arguing against the March 12 decision of Justice Joan Charles. The report relates that Justice Charles agreed with the United Policyholders Group, represented by Queen's Counsel Peter Knox, former attorney general Senior Counsel Ramesh Lawrence Maharaj, Vijaya Maharaj and Nyala Badal. The report discloses that the group contended that the bailout plan presented by the former People's National Movement administration amounted to a guarantee that policyholders would be reimbursed the funds they held in CLICO. "It is declared that the claimants are the beneficiaries of legitimate expectations engendered by representations made to them by or on behalf of the government that (i) the government would ensure that their funds in CLICO would be safe and that it would guarantee repayment of all monies due to them; and (ii) the government would make good the deficit in the Statutory Fund," Justice Charles's ruling stated, the report notes. Trinidad Express adds that Justice Charles rejected the State's contention that it did not have the money to abide by the PNM's promise. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. =============== 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 * * *