/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140522.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, May 22, 2014, Vol. 15, No. 100 Headlines B A H A M A S ULTRAPETROL (BAHAMAS): Incurs $4.8 Million Net Loss in 1Q ULTRAPETROL (BAHAMAS): S&P Raises CCR to 'B'; Outlook Stable B R A Z I L JBS SA: Seeks Authorization to Break Brazil IPO Drought C A Y M A N I S L A N D S CHESTER GLOBAL: Creditors' Proofs of Debt Due May 27 CHESTER GLOBAL: Shareholders' Final Meeting Set for May 28 ENHANCED GUARDIAN II: Creditors' Proofs of Debt Due May 27 ENHANCED GUARDIAN II: Shareholders' Final Meeting Set for May 28 FAIRFIELD WILSHIRE: Creditors' Proofs of Debt Due May 27 FAIRFIELD WILSHIRE: Shareholders' Final Meeting Set for May 28 IRONGATE GLOBAL: Creditors' Proofs of Debt Due May 27 IRONGATE GLOBAL: Shareholders' Final Meeting Set for May 28 WATER BEARER: Creditors' Proofs of Debt Due May 26 WATER BEARER: Members' Final Meeting Set for June 2 M E X I C O CEMEX SAB: Names Fernando Gonzalez as Chief Executive Officer EMPRESAS ICA: Moody's Assigns B2 Rating on $600MM Senior Notes FINANCIERA INDEPENDENCIA: S&P Assigns 'B+' Rating to $200MM Notes FINANCIERA INDEPENDENCIA: Fitch Rates Proposed USD200MM Notes BB- P U E R T O R I C O PUERTO RICO CABLE: Moody's Affirms B2 CFR; Outlook Revised to Neg. T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: New CEO Denies Scraping London Routes CL FINANCIAL: 'Clico Not Sold Yet,' Finance Minister Says - - - - - ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): Incurs $4.8 Million Net Loss in 1Q --------------------------------------------------------- RTTNews reports that Ultrapetrol (Bahamas) Limited posted first- quarter net loss attributable to the company of $4.8 million, or $0.03 per share, narrower than $5.9 million or $0.04 per share in the year-ago quarter. Adjusted net loss for the latest first quarter was $4.6 million or $0.03 per share, wider than $242 thousand or $0.00 per share in the comparable quarter last year, according to RTTNews. On average, three analysts polled by Thomson Reuters expected the company to earn $0.02 per share, RTTNews relates. Analysts' estimates typically exclude special items. Total revenues for the latest first quarter rose 11% to $86.34 million from $77.89 million a year earlier, RTTNews discloses. Two analysts expected revenues of $69.46 per share, RTTNews notes. Ultrapetrol (Bahamas) Limited, headquartered in Nassau, Bahamas, is a diverse international marine transportation company. The company operates in three segments: River, Offshore Supply, and Ocean. Last twelve months ended June 30, 2013, revenues totaled $369 million. * * * As reported in the Troubled Company Reporter on Sept. 26, 2013, Moody's Investors Service said that Ultrapetrol (Bahamas) Limited's $25 million add-on to its existing $200 million 8.875% First Preferred Ship Mortgage Notes due 2021 will not impact the company's B3 Corporate Family Rating and senior secured notes rating, SGL-2 speculative grade liquidity rating, or stable ratings outlook. ULTRAPETROL (BAHAMAS): S&P Raises CCR to 'B'; Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services raised its ratings on Ultrapetrol (Bahamas) Ltd., including the corporate credit rating to 'B' from 'B-'. The outlook is stable. The upgrade reflects the company's continued and steady growth due to its efforts to strengthen its long-term contracted position, with more favorable terms that allow for cost pass-through and higher rates, as well as improved market conditions. The upgrade also reflects S&P's view of Ultrapetrol's positive free cash flow generation prospects over the next two years and its expectations that debt to EBITDA will be about 5.0x in 2014 and improve to about 4.5x in 2015. The cyclical swings in demand and unpredictable weather conditions, which can affect the operating performance, constrain Ultrapetrol's business risk profile. Droughts or floods could undermine the agricultural production or harm the navigability of the rivers where the company operates, resulting in lower volumes transported. The "weak" business risk profile also reflects the company's vulnerability to high customer concentration and exposure to intense price competition from numerous small players in the river business, Ultrapetrol's main source of revenue. However, S&P expects the company to partly mitigate these risks through long-term contracts, with cost pass-through clauses, which now represent almost half of revenues. Also, S&P believes that the increase in the contracted position with fixed pricing, take or pay clauses with minimum volumes, and fuel price adjustments will mitigate the spot rates' inherent