/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/131003.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, October 3, 2013, Vol. 14, No. 196 Headlines A N T I G U A & B A R B U D A LIAT: Chairman Acknowledges Challenges and Disappointments A R G E N T I N A BANCO DE SERVICIOS: Moody's Lowers Deposit and Debt Ratings GRUPO SUPERVIELLE: Moody's Assigns B3 Global Currency Rating HOLCIM (ARGENTINA): Moody's Assigns B2 CFR; Outlook Negative B R A Z I L COSAN SA: S&P Affirms 'BB' Corp. Credit Rating; Outlook Positive OGX PETROLEO: Misses Debt Payment as Record Regional Default Looms OGX PETROLEO: S&P Lowers Corporate Credit Rating to 'D' * Moody's Notes Rising Risk for Infrastructure Issuers in Brazil C A Y M A N I S L A N D S ALCUDIA LEASING: Shareholders' Final Meeting Set for Oct. 25 AM GEN 1998-1: Shareholders' Final Meeting Set for Oct. 25 ARADY 1: Shareholders' Final Meeting Set for Oct. 15 ARADY 2: Shareholders' Final Meeting Set for Oct. 15 DEKANIA CDO II: A.M. Best Affirms 'b' Rating on $21.2-Mil. Notes GULF HEDGE: Shareholders' Final Meeting Set for Oct. 25 KAWAJIMA: Shareholders' Final Meeting Set for Oct. 15 MYWEATHER CAYMAN: Shareholders' Final Meeting Set for Oct. 15 ODIN CDO I: Shareholders' Final Meeting Set for Oct. 25 OSAKA TWO: Shareholders' Final Meeting Set for Oct. 15 PROFESSIONAL LIABILITY: Member to Hear Wind-Up Report on June 6 SEMPRA CAYMAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16 SEMPRA CHILEAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16 SUNSHINE ASSETS: Sole Member to Hear Wind-Up Report on Nov. 12 TOSU FOUR: Shareholders' Final Meeting Set for Oct. 15 C H I L E * CHILE: To Get US$2.95MM IDB Fund to Marine Energy Pilot Programs J A M A I C A LIME JAMAICA: Targets Businesses Through Bundled Packages M E X I C O * MEXICO: Home Builders Brace for Tax-Increase Proposals T R I N I D A D & T O B A G O TRINIDAD CEMENT: Hearing to Challenge Injunction Postponed X X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================================= A N T I G U A & B A R B U D A ================================= LIAT: Chairman Acknowledges Challenges and Disappointments ----------------------------------------------------------- Nelson A. King at Caribbean360.com reports Dr. Ralph Gonsalves, chairman of the shareholder governments of Antigua, Leeward Islands Air Transport, known as LIAT, has acknowledged that the airline has been a terrible disappointment to the Caribbean travelling public in recent months. Mr. Gonsalves said that while not excusing the Antigua-based airline for the situation, the computer system of one of two new ATR, French-Italian, aircraft that LIAT recently purchased had developed problems, according to Caribbean360.com. The report relates that Mr. Gonsalves said as a result, engineers were dispatched from Toulouse, France to resolve the problem. At the same time, Mr. Gonsalves said that the St. Vincent and the Grenadines prime minister said the older Dash-8 aircraft had also "suffered unusual difficulties," adding to "a lot of maintenance costs," the report notes. "It is a difficult airline to manage, and it is an airline which is not in financial proposition, but one which is socially and economically necessary," said Mr. Gonsalves, pointing out that LIAT flies to 22 destinations, with roughly 1,000 flights per week, the report relays. Mr. Gonsalves, the report discloses, said the re-fleeting exercise of 12 new ATRs is costing LIAT shareholders US$110 million, with the Barbados-based Caribbean Development Bank (CDB) providing a loan of US$65 million. "Unfortunately, when you're moving from one type of aircraft to another, it's not like moving from a Volkswagen (car), driving it in the morning and driving a BMW in the evening where you have the same driver's license," the report quoted Mr. Gonsalves as saying. "Even though you are qualified to fly the Dash 8, you have to be specially trained to fly the ATR, and once you are licensed to fly the ATR by the relevant authorities, you can't go back to fly the Dash 8." In addition, the report quoted Mr. Gonsalves as saying, while LIAT's management had anticipated that more ATRs would be available, "you had the peculiar situation in which more ATR pilots were trained than ATR aircrafts to be flown, as well as an insufficiency of pilots to fly the existing Dash 8s." The report notes that Mr. Gonsalves said he was still awaiting a "detailed report as to how and where the error was made. Mr. Gonsalves said, despite the challenges, the shareholders would continue to invest in LIAT, stating four of the 12 new ATRs were now on hand, three will come on stream between now and the end of January, and all 12 would have arrived by the end of December next year, the report added. 