/raid1/www/Hosts/bankrupt/TCRLA_Public/131101.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
Friday, November 1, 2013, Vol. 14, No. 217
Headlines
A R G E N T I N A
ARGENTINA: Moody's Hikes Ratings of Several Securitizations
B R A Z I L
GAFISA's CORP: Moody's Cuts Corporate Family Ratings to 'B1'
OGX PETROLEO: Eike Batista Sought 11th-Hour Investors
OSX BRASIL: Breaks Lease Contract With OGX Petroleo
C A Y M A N I S L A N D S
ADMC ABSOLUTE: Creditors' Proofs of Debt Due Nov. 20
ALIREAL ESTATE: Creditors' Proofs of Debt Due Nov. 15
BLACKROCK GLOBAL: Placed Under Voluntary Wind-Up
CGL INVESTMENT: Placed Under Voluntary Wind-Up
HFT CHINA: Creditors' Proofs of Debt Due Nov. 11
HFT FEEDER: Creditors' Proofs of Debt Due Nov. 11
MH INTERMEDIATE: Creditors' Proofs of Debt Due Dec. 13
S&P DTI: Commences Liquidation Proceedings
SCIENS AQUA: Creditors' Proofs of Debt Due Nov. 20
SCIENS MASTER: Creditors' Proofs of Debt Due Nov. 20
SCIENS NATURAL: Creditors' Proofs of Debt Due Nov. 20
SOUNDVIEW ELITE: Creditors and Contributories to Meet on Nov. 19
SOUNDVIEW PREMIUM: Creditors and Contributories to Meet on Nov. 19
SOUNDVIEW STAR: Creditors and Contributories to Meet on Nov. 19
Y&B INVESTMENT: Creditors' Proofs of Debt Due Nov. 21
J A M A I C A
JAMAICA GENERAL: Shuts Another Five Branches
M E X I C O
CEMEX SAB: Incurs US$155 Million Net Loss in Third Quarter
CEMEX SAB: EU Regulators to Examine Bid to Acquire Holcim
COBRE DEL MAYO: Moody's Assigns 'B3' Corporate Family Rating
MUNICIPALITY OF TEXCOCO: Moody's Withdraws Baa1mx/Ba3 Ratings
P U E R T O R I C O
INSTITUTO MEDICO: Case Summary & 20 Largest Unsecured Creditors
T R I N I D A D & T O B A G O
CARIBBEAN AIRLINES: Signs Second Contract With AJW Aviation
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Moody's Hikes Ratings of Several Securitizations
-----------------------------------------------------------
Moody's Latin America has upgraded the national scale and global
local currency ratings of several debt securities and certificates
of securitizations issued in the Argentina.
The complete rating action, which includes upgrades of the
national scale ratings (NSR) and global local currency ratings
(GLCR), is as follows:
Issuer: Fideicomiso Financiero CCF Creditos Serie 2
CP, Upgraded to Aaa.ar (sf); previously on Jan 23, 2013 Affirmed
A2.ar (sf)
CP, Upgraded to Ba3 (sf); previously on Jan 23, 2013 Affirmed B3
(sf)
Issuer: Fideicomiso Financiero Finansur Autos IV
CP, Upgraded to Baa1.ar (sf); previously on Apr 12, 2013 Upgraded
to B2.ar (sf)
CP, Upgraded to B3 (sf); previously on Apr 12, 2013 Upgraded to
Caa2 (sf)
Issuer: Fideicomiso Financiero Finansur Autos VI
VDFB, Upgraded to Ba2.ar (sf); previously on Oct 26, 2012 Assigned
B2.ar (sf)
VDFB, Upgraded to Caa1 (sf); previously on Oct 26, 2012 Assigned
Caa2 (sf)
Issuer: Fideicomiso Financiero Pvcred Serie XI
VRDB, Upgraded to B1.ar (sf); previously on Mar 7, 2012 Assigned
Ca.ar (sf)
VRDB, Upgraded to Caa2 (sf); previously on Mar 7, 2012 Assigned Ca
(sf)
Issuer: Fideicomiso Financiero Supervielle Creditos 63
CP, Upgraded to Aaa.ar (sf); previously on Mar 11, 2013 Upgraded
to Aa1.ar (sf)
CP, Affirmed Ba3 (sf); previously on Mar 11, 2013 Upgraded to Ba3
(sf)
Issuer: Fideicomiso Financiero Supervielle Creditos 64
CP, Upgraded to Aaa.ar (sf); previously on Mar 11, 2013 Affirmed
Aa3.ar (sf)
CP, Upgraded to Ba3 (sf); previously on Mar 11, 2013 Affirmed B1