volatility risk. This, together with lower capital spending--following the company's acquisition of three =========== B R A Z I L =========== JBS SA: Seeks Authorization to Break Brazil IPO Drought ------------------------------------------------------- Felipe Frisch at Bloomberg News reports that JBS SA is seeking regulatory approval to sell shares of its poultry and processed food unit in what would be Brazil's first initial public offering this year. Voting shares of JBS Foods SA will be listed in Brazil's Novo Mercado subject to regulatory approval and market conditions, the Sao Paulo-based company said in a filing, according to Bloomberg News. Bloomberg News notes that the IPO would help unlock value by separating the unit from the parent company. JBS Foods was formed after JBS agreed to buy Seara food processing assets from Marfrig Global Foods SA for BRL5.85 billion in June 2013. JBS hired units of JPMorgan Chase & Co. and Banco Bradesco SA for a BRL3 billion ($1.3 billion) IPO of the unit, two people with direct knowledge of the matter said in April, Bloomberg News discloses. The company also hired Banco Itau BBA SA, Banco Santander SA, Grupo BTG Pactual and Banco do Brasil SA to underwrite the share offering of JBS Foods, the people said, asking not to be identified because negotiations are confidential, Bloomberg News relays. The timing of the sale will depend on market conditions, they said, Bloomberg News adds. JBS SA is a multinational food processing company, producing factory processed beef, chicken and pork, and also selling by- products from the processing of these meats. It is headquartered in Sao Paulo. It was founded in 1953 in Anapolis, Goias. The company has 150 industrial plants around the world. * * * As reported in the Troubled Company Reporter-Latin America on April 3, 2014, Fitch Ratings has assigned an expected rating of 'BB-' to proposed benchmark-size senior unsecured notes offering by JBS Investments GmbH. These notes will be unconditionally guaranteed by JBS S.A. and JBS Hungary Holdings Kft. The notes will rank equally in right of payment with all other present and future senior unsecured obligations of the issuer and of the guarantors. ========================== C A Y M A N I S L A N D S ========================== CHESTER GLOBAL: Creditors' Proofs of Debt Due May 27 ---------------------------------------------------- The creditors of Chester Global Strategy SPV Ltd. are required to file their proofs of debt by May 27, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands CHESTER GLOBAL: Shareholders' Final Meeting Set for May 28 ---------------------------------------------------------- The shareholders of Chester Global Strategy SPV Ltd. will hold their final meeting on May 28, 2014, at 11:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands ENHANCED GUARDIAN II: Creditors' Proofs of Debt Due May 27 ---------------------------------------------------------- The creditors of Enhanced Guardian II Fund, Ltd. are required to file their proofs of debt by May 27, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands ENHANCED GUARDIAN II: Shareholders' Final Meeting Set for May 28 ---------------------------------------------------------------- The shareholders of Enhanced Guardian II Fund, Ltd. will hold their final meeting on May 28, 2014, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands FAIRFIELD WILSHIRE: Creditors' Proofs of Debt Due May 27 -------------------------------------------------------- The creditors of Fairfield Wilshire Portable Alpha Fund, Ltd. are required to file their proofs of debt by May 27, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands FAIRFIELD WILSHIRE: Shareholders' Final Meeting Set for May 28 -------------------------------------------------------------- The shareholders of Fairfield Wilshire Portable Alpha Fund, Ltd. will hold their final meeting on May 28, 2014, at 12:30 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands IRONGATE GLOBAL: Creditors' Proofs of Debt Due May 27 ----------------------------------------------------- The creditors of Irongate Global Strategy SPV Ltd. are required to file their proofs of debt by May 27, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands IRONGATE GLOBAL: Shareholders' Final Meeting Set for May 28 ----------------------------------------------------------- The shareholders of Irongate Global Strategy SPV Ltd. will hold their final meeting on May 28, 2014, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands WATER BEARER: Creditors' Proofs of Debt Due May 26 -------------------------------------------------- The creditors of Water Bearer Holdings Ltd. are required