/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/131002.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 Wednesday, October 2, 2013, Vol. 14, No. 195 Headlines A N T I G U A & B A R B U D A LIAT: Service a Concern for St Lucia Opposition Party A R G E N T I N A HIDROELECTRICA EL CHOCON: Moody's Affirms CFR at B3 B A R B A D O S * BARBADOS: S&P Assigns 'BB+' Rating to Planned Global Bond B O L I V I A * BOLIVIA: Fitch Affirms 'BB-' Issuer Default Ratings B R A Z I L BIOSEV SA: Fitch Assigns 'BB-' Issuer Default Rating BIOSEV SA: $500MM Senior Notes Issue Gets Moody's B1 Rating C A Y M A N I S L A N D S AUDE FUND: Shareholder to Receive Wind-Up Report on Oct. 28 CG LONG: Shareholders' Final Meeting Set for Oct. 16 DIRCO AB: Shareholder to Receive Wind-Up Report on Nov. 1 DIRCO EH-II: Shareholder to Receive Wind-Up Report on Nov. 1 DIRCO EH-III: Shareholder to Receive Wind-Up Report on Nov. 1 DIRCO G: Shareholder to Receive Wind-Up Report on Nov. 1 ICHIKAWA ONE: Shareholders' Final Meeting Set for Oct. 15 MAISHIMA FOUR: Shareholders' Final Meeting Set for Oct. 15 MAISHIMA THREE: Shareholders' Final Meeting Set for Oct. 15 PLAINFIELD CAYMAN: Shareholders' Final Meeting Set for Nov. 7 TAKATSUKI TWO: Shareholders' Final Meeting Set for Oct. 15 TEXAR INSURANCE: Shareholders Receive Wind-Up Report ZAMA ONE: Shareholders' Final Meeting Set for Oct. 15 J A M A I C A DIGICEL GROUP: Rules Out Selling Shares to the Public at this Time * JAMAICA: IMF Completes First Review Under Extended Fund Facility * JAMAICA: Remittances Down in June M E X I C O DESARROLLADORA HOMEX: Did Not Make Payment on 2015 Senior Notes P E R U GRUPO ACP: Fitch Cuts Long-Term Issuer Default Rating to 'B' T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Suspends Manager as Fraud Probe Continues - - - - - ================================== A N T I G U A & B A R B U D A ================================== LIAT: Service a Concern for St Lucia Opposition Party ----------------------------------------------------- Caribbean360.com reports that the main opposition United Workers Party (UWP) has expressed concern about the service provided by the regional carrier Leeward Islands Air Transport, known as LIAT. UWP Leader Allen Chastanet said the operations of LIAT are critical to the tourism industry and the overall business market of St Lucia, notwithstanding, the dependency on LIAT for the delivery of professional and efficient service, according to Caribbean360.com. "Despite the fact that LIAT operates as a monopoly, the airline continues to burden regional governments financially and has consistently fallen short from the required standards which the market demands," the report quoted Mr. Chastanet, a former Tourism Minister, as saying. The report notes that Mr. Chastanet observed that St. Lucians have over-extended their patience and tolerance with LIAT without the commensurate improvements from the airline in its services. "We are suspicious that decreased flights and increasing fares to St. Lucia by the airline is a deliberate attempt at coercing the government to meet their demands. . . . The United Workers Party is concerned that the government of St Lucia may be yielding to the existing pressures and may have decided to invest millions of dollars in the beleaguered airline," the report quoted Mr. Chastanet as saying. The report relates that Mr. Chastanet cautioned the government against plans to invest millions in LIAT. "We wish to caution the administration to exercise prudence in ensuring that the use of tax-payers monies should only be applied towards financially successful ventures. At this stage we are not convinced that investment in LIAT is a sound venture," the report quoted Mr. Chastanet as saying. The report notes that Mr. Chastanet said, "the aviation industry is too critical to the St. Lucian and Caribbean economies; it requires a more competitive environment which will enable the input of fresh ideas and initiatives to ensure survival and growth of the region. . . . We must be prepared to put in place new minds and persons with a sound understanding of the industry." The report relates that Mr. Chastanet also issued a call for the heads of government of CARICOM (Caribbean Community) to review the tenure of the chairman of Caricom Aviation and Transportation Sub- Committee. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2012, Antigua Caribarena related that former Antigua Aviation Minister Robin Yearwood wants to see a merger between Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago- owned Caribbean Airlines Limited, as he believes this is the only way the Antigua-based regional carrier can survive. Mr. Yearwood's call came against the background of media reports out of Port of Spain that suggested CAL's management may be eyeing expansion into the OECS territories, according to Antigua Caribarena. About LIAT Headquartered in V. C. Bird International Airport in Saint George Parish, Antigua, Leeward Islands Air Transport, known as LIAT, operates high-frequency interisland scheduled services serving 22 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. ================= A R G E N T I N A ================= HIDROELECTRICA EL CHOCON: Moody's Affirms CFR at B3 --------------------------------------------------- Moody's has affirmed Hidroelectrica El Chocon S.A.'s B3 corporate family rating and A2.ar national scale rating and changed the outlook to stable from negative. Rating Rationale: The outlook change is mainly prompted by recent positive developments for the generation industry and its view on Argentine power generation companies, which Moody's considers as better positioned than other regulated companies, such as distribution utilities. In March 2013, the Secretariat