(sf)
Issuer: Fideicomiso Financiero Supervielle Creditos 65
VDF TFC, Upgraded to Aaa.ar (sf); previously on Oct 19, 2012
Assigned Aa2.ar (sf)
VDF TFC, Upgraded to Ba3 (sf); previously on Oct 19, 2012 Assigned
B1 (sf)
Issuer: Fideicomiso Financiero Supervielle Creditos 66
VDF TFC, Upgraded to Aa1.ar (sf); previously on Nov 9, 2012
Assigned Aa2.ar (sf)
VDF TFC, Upgraded to Ba3 (sf); previously on Nov 9, 2012 Assigned
B1 (sf)
Issuer: Fideicomiso Financiero Supervielle Leasing 7
CP, Upgraded to Aaa.ar (sf); previously on Aug 9, 2011 Assigned
Ca.ar (sf)
CP, Upgraded to Ba3 (sf); previously on Aug 9, 2011 Assigned Ca
(sf)
Issuer: Fideicomiso Financiero Supervielle Leasing 8
CP, Upgraded to Aa3.ar (sf); previously on Dec 17, 2012 Assigned
A3.ar (sf)
CP, Upgraded to B1 (sf); previously on Dec 17, 2012 Assigned B3
(sf)
Issuer: Fideicomiso Financiero Supervielle Personales 6
VDF TFC, Upgraded to Aa3.ar (sf); previously on Mar 11, 2013
Upgraded to Baa3.ar (sf)
VDF TFC, Upgraded to B1 (sf); previously on Mar 11, 2013 Upgraded
to B3 (sf)
Ratings Rationale:
The upgrade reflects the sound performance of the securitized
pools and the increased credit enhancement levels due to the turbo
sequential structure that captures the totality of the available
excess spread in the transactions to repay the rated debt.
In order to establish the updated rating levels, Moody's ran cash
flow models using lognormal distributions for defaults and
prepayments. Moody's used the current pool balance and the current
balance of the debt securities and certificates. Moody's analysis
did not consider any loans that were more than 30 days past due.
The rating of the Certificates address only the repayment of
principal before legal final.
Moody's National Scale Credit 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 credit 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
===========
GAFISA's CORP: Moody's Cuts Corporate Family Ratings to 'B1'
------------------------------------------------------------
Moody's America Latina downgraded Gafisa's corporate family
ratings to B1 from Ba3 on its global scale and to Baa3.br from
A3.br on its national scale. At the same time, the company's
BRL600 million senior secured debentures were downgraded to
Ba3/A3.br from Ba2/A1.br, while its BRL300 million senior
unsecured debentures were downgraded to B2/Ba2.br from B1/Baa2.br.
The outlook is negative for all ratings.
Ratings downgraded:
Gafisa S.A. (Gafisa)
-- Corporate Family Rating: to B1 from Ba3 (global scale); to
Baa3.br from A3.br (national scale);
-- BRL600 million senior secured debentures due in 2017 (7th
Issuance): to Ba3 from Ba2 (global scale); to A3.br from A1.br
(national scale);
-- BRL300 million senior unsecured debentures with final maturity
in 2016 (8th Issuance): to B2 from B1 (global scale); to Ba2.br
from Baa2.br (national scale);
Ratings Rationale:
The downgrade in Gafisa's ratings reflects the company's high
leverage and weak interest coverage ratio when compared to its
rated local and global peers. This rating action does not result
from the planned sale of a majority stake in Alphaville Urbanismo
S.A. (Alphaville). In Moody's opinion, the expected improvement in
the company's liquidity profile with the sale completion is
positive, but it may be insufficient to promote a material
improvement in Gafisa's relevant credit metrics in the near term.