to file their proofs of debt by May 26, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands WATER BEARER: Members' Final Meeting Set for June 2 --------------------------------------------------- The members of Water Bearer Holdings Ltd. will hold their final meeting on June 2, 2014, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands =========== M E X I C O =========== CEMEX SAB: Names Fernando Gonzalez as Chief Executive Officer ------------------------------------------------------------- Brendan Case at Bloomberg News reports that CEMEX, S.A.B. de C.V. promoted Chief Financial Officer Fernando Gonzalez to Chief Executive Officer following the death of former CEO Lorenzo Zambrano who died at the age of 70. The company also named Rogelio Zambrano as chairman. "The quick resolution of the succession issue underscores our view that the experienced management team will ensure a smooth transition," Adrian Huerta, an analyst with JPMorgan Chase & Co. who has an overweight recommendation on the cement maker's American depositary receipts, said in a report, according to Bloomberg News. Investors are likely to view Mr. Gonzalez's appointment favorably "given his deep familiarity with the company, his role in guiding Cemex through the global financial crisis and since the appointment of a non-family member represents an important development in Cemex's corporate governance," Mr. Huerta said, Bloomberg News relates. Rogelio Zambrano has been a director since 1987 and is a cousin of Lorenzo Zambrano. Mr. Gonzalez will start his new job immediately. 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 March 27, 2014, Standard & Poor's Ratings Services assigned its 'B+' issue-level rating and a recovery rating of '3' to CEMEX Finance LLC's proposed 10-year benchmark dollar bonds and EUR300 million senior secured notes due 2021. The recovery rating of '3' indicates that bondholders can expect a meaningful (50% to 70%) recovery in the event of a payment default. EMPRESAS ICA: Moody's Assigns B2 Rating on $600MM Senior Notes --------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to the up to $600 million guaranteed senior unsecured notes due in 2019 proposed by Empresas ICA, S.A.B. de C.V. (ICA), and unconditionally and irrevocably guaranteed by CICASA (Constructoras ICA), CONOISA (Controladora de Operaciones de Infraestructuras) and CONEVISA (Controladora de Empresas de Vivienda), the principal operating subsidiaries of ICA. Joint ventures and project companies do not guarantee the notes. The net proceeds from the issuance will be primarily used to repay short term debt and to pay the tender offer for USD 150 million under its USD 350 million global notes due in 2017. The outlook is negative. Assignments: Issuer: Empresas ICA, S.A.B. de C.V. Senior Unsecured Regular Bond/Debenture, Assigned B2 Ratings Rationale ICA's B2 ratings are based on the company's weak credit metrics related to debt leverage and interest coverage as well as weak liquidity. The ratings also factor ICA's high dependence on short term bank debt renewals as well as asset sales to fund operations and committed equity injections to its portfolio of concessions. Supporting ICA's ratings are its leading position in the construction industry in Mexico, its long-term track record of participating in the largest construction and infrastructure projects in the country, and the company's diversified and solid portfolio of concessions in the road, airport, water treatment, and ports, among others, most of which have solid margins and favorable earnings prospects. ICA's liquidity risk is high. The company had about MXN 5 billion in cash as of March 31, 2014, which negatively compares with approximately MXN 10.4 billion in debt maturing in the next 12 months and about MXN 2.1 billion in capex related to committed equity contributions to concessions, which must be funded before the end of 2014. To some extent, the new USD600 million notes will reduce that risk, as net proceeds will be used to repay short term debt and to extend the maturity of a USD 150 million portion of the USD 350 million global notes due in 2017. Pro forma for the issuance, short term maturities will reduce to around USD 6.9 million, out of which around MXN 3.9 million will be related with its construction business and MXN 2.4 million will be at corporate level. ICA's liquidity has historically been influenced by working capital swings related to the construction business. For this purpose, ICA depends on approximately MXN 20 billion in uncommitted revolving credit lines. Somewhat mitigating liquidity risk is ICA's solid banking relationships as well as the additional