/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/131031.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 31, 2013, Vol. 14, No. 216 Headlines A R G E N T I N A MASTELLONE HERMANOS: S&P Raises CCR to 'CCC+'; Outlook Negative * ARGENTINA: To Get US$300-Mil. IDB Loan to Finance Road Program B R A Z I L BANCO FIBRA: Moody's Lowers Bank Fin'l. Strength Rating to 'E+' OGX PETROLEO: Files for Bankruptcy in Rio de Janeiro Court OGX PETROLEO: Owner to Sell Colombia Coal Mines to Yildirim OGX PETROLEO: Bondholders End Talks Without Agreement C A Y M A N I S L A N D S BANTRAB SR TRUST: Moody's Rates $150MM Sr. Unsec. Debt 'Ba3' BARRENJOEY CAPITAL: Creditors' Proofs of Debt Due Nov. 20 CRESCENT GLOBAL: Creditors' Proofs of Debt Due Nov. 21 EIFFEL CDO: Creditors' Proofs of Debt Due Nov. 21 ERMITAGE GLOBAL: Creditors' Proofs of Debt Due Nov. 21 MS SHOE: Creditors' Proofs of Debt Due Nov. 11 MS SHOE II: Creditors' Proofs of Debt Due Nov. 11 PENDANT OFFSHORE: Creditors' Proofs of Debt Due Nov. 11 PINEBANK ADVANTAGE: Creditors' Proofs of Debt Due Nov. 11 PINEBANK MASTER: Creditors' Proofs of Debt Due Nov. 11 TALADROS Y EQUIPOS: Placed Under Voluntary Wind-Up TRITON 220: Creditors' Proofs of Debt Due Nov. 12 TRITON 290: Creditors' Proofs of Debt Due Nov. 12 TRITON 320: Creditors' Proofs of Debt Due Nov. 12 TRITON 525: Creditors' Proofs of Debt Due Nov. 12 INVERSIONES ALSACIA: Fitch Cuts Ratings on $464MM Bonds to CC M E X I C O ALESTRA SDE: Moody's Hikes Corporate Family Rating to 'Ba3' CEMEX SAB: Cemex Latam Posts US$96 Million Third-Quarter Profit TUSCANY INTERNATIONAL: S&P Lowers Corporate Credit Rating to 'B-' P U E R T O R I C O BUILDERS GROUP: Court Limits Plan Exclusivity Until Dec. 9 PONCE DE LEON: Trans Indies Approved as Real Estate Broker X X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= MASTELLONE HERMANOS: S&P Raises CCR to 'CCC+'; Outlook Negative --------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Mastellone Hermanos S.A. to 'CCC+' from 'CCC'. At the same time, S&P raised the issue-level rating on the company's senior unsecured notes to 'CCC+' from 'CCC'. The outlook on the corporate credit rating is negative. The upgrade follows the improvement in Mastellone's liquidity that stems from positive market dynamics and the hike in domestic average prices for dairy products, which the government tightly controls, during the first half of 2013. High international prices of powdered milk, well above minimum long-term sustainable levels, together with the company's ability to address some delays in the adjustment of domestic retail prices, allowed Mastellone to improve its results and cash flow generation. Under this scenario, S&P believes the company will be able to meet all of its short-term funding requirements with limited need of refinancing. S&P's ratings on Mastellone reflect its "vulnerable" business risk profile, "highly leveraged" financial risk profile, "less than adequate" liquidity, and "fair" management and governance. * ARGENTINA: To Get US$300-Mil. IDB Loan to Finance Road Program ---------------------------------------------------------------- The Inter-American Development Bank has approved a US$300 million loan to finance a multiple-work road program aimed at improving the conditions of accessibility, efficiency, and safety of priority roads of Argentina's Norte Grande Region's provincial road network and at contributing to the area's sustainable economic development. The Norte Grande III Infrastructure Program envisions enhancing, rehabilitating, and improving road corridors connecting production centers with domestic and foreign markets as well as promoting investment sustainability through the incorporation of the financed works to the road-maintenance managing systems. The first three works to be financed will be executed in the provinces of Formosa, Santiago del Estero, and Tucum n, and will benefit some 325,000 people. The number of beneficiaries will grow with works to be carried out in other provinces, including Misiones, Jujuy, and Catamarca. Expected results include reducing traveling time and transportation costs, increasing average annual traffic, and improving the percentage of works with implemented safety measures. This program complements the Norte Grande Infrastructure Road Programs I and II approved in 2007 and 2012, respectively. It also seeks to boost the area's territorial and regional integration. Its components include rehabilitation, improvement, and enhancement works for the provincial road corridors, among them horizontal and vertical demarcation and upgrading of pedestrian crossings. They also comprise safety moves such as improvements to road corridors geometry as well as training to the Provincial Road Directorates to help them carry out engineering projects' safety road audits in order to improve their quality. The US$300 million IDB loan is for a 25-year term, with a 5-1/2- year grace period and at a LIBOR-based interest rate. Local counterpart financing will contribute US$33.5 million to the program. =========== B R A Z I L =========== BANCO FIBRA: Moody's Lowers Bank Fin'l. Strength Rating to 'E+' --------------------------------------------------------------- Moody's Investors Service has downgraded Banco Fibra S.A.'s bank financial strength rating (BFSR) to E+, from D-, and lowered the baseline credit assessment to b1, from ba3; its long-term global local and foreign currency deposit ratings were also downgraded to B1, from Ba3. At the same time, Moody's downgraded Fibra's Brazilian long-term national scale deposit ratings to Baa1.br, from A2.br. The bank's long-term foreign currency subordinated debt rating was lowered to B2, from B1. The Not