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 ================= BANCO DE SERVICIOS: Moody's Lowers Deposit and Debt Ratings ----------------------------------------------------------- Moody's Latin America downgraded the bank financial strength rating (BFSR) of Banco de Servicios Financieros S.A. (BSF) to E from E+ (plus), which maps to a standalone baseline credit assessment (BCA) of caa1. Moody's also downgraded the global local currency deposit and senior debt ratings to B1/Not Prime from Ba3/Not Prime. Moody's also downgraded the senior unsecured MTN debt program's local currency ratings to (P)B1 from (P)Ba3. On the Argentinean national scale, Moody's downgraded the deposit, senior debt and the senior unsecured MTN debt program's ratings in local currency to Aa2.ar from Aa1.ar. Additionally, Moody's affirmed the global foreign currency deposit ratings at Caa1/Not Prime and the senior unsecured MTN debt program's in foreign currency at (P)B3. On the Argentinean national scale, Moody's affirmed the deposit and senior debt ratings of Ba1.ar in foreign currency and the senior unsecured MTN debt program's rating in foreign currency at A2.ar. The outlook on the bank's BFSR, deposit and debt ratings are stable. The following ratings of Banco de Servicios Financieros were downgraded: Bank Financial Strength Rating: to E from E+, stable outlook Long and short-term global local-currency deposits and debt rating: B1 / Not Prime from Ba3 / Not Prime, stable outlook Long-term National Scale local-currency deposit and debt rating: Aa2.ar from Aa1.ar, stable outlook Long-term global local currency MTN debt rating: (P)B1 from (P)Ba3, stable outlook Long-term National Scale local currency MTN debt rating: Aa2.ar from Aa1.ar, stable outlook The following ratings were affirmed: Long-and short-term foreign-currency deposits: Caa1 / Not Prime, stable outlook Long-term National Scale foreign-currency deposit rating: Ba1.ar, stable outlook Long- term global foreign currency MTN debt rating: (P)B3, stable outlook Long-term National Scale foreign currency MTN debt rating: A2.ar, stable outlook Ratings Rationale: In lowering BSF's standalone BCA, Moody's noted the deterioration of the bank's creditworthiness, and particularly the weakening of its asset quality, as evidenced by the rise in delinquency ratios, which reached 13.8% of total loans as of June 2013, up from 12.4% as of YE2012. These metrics reflect the lower quality of the consumer finance portfolio, which is largely composed of credit card loans, at 95% of the total. Moreover, the bank's reserve coverage of problem loans is weak at 75.3% of non-performing loans as of June 2013. BSF's balance sheet is predominantly short-term, with 47.5% of the bank's lending portfolio due within one month, a profile that poses significant operating costs and commercial efforts in order to rebuild its balance sheet. Moody's said that because BSF lends predominantly to low and medium income households, its loan portfolio is inherently vulnerable to credit losses in a less benign economic environment of high inflation that reduces consumer purchasing power as is the case in Argentina. Moody's explained that BSF's profitability also deteriorated, as reflected by poor profits as of June 2013, because of increasing funding costs and higher-than-expected credit costs, as shown by 61.1% higher loan loss provisions than as of June 2012 - from ARS 27.9 million to ARS 45 million- combined with lower business volumes and high operating expenses. Moody's also noted BSF's reliance on the credit card business that provides interest and mainly fee income, although fees may be affected by regulatory restrictions that could hurt its earnings generation. Moody's said that BSF's funding structure is poorly diversified given that it primarily derives from interbank credit lines and senior debt, which expose the entity to market volatility in a rising interest rate environment and dependence on funding availability. BSF is also funded by deposits from its parent company, but those accounted for only 10.6% of total funding as of June 2013. In light of the bank's risky target client base and continued asset quality deterioration amid decelerating credit conditions and business growth, BSF's capitalization will likely remain under pressure, said Moody's. As of June 2013, the reported Tier 1 capital ratio was 12.8%, but the bank's capital cushion is expected to decline. Moody's said that the B1 global local currency deposit rating assigned to Banco de Servicios Financieros incorporates its assessment of the probability of support from its main shareholder, Carrefour S.A., rated (P)Baa2. Such support assessment translates into three notches of uplift from BSF's caa1 baseline credit assessment. The principal methodology used in this rating was the Global Banks Industry Methodology published in May 2013. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. GRUPO SUPERVIELLE: Moody's Assigns B3 Global Currency Rating ------------------------------------------------------------ Moody's Latin America assigned a B3 global local currency senior debt rating to Grupo Supervielle S.A.'s eleventh expected issuance for an amount up to ARS 50 million, which will be due in 18 months, under the group's ARS 500 million medium-term note program. At the same time, on the National Scale, Moody's assigned A2.ar local currency debt rating to the expected issuance. The outlook on the ratings is negative following the negative outlook on the sovereign ratings. The following ratings were assigned to Grupo Supervielle S.A.: ARS 50 million debt expected issuance: B3 Global Local Currency Senior Debt Rating, negative outlook A2.ar Argentina National Scale Local Currency Senior Debt Rating, negative outlook Ratings Rationale: Moody's explained that the local currency senior unsecured debt rating derives from Grupo Supervielle's B3 global local currency issuer rating. Moody's also noted that seniority was taken into consideration in the assignment of the debt ratings. Grupo Supervielle's B3 issuer rating captures its consistent profitability indicators derived from its operating subsidiaries. Incorporated in Argentina, Grupo Supervielle is the holding company for a group of financial services companies, including Banco Supervielle (rated E+, B2), Cordial Compaぁa Financiera (rated E+, B2); Tarjeta Automatica S.A. (a credit