liquidity that could get from its concessions portfolio. In Moody's most recent estimation, the four most important projects in ICA's portfolio of 17 concessions are worth about MXN 8 billion. The negative outlook on ICA's ratings reflects the current weak operating performance at the construction business given the low number and aggregate peso amount of infrastructure projects sponsored by the Mexican government so far in 2013. The negative outlook also takes into account Moody's belief that upcoming construction projects, when announced, will take some time to materialize in terms of cash inflows to ICA given the lengthy drafting and bidding process usually related to large infrastructure projects. Moodys's could stabilize the outlook in the next 12 to 18 months if there is better visibility about the cash flows from construction business in Mexico, particularly for ICA. Moody's will also consider any additional debt that ICA would choose to raise to participate in new construction projects It is unlikely that ICA's ratings will be upgraded in the next 12 to 18 months. However, if the company's maturing concession portfolio either increase dividends to ICA or is monetized via asset sales, with the proceeds used for significant debt reduction, a positive credit momentum could develop. In this regard, the ratings could be positively affected if the company manages to reduce its consolidated Moody's-adjusted leverage to around 8 times and reported leverage at construction business below 4 times on a sustained basis, while maintaining positive revenue growth. For an upgrade to be considered, ICA's operating margins should be stable and it would have to maintain a backlog sufficient to cover at least 12 months of execution. ICA's ratings could be downgraded if the company's liquidity position worsens with limited prospects for a short-term improvement, if Moody's believe that revenue or margins during the next 12 to 18 months will be weaker than expected, if debt leverage increases further, or if it becomes difficult for the company to renew its revolver credit lines, which fund its working capital needs. Before the action, the last action on ICA was on September 9, 2013 when Moody's confirmed ICA's Corporate Family and the senior unsecured ratings of B2 concluding the review for downgrade initiated in May 17, 2013 and changed the outlook to negative. The principal methodology used in this rating was Global Construction Methodology published in November 2010. Headquartered in Mexico City, ICA is the largest engineering, procurement and construction company in Mexico and the largest provider of construction services to both public and private- sector clients. In the last twelve months ended in March 31, 2014, ICA's revenue as reported and Moody's adjusted EBITDA margin were about USD2.4 billion and 24% respectively. ICA is also the main sponsor in 17 concessions, from toll roads to water treatment plants, among others. FINANCIERA INDEPENDENCIA: S&P Assigns 'B+' Rating to $200MM Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' debt rating to Financiera Independencia S.A.B. de C.V. SOFOM E.N.R.'s (Findep; global scale: B+/Positive/--; CaVal [Mexico] national scale: mxBBB/Positive/mxA-3) up to $200 Million proposed five-year senior unsecured obligations. The 'B+' rating on the notes is the same as the long-term global scale issuer credit rating on Findep, and indicates that the notes will rank equally in right of payment with all of the company's existing and future senior unsecured debt. S&P expects the company to use the proceeds of the issuance to pay the tender offer they announced on May 15, 2014. S&P expects the market to accept at least 80% of the tender offer, in which case, incremental debt would be approximately $34 million. In this scenario, its market debt would continue to be below 70% of the company's total debt. The rating on the notes considers a cross- currency swap (CCS) on the principal and interest during the issuance's term. S&P's ratings on Mexico-based microfinance company Findep reflect its below average (although improving) asset quality metrics compared with those of its rated peers, the highly competitive market in which it operates, its moderate profitability, and the burden of intangibles in its adjusted capitalization. Its good market position and geographic diversification, and satisfactory liquidity risk management continue to support the company's business profile. RATINGS LIST Issuer credit rating Global scale B+/Positive/-- CaVal (Mexico) national scale mxBBB/Positive/mxA-3 Ratings Assigned $200 mil. senior unsecd notes B+ FINANCIERA INDEPENDENCIA: Fitch Rates Proposed USD200MM