Prime short-term global local and foreign currency deposit and national scale ratings were not affected. The outlook on all the ratings is stable. The following ratings of Fibra were downgraded: Bank Financial Strength Rating: to E+ from D-, stable outlook Long-term Global Local Currency Deposit Rating: to B1 from Ba3, stable outlook Long-term Foreign Currency Deposit Rating: to B1 from Ba3, stable outlook Senior Unsecured MTN Program (foreign currency) rating: to (P)B1 from (P)Ba3 Long-term Foreign Currency Subordinate Debt Rating: to B2 from B1, stable outlook Long-term Brazilian National Scale Deposit Rating: to Baa1.br from A2.br, stable outlook The following ratings were not affected: Short-term Global Local Currency Deposit Rating: Not Prime Short-term Foreign Currency Deposit Rating: Not Prime Short-term Brazilian National Scale Deposit Rating: BR-2 Rating Rationale: Moody's said that the downgrade of Fibra's ratings reflects the weakening profitability and resulting poor internal capital generation that derive from the ongoing strategic repositioning of the bank's franchise. Management's decision to shift the bank's business focus back into commercial lending, Fibra's traditional core business, followed the ill-timed expansion into riskier consumer lending that has led to important asset quality deterioration and capital erosion. While sizable credit costs have already been taken, Moody's anticipates that Fibra's process of re-fitting its operation will require additional administrative charges and loan loss provisions that will continue to weight on its performance over the next quarters, although problem loans may be close to peak levels. Moody's also expects Fibra to face the challenge of sizing its cost structure in line with the significantly lower margins associated with its new business proposition, and with the lower balance sheet leverage. The rating agency noted that Fibra's expertise in corporate lending, which will become its key business focus going forward, allows the bank to leverage the supplier chain of other companies owned by its shareholders, a business that will likely reflect in contained risk and assured margins. Moody's also acknowledges that Fibra's shareholders have been committed to providing the necessary support through multiple capital injections that have allowed the bank to further clean-up legacy poor performing consumer loans. In that regard, shareholders are committed to carry out an additional capital increase of BRL 250 million by year end. Combined, these factors support Moody's stable outlook on the ratings. Nevertheless, the ratings would come under negative pressure were Fibra to prove unable to maintain adequate profitability and asset quality standards, and require further capitalizations, while lacking management continuity. The B1 global-local currency deposit rating derives from Banco Fibra's standalone baseline credit assessment of b1, and does not benefit from any support uplift because of the bank's very modest market share in terms of deposits. The last rating action on Banco Fibra S.A. occurred on 26 June, 2012, when Moody's downgraded the bank financial strength rating (BFSR) to D-, from D; the long-term local and foreign currency deposit ratings to Ba3, from Ba2; the senior unsecured MTN program (foreign currency) rating to (P)Ba3, from (P)Ba2; the long-term foreign currency subordinate debt rating to B1, from Ba3; the long-term Brazilian national scale deposit rating to A2.br, from Aa3.br; short-term Brazilian national scale deposit rating to BR- 2, from BR-1. All ratings were place on stable outlook. 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. Banco Fibra S.A. is headquartered in Sao Paulo, Brazil, and had total consolidated assets of R$10.3 billion (US$4.7 billion) and shareholders' equity of R$972 million (US$439 million), as of June 30, 2013. OGX PETROLEO: Files for Bankruptcy in Rio de Janeiro Court ---------------------------------------------------------- Luciana Magalhaes and Tom Murphy at The Wall Street Journal report that Brazilian oil company OGX Petroleo e Gas Participacoes SA, controlled by Eike Batista, filed for bankruptcy protection in a Rio de Janeiro court, as the firm seeks to try to restructure its finances rather than face an immediate liquidation. Sergio Bermudes, a lawyer for the firm who said he filed the documents, said he believes it can solve its financial problems, according to The Wall Street Journal. "This company has many assets and could form partnerships with other companies," Mr. Bermudes said in a telephone interview with The WSJ. The civil division of the Rio de Janeiro state court system confirmed that it had received a request for judicial recovery from OGX, The WSJ relates. The WSJ discloses Mr. Bermudes said that if accepted, OGX Petroleo will have 60 days to produce a plan to restructure its finances. Creditors would then have 30 days to approve or deny the plan. Meanwhile, Bloomberg News reported on Oct. 29 that OGX Petroleo would be allowed to keep its blocks if it files for bankruptcy protection provided it has the funds to operate them, Brazil's oil regulator said. If OGX fails to meet obligations including exploration, development and production investments and the financial capability to deal with spills or accidents, the Rio de Janeiro- based company would be stripped of its concession licenses the regulator, known as ANP, according to Bloomberg News. OGX would be the first producer to seek bankruptcy protection in Brazil since ANP was formed in 1998 if the company requests that option, the regulator said in an e-mailed reply to questions, Bloomberg News notes. Bloomberg News discloses that OGX said