card company, unrated), Cordial Microfinanzas S.A. (a microfinance company, unrated), Supervielle Asset Management S.A., Adval S.A. (call center), and more recently, Espacio Cordial de Servicios. The B3 rating for GS' debt is anchored on the B2 global deposit rating of Banco Supervielle, the group's largest earnings generator. In addition, the bank's expanding positioning and market penetration in the commercial (SME) and consumer finance segments were considered. Moody's said that the one-notch differential between the B2 deposit rating for Banco Supervielle and the B3 debt rating of GS reflects the structural subordination of GS' bondholders to all liability holders of Banco Supervielle. Grupo Supervielle S.A. is headquartered in Buenos Aires, Argentina, and reported assets of ARS 1,427 million, and equity of ARS 1,116 million as of June 2013. The principal methodology used in this rating was Global Banks Methodology published in May 2013. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. HOLCIM (ARGENTINA): Moody's Assigns B2 CFR; Outlook Negative ------------------------------------------------------------ Moody's Latin America has assigned a first-time Corporate Family Rating of B2 on its Global Scale and A2.ar on its Argentina National Scale rating to Holcim (Argentina) S.A. The outlook is Negative. Ratings Rationale: "The B2 and A2.ar ratings principally reflect Holcim's position as one of the leading construction materials manufacturers and the second largest player in the local cement industry, serving around 30% of the local demand", said Moody's VP-Senior Analyst Veronica Amendola. "Moreover, the ratings consider the company's low leverage and high liquidity profile coupled with the ongoing support, both in terms of quality and technical affairs, provided by Holcim Ltd., its main shareholder with a 79.6% stake", said Amendola. The B2 corporate family rating incorporates a one-notch rating uplift to the company's standalone credit profile provided by the implicit support from Holcim's parent company, Holcim Ltd. (Baa2/Stable). The assigned ratings are also supported by the company's historically strong credit metrics. The company has been able to maintain its Debt/EBITDA ratio, on average, at 0.4x throughout the period from December 2009 to December 2012. In addition, the ratings reflect Holcim's proven track record of positive Free Cash Flow generation and its adequate level of liquidity supported by its cash position (ARS 184M at June 30, 2013) and total debt outstanding composed of bank loans of ARS 103M. The B2 and A2.ar ratings are mainly constrained by the strong correlation between the construction market and its consequent links to Argentina's macroeconomic environment. Argentina's GDP growth has been significantly reduced over the last years, leading to a softening in the construction industry activity. In this sense, the ratings reflect expectations that Holcim's overall credit and financial metrics may be pressured in 2013 and probably in 2014, as a consequence of both a slowdown in the construction segment in the country, as well as the inability to fully pass through cost inflation. The company's margins have suffered significant deterioration in recent periods related to the inflationary pressures. The ratings also consider the company's modest scale and limited geographical diversification as all the company's assets are located in Argentina. Holcim's B2 local currency rating reflects its global default and loss expectation, while the A2.ar national scale rating is based on the standing of Holcim's credit quality relative to its domestic peers. Moody's National Scale Ratings (NSRs) are intended to be relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Argentina are designated by the ".ar" suffix. Issuers or issues rated A2.ar present the average creditworthiness relative to other domestic issuers. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. The negative rating outlook for Holcim is in line with Moody's negative outlook for the Argentine government's B3 rating. The negative outlook for Holcim reflects Moody's view that the creditworthiness of the company cannot be completely de-linked from the credit quality of the Argentine government and thus their ratings need to closely reflect the risk that the company shares with the sovereign. Moody's believes that a weaker sovereign has the potential to create a ratings drag on companies operating within its borders, and therefore it is appropriate to limit the extent to which these issuers can be rated higher than the sovereign, according to Moody's Cross Sector Rating Methodology "How Sovereign Credit Quality May Affect Other Ratings." While unlikely at this juncture, ratings could experience upward pressure if Argentina's B3 government bond rating were upgraded. In addition, an upgrade of the ratings could result from a continued strengthening of Holcim's revenues during 2013 while improving its operating margins and maintaining its low leverage. Additionally, a more predictable outlook for economic activity in Argentina would be important for a rating upgrade. Conversely, a ratings downgrade of the sovereign would likely result in negative rating actions for Holcim in order to maintain the issuers' current notching gap relative to the sovereign in the absence of any significant change in their underlying credit quality. Quantitatively, a downgrade could result from a drop in Holcim's EBIT margin to below 4% or a significant increase in leverage, with cash from operations to total debt below 20%. Indications of a weakening market share in the domestic cement market could also place pressure on the ratings, especially if Holcim is unable to remain among the leader cement players. Headquartered in Buenos Aires, Argentina, Holcim is the second leading manufacturer of cement in the local market. With total revenues of approximately ARS 2.2 billion for the last twelve months ended in June 30, 2013, Holcim is 80% owned by Holcim Ltd. (Baa2, Stable), 11% owned by the Argentinean National Social Security Administration (ANSES) and by Minority Shareholders, with 9% of total shares. The principal methodology used in this rating was the Global Building Materials Industry Methodology published in July 2009. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. =========== B R A Z I L =========== COSAN SA: S&P Affirms 'BB' Corp. Credit Rating; Outlook Positive ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit and debt ratings on Cosan S.A. Industria e Comercio (Cosan), its subsidiary, Cosan Combustiveis e Lubrificantes, and on its parent company, Cosan Ltd. The outlook on the corporate credit ratings is positive. The ratings affirmation with the positive outlook reflects the gradual improvement in the company's capital structure as a result of an extension of its debt maturity profile and lower interest payments. S&P expects Cosan to continue its gradual deleveraging trend, while it continues to refinance maturing debt to improve its liquidity and capital structure. S&P can upgrade Cosan if it adopts a more conservative approach to M&A transactions and maintains an "adequate" liquidity, while it uses the more stable cash flow from its businesses to reduce debt. OGX PETROLEO: Misses Debt Payment as Record Regional Default Looms ------------------------------------------------------------------ Peter Millard at Bloomberg News reports that OGX Petroleo & Gas Participacoes SA defaulted on US$1 billion of bonds after missing an interest payment, accelerating former billionaire Eike Batista's slide toward Latin America's largest-ever corporate debt debacle. The company missed a US$45 million payment on dollar notes due 2022, Rio de Janeiro-based OGX said in a regulatory filing, according to Bloomberg News. The decision prompted Standard & Poor's to assign its default rating to the company and the bonds while Moody's Investors Service and Fitch Ratings said they'd give OGX the 30-day grace period before calling it a default. Bloomberg News notes that Mr. Batista, once Brazil's richest person, is seeking to renegotiate debt and avoid bankruptcy after some offshore deposits he'd valued at US$1 trillion turned out to be duds. That triggered a selloff that wiped out US$30 billion of his fortune and pushed down bond prices to 16.5 cents on the dollar, Bloomberg News relates. "We do not expect the company to pay the interest due within the five-business-day cure period established by our criteria, and we believe this indicates a general default and that the company will restructure its debt . . . . This is based on OGX's virtually null cash flow," S&P analysts Renata Lofti and Luciano Gremone said in a statement Oct. 2, Bloomberg News notes. S&P cut OGX's corporate rating and the 2022 notes to D from CCC- and lowered US$2.56 billion in bonds due 2018 to CCC- from C, saying a December payment probably won't be made. Relief Unlikely Bloomberg News s relays that Mr. Batista fired his chief financial officer and hired his fifth restructuring adviser in the past two weeks. The 2018 notes have tumbled 5 cents since Sept. 20, when it announced the departure of Roberto Monteiro, who had led negotiations with creditors, Bloomberg News relates. Four days later, the company hired Lazard Ltd. (LAZ) to work alongside advisers including Blackstone Group LP (BX) in the talks, Bloomberg News discloses. Bloomberg News relates that if OGX can't convince creditors or other partners to provide debt relief and an immediate infusion of funds, bondholders may end up with nothing, JPMorgan Chase & Co said. Bloomberg News notes that as of June 30, OGX had BRL722 million (US$327 million) in cash and equivalents and BRL8.7 billion in total debt, including $2.6 billion of notes due 2018. A default of the US$3.6 billion international bonds would be the region's biggest corporate default, according to data compiled by Moody's. OGX would enter default on the last day of the grace period if no payment is made, Moody's analyst Gretchen French said in an e- mailed reply to questions, Bloomberg News notes. Local Bonds The producer was set to run out of money by early September based on its burn rate through the end of the second quarter, according to data compiled by Bloomberg. Bloomberg News notes that OGX precipitated Oct. 2 decision when it said it would postpone payments on BRL2.1 billion of local bonds held by its OGX Austria unit. The unit agreed to delay a Sept. 25 payment for an undisclosed amount until March 25, OGX said in a regulatory filing, Bloomberg News relates. "According to the bond indenture, OGX has a 30-day period to make such a payment without causing debt acceleration," the company said in a statement, Bloomberg News notes. Creditor Talks "There's going to be an ongoing discussion and, as has traditionally been the case in many of these scenarios, the likely way to restructure has typically been an out of court settlement," Bloomberg News quoted Daniel Kastholm, a managing director at Fitch Ratings in Chicago, as saying. Bloomberg News relates that it would be detrimental for bondholders if OGX seeks bankruptcy protection