Although the proceeds from the sale should reflect primarily in
reduction of net leverage, the company's capital structure and
prospective consolidated debt profile will be more clearly defined
only after the completion of this transaction.
The B1/Baa3.br corporate family rating continues to reflect
Gafisa's strong market share position and brand name in Brazil and
its good access to capital markets. The rating is further
supported by the company's long track record of operations that
started in 1954, thus having managed through a number of economic
crises.
Last June, Gafisa announced that it has signed an agreement to
sell a 70% stake in Alphaville to private equity firms for BRL1.4
billion. At the same time, it also agreed to acquire the
outstanding 20% stake in Alphaville for BRL367 million. As a
result, the company is expecting cash proceeds of approximately
BRL1.0 billion with the completion of this transaction over the
next few months, which could contribute to an improvement in the
company's gross debt to cap ratio below the 61% level reported by
the end of June 2013. Conversely, in the near term, Gafisa's
consolidated adjusted gross margins should remain below the 30.5%
reached during 2012, while the EBIT interest coverage should
remain below 1.0x, since Alphaville has been reporting the
strongest performance among Gafisa's brands, with historically
higher margins.
After posting BRL1.2 billion in revenue reversals and adjustments
related to cost overruns at Tenda and Gafisa for the 4Q11 results,
the company has been successfully implementing its turnaround plan
based on downsize and improvements in internal processes and
controls, which contributed to strong delivery of projects and
some strategic new launches. On the other hand, the vintage
projects still under construction and sales cancellations continue
to pressure Gafisa's earnings, particularly at the subsidiary
Tenda, its low-income segment brand. As a result, Moody's expect
only a gradual recovery of Gafisa's credit metrics over the next
12 months.
Despite its high leverage, Gafisa's liquidity remains adequate. At
the end of June, 2013, the company reported BRL1.1 billion in cash
and marketable securities on its balance sheet. Additionally,
Moody's estimates that the company had about BRL745 million in
receivables from finished units (net of land swaps) that should
become available with the effective transfer of mortgages to
lending banks. On June 30, 2013, the company had short term debt
maturities of BRL1.4 billion (as per Moody's standard
adjustments), of which approximately BRL522 million were project-
related loans that will be repaid once the underlying projects are
delivered. All figures exclude the Alphaville assets and
liabilities, which were reported as discontinued operation.
The company's operating cash needs have been supported by adequate
availability of project loans under the Sistema Financeiro de
Habitacao (SFH). According to the management, there are about
BRL1.0 billion of undrawn committed facilities under the SFH that
puts the company in a comfortable position to meet around 80% of
the expected costs for project completion at the Gafisa's brand.
Additionally, the Tenda projects rely on financing loans that
include the anticipated take out of receivables during
construction, which reduces pressure on the company's working
capital and financial leverage.
The negative outlook reflects the company's ongoing challenges to
continue to improve its operational efficiency, execute its
revised business plan and generate positive free cash flow (FCF)
to reduce leverage amid macroeconomic uncertainties, as well as
the expected growing competition in Gafisa's target markets and
the uncertainties over the company's financial strategy.
A rating upgrade is unlikely in the short term, but Gafisa's
outlook could stabilize if the company is able to improve its
credit metrics, such as the gross debt to total capitalization
ratio falls below 60% and the EBIT interest coverage moves above
1.0 time for two or more consecutive quarters, or with higher
visibility on the company's financial strategy after the effective
completion of Alphaville's planned sale.