it failed to reach an agreement with holders of dollar-denominated bonds as the venture that once helped Batista become the world's eighth-richest person heads toward Latin America's biggest corporate debt default. Bloomberg News notes that earlier this month, two people with direct knowledge said OGX was considering filing for bankruptcy protection late October or early November. If the company files it would have 60 days to submit a restructuring plan after a judge accepts its filing, the report said. "OGX, like other concessionaires acting in Brazil, can only continue with its current exploration and production programs if they demonstrate that they have the financial qualification to exercise the activity," the report quoted ANP as saying. Unchartered Territory The regulator would probably allow OGX to keep operating its concessions as Brazil is trying to increase oil production, Leonardo Theon de Moraes, a bankruptcy lawyer at Sao Paulo-based Mussi, Sandri & Pimenta Advogados, told Bloomberg News by telephone. This is unchartered territory for Brazil's oil regulators, said Nelson Narciso Filho, who was an ANP director for four years through 2010, Bloomberg News discloses. About OGX Petroleo Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participacoes 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 Participacoes 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: Owner to Sell Colombia Coal Mines to Yildirim ----------------------------------------------------------- Peter Millard and Juan Pablo Spinetto at Bloomberg News report that Eike Batista, facing bankruptcy protection proceedings at an oil venture, agreed to sell his coal projects in Colombia to Turkey's Yildirim Holding AS for about US$450 million in the latest divestment of the former billionaire. Under a preliminary agreement, CCX Carvao da Colombia SA, Batista's coal unit, will sell its Canaverales and Papayal open pit mines to Yildirim for about US$50 million, the company said in a regulatory filing obtained by Bloomberg News. It also agreed to negotiate the sale of its San Juan undeground mine and logistics project for about US$400 million, CCX said, according to Bloomberg News. Bloomberg News notes that the deal is worth more than four times CCX's market value, which stood at BRL233.1 million (US$106.7 million) as of Oct. 29's close. Bloomberg News discloses that Mr. Batista, who ceased being a billionaire in July, this year sold stakes in energy, logistics and mining ventures as he seeks to raise cash to pay back debt amid a collapse in the price of his assets. The sale of the San Juan project is expected to be concluded by the end of April, the company said, Bloomberg News says. Yildirim will make a US$5 million payment to negotiate the purchase of the Colombian mines in exclusivity, it said, Bloomberg News relates. Thermal Coal Bloomberg News relays that Mr. Batista created Rio de Janeiro- based CCX in May 2012 through a spinoff from his power generation unit MPX Energia SA, targeting 35 million tons of thermal coal output by 2020 from its three mines. The company estimated in an August 2012 filing that developing its San Juan project would require US$5.5 billion, including costs to start production in 2017 and achieve full capacity five years after that, Bloomberg News notes Bloomberg News notes that CCX, the last of the six units listed by the tycoon between 2006 and 2012, may be worth as much as US$6 billion, Mr. Batista said in 2011. 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 Participacoes 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: Bondholders End Talks Without Agreement ----------------------------------------------------- Luciana Magalhaes at Daily Bankruptcy Review reports that Brazilian businessman Eike Batista's flagship oil company, OGX Petroleo e Gas Participacoes SA, said in a statement overnight that it has concluded talks with some holders of its bonds due in 2018 and 2022 without reaching an agreement. As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2013, The Wall Street Journal said that OGX has been trying to strike a settlement with the company's bond holders, who collectively hold about $3.6 billion in company paper. The holders include some of the world's largest, such as BlackRock Inc. and bond giant Pacific Investment Management Co., who backed a company that had no oil production or profits. Bankruptcy loomed since OGX missed a bond payment this month. OGX is also running out of cash. One difficulty in the discussions has been Mr. Batista's snap decision-making, say people involved. He has recently switched bankers and lawyers, and fired management with little notice. 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 Participacoes 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. ========================== C A Y M A N I S L A N D S ========================== BANTRAB SR TRUST: Moody's Rates $150MM Sr. Unsec. Debt 'Ba3' ----------------------------------------------------------- Moody's Investors Service has assigned a Ba3 foreign currency senior unsecured debt rating to the proposed issuance of US$150 million in 7-year fixed rate notes by Bantrab Senior Trust. Bantrab Senior Trust is a Cayman Islands-based trust established for the sole purpose of acquiring a 100% participation interest in a senior unsecured loan made by Deutsche Bank AG, London Branch (Deutsche Bank) to Guatemala's Banco de los Trabajadores (Bantrab, Ba3 stable, E+/b1) to secure the note issuance. Bantrab Senior Trust will therefore provide a pass through of both interest and principal payments on the Bantrab loan to the Bantrab Senior Trust noteholders. The instrument will be governed by the laws of the