in Brazil because the process will be prolonged and the government could take away exploration and production licenses, leaving the company with no assets, said Omar Zeolla, a corporate credit analyst at Oppenheimer & Co. in New York. Bloomberg News reports that Brazilian officials have said the government doesn't plan to bail out OGX. Bad Bets According to Bloomberg News, if OGX goes into bankruptcy proceedings, the country's oil regulator could revoke its exploration and production concessions. Talks with bondholders have been complicated because the explorer needs money to test production at its most promising field, Tubarao Martelo, Bloomberg News relates. Bloomberg News notes that OGX made bad bets on carbonate reservoirs off the coast of Rio state than the traditional sandstone reservoirs where state-run Petroleo Brasileiro SA (PETR3) has been producing for decades. The geology proved more compartmentalized than expected, hindering the flow of oil and prompting OGX to announce in July it would abandon a group of fields it had previously declared commercially viable, Bloomberg News says. Bloomberg News relates that the company expects better results at Martelo, also a carbonate reservoir, where it has drilled six wells and plans to start producing before the end of the year. About OGX Petroleo Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. OGX PETROLEO: S&P Lowers Corporate Credit Rating to 'D' ------------------------------------------------------- Standard & Poor's Rating Services lowered its global scale corporate credit rating on OGX Petroleo e Gas Participacoes S.A. (OGX) to 'D' from 'CCC-'. At the same time, S&P lowered its issue rating on OGX financing vehicle, OGX Austria's, 2022 senior notes to 'D' from 'CCC-' and S&P's issue rating on OGX's 2018 senior notes to 'C' from 'CCC-'. "The downgrade follows the company's Oct. 1, 2013, failure to make the interest payment on its 2022 senior notes. We do not expect the company to pay the interest due within the five-business-day cure period established by our criteria, and we believe this indicates a general default and that the company will restructure its debt. This is based on OGX's virtually null cash flow generation and tight liquidity position; its cash holdings were about $326 million as of June 30, 2013," said Standard & Poor's credit analyst Renata Lotfi. S&P has lowered the rating to 'C' on its 2018 senior notes. Although OGX has not yet defaulted on these notes, S&P believes that it will fail to make the December interest payment on them. * Moody's Notes Rising Risk for Infrastructure Issuers in Brazil ---------------------------------------------------------------- The regulatory framework in Brazil has created a negative environment for infrastructure issuers and made it difficult for them to obtain higher ratings, says Moody's Investors Service in "Three key ways that the Brazilian regulatory frameworks are negatively impacting infrastructure issuers," a report recently published. Because of the lack of clarity with regard to current regulations, inconsistent application of rules by the government and the evolving nature of regulatory framework, Moody's cannot assign to infrastructure issuers in Brazil the higher ratings that their infrastructure peers in other countries have. "Even though the infrastructure issuers Moody's rates in Brazil have solid credit metrics, peers operating in more predictable and stable regulatory environments have higher ratings," said Alexandre Leite, Moody's Vice President and Senior Analyst and one of the authors of the report. "Government interference and the inconsistency in the application of regulation and procedures have created further uncertainties in three infrastructure segments in particular: toll roads, electric utilities and sanitation," added Leite. Affecting toll roads, the government decided amid rising street protests to cancel the annual tariff that toll road companies were to receive on July 1, instead proposing a series of ad-hoc measures to compensate for the tariff freeze. These measures caused investor concern that there would be a shortfall in cash flow. "The government's decision created a credit negative precedent that affected all rated operating toll roads with concessions in the State of Sao Paulo," said Moody's Vice President and Senior Credit Officer Jose Soares, another author of the report. "The government is also examining legislation that would make people who live or work in the municipalities where toll road plazas are located exempt from toll payments which, if approved, would have a significant and immediate negative impact on operating cash flows." Numerous changes to the regulatory framework over the past two decades have plagued the electric utility industry in particular. The most recent regulatory changes involved the government's plans a year ago to renew the generation and transmission concessions set to expire over the course of 2015-2017, which resulted in overall costs much higher than most concessionaries and investors had expected. "The government's handling of the process since the initial announcement and subsequent discussion and communication created uncertainties about the quality and the level of supportiveness of the Brazilian electricity regulatory environment," said Soares. "As such, we foresee a lower assurance of timely recovery of costs and investments in Brazil." Brazil's Basic Sanitation Law #11,445 established a sanitation regulatory framework in 2007. There are nevertheless uncertainties regarding the implementation and