Gafisa's ratings could be further downgraded if the company faces
a significant deterioration in its liquidity profile due to a
downturn in the homebuilding industry or due to excessive dividend
payout that could instead be used for debt reduction.
Quantitatively, the ratings could be further downgraded if gross
debt to total capitalization increases above 65% or EBIT interest
coverage remains below 1.0x for a prolonged period.
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.
Headquartered in Sao Paulo, Brazil and founded in 1954, Gafisa
S.A. (Gafisa) is one of the largest fully integrated homebuilders
in the country and one of the most diversified companies through
its subsidiaries Tenda and Alphaville. The company currently has
136 projects in 5 macro regions and virtually all price segments.
During the six months ended June 30 2013, Gafisa generated net
revenues of BRL1.1 billion (USD524 million) and net losses of
BRL70 million (USD33 million).
OGX PETROLEO: Eike Batista Sought 11th-Hour Investors
-----------------------------------------------------
Luciana Magalhaes and Rogerio Jelmayer at Daily Bankruptcy Review
report that Brazilian entrepreneur Eike Batista raced against the
clock to shore up some of his enterprises days before his flagship
oil company, OGX Petroleo e Gas Participacoes Ltda, filed for
bankruptcy recovery in a Brazilian court, according to two people
familiar with the situation.
As reported in the Troubled Company Reporter-Latin America on
Oct. 31, 2013, The Wall Street Journal said that OGX Petroleo e
Gas 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.
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.
OSX BRASIL: Breaks Lease Contract With OGX Petroleo
---------------------------------------------------
Reuters reports that OSX Brasil SA broke its leasing contract with
Batista's oil company OGX SA due to non-payment on an FPSO
production vessel that was under lease, OSX said in a filing.
OSX Brasil SA is a shipbuilder controlled by billionaire Eike
Batista.
As reported in the Troubled Company Reporter-Latin America on
June 26, 2013, Reuters said that OSX Brasil denied a report it
failed to make payments on debt held by Spanish infrastructure
group Acciona. The local Folha da S.Paulo newspaper reported that
Batista's OSX Brasil was struggling to avoid bankruptcy after it
defaulted on some BRL500 million ($222 million) in debt held by
Acciona, according to Reuters.
==========================
C A Y M A N I S L A N D S
==========================
ADMC ABSOLUTE: Creditors' Proofs of Debt Due Nov. 20
----------------------------------------------------
The creditors of ADMC Absolute Return Strategies Offshore II Ltd
are required to file their proofs of debt by Nov. 20, 2013, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Sept. 30, 2013.
The company's liquidator is:
Ogier
c/o Cline Glidden
Telephone: (345) 815 1785
Facsimile: (345) 949 9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
ALIREAL ESTATE: Creditors' Proofs of Debt Due Nov. 15
-----------------------------------------------------
The creditors of Alireal Estate Fund are required to file their
proofs of debt by Nov. 15, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Oct. 2, 2013.
The company's liquidator is:
Techdis Limited
Smeets Law (Cayman)
Reference: JAPF
Telephone: +1 (345) 815 2800
Facsimile: +1 (345) 947 4728
Suite 2206, Cassia Court, 72 Market Street
Camana Bay
P.O. Box 32302 Grand Cayman KY1-1209
Cayman Islands
BLACKROCK GLOBAL: Placed Under Voluntary Wind-Up
------------------------------------------------
On Sept. 30, 2013, the shareholders of Blackrock Global Horizons
Ltd resolved to voluntarily wind up the company's operations.
The company's liquidators are:
Jane Fleming/ Jean Ebanks
Telephone: (345) 945 2187
Facsimile: (345) 945-2197
PO Box 30464 Grand Cayman KY1-1202
Cayman Islands
CGL INVESTMENT: Placed Under Voluntary Wind-Up
----------------------------------------------
On Sept. 16, 2013, the sole shareholder of CGL Investment Ltd.
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Oct. 25, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
HFT CHINA: Creditors' Proofs of Debt Due Nov. 11
------------------------------------------------
The creditors of HFT China (New) Frontier Fund 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. 21, 2013.
