/raid1/www/Hosts/bankrupt/TCRLA_Public/100920.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
Monday, September 20, 2010, Vol. 11, No. 185
Headlines
A R G E N T I N A
BI POOL: Creditors' Proofs of Debt Due on February 7
FARMA 365: Creditors' Proofs of Debt Due on November 16
LEAR PRODUCTOS: Creditors' Proofs of Debt Due on November 26
NUEVOS AIRES: Creditors' Proofs of Debt Due on November 24
SHORTCUTS SRL: Creditors' Proofs of Debt Due on October 25
B A R B A D O S
TRIMART INC: Creditors Must Wait Several Months for Money Owed
C A Y M A N I S L A N D S
ABBA PARTNERS: Creditors' Proofs of Debt Due on October 14
ACORN CAPITAL: Creditors' Proofs of Debt Due on October 4
AMS1 LIMITED: Creditors' Proofs of Debt Due on October 13
CERTUS INDEMNITY: Commences Liquidation Proceedings
CERTUS INDEMNITY: Creditors' Proofs of Debt Due on October 4
CORONETS LIMITED: Creditors' Proofs of Debt Due on October 13
CREDIPIA 2005: Creditors' Proofs of Debt Due on October 13
GENEROUS CAPITAL: Creditors' Proofs of Debt Due on October 14
JGB LIMITED: Creditors' Proofs of Debt Due on October 13
LAS OLAS: Creditors' Proofs of Debt Due on September 29
LORRAINE LIMITED: Creditors' Proofs of Debt Due on October 13
MACQUARIE HARBOURSIDE: Creditors' Proofs of Debt Due on October 13
PROTECTED ABSOLUTE: Creditors' Proofs of Debt Due on October 13
ROMAN PTC: Creditors' Proofs of Debt Due on October 8
SAITAMA REVIVAL: Creditors' Proofs of Debt Due on October 13
SPCP HUNGARIAN: Creditors' Proofs of Debt Due on October 8
STEVEN LIMITED: Creditors' Proofs of Debt Due on October 13
YEUNG UK: Creditors' Proofs of Debt Due on October 13
WIN ABSOLUTE: Creditors' Proofs of Debt Due on October 13
WIN ABSOLUTE: Creditors' Proofs of Debt Due on October 13
G U Y A N A
BARAMA COMPANY: Guyana Reopens Timber Factory
M E X I C O
GRUPO FERTINAL: Moody's Assigns 'B2' Corporate Family Rating
P U E R T O R I C O
CARIBE MEDIA: Moody'S Junks Corporate Family Rating From 'B3'
T R I N I D A D & T O B A G O
CL FINANCIAL: To Reveal New Set of Directors Soon
CL FINANCIAL: CLICO Employees Demand Job Assurance
X X X X X X X X
* BOND PRICING: For the Week September 13, to September 17, 2010
- - - - -
=================
A R G E N T I N A
=================
BI POOL: Creditors' Proofs of Debt Due on February 7
----------------------------------------------------
The court-appointed trustee for Bi Pool S.R.L.'s reorganization
proceedings, will be verifying creditors' proofs of claim until
February 7, 2011.
The trustee will present the validated claims in court as
individual reports on March 21, 2011. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
May 2, 2011.
Creditors will vote to ratify the completed settlement plan
during the assembly on June 7, 2011.
FARMA 365: Creditors' Proofs of Debt Due on November 16
-------------------------------------------------------
The court-appointed trustee for Farma 365 S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
November 16, 2010.
LEAR PRODUCTOS: Creditors' Proofs of Debt Due on November 26
------------------------------------------------------------
The court-appointed trustee for Lear Productos Exclusivos S.A.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until November 26, 2010.
The trustee will present the validated claims in court as
individual reports on February 8, 2011. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
March 22, 2011.
NUEVOS AIRES: Creditors' Proofs of Debt Due on November 24
----------------------------------------------------------
The court-appointed trustee for Nuevos Aires S.A.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
November 24, 2010.
The trustee will present the validated claims in court as
individual reports on February 11, 2011. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
March 28, 2011.
SHORTCUTS SRL: Creditors' Proofs of Debt Due on October 25
----------------------------------------------------------
The court-appointed trustee for Shortcuts S.R.L.'s bankruptcy
proceedings, will be verifying creditors' proofs of claim until
October 25, 2010.
The trustee will present the validated claims in court as
individual reports on December 6, 2010. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's
opinion, and the objections and challenges that will be raised by
the company and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of the company's
accounting and banking records will be submitted in court on
February 16, 2011.
===============
B A R B A D O S
===============
TRIMART INC: Creditors Must Wait Several Months for Money Owed
--------------------------------------------------------------
Creditors may have to wait a few months before they get the
substantial sums owed to them, but today's reopening of Trimart
Incorporated's Haggatt Hall supermarket outlet is bound to be a
relief for them, NationNews.com reports.