of Energy issued Resolution 95 that set up a new remuneration method for the energy that generators sell to the spot market (MEM), that will mainly led to an increase in their realized prices as well as higher collections on their sales. In addition, Res. 95 clarified the mechanism to calculate and allocate the amounts not collected from Cammesa ("Remuneracion Adicional") and those to be accrued and placed into a Trust to finance future power projects, similar to previous Foninvemem. On the negative side, Resolution 95 also established that upon the expiration of existing term contracts between generators and industrial customers, MEM sales will be managed directly by Cammesa. Generators will, however, be allowed to continue to receive the revenues under those expired contracts which will allow the generators to retain their cash collection ability, partially offsetting potential increased exposure to Cammesa. HECSA's adhered to the Res. 95 terms in the second quarter of this year; however, no MAT contracts expired during the quarter. Despite Moody's view that this regulatory change is somewhat positive for HECSA and the other generators as it provides some continuity and predictability to future cash flows, Moody's is somewhat concerned with the way the new mechanism for collections under expired MAT contracts will work and if it will be isolated from any potential government intervention. HECSA's B3 global local currency corporate family rating and A2.ar national scale rating continue to reflect the company's strong financial metrics and relatively low business risk profile. However, the ratings remain constrained by the historical high level of regulatory uncertainty, government intervention in the electricity sector in Argentina and exposure to Cammesa-Argentine government (B3, negative) risk. Despite the considerable regulatory risk and collection restrictions with respect to spot sales that the company will continue to face, HECSA's financial ratios are still relatively robust for a B-rated generation company. For the last twelve months ending June 2013, HECSA was able to maintain adequate credit metrics for its rating. Cash flow from operations pre- working capital changes (CFO Pre W/C) + interest to interest expense stood at 3.2x while CFO Pre-W/C to debt was at 45%. Cash from operations to debt, however, was substantially lower (20%), reflecting the lack of collections from spot sales. Nevertheless, HECSA's total debt continued to decline, amounting to ARS 288 million as of June 2013, down from ARS 335 million in December 2012. The stable outlook reflects Moody's expectation that HECSA will continue showing stable funds from operations during fiscal year 2013 and beyond while cash flow from operations improves somewhat mainly due to higher collections from the new remuneration method under Resolution 95. Given the exposure of HECSA to the local market and its regulations and the rating's current constraining factors, a rating upgrade is unlikely. Nevertheless, an upgrade of the rating or the outlook could result from real indications that there will be less government intervention in the price-setting process for generation companies. A cut in subsidies that proves to substantially reduce Cammesa's payment's dependence on federal government transfers could also add upward rating momentum. Negative pressure on the ratings could result from HECSA's adoption of a more aggressive dividend or financial policy. Quantitatively, if CFO plus Interest to Interest Expense were to fall below 1.5x, RCF to debt declined to below 15% or if FCF to debt became -10% or worse, the ratings could be lowered. In addition, ratings could also be lowered if liquidity were to deteriorate significantly or if the sovereign rating were to be downgraded. The ratings could also come under downward pressure if HECSA could not carry out the collections under the expired MAT contracts as expected or if payments from Cammesa begin to experience significant delays. Moody's could also review its position if, going forward, there is further intervention in the regulatory regime. Headquartered in Buenos Aires, Argentina, Hidroelectrica El Chocon S.A. is a hydroelectric power generator with a 30-year concession for the generation and sale of electricity from the El Chocon (1,200Mw capacity) and Arroyito (128 Mw capacity) hydroelectric complexes. HECSA is controlled by the Endesa Chile (Baa2; stable) through its 65.37% direct and indirect ownership and by the Neuquen Province (which has a 29.9% ownership). Endesa Chile is also the technical operator. The methodologies used in this rating were Unregulated Utilities and Power Companies published in August 2009, and Mapping Moody's National Scale Ratings to Global Scale Ratings published in October 2012. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. =============== B A R B A D O S =============== * BARBADOS: S&P Assigns 'BB+' Rating to Planned Global Bond ----------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'BB+' foreign currency senior unsecured debt rating on Barbados' planned global bond. The government of Barbados plans to issue up to $500 million amortizing notes with a semiannual coupon maturing October 2025 under Rule 144A Regulation S. The ratings on Barbados reflect its large fiscal deficits and high debt burden, as well as its limited fiscal flexibility and reliance on external financing. S&P expects the net general government debt burden to rise to above 70% of GDP in fiscal 2013 (ending March 2014) from 67% in fiscal 2012 and 60% in fiscal 2011. Barbados uses more than 13% of general government revenues to pay interest on its debt (excluding the interest that the government pays on debt held by the Barbados National Insurance