interpretation of certain provisions pertaining to tariff adjustments that has resulted in a tariff freeze in some instances. There are also questions regarding the independence of the various state agencies that regulate the sanitation sector. ========================== C A Y M A N I S L A N D S ========================== ALCUDIA LEASING: Shareholders' Final Meeting Set for Oct. 25 ------------------------------------------------------------ The shareholders of Alcudia Leasing Limited will hold their final meeting on Oct. 25, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949 8244 Facsimile: (345)949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands AM GEN 1998-1: Shareholders' Final Meeting Set for Oct. 25 ---------------------------------------------------------- The shareholders of AM Gen 1998-1 Ltd will hold their final meeting on Oct. 25, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949 8244 Facsimile: (345)949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ARADY 1: Shareholders' Final Meeting Set for Oct. 15 ---------------------------------------------------- The shareholders of Arady 1 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 ARADY 2: Shareholders' Final Meeting Set for Oct. 15 ---------------------------------------------------- The shareholders of Arady 2 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 DEKANIA CDO II: A.M. Best Affirms 'b' Rating on $21.2-Mil. Notes ---------------------------------------------------------------- A.M. Best Co. has affirmed the debt ratings on a multi-tranche collateralized debt obligation (CDO) co-issued by two bankruptcy remote special purpose vehicles: Dekania CDO II, Ltd. (Cayman Islands) and Dekania CDO II, Inc. (Delaware) (collectively known as Dekania II and issuers). The outlook for all ratings is stable. The principal balance of the rated notes are collateralized by a pool of trust preferred securities, surplus notes and secondary market securities (collectively, the capital securities), primarily issued by small to medium-sized insurance companies. The capital securities are pledged as security to the notes. Interest paid by the issuers of the capital securities are the primary source of funds to pay operating expenses of the issuers and interest on the notes. Repayment of the note principal is primarily funded from the redemption of the capital securities. These rating actions primarily reflect: (1) the current issuer credit ratings (ICR) of the remaining issuers of the capital securities and the number of terminated capital securities; (2) a stress of up to 250% on the assumed marginal default rates of insurers (derived from Best's Idealized Default Rates of Insurers); (3) the amount of capital securities considered to be in distress; (4) recoveries of 0% after defaults of the capital securities; and (5) qualitative factors such as the effect of interest rate spikes; subordination level associated with each rated tranche; the adjacency of very high investment grade ratings to very low non-investment grade ratings in the transaction's capital structure; and the possibility that additional redemptions of highly-rated entities will leave lower-rated companies in the collateral pool. The ratings could be upgraded or downgraded and/or the outlook revised if there are material changes in the ICR of the remaining insurance carriers, an increase in the number of defaulted capital securities or significant termination of the number of existing capital securities. The following debt ratings have been affirmed: Dekania II -- "aaa" on $200.0 million Class A-1 First Priority Senior Secured Floating Rate Notes Due 2034 -- "aa+" on $42.0 million Class A-2 Second Priority Senior Secured Floating Rate Notes Due 2034 -- "bb+" on $60.0 million Class B Third Priority Senior Secured Floating Rate Notes Due 2034 -- "b" on $21.2 million Class C-1 Fourth Priority Deferrable Interest Fixed/Floating Rate Notes Due 2034 -- "b" on $30.0 million Class C-2 Fourth Priority Deferrable Interest Fixed/Floating Rate Notes Due 2034 -- "ccc-" on $15.0 million Class D-1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2034 -- "ccc-" on $5.0 million Class D-2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2034 These are structured finance ratings. GULF HEDGE: Shareholders' Final Meeting Set for Oct. 25 ------------------------------------------------------- The shareholders of Gulf Hedge Portfolio 1 Limited will hold their final meeting on Oct. 25, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949 8244 Facsimile: (345)949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands KAWAJIMA: Shareholders' Final Meeting Set for Oct. 15 ----------------------------------------------------- The shareholders of Kawajima 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 MYWEATHER CAYMAN: Shareholders' Final Meeting Set for Oct. 15 ------------------------------------------------------------- The shareholders of Myweather Cayman, LLC 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 ODIN CDO I: Shareholders' Final Meeting Set for Oct. 25 ------------------------------------------------------- The shareholders of Odin CDO I (Cayman Islands No.4) Limited will hold their final meeting on Oct. 25, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949 8244 Facsimile: (345)949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands OSAKA TWO: Shareholders' Final Meeting Set for Oct. 15 ------------------------------------------------------ The shareholders of Osaka 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 