As reported in the Troubled Company Reporter-Latin America on
September 2, 2010, Nationalnews.com said that Trimart Inc.'s
supermarkets, which were closed by bailiffs on April 27, 2010, are
given the green light to reopen their doors. The report related
that the action taken to close Trimart Inc.'s Haggatt Hall and
Bridge Street supermarkets was as a result of debts totaling over
BM$1.2 million. Over 300 jobs were made redundant following the
closures, the report noted.
According to NationNews.com, President of the Barbados Chamber of
Commerce, Andy Armstrong, and acting president of the Barbados
Agricultural Society, Wendell Clarke, are delighted to see the
Haggatt Hall outlet open its doors for the first time in three
weeks.
"Unless Trimart can trade and bring some money in, they have no
chance of paying off their [more than 300] creditors. So for
those who normally shop at Trimart, I hope you will continue to
support them," the report quoted Mr. Armstrong as saying. The
report relates Mr. Clarke said, "For us to get back any money, we
have to ensure that the doors of Trimart continue to be open so
that we can survive. We will also be looking to ensure that the
kind of credit facilities will be more feasible and practical for
us that we won't find ourselves in a similar situation."
The report notes Mr. Clarke, who is also president of the Barbados
Egg & Poultry Association, acknowledged that the impasse had had
some impact on the cash flow of the small farmers. The report
says that one creditor told the SATURDAY SUN, that Trimart Inc.
had to reevaluate their business structure and streamline their
management team.
Trimart Incorporated owns and manages a supermarket chain in
Barbados.
==========================
C A Y M A N I S L A N D S
==========================
ABBA PARTNERS: Creditors' Proofs of Debt Due on October 14
----------------------------------------------------------
The creditors of Abba Partners are required to file their proofs
of debt by October 14, 2010, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on August 24, 2010.
The company's liquidator is:
Keith Blake
PO Box 493, Grand Cayman KY1-1106
Cayman Islands
c/o David Thacker
Telephone: 345-815-2631
Facsimile: 345-949-7164
P.O. Box 493, Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-949-4800
Facsimile: 345-949-7164
ACORN CAPITAL: Creditors' Proofs of Debt Due on October 4
---------------------------------------------------------
The creditors of Acorn Capital Group (Cayman) Limited are required
to file their proofs of debt by October 4, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on August 31, 2010.
The company's liquidator is:
Ogier
c/o Jo-Anne Maher
Telephone: (345) 815-1762
Facsimile: (345) 949-9877
c/o Ogier 89 Nexus Way
Camana Bay Grand Cayman KY1-9007
Cayman Islands
AMS1 LIMITED: Creditors' Proofs of Debt Due on October 13
---------------------------------------------------------
The creditors of AMS1 Limited are required to file their proofs of
debt by October 13, 2010, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on September 2,
2010.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
PO Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
Grand Cayman KY1-1104
Cayman Islands
CERTUS INDEMNITY: Commences Liquidation Proceedings
---------------------------------------------------
Certus Indemnity Company, Ltd commenced liquidation proceedings on
August 31, 2010.
The company's liquidators are:
Christopher D. Johnson
Russell Smith
Johnson Smith Associates Ltd
Elizabethan Square
80 Shedden Road, PO Box 2499
Grand Cayman, KY1-1104
Cayman Islands
CERTUS INDEMNITY: Creditors' Proofs of Debt Due on October 4
------------------------------------------------------------
The creditors of Certus Indemnity Company, Ltd are required to
file their proofs of debt by October 4, 2010, to be included in
the company's dividend distribution.
The company's liquidator is:
Christopher D. Johnson
c/o Russell Homer
Telephone: (345) 946-0820
Facsimile: (345) 946-0864
PO Box 2499, George Town KY1-1104 Grand Cayman
Cayman Islands
CORONETS LIMITED: Creditors' Proofs of Debt Due on October 13
-------------------------------------------------------------
The creditors of Coronets Limited are required to file their
proofs of debt by October 13, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on September 2,
2010.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
PO Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
Grand Cayman KY1-1104
Cayman Islands
CREDIPIA 2005: Creditors' Proofs of Debt Due on October 13
----------------------------------------------------------
The creditors of Credipia 2005 Plus Two International Limited are
required to file their proofs of debt by October 13, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on August 31, 2010.
The company's liquidator is:
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
GENEROUS CAPITAL: Creditors' Proofs of Debt Due on October 14
-------------------------------------------------------------
The creditors of Generous Capital Azabu Nagasaka are required to
file their proofs of debt by October 14, 2010, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on September 3,
2010.