Notes BB- ----------------------------------------------------------------- Fitch Ratings has assigned an expected rating of 'BB-(EXP)' to Financiera Independencia S.A.B. de C.V., Sofom E.N.R.'s (Findep) proposed issuance of USD200 million of senior unsecured fixed rate notes. The final rating is contingent upon the receipt of final documents to confirm information already received. The notes will mature in 2019 and will carry a fixed interest rate to be set at the time of issuance; interest payments will be made semi-annually until maturity; and principal will be payable at maturity. The notes will be unconditionally and irrevocably guaranteed by two subsidiaries: Financiera Finsol, S.A. de C.V. Sofom E.N.R. (Finsol Mexico) and Apoyo Economico Familiar, S.A. de C.V. Sofom E.N.R. (AEF). Findep intends to use the net proceeds from the issuance: (1) to pay the consideration, fees and expenses for the Tender Offer and Consent Solicitation and accrued and unpaid interest on the 2015 senior notes, (2) to repay certain indebtedness and (3) to the extent any proceeds remain, for general corporate purposes. Key Rating Drivers The expected rating of the notes is at the same level as the entity's long-term foreign currency Issuer Default Rating (IDR) ('BB-'), since these notes are senior unsecured obligations. Findep's ratings are driven by its sound business franchise in the consumer finance sector, and its adequate funding and liquidity positions. The ratings also reflect strategic actions on underwriting and collection processes implemented for unsecured personal lending, later extended to group lending, which resulted in improvements on Findep's portfolio quality, profitability and capitalization. The ratings continue to be constrained by Findep's tight capital ratios, with a tangible equity to tangible assets ratio of 15.2% at the first quarter of 2014 (1Q'14). Findep has not yet compensated the goodwill generated from the acquisitions of AEF and Finsol. In Fitch's opinion, executed strategic changes have enhanced Findep's ability to continue strengthening its financial performance in the foreseeable future. However, Fitch does not anticipate a return on assets (ROA) to historical levels in the near term (over 10%). Still, broad volumes, ample margins and tightened operational policies, together with AEF, AFI (Apoyo Financiero) and Finsol Brazil's good performance and projected growth, could underpin earnings; although increased competition could continue constraining the speed of the recovery. Capital ratios may only recover gradually and converge toward 18% over the next two years. Rating Sensitivities The senior unsecured notes' rating is sensitive to any changes in Findep's IDR. Findep's ratings could be downgraded if: the recently recovered operating ROA weakened to below 2%; the loan charge-off ratio had an unexpected increase above 20%; and/or the tangible equity to tangible assets ratio fell below 12%. A downgrade could also arise from negative changes on its funding profile. Findep's ratings could only benefit from a substantial enhancement of its tangible capital ratios and from a quicker than expected improvement on its overall performance. ===================== P U E R T O R I C O ===================== PUERTO RICO CABLE: Moody's Affirms B2 CFR; Outlook Revised to Neg. ------------------------------------------------------------------ Moody's Investors Service changed the outlook for Puerto Rico Cable Acquisition Company, Inc. (Choice Cable) to negative from stable and affirmed its B2 Corporate Family Rating (CFR). Moody's also assigned a Caa1 rating to its proposed $33.5 million second lien term loan and upgraded the first lien term loan to B1 from B2. The company intends to use proceeds primarily to fund a dividend to its sponsor owners. A summary of the action follows. Corporate Family Rating, Affirmed B2 Probability of Default Rating, Upgraded to B2-PD from B3-PD Second lien term loan, assigned Caa1, LGD6, 93% First lien term loan, upgraded to B1 from B2, LGD adjusted to LGD3, 43% from LGD3, 35% Outlook, Changed To Negative From Stable Ratings Rationale The outlook change incorporates concerns about the increase in leverage given weak economic and demographic trends in Puerto Rico, which Moody's believes will continue to constrain subscriber growth. The proposed transaction would increase leverage to approximately 5.7 times debt-to-EBITDA from 4.8 times. Choice Cable offset lower than expected customer additions with better than expected cost control, resulting in modest revenue growth and strong EBITDA growth over the past year (about 2% and about 10%, respectively, for the twelve months ended