PROFESSIONAL LIABILITY: Member to Hear Wind-Up Report on June 6 --------------------------------------------------------------- The member of Professional Liability Underwriting Services SPC, Ltd. will receive, on June 6, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Britni Strong Marsh Management Services Cayman Ltd. P.O. Box 1051 G.T. Governors Square 23 Lime Tree Bay Avenue George Town Grand Cayman Cayman Islands SEMPRA CAYMAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16 ----------------------------------------------------------------- The sole shareholder of Sempra Cayman Americas Ltd. will receive, on Oct. 16, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Randall L. Clark c/o Campbells Corporate Services Limited P.O. Box 268 Willow House Cricket Square Grand Cayman KY1-1104 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 SEMPRA CHILEAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16 ------------------------------------------------------------------ The sole shareholder of Sempra Chilean Equity III Ltd. will receive, on Oct. 16, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Randall L. Clark c/o Campbells Corporate Services Limited P.O. Box 268 Willow House Cricket Square Grand Cayman KY1-1104 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 SUNSHINE ASSETS: Sole Member to Hear Wind-Up Report on Nov. 12 -------------------------------------------------------------- The sole member of Sunshine Assets Limited will receive, on Nov. 12, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited Craigmuir Chambers Road Town, Tortola British Virgin Islands TOSU FOUR: Shareholders' Final Meeting Set for Oct. 15 ------------------------------------------------------ The shareholders of Tosu 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 ========= C H I L E ========= * CHILE: To Get US$2.95MM IDB Fund to Marine Energy Pilot Programs ------------------------------------------------------------------ Chile will launch two marine energy pilots on the southern coast of the country, an initiative that aims at supporting the development of this energy source, contributing to foster the country's energy security and the diversification of its economy. The initiative will explore the potential of this clean technology, which so far has not been utilized in Chile and that, according to a study commissioned by the IDB, could have a significant impact on the country's energy matrix if only a small amount of the available resource is used. The project, funded by a US$2.95 million technical cooperation grant from the Inter-American Development Bank, includes US$2.4 million in investment funding for two pilot programs. The first pilot will focus on tidal energy while the second will use the power generated by waves. The investment funding will be complemented by a total of US$550,000 in technical support to accompany the implementation of these pilot programs. "In terms of energy needs, Chile is the second least self- sufficient country in Latin America after Panama, and currently imports 75 percent of its energy resources. So far, the potential of tidal and wave power has not been used in the country or elsewhere in Latin America, but has a huge potential," said Christoph Tagwerker, consultant at the Climate Change and Sustainability Division of the IDB. Chile now has a great opportunity to change its dependency on foreign energy and to reduce their greenhouse gas emissions of. In fact, it is one of the countries with the highest marine and solar energy resources of the Latin American region." Two companies that will be selected by the Chilean Government will benefit from this technical cooperation, and will be responsible for the design, construction and operation of these pilot programs. Since tidal and wave energy are new in Chile, the IDB will provide technical assistance to the government throughout the entire execution of the program, from the bidding process to the operation of these new marine energy facilities. The Bank's contribution is expected to help attract the participation of other sources of financing to the program. ============= J A M A I C A ============= LIME JAMAICA: Targets Businesses Through Bundled Packages --------------------------------------------------------- Jamaica Observer reports that LIME Jamaica Limited (formerly Cable & Wireless Jamaica Limited) launched three bundles packages -- Business Basic, Business Ideal and Business Pro -- targeting businesses with ADSL Internet, fixed line local and international minutes and voice services. The packages start at JM$5,570 per month. "We aware of the many challenges that operators face in equipping their business to function efficiently in today's fast-paced environment and we want to make it simple for especially small and medium sized entities to access the services they need to make their business strive while controlling their budgets," the report quoted Vennis Williamson, head of SME Business Sales as saying. Jamaica Observer discloses that Mr. Williamson added that the plans also allow for additional services such as video and voice conferencing, PBX systems, Closed User Group (CUG) and Dedicated Internet Access (DIA). Headquartered in Kingston, Jamaica, LIME Jamaica Limited (formerly Cable & Wireless Jamaica Limited) is a subsidiary of Cable & Wireless plc. The company is involved in providing domestic and international telecommunications services to both individual and businesses enterprise customers. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 22, 2013, Jamaica Observer said that consumers flocked to LIME Jamaica's mobile network but the company still recorded a JM$808-million net loss for the three months to June, or more than double year-earlier losses. LIME Jamaica recorded a JM$4.9- billion total loss for its March 2013 year end compared with a JM$20-billion loss a year earlier. =========== M E X I C O =========== * MEXICO: Home Builders Brace for Tax-Increase Proposals -------------------------------------------------------- Kris Hudson and Amy Guthrie at The Wall Street Journal report that Mexico's new-home industry, still suffering from the global economic downturn and from shifting consumer preferences, is bracing for yet another blow from a package of steep tax increases proposed by President Enrique Pena Nieto. President Pena Nieto, who took office in 2012, announced a range of proposed tax increases in September as part of his long-awaited proposal to revamp the economy, according to The WSJ. President Pena Nieto said strategy for long-term growth is to raise new revenue to fund new social programs and reduce Mexico's dependence on oil revenue, The WSJ relates. However, The WSJ notes that home builders are worried sales would be hurt by the measures, particularly President Pena Nieto's proposed new 16% "value added" tax that would apply to many home sales, mortgage interest and rents, among other consumer spending. President Pena Niet also wants to place a capital-gains tax on home sales of MXN1.24 million (US$94,200) or more, The WSJ says. The previous floor was MXN7 million. "We expect that demand for new homes will contract by at least 35%" if the tax changes are approved as proposed, The WSJ quoted Gene Towle, managing partner in Mexico City-based real-estate research firm Softec SC, as saying. The WSJ notes that various aspects of the tax overhaul might still be eliminated or watered down by President Pena Nieto's opponents in Mexico's Congress by the Nov. 15 deadline for approving a budget. Mexican Finance Minister Luis Videgaray clarified last week that the value-added tax on home sales and mortgage interest won't apply to low-income housing, though the details of such an exemption remain to be worked out, The WSJ says. "Taxes are always subject to debate, they'll always cause an uproar. . . . But what this reform seeks is to be a fair reform in which those who earn the most pay the most," The WSJ quoted Mr. Videgaray as saying. The WSJ notes that still, new taxes would add to the burden of Mexico's reeling home-building industry, which has seen a decline of construction starts to an estimated 380,000 this year from 630,000 at the peak in 2008, according to BBVA Bancomer, which includes built-but-unsold homes in its figures. The WSJ relates that the Mexican government now subsidizes roughly a third of all purchases of homes of US$25,000 or less, paying the builders subsidies of roughly US$5,000 per home to keep the prices low, according to Softec's Mr. Towle. In addition, government- affiliated mortgage lenders Infonavit and FOVISSSTE back more than 70% of all mortgages originated in Mexico, The WSJ notes. The WSJ relays that President Pena Nieto is keeping housing subsidies in place for the poor. But President Pena Nieto's tax proposal focuses on the rest of the housing market as a tax generator, The WSJ notes. The overhaul would make mortgage interest, previously deductible from taxes, nondeductible, The WSJ relays. The WSJ notes that President Pena Nieto also cemented a long- anticipated policy of focusing the government's affordable-housing subsidies on urban apartment complexes rather than suburban tract housing. The WSJ discloses critics said Mr. Pena Nieto's housing policies will be damaging to the broader economy. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD CEMENT: Hearing to Challenge Injunction Postponed ---------------------------------------------------------- RJR News reports that the hearing of an appeal brought by Caribbean Cement Limited's parent company Trinidad Cement Limited (TCL) which is challenging an injunction which blocked its annual general meeting has been adjourned. The hearing was originally scheduled for Sept. 30. However, RJR News notes that a notice at Trinidad's Court of Appeal said it had been pushed back until Oct.2. The notice did not give a reason for the postponement. RJR News discloses that TCL wants the Appeal Court to overturn the injunction which was granted to a group of minority shareholders by a High Court judge hours before the meeting was scheduled to start on July 12. The report relates that the injunction forms part of a lawsuit in which the shareholders are challenging a decision by TCL's directors to refuse to attach their proposal and statement to the proxy circular which accompanied the notice of the meeting. The minority group wants to nominate five directors to TCL's board, the report adds. About Trinidad Cement Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 5, 2011, RJR News reports that Trinidad Cement Limited reached an agreement with its debtors on the terms and conditions attached to the repayment of its debt. The agreement will convert most of the company's debt into an 8-year facility, to be paid, quarterly, from March 2013, according to RJR News. The report related that deal also includes certain performance criteria for repaying the debt and if those are not met, the company will be penalized. ================= X X X X X X X X X ================= * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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 * * *