Scheme). Barbados' economic fundamentals continue to deteriorate, reflecting near-term slower global economic growth, but also long- term weakened tourism competitiveness and other structural shortcomings. The country has a stable, predictable, and mature political system, which benefits from consensus on major economic and social issues, including support from the private sector and trade unions for the government's ongoing fiscal and structural adjustment program. The negative outlook reflects the potential for a downgrade if the government does not bring down its wider fiscal deficit or if external pressures of persistent current account deficits mount. S&P could revise the outlook to stable if the government significantly reduces its general government fiscal deficits, leading to a declining debt and interest burden in the next three years. RATINGS LIST Barbados Sovereign Credit Rating BB+/Negative/B New Rating Barbados Foreign Currency Senior Unsecured $500 mil. notes maturing October 2025 BB+ ============= B O L I V I A ============= * BOLIVIA: Fitch Affirms 'BB-' Issuer Default Ratings ----------------------------------------------------- Fitch Ratings has affirmed Bolivia's long-term foreign and local currency Issuer Default Ratings (IDR) at 'BB-' with a Stable Outlook. The short-term foreign currency IDR has been affirmed at 'B'. The Country Ceiling has been affirmed at 'BB-'. Key Rating Drivers Bolivia's ratings and Stable Outlook balance its sustained economic growth, strong shock-absorption capacity and track record of relative macroeconomic stability and prudent fiscal management against structural constraints such as low GDP per capita, weak institutional quality and a poor business environment. Regulatory uncertainty and state interventionism could hamper the development of new hydrocarbons reserves and credit growth, which create risks to the sustainability of the sovereign's growth trajectory and balance sheet strength. Real GDP expanded 5.2% in 2012, raising Bolivia's five-year average to 4.8%, above the 'BB' median of 3.4%. Growth will keep pace in 2013-2015, supported by a still favorable commodity cycle and public investment. A projected decline in hydrocarbons production after 2015, easing of commodity prices and slower credit growth due to rising pressure on banks' profitability are key downside risks. Bolivia's high commodity dependence in relation to rating peers increases the vulnerability of growth, fiscal and external accounts to gas supply shortages and terms of trade shocks. However, long term gas export contracts that guarantee the sale of minimum volumes at relatively favorable prices partially hedge against short term volatility in energy prices. Bolivia holds the largest stock of international reserves (51% of GDP) among peer commodity exporters. Adequate reserve coverage maintains confidence in the crawling exchange rate and mitigates risks related to high commodity dependence and still present financial dollarization. Monetary authorities have controlled inflation and reduced dollarization. The rapid growth of microcredit and public banks is a concern due to their cyclical nature and potential source of contingent liabilities, although their share in the total financial system remains relatively small. Monetary issuance to finance public companies could feed into inflationary pressures. Bolivia's public finances are a relative credit strength due to its primary budget surpluses, declining public debt and adequate fiscal buffers. After recording a 1.8% of GDP surplus in 2012, the fiscal outturn could shift to an average deficit of 0.4% in 2013- 2015, still stronger than similarly-rated commodity exporters, due to slower revenue growth and higher spending in the run up to the presidential and legislative elections in the fourth quarter of 2014. The general government debt burden fell to 32% of GDP in 2012 and could decline further to 29% by 2015. A high share of intra-public sector holdings and multilateral lending lessen refinancing and market risks. Ample domestic liquidity and recent access to global bond markets support financing flexibility. Regulatory uncertainty and a relatively weak business environment weigh on the development of Bolivia's natural resources and economic diversification prospects. The country proclaimed a new constitution in 2009 but has yet to upgrade the legal framework for investment, hydrocarbons and mining. The government has nationalised 21 companies in the gas, minerals, utilities, telecoms and transportation sectors since 2006. Capacity constraints in local governments and public enterprises weigh on government effectiveness. Bolivia's GDP per capita is below the 'BB' and 'B' medians, despite almost doubling since 2006. While political stability has improved in recent years, polarization, deep ethnic, regional and social divisions maintain the risks of social conflict. Rating Sensitivities The Stable Outlook reflects Fitch's assessment that upside and downside risks to the rating are currently balanced. Fitch's sensitivity analysis does not currently anticipate developments with a high likelihood of leading to a rating change. The main factors that individually, or collectively, could trigger a positive rating action include: -- Policy measures that increase investment rates and improve the medium term sustainability of hydrocarbons production. -- Improved fiscal framework and institutional capacity to implement public investment. The main factors that individually, or collectively, could trigger a negative rating action include: -- Natural gas supply shortages and a sustained fall in export prices leading to a material deterioration of the sovereign's growth prospects and external and fiscal solvency