State of New York. The outlook on the rating is stable. The following rating was assigned to Bantrab Senior Trust: Foreign currency senior unsecured debt: Ba3, stable outlook. Under the terms of the proposed offering memorandum, the notes will pay interest semi-annually in arrears equivalent to the amount due and owing from Bantrab under the senior loan. The loan will rank pari passu in right of payment to all of Bantrab's existing and future senior unsecured indebtedness, excluding liabilities preferred under mandatory provisions of Guatemalan banking law. The notes will be secured by a first priority perfected security interest in Bantrab Senior Trust's assets (i.e., the loan made to Bantrab by Deutsche Bank). Payment of principal and interest on the notes will also be absolutely, unconditionally, and irrevocably guaranteed by Bantrab. Ratings Rationale: Moody's said that the Ba3 foreign currency senior unsecured debt rating assigned to Bantrab Senior Trust's proposed notes is based on the bank's Ba3 local currency deposit rating. The Ba3 rating reflects one notch of uplift from the bank's b1 standalone baseline credit assessment as a result of Moody's assumption of the probability of systemic support in case of need. This assumption is based on the importance of the bank's franchise as a lender to Guatemalan public and private sector workers as well as its relevant deposit base. The Ba3 debt rating is unconstrained by the Baa3 Guatemala country ceiling for foreign currency bonds and notes. Moody's also said that the Ba3 rating assigned to Bantrab Senior Trust's proposed note issuance reflects the fact that the noteholders have direct recourse to Bantrab under the guarantee as they benefit from events of default that mirror those on the underlying loan, as well as rights of acceleration, in addition to the underlying loan collateral. Bantrab's b1 standalone baseline credit assessment reflects the bank's growing franchise and niche focus on consumer lending, particularly payroll-linked lending. The rating also takes into account Bantrab's relatively stable and granular customer-based deposit funding and low reliance on less stable sources such as short term bank borrowings and debt. The bank has gradually grown its market share in recent years through organic means and through a series of local acquisitions, and is seeking to diversify its lending business by expanding the range of consumer and commercial lending products. Key constraints to Bantrab's standalone ratings are its weak earnings generation and limited business diversification, partly due to its mandate of providing consumer loans at an advantageous cost to workers and partly to its high operating costs related to business expansion. The bank's profitability has also been burdened in recent years by credit costs mainly related to the clean-up of legacy problem loan portfolios related to its acquisitions. High loan growth, particularly targeting consumers and new commercial customers, point to potential asset quality deterioration in future. Limited internal capital generation due to weak earnings also constrains the standalone rating, particularly in light of intensifying competition from larger Guatemalan banks and foreign banks that may threaten the bank's profit and diversification plans, said Moody's. The last rating action on Bantrab was on May 13, 2013, when Moody's assigned the bank a first time E+ bank financial strength rating and Ba3 local and foreign currency deposit ratings. Bantrab Senior Trust is a Cayman Islands special purpose trust established under a Declaration of Trust dated 25 October 2013 that is governed by the laws of the Cayman Islands. As of September 2013, Banco de los Trabajadores was Guatemala's fifth largest bank with market shares of around 5% and reported consolidated assets of US$ 1.4 billion (GTQ 11.3 billion), deposits of US$ 1.2 billion, and shareholders' equity of US$ 134 million. The bank was established by Decree Law 383 of January 6, 1966, the Organic Law of Banco de los Trabajadores. 99% of the bank's common shares are widely held by some 700,000 Guatemalan workers, with the remaining 1% owned by the government. BARRENJOEY CAPITAL: Creditors' Proofs of Debt Due Nov. 20 --------------------------------------------------------- The creditors of Barrenjoey Capital Holtermann Fund are required to file their proofs of debt by Nov. 20, 2013, to be included in the company's dividend distribution. The company's liquidator is: Alric Lindsay Telephone: (345) 926 1688 Artillery Court Shedden Road P.O. Box 11371, George Town Grand Cayman KY1-1008 Cayman Islands CRESCENT GLOBAL: Creditors' Proofs of Debt Due Nov. 21 ------------------------------------------------------ The creditors of Crescent Global Investment Partnership, Ltd are required to file their proofs of debt by Nov. 21, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 4, 2013. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 EIFFEL CDO: Creditors' Proofs of Debt Due Nov. 21 ------------------------------------------------- The creditors of Eiffel CDO Limited are required to file their proofs of debt by Nov. 21, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 2, 2013. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Attorneys-at-Law for the Company Reference: NDL Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647; or Mourant Ozannes Cayman Liquidators Limited Reference: Peter Goulden Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands ERMITAGE GLOBAL: Creditors' Proofs of Debt Due Nov. 21 ------------------------------------------------------ The creditors of Ermitage Global Long/Short Fund are required to file their proofs of debt by Nov. 21, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 3, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943 3100 MS SHOE: Creditors' Proofs of Debt Due Nov. 11 ---------------------------------------------- The creditors of MS Shoe Limited are required to file their proofs of debt by Nov. 11, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MS SHOE II: Creditors' Proofs of Debt Due Nov. 11 ------------------------------------------------- The creditors of MS Shoe II Limited are required to file their proofs of debt by Nov. 11, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands PENDANT OFFSHORE: Creditors' Proofs of Debt Due Nov. 11 ------------------------------------------------------- The creditors of Pendant Offshore Fund Ltd are required to file their proofs of debt by Nov. 11, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 1, 2013. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815 1762 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands PINEBANK ADVANTAGE: Creditors' Proofs of Debt Due Nov. 11 --------------------------------------------------------- The creditors of Pinebank Advantage Fund, Ltd. are required to file their proofs of debt by Nov. 11, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 2, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands PINEBANK MASTER: Creditors' Proofs of Debt Due Nov. 11 ------------------------------------------------------ The creditors of Pinebank Advantage Master Fund, Ltd. are required to file their proofs of debt by Nov. 11, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 2, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands TALADROS Y EQUIPOS: Placed Under Voluntary Wind-Up -------------------------------------------------- On Oct. 4, 2013, the shareholders of Taladros Y Equipos De Perforacion De Colombia, Ltd. passed a resolution to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Trident Liquidators (Cayman) Ltd c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited Telephone: (345) 949 0880 Facsimile: (345) 949 0881 P.O. Box 847, George Town, Grand Cayman KY1-1103 Cayman Islands TRITON 220: Creditors' Proofs of Debt Due Nov. 12 ------------------------------------------------- The creditors of Triton 220 Ltd are required to file their proofs of debt by Nov. 12, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 3, 2013. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands TRITON 290: Creditors' Proofs of Debt Due Nov. 12 ------------------------------------------------- The creditors of Triton 290 Ltd are required to file their proofs of debt by Nov. 12, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 3, 2013. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands TRITON 320: Creditors' Proofs of Debt Due Nov. 12 ------------------------------------------------- The creditors of Triton 320 Ltd are required to file their proofs of debt by Nov. 12, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 3, 2013. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands TRITON 525: Creditors' Proofs of Debt Due Nov. 12 ------------------------------------------------- The creditors of Triton 525 Ltd are required to file their proofs of debt by Nov. 12, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 3, 2013. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ========= C H I L E ========= INVERSIONES ALSACIA: Fitch Cuts Ratings on $464MM Bonds to CC ------------------------------------------------------------- Fitch Ratings has downgraded to 'CC' from 'B' the rating for Inversiones Alsacia, S.A.'s US$464 million senior secured bonds due in 2018. Currently, US$383 million of bonds are outstanding. The Negative Rating Watch is being resolved with this downgrade. The rating downgrade reflects i) heightened risk of default in the coming payment dates as EBITDA continues shrinking while debt service increases in accordance to the original amortization schedule; ii) Debt Service Reserve Account (DSRA) balance is only US$9.7 million and very likely to be depleted in the next debt payment; iii) operating costs escalation, despite the efforts of the managerial team with; and iv) O&M and Overhaul Reserve Accounts current balances are much lower than the minimum required and it is foreseen that it will be very challenging for Alsacia to have them refunded. As a result of the continued EBITDA underperformance, forthcoming February 2014 debt service payment should largely rely on the receipt of governmental compensation for about US$15.2 million in January 2014 which itself depends upon the achievement of certain operational and financial covenants, the use of funds available in the DSRA, and also likely on cash contribution offered by Grupo GPS (the Sponsor). Key Rating Drivers: Increased Dependence On Demand: The Operating Contract amendment of May 2012 heightened the project's risk profile by significantly increasing the linkage between passenger demand and revenue levels. In the last two years demand has performed below expectations. The contractual amendment includes a restated economic equilibrium mechanism that partially mitigates such risk by compensating to some extent demand declines over 3%, among others. However, compensation payments are received several months after the occurrence of a negative impact in revenue, stressing the project's liquidity. Higher Operational Complexity: Compared to other availability- based projects, bus operations are logistically complex. The incorporation of additional bus routes has heightened operational complexity. Synergies coming from Alsacia and Express' operational merger have taken longer than expected to materialize. Cost has largely increased due to a series