The company's liquidator is:
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
JGB LIMITED: Creditors' Proofs of Debt Due on October 13
--------------------------------------------------------
The creditors of JGB Limited are required to file their proofs of
debt by October 13, 2010, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on September 2,
2010.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
PO Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
Grand Cayman KY1-1104
Cayman Islands
LAS OLAS: Creditors' Proofs of Debt Due on September 29
-------------------------------------------------------
The creditors of Las Olas Vector Fund, Ltd. are required to file
their proofs of debt by September 29, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on September 1,
2010.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
JAPF
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647; OR
c/o Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
Harbour Centre, 42 North Church Street
P.O. Box 1348, George Town Grand Cayman KY1-1108
Cayman Islands
LORRAINE LIMITED: Creditors' Proofs of Debt Due on October 13
-------------------------------------------------------------
The creditors of Lorraine Limited are required to file their
proofs of debt by October 13, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on September 2,
2010.
The company's liquidator is:
Marc Randall
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
MACQUARIE HARBOURSIDE: Creditors' Proofs of Debt Due on October 13
------------------------------------------------------------------
The creditors of Macquarie Harbourside Asset Management are
required to file their proofs of debt by October 13, 2010, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on September 2,
2010.
The company's liquidator is:
Marc Randall
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
PROTECTED ABSOLUTE: Creditors' Proofs of Debt Due on October 13
---------------------------------------------------------------
The creditors of Protected Absolute Alpha Ltd. are required to
file their proofs of debt by October 13, 2010, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on September 3,
2010.
The company's liquidator is:
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
ROMAN PTC: Creditors' Proofs of Debt Due on October 8
-----------------------------------------------------
The creditors of Roman PTC Ltd. are required to file their proofs
of debt by October 8, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on September 2, 2010.
The company's liquidator is:
Richard Finlay
c/o Krysten Lumsden
Telephone: (345) 814 7366
Facsimile: (345) 945 3902
P.O. Box 2681, Grand Cayman KY1-1111
Cayman Islands
SAITAMA REVIVAL: Creditors' Proofs of Debt Due on October 13
------------------------------------------------------------
The creditors of Saitama Revival Fund Limited are required to file
their proofs of debt by October 13, 2010, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on September 2,
2010.
The company's liquidator is:
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
SPCP HUNGARIAN: Creditors' Proofs of Debt Due on October 8
----------------------------------------------------------
The creditors of SPCP Hungarian Holdings Ltd. are required to file
their proofs of debt by October 8, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on September 2, 2010.
The company's liquidator is:
Ogier
c/o Mark Santangeli
Telephone: (345) 949-9876
Facsimile: (345) 949-9877
c/o Ogier 89 Nexus Way
Camana Bay Grand Cayman KY1-9007
Cayman Islands
STEVEN LIMITED: Creditors' Proofs of Debt Due on October 13
-----------------------------------------------------------
The creditors of Steven Limited are required to file their proofs
of debt by October 13, 2010, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on September 2,
2010.
The company's liquidator is:
Jess Shakespeare
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
YEUNG UK: Creditors' Proofs of Debt Due on October 13
-----------------------------------------------------
The creditors of Yeung UK No. 1 are required to file their proofs
of debt by October 13, 2010, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on August 26, 2010.
The company's liquidator is:
Marc Randall
c/o Maples Finance Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
WIN ABSOLUTE: Creditors' Proofs of Debt Due on October 13
---------------------------------------------------------
The creditors of Win Absolute Return Fund Limited are required to
file their proofs of debt by October 13, 2010, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on September 2, 2010.
The company's liquidator is:
Anishinder Grewal
Charles Lee
Telephone: +44 (0)1534 700 864
Facsimile: +44 (0)1534 700 800
Walkers Walker House
28-34 Hill Street St Helier
Channel Islands, JE4 8PN
WiN Asset Management LLP City Point
1 Ropemaker Street London EC2Y 9HT
United Kingdom
WIN ABSOLUTE: Creditors' Proofs of Debt Due on October 13
---------------------------------------------------------
The creditors of Win Absolute Return Master Fund Limited are
required to file their proofs of debt by October 13, 2010, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on September 2, 2010.
The company's liquidator is:
Anishinder Grewal
Charles Lee
Telephone: +44 (0)1534 700 864
Facsimile: +44 (0)1534 700 800
Walkers Walker House
28-34 Hill Street St Helier
Channel Islands, JE4 8PN
WiN Asset Management LLP City Point
1 Ropemaker Street London EC2Y 9HT
United Kingdom
===========
G U Y A N A
===========
BARAMA COMPANY: Guyana Reopens Timber Factory
---------------------------------------------
Guyana officials have allowed Barama Company Limited's timber
factory to reopen because it has agreed to update safety measures
after a worker's death, The Associated Press reports. The report
relates Labor Minister Manzoor Nadir said that Barama Company will
install security cameras and back-up switches to turn off machines
in case of emergencies.