ratios in relation to rating peers. -- Macroeconomic and financial instability and crystallization of contingent liabilities from the financial sector. Key Assumptions The ratings and Outlooks are sensitive to a number of assumptions: -- The growth, fiscal and external forecasts assume that Bolivia maintains present natural gas production levels in the near term and thus is able to meet the gas requirements from the local market and the export contracts with Argentina and Brazil in 2013-2015. -- Increased public spending and political noise during the 2014 electoral campaign cannot be ruled out but is unlikely to lead to protracted political and social instability. -- A difficult business climate for private investment and the risk of ad hoc nationalizations that do not severely impair economic activity are incorporated at the present rating level. =========== B R A Z I L =========== BIOSEV SA: Fitch Assigns 'BB-' Issuer Default Rating ---------------------------------------------------- Fitch Ratings has assigned a 'BB-' foreign and local currency Issuer Default Rating (IDR) to Biosev S/A (Biosev), as well as a national scale rating of 'A+ (bra)'. The Rating Outlook for Biosev is Stable. Fitch has also assigned a 'BB-' rating to Biosev Finance International B.V.'s (Biosev Finance) proposed senior unsecured notes of approximately USD500 million, subject to market conditions, which will be unconditionally guaranteed by Biosev and Biosev Bioenergia S/A. Net proceeds will be used to debt refinancing. Biosev's ratings reflect the company's large crushing capacity combined with a differentiated business model built on clusters, which, together with its affiliation with Louis Dreyfus Commodities Group (LDC Group) offers significant competitive advantages within the sugar & ethanol industry in Brazil. Fitch considers this affiliation as positive, as it brings operational and financial benefits to the company on top of its capacity to take advantage of LDC Group's proven expertise in the global agricultural commodities market. Biosev's aggressive expansion via acquisitions that have been financed with a mix of debt and equity and challenges related to the integration of the assets and to recover profitability currently constrain the ratings. The ratings also incorporate Biosev's moderate leverage within the sector as well as its manageable debt profile and modest liquidity position. Biosev's main challenge in the medium term lies in its capacity to cope with negative free cash flow generation (FCF), which should remain pressured by its required large capex program aimed at increasing cane quality yields (measured as kilograms of total recoverable sugar per ton of cane crushed, and currently below the industry average), and raise capacity utilization. The ratings also consider the company's exposure to the inherent risks of the agribusiness sector and the expected volatility of its cash flow generation. Large-Scale and Business Clusters Currently, Biosev has the second largest crushing capacity of the Brazilian sugar and ethanol industry (37.9 million tons spread over 12 mills) with prominent storage capacity for both products. Its storage capacity allows the company to sell its products at more favorable moments. The organization of its industrial and agricultural assets around clusters generates operating synergies as well as secures an adequate supply of sugar cane to its mills, helping to fend off potential competitors by imposing high barriers to entry. The mills and cane fields are located in regions with access to good quality land for the planting of sugar cane, being near Brazil's main consumer centers and having efficient logistics access to port terminals. The company produces a broad portfolio of products and some of its plants are able to export ethanol to the United States, which can translate into considerable gains in the future. M&A-Driven Growth Strategy Biosev has a track record of aggressive growth through acquisition. The company expanded fast, as it went from a total capacity of 900,000 tons to the current 37.9 million in less than 10 years. Achieved mostly through acquisitions, 11 out of Biosev's 12 mills were acquired from their former owners and only one is a Greenfield developed by the company. Biosev's business development plan contemplates the possibility of an ongoing consolidation process based on acquisitions of mid- to small-sized mills (or only their biological assets) inside the already existing clusters. Though this strategy opens up the opportunity for further scale gains and cost dilution, it also increases future integration and execution risks, as the company is already assimilating the acquisition of Santa Elisa Vale Group (SEV). Fitch expects that the company will carefully manage its growth strategy going forward in 2014 in order to avoid pressure on its capital structure and, consequently, on its ratings. Biosev is expected to be more selective in seeking new acquisitions in the short term to capture synergies and further improve its cash flow generation; new debt-financed acquisitions or significant cash disbursements may pressure credit quality. Affiliation with the Louis Dreyfus Commodities Group The affiliation with LDC Group translates into positive synergies and gives Biosev access to a broad range of data and information on the current shape of the sugar and ethanol global markets, inventory and demand levels for both products, price trends, and the performance of foreign currencies across the globe, among others. The LDC Group is also the main client for the sugar produced by Biosev. The adoption of efficient risk management practices has been reflecting positively on the attractive level of hedged sugar prices (USD20.90 