February 28). Moody's believes the strong EBITDA margin and reduced capital intensity will facilitate continued positive free cash flow, even with a slight increase in interest expense. The good free cash flow affords the company with flexibility to reduce debt if subscriber trends deteriorate, but the dividend demonstrates an aggressive fiscal policy. Moody's upgraded the first lien term loan to B1 from B2 based on the addition of the second lien term loan, which creates junior capital likely to absorb the first loss in a distress scenario. Moody's also changed the Probability of Default Rating to B2 from B3 and the assumed family recovery to 50% from 65%. Moody's believes a capital structure with both first and second lien debt has a lower probability of default but also lower recovery value for lenders relative to an all first lien debt capital structure. Choice Cable's B2 corporate family rating incorporates its high leverage, estimated at about 5.7 times debt-to-EBITDA pro forma for the transaction, and expectations for operating metrics such as revenue per homes passed and subscriber penetration to remain well below stateside US cable operating peers. The high leverage provides minimal flexibility for managing the weak economic and demographic trends in Puerto Rico, which will likely continue to limit subscriber growth. Geographic concentration and lack of scale also constrain the rating, although the company benefits from the management team's experience running other cable operators, which facilitates better pricing on equipment, services, and programming. Moody's anticipates strong positive free cash flow since capital intensity waned in 2013 to a level Moody's believes sustainable after a period of heavy investment starting in 2009. The combination of EBITDA growth and some debt reduction should lead to leverage in the low 5 times range over the 18 months. Sponsor ownership weighs negatively on the rating; Moody's expects the company to use free cash flow to pay down debt over the next year or so, but beyond that timeframe a re- leveraging event from either incremental distributions or a sale of the company is likely, with timing somewhat dependent on market conditions. The negative outlook reflects the potential for a downgrade if Moody's believes that either operating trends or fiscal policy will result in leverage sustained above 5.5 times debt-to-EBITDA. Lack of growth in high speed data subscribers, an acceleration of video subscriber losses, a material weakening in pricing trends or deterioration of the liquidity profile could also warrant a downgrade. Moody's would consider a stable outlook with expectations for modest revenue and EBITDA growth and positive free cash flow and for leverage to decline to the low 5 times range. Geographic concentration, lack of scale, and the sponsor ownership constrain the rating, and upward ratings momentum is highly unlikely absent a transformative event that meaningfully expanded the company's scale along with a commitment to maintaining a strong credit profile. Puerto Rico Cable Acquisition Company, Inc., operating under the brand name Choice Cable TV, provides video, high speed data, and voice services to approximately 115,000 residential and commercial customers in the southern and western regions of Puerto Rico. Its annual revenue is approximately $85 million, and the company is owned by Spectrum Equity and Patriot Media. Executives from Patriot Media, who run RCN Telecom Services LLC (B2 stable) and Grande Communications Networks LLC (B2 stable), manage Choice Cable. The principal methodology used in these ratings was the Global Pay Television - Cable and Direct-to-Home Satellite Operators published in April 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: New CEO Denies Scraping London Routes --------------------------------------------------------- Verne Burnett at Trinidad and Tobago Newsday reports that Caribbean Airlines on May 20 introduced its new chief executive officer, Canadian Michael DiLollo, at the same time denying claims it had scrapped its London route. In response to intense questioning from journalists at a news conference at the Trinidad Hilton and Conference Centre, St Ann's, Mr. DiLollo insisted there were no "preconceived ideas" about what will or will not happen "until we can validate, assess, analyze and ultimately come up with the decisions," according to Trinidad and Tobago Newsday. Although Finance Minister Larry Howai told Parliament last month the London route was unprofitable, Mr. DiLollo said it would be premature to say whether this was so, the report notes. Mr. DiLollo, the report discloses, said the information about whether the London route was profitable was "something of a proprietary nature" to the airline. Mr. DiLollo said a route analysis was underway. Mr. DiLollo worked for 20 years at Air Transat, described as the leading charter carrier in Canada and Mr. DiLollo held progressively senior executive positions. Mr. DiLollo is a former Airbus 330 captain and a licensed maintenance engineer and has served as a technical training director, flight safety director, flight engineer and training pilot. 