of recurring and non-recurring items. The risk of a continued escalation in the coming years is partially mitigated by the indexed pass-through of major cost items that is present in the formula to calculate revenues. Weaker Debt Structure: The target balances of the reserve funds have been adjusted so now the O&M Reserve Account must keep only one week of expense until October 2014 and two weeks until October 2018; the Overhaul Reserve will keep one month of expense until April 2017 and then go back to original six months. The DSRA should have at least the equivalent to the next debt service payment, but it currently has US$9.7 million only. Capex Reserves Are Below Industry Standards: In 2012 and 2013, Alsacia has made important investments in overhauling and maintenance of part of its bus fleet. Moreover, the company has an ambitious overhauling program to be performed between 2014 and 2016 in order to have renovated most of the fleet. Given such investment and the fact that current fleet has a remaining life of seven years average, Fitch does not foresee infrastructure renewal risk as material. Rating Sensitivities: The main factors that individually, or collectively, could trigger a positive rating action include: -- Sustained recovery in Alsacia's EBITDA levels. -- Sponsor support by means of cash contributions. -- Final approval from the Comptroller of the Republic regarding the new contractual terms that were negotiated with the Chilean Ministry of Transportation and Telecommunications (MTT) and which are expected to have a positive impact in the Company's operations and financial position. The main factors that individually, or collectively, could trigger a negative rating action include: -- Further deterioration of EBITDA levels. -- Failure in meeting operational and financial covenants, which would prevent or delay the receipt of governmental compensation for about expected for January 2014. -- Lack of sponsor's support via cash contributions in case needed to honour debt service. -- Depletion of the funds in the Debt Service Reserve Account (DSRA) and/or inability to gradually replenish it. -- Inability to meet forthcoming debt obligations. Security: The notes are secured by a first lien interest of total revenues and contract rights, as well as all assets owned by Alsacia and Express, excluding a bus terminal located in Huachuraba. Credit Update: In the reporting period ended in July 31, 2013, Alsacia breached two debt covenants: i) to have a minimum Debt Service Coverage Ratio (DSCR) of 1.10 times (x), and ii) to keep the minimum balance in the O&M and Overhaul Reserve Accounts of one and six months of expense, respectively. This situation enabled the bondholders to declare an Early Amortization Period. In order to avoid the Early Amortization Period to be triggered, on Aug. 19, 2013 the company released a waiver solicitation which was finally resolved on Oct. 18, 2013 with the following has been agreed upon: i) to allow Alsacia to reduce the target balances of the O&M and Overhaul Reserve Accounts looking forward to have more cash available for debt service payments; ii) to allow the modification of the DSCR ratio calculation to include the DSRA and Revenue Account balance in the numerator; iii) to set new minimum DSCR levels depending on the period being reported; and iv) to have the Sponsor to contribute at least US$5.0 million to support debt service payments. Such contribution does not have any tangible guarantee, but it is only a moral commitment. Currently, Alsacia and Express are waiting for the final approval of the General Comptroller of the Republic with regards to the last concession amendment, which is anticipated to increase the payment per passenger (PPT in Spanish) to be received by 4% for Alsacia and for Express, as well as to reduce the revenue discounts applied when operational deficiencies arise. The approval is expected for late this year or at the beginning of 2014 and should have a positive impact on the companies' cash flows. As of the first half of 2013, revenue grew 7.2% against the first half of 2012 mainly due to the update of the PPT in May 2013, the new services of Feeder D and the accrued revenue as compensation for low demand as per the concession, which will be received in May 2014. Demand, however, decreased 1.1% additional to the 4.3% contraction for year 2012. Combined Service Fulfillment Ratio (SFR) for the two operators was 92.7%, showing some improvement from the 90.9% seen in 1Q2013, but still stands low when compared with the 2012 average at 96.5%. Operating costs increased 18.2% compared to the first half of 2012 mainly because of a larger operation since the incorporation of Feeder D, which included the leasing of 400 buses, the heavy investments made in fleet maintenance and overhaul and the somehow unsuccessful efforts to control passenger evasion, as no relevant incremental profit has come from that initiative. As a result, EBITDA margin was 12.5% for the second quarter and 11.4% for the first half of the year. Regarding the overhauling program to be performed between 2014 and 2016, the Company obtained an US$11 million line of credit from supplier Volvo to partially finance such investment. In January 2014, Express will be candidate to receive an extraordinary US$15.2 million annual payment (payable from 2014 to 2018) agreed with the Government in 2012 when the concession was amended. This payment, though, is subject to Express reaching certain covenants until December 2013. According to Alsacia, the operator is in well shape to comply with the requirements and receive the cash at such date. Fitch opines the company's credit quality and financial performance