cents/lb for the 2013/14 season, as of June 30, 2013) and has also helped to reduce the impact of the recently intense FX volatility. Modest Liquidity; Manageable Debt Profile Biosev has a modest liquidity position. As of June 30 2013, its cash and marketable securities amounted to BRL1 billion and covered 69% of its short-term debt under Fitch's criteria. The ratio above does not include the proceeds received from the LDC Group in the form of advances for future delivery of very high polarization (VHP) sugar, which should be treated as inter-company loans used in the financing of Biosev's working capital needs. However, given its inter-company nature this debt has lower refinancing risk when compared to regular bank debt. Fitch understands that Biosev will be able to manage its debt maturity profile efficiently by issuing new debt and matching debt maturities to its expected cash flow generation. Moderate Leverage In Fitch's view, the company has to improve cane quality yields and reduce idle capacity of its mills with an aim toward cutting fixed costs. Biosev's capacity to keep increasing revenues has been somewhat offset by operating margins that are relatively low compared to the size and scale of its operations. In the latest 12 months (LTM) through June 30 2013, net revenues amounted to BRL4.3 billion and EBITDAR reached BRL1.7 billion, bringing the EBITDAR margin to 39.1%. Given the large investments needed to improve productivity and capacity utilization, FCF should remain pressured until at least 2016/2017. In the LTM June 30 2013, cash flow from operations (CFFO) amounted to BRL1.1 billion and capex was BRL1.2 billion, leaving the FCF in negative territory at BRL165 million. Despite the prospect of negative FCF for the near future, Fitch believes that the company will be able to keep leverage ratios adjusted for land lease obligations within levels ranging from 3.5x to 4.5x over the next five years. In the LTM June 30 2013, the adjusted net debt-to-EBITDAR stood at 3.6x. Rating Sensitivities A negative rating action could take place if the company fails to improve its liquidity position as planned and if the adjusted net debt-to-EBITDAR ratio increases. Moreover, a negative rating action could occur if margins do not react positively to all the measures taken by Biosev to increase agricultural yields and boost capacity utilization. A positive rating action could occur should the company succeed in improving liquidity and bringing leverage down to its targeted levels. BIOSEV SA: $500MM Senior Notes Issue Gets Moody's B1 Rating ----------------------------------------------------------- Moody's Investors Service has assigned a first-time Ba3 corporate family rating to Biosev S.A. At the same time Moody's assigned a B1 rating to the proposed $500 million senior unsecured notes to be issued by Biosev Finance International B.V. (Netherlands) with an unconditional guarantee from Biosev S.A. and Biosev Bioenergia S.A. The proceeds of the proposed notes will be used to repay existing debt. The outlook for the ratings is stable. Rating Rationale: "The Ba3 rating reflects Biosev's business model that comprises scale and diversification coupled with the extensive use of strategic market intelligence, its close ties with global commodity player LDC and the positive medium-term fundamentals for the Brazilian sugar and ethanol industry", says Moody's analyst Erick Rodrigues. "On the other hand, for the 2013/14 harvest year, Biosev will have to sustain the negative impacts that adverse weather infringed on its crops, which will limit the company's production levels and delay the ramp up in used capacity. As a result, in the short-term, the ability to dilute costs is reduced and operational margins should be pressured. Nevertheless, ongoing investments in expansion and productivity of its plantations should help the company reduce idle crushing capacity and improve profitability over time." With 37.9 million tons of crushing capacity Biosev is the second largest processor of sugar and ethanol in the fragmented Brazilian market. The diversification of raw material sourcing through four regional clusters in the southeast, middle-west and northeast mitigates weather impacts and provides a more stable supply year round due to differentiated harvest periods. Also logistics are optimized by the proximity to multimodal logistic hubs and ports. Biosev's ratings also take into consideration the strong support provided by its controlling shareholder, Louis Dreyfus Commodities Group, from the governance structure to the operational level. With a 58.4% stake, LDC played an important role in the development of Biosev's sophisticated financial policies, and risk management and hedge policies, as well as its management team, mostly comprised of former LDC executives. In terms of operations, Biosev benefits from LDC's global platform and experience in the commodities business through a market intelligence agreement. Additionally, Biosev has a long-term contract to sell between 700 and 900 thousand tons of sugar per year to LDC and a put option for the totality of its VHP sugar production each harvest year. As a pure sugar-ethanol producer, Biosev's ratings are constrained by the fact that its performance is closely correlated to these commodities' prices, which are subject to weather and supply/demand conditions and are, therefore, historically volatile and hard to predict. Accordingly, sugar prices have been declining recently, having reached levels as low as $ 16 cents per pound. The negative effects from such decrease are mitigated however by: (i) Biosev's hedging agreements on its sugar production, corresponding to about 100% of the 2013/14 and already 40% of the 2014/15 crops revenues