The company's liquidator is:
Jelle Vervoorn
Three Exchange Square, 30th Floor, Suite 3003
8 Connaught Place, Central
Hong Kong
Facsimile: +852 2530 5205
HFT FEEDER: Creditors' Proofs of Debt Due Nov. 11
-------------------------------------------------
The creditors of HFT China (New) Frontier Non-US Feeder Fund 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 Sept. 5, 2013.
The company's liquidator is:
Jelle Vervoorn
Three Exchange Square, 30th Floor, Suite 3003
8 Connaught Place, Central
Hong Kong
Facsimile: +852 2530 5205
MH INTERMEDIATE: Creditors' Proofs of Debt Due Dec. 13
------------------------------------------------------
The creditors of MH Intermediate Investment Limited are required
to file their proofs of debt by Dec. 13, 2013, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 2, 2013.
The company's liquidator is:
Westport Services Ltd
c/o Evania Ebanks
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
PO Box 1111 Grand Cayman KY1-1102
Cayman Islands
S&P DTI: Commences Liquidation Proceedings
------------------------------------------
On Oct. 8, 2013, the sole shareholder of The S&P DTI Tracker Fund
Limited resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Jason Schmidt
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6386
SCIENS AQUA: Creditors' Proofs of Debt Due Nov. 20
--------------------------------------------------
The creditors of Sciens Aqua International Feeder Fund Ltd. are
required to file their proofs of debt by Nov. 20, 2013, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 1, 2013.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Kim Charaman/Jennifer Chailler
Telephone: (345) 943-3100
SCIENS MASTER: Creditors' Proofs of Debt Due Nov. 20
----------------------------------------------------
The creditors of Sciens Aqua Master Fund Ltd. are required to file
their proofs of debt by Nov. 20, 2013, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Oct. 2, 2013.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Kim Charaman/Jennifer Chailler
Telephone: (345) 943-3100
SCIENS NATURAL: Creditors' Proofs of Debt Due Nov. 20
-----------------------------------------------------
The creditors of Sciens Natural Resources Fund are required to
file their proofs of debt by Nov. 20, 2013, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Oct. 1, 2013.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Kim Charaman/Jennifer Chailler
Telephone: (345) 943-3100
SOUNDVIEW ELITE: Creditors and Contributories to Meet on Nov. 19
----------------------------------------------------------------
The creditors and contributories of Soundview Elite Limited will
hold their meeting on Nov. 19, 2013, at 10:00 a.m.
The company's liquidator is:
Matthew Wright
c/o Chris Kennedy
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
RHSW (Cayman) Limited
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
SOUNDVIEW PREMIUM: Creditors and Contributories to Meet on Nov. 19
------------------------------------------------------------------
The creditors and contributories of Soundview Premium Limited will
hold their meeting on Nov. 19, 2013, at 10:00 a.m.
The company's liquidator is:
Matthew Wright
c/o Chris Kennedy
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
RHSW (Cayman) Limited
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
SOUNDVIEW STAR: Creditors and Contributories to Meet on Nov. 19
---------------------------------------------------------------
The creditors and contributories of Soundview Star Limited will
hold their meeting on Nov. 19, 2013, at 10:00 a.m.
The company's liquidator is:
Matthew Wright
c/o Chris Kennedy
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
RHSW (Cayman) Limited
P.O. Box 897 Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
Y&B INVESTMENT: Creditors' Proofs of Debt Due Nov. 21
-----------------------------------------------------
The creditors of Y&B Investment Advisors 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. 9, 2013.
The company's liquidator is:
DMS Corporate Services Ltd
c/o Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
=============
J A M A I C A
=============
JAMAICA GENERAL: Shuts Another Five Branches
--------------------------------------------
Jamaica Gleaner reports that Jamaica General Insurance Company
Limited (JNGI) had said it will shutter another five branch
locations Thursday, October 31, bringing the closures to nine for
the month of October.