continues being largely affected by the new concession effective since May 2012, which is much more linked and sensitive to a declining passenger demand, and which partial compensation mechanisms are insufficient and delivered once each 12 months, along with tighter operational requirements that have led to increased expenses. The next debt service payment is scheduled Feb. 18, 2014 for about US$51.6 million. Fitch estimates that, in order to comply with its obligation, the company will need to use not only Express' January 2014 extraordinary payment and DSRA funds, but will also need the external support promised by the Sponsor. The new concession terms, whose approval is currently pending, will be critical to determine Alsacia's ability to make the future debt payments after February 2014. Alsacia and Express are two bus concessionaires of the Transantiago System, which provides mass urban bus/metro transportation services to the City of Santiago, in Chile since 2005, and is regulated by the MTT. The transaction consisted of the acquisition by Alsacia of the remaining shares of Express, and the refinancing of all the existing debt of both concessionaires. =========== M E X I C O =========== ALESTRA SDE: Moody's Hikes Corporate Family Rating to 'Ba3' ----------------------------------------------------------- Moody's Investors Service upgraded Alestra, S.de R.L. de C.V. ratings to Ba3 from B1 based on consistent positive operating results and improved credit metrics. The ratings upgrade assume a successful refinancing of USD 200 million in senior notes due August 2014. The outlook on the ratings is stable. -- Corporate Family Rating: upgraded to Ba3 from B1 -- USD 200 million in global senior notes due August 2014: upgraded to Ba3 from B1 The ratings upgrade was based on Alestra's solid operating performance in the last couple of years, when it had to gradually reconstruct its sales after the exit of AT&T as a shareholder, in 2011. Since that year, Alestra has been able to gradually replace most revenues originally directed to AT&T, estimated by Moody's at about 20% of total in 2011, with sales to new customers. Its first-class network and service quality has helped the company generate favorable revenue results since 2012 and Moody's expects this trend to continue, given the higher estimated capex in the next three years, aimed at expanding data and IT services, and the favorable business conditions expected for Mexico in the upcoming years for these types of telecom services. Also supporting the ratings upgrade is Moody's-adjusted leverage for Alestra at below 2 times since 2012 (1.5 time during the last twelve months ended in June 2013), which Moody's believes will be sustained in the foreseeable future given the increasing share of value-added services (VAS) in the company's total revenues mix as well as lower operating expenses with interconnection due to its continuous network expansion. The ratings upgrade considered that Alestra has built enough cushion in case of need to pay off its upcoming debt payment of USD 200 million, maturing in August 2014. As of June 2013 Alestra had close to USD 70 million in cash plus USD 55 million in available committed revolving facilities. In addition, Moody's believes that Alestra counts with a solid support from Alfa, S.A.B. de C.V. ("Alfa", unrated), its parent company, which currently has about USD 120 million in available committed multi- year credit facilities. The stable outlook on Alestra's ratings is based on Moody's expectation that the company will be able to sustain current operating margins, supported by increasing demand for data and IT services from an increasing customer base and despite intense competitive activity in the enterprise telecom industry in Mexico. Alestra's ratings could be upgraded if its revenue size increases materially and its business base expands, in conjunction with a Moody's-adjusted EBITDA margin sustained above 35%. If Alestra is not able maintain leverage below 2 times on a sustained basis, its ratings could be negatively affected. Alestra, which started operations in 1996, is a Mexican information technology and telecommunications company providing bundled products including voice, data, Internet and information technology services to enterprises within Mexico. The company is owned by Alfa , a large Mexican conglomerate. During the last twelve months ending on June 30, 2013, Alestra's revenues and adjusted EBITDA amounted to USD 371 million and USD 170 million, respectively. CEMEX SAB: Cemex Latam Posts US$96 Million Third-Quarter Profit --------------------------------------------------------------- Reuters reports that Cemex Latam Holdings, the regional unit of Mexican cement company CEMEX, S.A.B. de C.V. which listed on Colombia's stock exchange, posted third-quarter profit of US$96 million, down from $115 million in the prior quarter. Net sales in the second quarter rose to US$474 million versus US$431 million in the previous quarter, the holding said in an earnings report filed with Colombia's securities regulator, according to Reuters. The report relates that no year-ago figures were provided since the company listed on Bogota's stock exchange only last November. Cumulative profits since January totaled US$238 million, the report notes. Cemex Latam Holdings incorporates the assets of the conglomerate in Colombia, Panama, Costa Rica, Brazil, Guatemala, Nicaragua and El Salvador. About CEMEX SAB Mexican corporation CEMEX, S.A.B. de C.V., is a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 30, 2013, Standard & Poor's Ratings Services raised its ratings on CEMEX S.A.B. de C.V. (CEMEX) and its subsidiaries, CEMEX Espana