less costs indexed on sugar and ethanol prices; (ii) the depreciation of the Brazilian Real, that significantly reduces the price decline in domestic currency; and (iii) the current more attractive environment for ethanol producers in Brazil, given, the increased percentage blend of ethanol in gasoline and the tax incentive package launched by the Government to foment the industry. In terms of productivity, Biosev presents a low level of capacity utilization when compared to its peers, with 73.8%. Even though the company has been investing in expanding and renovating its plantations to increase yield, the possible positive effects were delayed by adverse climate conditions that affected its crops in the state of Mato Grosso do Sul. As a consequence, operating margin should remain pressured over the next several quarters. On the other hand, the company's liquidity is adequate and should improve further with the proposed bond issuance and lengthening of its debt profile. The proposed bonds have been rated as B1, one notch below Biosev's Ba3 corporate family rating, given the high level of secured debt in the company's debt structure (52% of total debt on a pro-forma basis following the proposed $ 500 million senior bonds). The ratings could be upgraded if the company improves its operating margins and continues to increase scale while generating free cash flow and maintaining an adequate liquidity profile. Quantitatively this would require Debt to EBITDA to remain below 3.0x and EBITA/Interest Expense to be sustained above 3.0x. A downgrade could result from an inability to improve operating performance or if liquidity deteriorates. Quantitatively this would be the case if EBITA/Interest Expense remains below 1.0x, CFO/Net Debt falls below 20% or Debt/EBITDA is sustained above 4.0x. Biosev, headquartered in Sao Paulo, Brazil, entered the sugar and ethanol business in 2000 with the acquisition of Cresciumal plant and, since then, expanded its crushing capacity from 900 thousand tons to 37.9 million tons per year. The expansion took place by means of the acquisition of other production facilities and organic growth. Relevant milestones include the acquisition of the production facilities of Tavares de Melo group in 2007, and the merger with Santelisa Vale in 2009. The company also invested in the expansion of its facilities (brownfields) and the implementation of Rio Brilhante, a greenfield project with 5 million tons crushing capacity. The company is a part of the Louis Dreyfus Commodities group, which has over 160 years of experience in the global commodities market and is a major player in the sugar, rice, cotton, orange juice, soybeans and derivatives, corn and wheat markets, among others. The principal methodology used in this rating was the Global Protein and Agriculture Industry Methodology published in May 2013. ========================== C A Y M A N I S L A N D S ========================== AUDE FUND: Shareholder to Receive Wind-Up Report on Oct. 28 ----------------------------------------------------------- The shareholder of Aude Fund will receive on Oct. 28, 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: Appleby Trust (Cayman) Ltd. Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands CG LONG: Shareholders' Final Meeting Set for Oct. 16 ---------------------------------------------------- The shareholders of CG Long Biased Offshore Fund, Ltd will hold their final meeting on Oct. 16, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: John Milani Two Embarcadero Center Suite 600, San Francisco California 94111 United States of America Telephone: (415) 297-3201 DIRCO AB: Shareholder to Receive Wind-Up Report on Nov. 1 --------------------------------------------------------- The shareholder of Dirco AB Ltd. will receive on Nov. 1, 2013, at 8:30 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 Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 DIRCO EH-II: Shareholder to Receive Wind-Up Report on Nov. 1 ------------------------------------------------------------ The shareholder of Dirco EH-II Ltd. will receive on Nov. 1, 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 Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 DIRCO EH-III: Shareholder to Receive Wind-Up Report on Nov. 1 ------------------------------------------------------------- The shareholder of Dirco EH-III Ltd. will receive on Nov. 1, 2013, at 9:15 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 DIRCO G: Shareholder to Receive Wind-Up Report on Nov. 1 -------------------------------------------------------- The shareholder of Dirco G Ltd. will receive on Nov. 1, 2013, at 8:45 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 ICHIKAWA ONE: Shareholders' Final Meeting Set for Oct. 15 --------------------------------------------------------- The shareholders of Ichikawa One will hold their final meeting on Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands MAISHIMA FOUR: Shareholders' Final Meeting Set for Oct. 15 ---------------------------------------------------------- The shareholders of Maishima Four will hold their final meeting on Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands MAISHIMA THREE: Shareholders' Final Meeting Set for Oct. 15 ----------------------------------------------------------- The shareholders of Maishima Three will hold their final meeting on Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands PLAINFIELD CAYMAN: Shareholders' Final Meeting Set for Nov. 7 ------------------------------------------------------------- The shareholders of Plainfield Cayman Holdings II Limited will hold their final meeting on Nov. 7, 2013, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands TAKATSUKI TWO: Shareholders' Final Meeting Set for Oct. 15 ---------------------------------------------------------- The shareholders of Takatsuki Two will hold their final meeting on Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands TEXAR INSURANCE: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Texar Insurance Company, Ltd. received on Aug. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. Graham Manchester is the company's liquidator. ZAMA ONE: Shareholders' Final Meeting Set for Oct. 15 ----------------------------------------------------- The shareholders of Zama One will hold their final meeting on Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ============= J A M A I C A ============= DIGICEL GROUP: Rules Out Selling Shares to the Public at this Time ------------------------------------------------------------------ RJR News reports that telecommunications billionaire Denis O'Brien has ruled out selling shares in the Digicel Group Limited to the public at this time. The report relates that Mr. O'Brien said the plan is to keep Digicel running on a private basis. Mr. O'Brien, who is the chairman of Digicel Group, told Bloomberg Television that the entity already has the best practices of a public company as it sells bonds in the US and Europe, RJR News notes. Headquartered in Jamaica, Digicel Group Limited is a telecommunications provider with over 13 million customers across its 31 markets in the Caribbean, Central America and Asia Pacific. * * * As of Sept. 15, 2013, the company continues to carry Moody's "Caa1" Senior Unsecured Debt rating and "B2" long-term ratings, long-term corporate family rating, and probability of default rating. * JAMAICA: IMF Completes First Review Under Extended Fund Facility ------------------------------------------------------------------ The Executive Board of the International Monetary Fund (IMF) completed the first review of Jamaica's performance under an economic program supported by a four-year, SDR615.38 million (about US$944 million, the equivalent of 225 percent of Jamaica's quota in the IMF) Extended Fund Facility (EFF) arrangement. The completion of this review enables the disbursement of SDR19.97 million (about US$30.6 million), which would bring total disbursements under the arrangement to SDR156.72 million (about US$240.4 million). Following the Executive Board's discussion, Mr. Nayouki Shinohara Deputy Managing Director and Acting Chair of the Board, stated: "Overall program implementation under the Extended Fund Facility (EFF) has been strong, despite the weak economic environment. The authorities' continued commitment to the program objectives of strengthening Jamaica's fiscal position and creating the conditions for sustained economic growth will be critical to a revival of investor confidence and domestic demand in the period ahead. "The program for the remainder of fiscal year 2013/14 focuses on structural reforms to strengthen the fiscal framework. Priorities include the enactment of an effective fiscal rule to lock in the gains from the fiscal adjustment thus far, and a comprehensive tax reform to broaden the tax base and reduce distortions. An expected short delay in submission to parliament of a new law on tax incentives should not postpone its enactment. "Achieving broad-based growth and enhancing social protection are central pillars of the authorities' economic program. The growth agenda should be bolstered by further actions to enhance the business environment and support well-targeted public investments, in close collaboration with development partners. "Close monitoring of the financial system remains essential to forestall the emergence of vulnerabilities following February's restructuring of the public debt. A comprehensive reform of the securities dealers sector would also be important for safeguarding financial stability." * JAMAICA: Remittances Down in June ----------------------------------- RJR News reports that new data show another fall off in remittances to Jamaica. The report relates that Bank of Jamaica said the figure was down nearly five per cent in June. Net remittances totaled US$145.8 million, a reduction of US$7.3 million or 4.8 per cent relative to the corresponding period last year, according to RJR News. The out-turn for June reflected declines of 5.2 per cent and 8.4 per cent in gross inflows and outflows, the report relates. The report discloses that gross remittance inflows for the month were US$166 million, a decrease of US$9 million when compared to 2012. RJR News adds that nevertheless, inflows were above the average of US$64.9 million for the previous five corresponding =========== M E X I C O =========== DESARROLLADORA HOMEX: Did Not Make Payment on 2015 Senior Notes --------------------------------------------------------------- Desarrolladora Homex, S.A.B. de C.V. discloses that it did not make the payment of interest due on its 7.50% Senior Guaranteed Notes due Sept. 28, 2015. Homex is a Mexican construction and real estate company engaged in the development, construction and sale of entry-level and middle- income housing in Mexico and Brazil. Founded in Culiacan, the state capital of Sinaloa in 1989, the company started operations developing commercial areas gradually focusing on design, construction and commercialization of homes. The company is headquartered in Culiacan, Mexico. * * * As reported in the Troubled Company Reporter on Aug. 6, 2013, Moody's de Mexico downgraded Desarrolladora Homex, S.A.B. de C.V.'s national scale issuer rating to C.mx from Ca.mx (global scale, local currency rating to C from Ca). This concludes Moody's review. ======== P E R U ======== GRUPO ACP: Fitch Cuts Long-Term Issuer Default Rating to 'B' ------------------------------------------------------------ Fitch