The five are located in Port Antonio, Brown's Town, May Pen, Santa
Cruz and Savanna-la-Mar.
Another four were shuttered on October 7, and the locations
converted to JN Money Shop outlets, according to Jamaica Gleaner.
The report relates that JNGI said its customers outside the
Corporate Area will now be served from three fully equipped hubs
in Montego Bay, Mandeville and Ocho Rios. The report notes that
the two main branches in downtown Kingston and New Kingston, along
with sub-branches in Half-Way Tree and at MegaMart in Kingston,
remain operational in the capital.
In September, the report notes, JNGI General Manager Chris Hind
said in response to Business queries that the first four closures
-- Junction, Christiana, St Ann's Bay and Falmouth -- were part of
a branch-restructuring exercise.
"This is part of a move to improve the effectiveness of our
customer-service delivery," the report quoted Mr. Hind as saying.
"In this challenging economic environment, we need to take
measures to improve our viability," Mr. Hind said, the report
notes.
JNGI, formerly NEM Jamaica, is the oldest general insurance
company in Jamaica. Remaining operational are the head office in
downtown Kingston, and branches in New Kingston, MegaMart
Kingston, Ocho Rios and Mandeville.
===========
M E X I C O
===========
CEMEX SAB: Incurs US$155 Million Net Loss in Third Quarter
----------------------------------------------------------
Elinor Comlay and Gabriela Lopez at Reuters report that CEMEX,
S.A.B. de C.V. reported a wider-than-expected quarterly loss as
taxes increased.
Cemex posted a third-quarter loss of US$155 million, compared with
the average analyst estimate of a loss of US$22 million, according
to a Reuters survey.
The Monterrey-based company lost US$203 million in the year-
earlier third quarter, according to Reuters.
The report notes that Cemex's income tax payment increased by 12
percent from a year earlier, but executives told analysts on the
call they expected tax payments for this year to be only slightly
higher than the previous year.
The report relates that net sales rose 3 percent to US$4.02
billion, while analysts expected US$4.05 billion.
Reuters notes that operating core profit, or earnings before
interest, taxes, depreciation and amortization, increased 2
percent to US$747 million from US$735 million a year earlier.
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.
CEMEX SAB: EU Regulators to Examine Bid to Acquire Holcim
---------------------------------------------------------
Reuters reports that European Commission antitrust regulators will
examine a bid by Mexican cement maker CEMEX, S.A.B. de C.V.to
acquire Swiss peer Holcim's cement operations in Spain following a
request from Spanish authorities, the European Commission said.
Holcim and Cemex unveiled in August plans to exchange some assets
and combine others in Europe to boost profit amid tough conditions
in the construction sector, according to Reuters.
"The European Commission has accepted a request from Spain to
assess under the EU merger regulation the proposed acquisition of
Holcim's cement operations in Spain by rival Cemex," the EU
competition authority said in a statement obtained by Reuters.
"The Commission also concludes that it is the best placed
authority to deal with the potential cross-border effects of the
transaction," EU competition authority added, the report notes.
The report relays that EU said it would ask Cemex to submit its
request for approval of the deal to Brussels.
The European Union executive said the Czech competition authority
would continue to examine Cemex's takeover of Holcim's business in
the Czech Republic, the report adds.
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.
COBRE DEL MAYO: Moody's Assigns 'B3' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service assigned a B3 corporate family rating to
Cobre del Mayo, S.A. de C.V. ("CDM") and a B3 rating to the
company's up to USD 250 million in proposed senior unsecured
notes. Proceeds from the notes issuance will be used to refinance
bank loans and for general corporate purposes. The rating outlook
is stable. This is the first time Moody's has rated CDM.
Ratings Rationale:
The B3 ratings on CDM and its proposed notes are driven by the
company's small revenue base, its reliance on one mine, its lack
of geographic diversification, high cost structure and volatile
copper prices. On the other hand, the ratings are supported by
CDM's relatively low debt leverage for its rating category and
robust metal reserves in a favorable mining jurisdiction.