S.A., CEMEX Mexico S.A. de C.V., and CEMEX Inc., to global scale 'B+' from 'B' and to national scale 'mxBBB' from 'mxBBB-'. The outlook is stable. TUSCANY INTERNATIONAL: S&P Lowers Corporate Credit Rating to 'B-' ----------------------------------------------------------------- Standard & Poor's Rating Services lowered its long-term corporate credit rating on Tuscany International Drilling Inc. (Tuscany) to 'B-' from 'B'. S&P has also placed the ratings on CreditWatch with negative implications. The rating actions reflect S&P's reassessment of the company's financial risk profile to "highly leveraged" from "aggressive" and its liquidity to "weak" from "adequate." "Tuscany is facing weaker business conditions that in our view could continue at least for the next six months. As a result, our projected leverage and cash-flow protection metrics are more consistent with a 'highly leveraged' financial risk profile. Moreover, weaker cash-flow prospects are hurting the company's liquidity position and we believe that refinancing risk has increased, amid an increasing debt amortization profile," said Standard & Poor's credit analyst Fabiola Ortiz. The company's utilization rate has continued to decline, dropping to 67.8% as of June 30, 2013, from 84.2% during the same period of last year, deteriorating its cash flow. Lower utilization rates were mostly due to rigs coming off contract. S&P continues to assess the company's business risk profile as "vulnerable." ==================== P U E R T O R I C O ==================== BUILDERS GROUP: Court Limits Plan Exclusivity Until Dec. 9 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico denied the request of Builders Group & Development Corp. for a longer extension of its exclusive periods to file and solicit Chapter 11 plan votes. The Court gave the Debtor until Dec. 9, 2013, to file a plan. The Court also extended until Dec. 9, 2013, the period for the Debtor to assume or reject the leases. CPG/GS PR NPL LLC, in its objection to the Debtor's motion to extend the exclusivity period, stated that any extension is unwarranted, and will serve only to delay resolution of the case. About Builders Group Builders Group & Development Corp. owns and manages the Cupey Professional Mall, a shopping center located in Cupey, Puerto Rico. The Company sought Chapter 11 protection (Bankr. D.P.R. Case No. 13-04867) on June 12, 2013, in San Juan, Puerto Rico, its home-town. The company sought bankruptcy on the eve of a foreclosure sale of its property. The Debtor estimated at least $10 million in assets and liabilities in its petition. The Debtor is represented by Kendra Loomis, Esq. at G A Carlo-Altieri & Associates. Jose M. Monge Robertin, CPA, and Monge Robertin & Asociados Inc. serve as the Debtor's CPA/Insolvency and Restructuring Advisor. PONCE DE LEON: Trans Indies Approved as Real Estate Broker ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico authorized Ponce De Leon 1043, Inc., to employ Trans Indies Realty & Investment Corporation, as its real estate broker, and act as exclusive Sales and/or Leasing Agent of its commercial space located at Metro Plaza Building, at the intersection of Ponce de Leon Avenue and Villamil Street, San Juan, Puerto Rico. As reported in the Troubled Company Reporter on Sept. 24, 2013, the firm will: * offer the property for sale in accordance with established practices; * assist the Debtors in any negotiations for the sale/leasing of the property; * advertise and offer the property at its own expense; * perform all duties of a real estate broker with respect to the property; and * provide the Debtor with information concerning the person and/or entities to which the Broker has offered the property. In case of the sale of the property, TIRI will receive a commission fee of five percent of the sale amount payable upon the execution of the corresponding deed of sale. In case of a lease, TIRI will receive a commission equal to the amount of one month's rent for the first year lease and one half of one month for the additional year of lease. In case of renewal of lease agreement, TIRI will receive a commission fee of one half of one month's rent for each year of lease. If a deposit is forfeited, TIRI will receive one half of the total amount deposited as liquidated damages. If within six months after the expiration of the contract, the property be rented to a client that has seen it through the efforts of TIRI, TIRI will receive the commission at the time that the lease agreement is signed. The firm's Adalgisa Gambedotti Carrasquillo assures the Court that TIRI is a "disinterested person" and does not hold or represent an interest adverse to the estate. About Ponce De Leon San Juan, P.R.-based Ponce De Leon 1403, Inc., developed, constructed, and operates the Metro Plaza Tower condominium and commercial property project in Santurce, Puerto Rico. The Metro Plaza Tower project consists of two 15-story towers atop a base structure that serves as a parking garage, common area, and retail space. Each tower houses 87 residential units. The base structure provides approximately 567 parking spaces and has approximately 14,000 square feet of commercial space available for lease. The common areas of the project include a swimming pool, a gym, gardens and a gazebo. Ponce De Leon 1403 Inc. filed for Chapter 11 protection (Bank. D. P.R. Case No. 11-07920) on Sept. 19, 2011. The Debtor estimated both assets and debts of between US$10 million and US$50 million. Carmen Conde Torres, Esq., and Luisa S. Valle Castro, at C. Conde & Assoc., in Old San Juan, Puerto Rico, represent the Debtor as counsel. ================= 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 * * *