Ratings has downgraded Grupo ACP Inversiones y Desarrollo's (ACP) Viability Rating (VR) and long-term Issuer Default Rating (IDR) to 'b' and 'B', respectively. Fitch has also revised ACP's Rating Outlook to Negative. Key Rating Drivers VR, IDRS The downgrade of ACP's VR and IDR is driven by ACP's losses (mainly due to foreign exchange volatility during 2Q13 in Peru and the region) and the weakness of its dividend revenues caused by the performance of its main operating subsidiary and revenue generator, Mibanco. In addition, the delay in the implementation of planned changes to ACP's legal structure, which would eventually lead to a significant capital injection, has contributed to weaken ACP's financial standing and resulted in less financial flexibility and the maintenance of high double leverage. Mibanco's performance deteriorated in 1H2013, as credit costs (loan loss provisions) increased significantly and, along with lower operating revenues, drove profitability down to 0.74% (ROAA). This should be close to the bank's bottom profitability, but recovery is not expected to be swift; the management expects results to recover within two years. At end 2Q13, ACP breached the indebtedness covenant of its 10- year, US$85 million corporate bond due on 2021. Moreover, given MiBanco's declined profitability and the slow progress of its investments in Mexico and Brazil, it expects to breach the debt- service covenant by year end. Accordingly, ACP requested the bondholders a temporary waiver to the two covenants. The waiver was approved on Sept. 26, 2013, so that ACP will have to comply with the first covenant by June 2014 and the second covenant by December 2014. ACP has proposed a capital injection - a part of its organizational restructuring to be completed between 4Q13 and 2Q14 - as a remedy to the covenants breach. Said capital injection was delayed in part due to pending regulatory approvals. In Fitch's opinion, ACP could be in compliance with the indebtedness covenant if the capital injections are completed; and would comply with the debt service covenant thanks to its expected cash reserves on hand, after capitalization and other corporate restructuring actions underway. Bolstering dividends will be much more challenging as it requires a significant improvement of its operating subsidiaries' performance but the company would have room to breathe until end-2015; management projections expect that ACP's cash needs will be covered until 2016. ACP's management reports advanced negotiations to capitalize the group. However, if the capitalization is delayed or reduced, ACP would have limited cash flow to fulfill its financial commitments, hence the Negative Rating outlook. Support Ratings ACP's Support Rating of '5' and Support Rating Floor (SRF) of 'NF' indicate that Fitch believes external support cannot be relied upon due to the entity's non-profit nature. Rating Sensitivities VR, IDRs Failure in the entity's financial restructuring plans and continuous deterioration of their key operating companies, together with a higher leverage would place downward pressure on ACP's ratings. Should the capitalization plan and other management action fail, be for a significantly lower amount than expected or be delayed beyond 1Q14, ACP's ratings could be downgraded by one or more notches. If and when the capitalization is completed, Fitch would revise ACP's Outlook to Stable and reassess its ratings. Support Rating Changes to the support rating and SRF would reflect a change in Fitch's view of the Government's willingness to support the group. Fitch has taken the following rating actions on ACP: -- Long-term foreign currency IDR downgraded to 'B' from 'BB-'; Outlook Revised to Negative; -- Short-term foreign currency IDR affirmed at 'B'; -- Long-term local currency IDR downgraded to 'B' from 'BB-'; Outlook Revised to Negative; -- Short-term local currency IDR affirmed at 'B'; -- VR downgraded to 'b' from 'bb-'; -- SR affirmed at '5'; -- SRF affirmed at 'NF'. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Suspends Manager as Fraud Probe Continues ------------------------------------------------------------- RJR News reports that Caribbean Airlines Limited has suspended one of its managers as an investigation continues into a large fraud case involving the use of bogus credit cards. The report relates that the scam has cost the entity more than TT$12 million in losses. Trinidad Express newspaper quoted sources as saying that scammers managed to evade detection by CAL officials and received refunds from sales activities with the airline, according to RJR News. The fraudulent activities, sources said, involve Jamaicans, Europeans and Nigerians, RJR News relates. RJR News notes that it is reported that from January 2012 to June this year CAL lost more than US$1.7 million in charge back claims which are the return of funds to customers. Following a forensic investigation by CAL's internal auditing department and Ernst and Young, a senior accounting manager at the airline was suspended on September 23 for two weeks, RJR News says. RJR News relates that the manager has been mandated to provide the interim CAL board with a comprehensive report about the transactions which led to the airline's losses. Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. * * * As reported in the Troubled Company Reporter-Latin America on May 20, 2013, Caribbean360.com said that Trinidad and Tobago Finance Minister Larry Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. TCRLA reported on March 21, 2012, that RJR News said Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News 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. *********** 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 * * *