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 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. CL FINANCIAL: 'Clico Not Sold Yet,' Finance Minister Says --------------------------------------------------------- Trinidad and Tobago Newsday reports that Finance Minister Larry Howai said there will be no immediate sale of Colonial Life Insurance Company Ltd. (CLICO). Responding to a question sent to him by Newsday prior to the sitting of the Senate, Mr. Howai said, "The sale of the portfolio is not likely to be an immediate event," notes Trinidad and Tobago Newsday. "The Central Bank has indicated that it has to do a valuation which the actuarial firm has been engaged to get done. When this is completed, an evaluation will be done and a decision would be made as to the approach to be taken to effect the Central Bank's objectives," the report quoted Mr. Howai as saying. In a statement, Central Bank Governor Jwala Rambarran said as part of its resolution strategy for Clico, it proposes "to transfer Clico's traditional insurance portfolio for value to an acquiring insurance company that is well capitalised, has a proven track record and the capacity to honor all obligations to policyholders," the report notes. Mr. Rambarran, the report notes, said an "independent actuarial firm has, therefore, been engaged to value Clico's traditional business for this purpose and the exercise is still in progress." Mr. Rambarran said the bank will subsequently "conduct the process for the sale and transfer of Clico's traditional insurance portfolio on a transparent, open market basis," the report relates. Mr. Rambarran stated that the Central Bank "has neither engaged with any prospective buyers nor made any decision on the structure of the portfolio transfer," the report discloses. The Governor said the Central Bank remains committed to pursuing the resolution of Clico in the interest of policyholders and creditors in accordance with requirements of the law, notes the report. Mr. Rambarran said the Central Bank is in control of Clico, pursuant to Section 44D of the Central Bank Act. He recalled this regulatory action started on February 13, 2009, in order to safeguard the interests of policyholders and creditors and to prevent disruption, substantial damage or impairment of our financial system, the report adds. About CLICO International Colonial Life Insurance Company Ltd. (CLICO) is a member of the CL Financial Group. About CL Financial CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 6, 2013, Caribbean360.com said that over TT$8 billion worth of Colonial Life Insurance Company Limited's (CLICO) profitable business will be transferred to Atruis, a new company that will be owned by the state. CLICO is a subsidiary of CL Financial Limited. The Trinidad Express said that the Cabinet approved the transfer as the Finance and General Purposes Committee continues to discuss a letter of intent hammered out by the Ministry of Finance and CL Financial's 400 shareholders, which envisions taxpayers will recover the more than TT$20 billion Government has injected since 2009 to keep CL subsidiary CLICO and other companies afloat, according to Caribbean360.com. Caribbean360.com noted that CLICO financially caved in on itself at the end of 2008 after the investment instruments of major policyholders matured and they wanted hundreds of millions of dollars they were owed. Caribbean360.com related that at its annual general meeting in Sept. 2013, CL Financial shareholders voted to extend the agreement with Government until August 25, 2014, while Cabinet decides on a new framework accord to recover the debt owed to Government through divestment of CL subsidiaries, including Methanol Holdings, Republic Bank, Angostura Holdings, CL World Brands and Home Construction Ltd. Proceeds from the divestment of these assets will go toward Government's recovery of the billions it pumped into CLICO, Caribbean360.com said. *********** 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. 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, and Peter A. Chapman, Editors. Copyright 2014. 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 * * *