CDM, owner of Piedras Verdes mine, became 100% owned by Invecture
Group S.A. de C.V. ("Invecture") subsequent to Invecture's
acquisition of Frontera Copper Corporation ("FCC"), a Canadian
TSX-listed company, in May 2009. Since the acquisition by
Invecture, CDM's mine has been transformed into a high quality
copper producing asset that has been able to consistently increase
production levels and reduce operating costs. From 2010 to 2012,
annual copper cathode production increased to 30.3 ktpa from 10.9
ktpa. In the same period, cash cost dropped to 1.82 USD/lb from
3.71 USD/lb. The company's cash cost is at 1.81. CDM is highly
dependent on only one customer since approximately 90% of the
company's sales are directed to Trafigura, with which it holds a
18-month sales agreement that expires in December 2014; mitigating
this credit negative is CDM's ability to sell its copper
production at market prices to other copper traders in the absence
of Trafigura.
In the medium term, it is uncertain if copper prices will be able
support CDM's higher cost operations which are in the third
quartile on the global cost curve. Although Moody's views copper
as the best positioned base metal over the long term given its
declining ore grades and recoveries, prices have fallen since
early 2013 and Moody's sees little impetus for a material increase
in pricing over the rating horizon. The market price for copper
remains responsive to changes in economic and global growth rate
expectations and will remain volatile. Moody's expects copper spot
pricing to hover in the $3.00 range over the next 12 to 18 months.
These market conditions can be particularly challenging to a
higher cost, single mine/single metal company like CDM.
Pro forma for the proposed notes, CDM's liquidity is adequate. The
company had USD 6 million of cash at June 30 and Moody's expects
the company to generate roughly USD 7-10 million of free cash
flow, after accounting for capital expenditures in the USD 30
million range, over the next 12 months. Pro forma for the notes
issuance, Moody's expects the company to be able to use cash and
projected EBITDA to fund capex and fixed charges over the next
year. Moody's does not expect CDM to pay dividends in the
foreseeable future. CDM's liquidity profile is further supported
by the company's undrawn USD 100 million unsecured revolving
credit facility and a longer maturity profile pro forma for the
proposed notes.
The proposed senior unsecured notes will be unconditionally
guaranteed on a senior unsecured basis by each of the Company's
existing and future subsidiaries. The guarantees will rank senior
in right of payment to all existing and future subordinated
indebtedness of these subsidiaries and equal in right of payment
with all existing and future senior indebtedness of these
subsidiaries.
The stable ratings outlook reflects Moody's expectation that CDM
will be able to improve its production profile from capital
investments with commensurate cost improvements that will lead to
reasonable earnings and cash flow performance, taking into
consideration the company's expansion plans and Moody's
expectations for global copper demand.
A downgrade would be considered if revenues decline substantially
or if EBITDA margins decline further than anticipated as a
consequence of falling copper prices beyond Moody's current
expectations. Quantitatively, a rating downgrade could occur if
debt/EBITDA exceeds and is sustained above 4 times or if
EBIT/interest fell and is sustained below 2.5 times. A negative
rating action could also be triggered if CDM's liquidity position
deteriorates.
A ratings upgrade could be merited if CDM is able to improve the
diversity of its mining operations. An upgrade would require that
the company maintains debt leverage closer to 2.5x, strong
interest coverage and cash flow metrics as well as positive
revenue growth, a comfortable debt maturity profile, and a
stronger liquidity position.
MUNICIPALITY OF TEXCOCO: Moody's Withdraws Baa1mx/Ba3 Ratings
-------------------------------------------------------------
Moody's de Mexico has withdrawn the issuer ratings of Baa1.mx/Ba3,
stable outlook, on the Municipality of Texcoco due to insufficient
information.
Ratings Rationale:
Moody's has withdrawn the issuer ratings assigned to the
Municipality of Texcoco because the rating agency has not received
information necessary to monitor the rating. Publicly available
information, in Moody's view, is not sufficient to allow Moody's
to continue to monitor the Municipality's creditworthiness.
Moody's believes that it is unable to provide the market with an
updated and informed assessment of the current credit quality of
the issuer.
=====================
P U E R T O R I C O
=====================
INSTITUTO MEDICO: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Instituto Medico Del Norte, Inc.
aka Centro Medico Wilma N. Vazquez
aka Hospital Wilma N. Vazquez Skill Nursing Facility of
Centro Medico Wilma N. Vazquez
Po Box 7001
Vega Baja, PR 00694
Case No.: 13-08961
Type of Business: Health Care
Chapter 11 Petition Date: October 30, 2013
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Hon. Mildred Caban Flores
Debtor's Counsel: Fausto David Godreau Zayas, Esq.
Po Box 9022512
San Juan, PR 00902-2512
Tel: 787-724-0230
Email: dgodreau@LBRGlaw.com
- and -
Rafael A Gonzalez Valiente, Esq.
LATIMER BIAGGI RACHID & GODREAU
Po Box 9022512
San Juan, PR 00902-2512
Tel: 787-724-0230
Email: rgonzalez@lbrglaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by ING. Jose Orlando Pabon, president.
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
AFE $1,008,974
PO Box 1717
Vega Baja PR
00964
Maria De Los Angeles Vazquez $675,000
Po Box 4422
Vega Baja PR
00694-4422
GE Healthcare IITS LLC $670,002
PO Box 100930
Atlanta, GA
303840930
GE Healthcare IITS LLC $655,000
PO Box 100930
Atlanta, GA
30484-0930
J&M Depot Inc. $521,790
PO Box 29427
San Juan PR
00929-9427
Borschow Hospital & Medical $373,235
Supplies
Po Box 366211
San Juan PR, 009036
Top Financing Corp. $323,000
Po Box 195375
San Juan PR
00919-5375
Alpha Biomedical Service $313,341
PO Box 670
Turabo Ave. #21
Urb. Bonn
Caguas PR 00726
McKesson $256,559
PO Box 98347
Chicago, IL
606930001
Perfect Service Inc. $202,664
100 Grand Boulevard
Los Paseos 112
MCS 115
San Juan PR, 00926
Borschow Hospital & Medical $160,615
Supplies Inc.
PO Box 366211
San Juan PR
00936
Maria De Los Angeles Vazquez $150,000
PO Box 4422
Vega Vaja PR
00694-4422
Advanced Wound Healing $176,488
PO Box 11023
San Juan PR
00910
MCAA Radiologi Servi. PSC $95,574
Po Box 370
Caguas PR 00726
Baxter $82,370
Advanced Wound Healing $76,515
Imperial Credit Insurance $74,360
Dr. Rafael Felix $70,000
Philips Medical Systems PR Inc. $68,995
MCS Life Insurance Co. $54,979
===============================
T R I N I D A D & T O B A G O
===============================
CARIBBEAN AIRLINES: Signs Second Contract With AJW Aviation
-----------------------------------------------------------
RJR News reports that Caribbean Airlines Limited has signed a
second contract with leading independent aircraft spares
specialist AJW Aviation, to support its fleet of 15 planes.
The new contract complements the existing five year support that
AJW currently provides for the airline's two B767 aircraft, signed
in November last year, according to RJR News.
The report relates that AJW will support the aircraft from its
Miami-based facility.
AJW has recently invested more than US$80 million in inventory to
support an increasing number of operators and facilities across
the Americas, the report notes.
Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America. The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods. In addition, it operates a duty
free store in Trinidad. Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.
* * *
As reported in the Troubled Company Reporter-Latin America on May
20, 2013, Caribbean360.com said that Trinidad and Tobago Finance
Minister Larry Howai said Caribbean Airlines Limited recorded
losses estimated at US$70 million in 2012. In 2011, CAL had
recorded losses of US43.7 million.
***********
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 * * *