As reported in the Troubled Company Reporter-Latin America on
September 10, 2010, the AP said that Guyana officials have ordered
the closure of Barama Company's timber factory after the death of
a worker, Jason Fraser, on September 2, 2010, and two recent fatal
accidents. The report related Labor Minister Manzoor Nadir said
that the Barama factory will remain closed until authorities
determine how a worker found near a veneer-cutting machine died.
The AP says that police are still investigating Mr. Fraser's
death.
About Barama Company
Headquartered in Malaysia, Barama Company Limited owns a timber
factory located in the western region of Guyana. The company has
a concession of 1.6 million hectares.
===========
M E X I C O
===========
GRUPO FERTINAL: Moody's Assigns 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has assigned a B2 Corporate Family
Rating to Grupo Fertinal, S.A. de C.V., as well as a B2 rating on
its US$200 million of senior secured notes due 2015. Proceeds
from the transaction will be used to repay a US$180 million bridge
loan and partially finance capital expenditures and support
working capital needs. The bridge loan is being used to reacquire
assets from its former creditors and satisfy all other obligations
associated with its bankruptcy. The rating outlook is stable.
Ratings assigned:
Grupo Fertinal, S.A. de C.V.
* Corporate Family Rating -- B2
* US$200 million senior secured notes due 2015 -- B2
Ratings Rationale
Fertinal's B2 CFR reflects the narrow and commodity nature of its
product line, single site production capabilities and a limited
operating history since restarting operations in 2007 after filing
for bankruptcy. The ratings are supported by the company's
vertical integration into phosphate rock production and Moody's
positive view of the agricultural sector due to the anticipated
strong global demand for food and focus on crop yields. The
ratings are further constrained by Moody's concerns over the
company's short-term liquidity given Fertinal's current absence of
committed or uncommitted bank credit lines. The ratings also take
into consideration the assumption that the company will execute
all of the transactions necessary to reacquire all of its assets
and satisfy all the claims related to it's the bankruptcy
proceedings.
Following the placement of the senior secured notes, the company
is expected to have strong financial metrics for the rating
category if it is successful in executing its business plan. The
strong projected credit metrics are mitigated by the fact that the
company still faces operational issues as it attempts to ramp up
its production to full capacity and by the lack of a sustained
track record with customers and expanding sales into new markets
since it restarted operations in 2007. The company expects to
reach full capacity by the second half of 2011. In addition, the
company appears to be a higher cost producer due to the nature of
their phosphate ore deposits (narrow ore seam mined underground)
versus other lower cost mines that are surface mined. Fertinal's
vertical integration into phosphate is a positive as it allows the
company to secure a steady supply of phosphate rock while having
the ability to capture greater profit margins and weather global
commodity price swings.
The stable outlook reflects Moody's positive view of the
fertilizer industry, but is tempered by Moody's concerns over the
company's limited operating history, potential operating hurdles
to achieving its business plan goals and liquidity. New low cost
phosphate capacity in the Middle East (starting in late 2011) and
Peru could also pressure industry margins. There could be
negative pressure on the ratings if Fertinal is unable to put in
place bank lines to support its liquidity position or if it does
not successfully execute its business plan.
This is Moody's initial rating action for Grupo Fertinal, S.A. de
C.V.
Grupo Fertinal, S.A. de C.V. produces various phosphate and
nitrogen-based fertilizers and related industrial products (LDAN,
phosphoric acid, sulfuric acid, nitric acid). The company has a
fertilizer production complex in an industrial complex at the port
of Lazaro Cardenas, Michoacan (west coast of Mexico) and a
phosphate mine in San Juan de la Costa, Baja California Sur that
supplies all of its needs. Fertinal restarted its operations in
2007 after Hurricane Juliette flooded the mine in 2001 and led the
company to file for bankruptcy protection. Fertinal had revenues
of approximately MXN5.1 billion (almost US$400 million) for the
twelve months ended June 30, 2010.
====================
P U E R T O R I C O
====================
CARIBE MEDIA: Moody'S Junks Corporate Family Rating From 'B3'
-------------------------------------------------------------
Moody's Investors Service downgraded Caribe Media, Inc.'s ratings,
including its Corporate Family Rating to Caa2 from B3, Probability
of Default Rating to Caa3 from B3, and associated instrument
ratings as detailed below. The rating actions follow the
September 8, 2010 announcement by the company that it had engaged
a financial advisor to evaluate the capital structure of its
parent holding company, Local Insight Media Holdings, Inc., and
broadly reflect Moody's view that the company is likely to default
on a more imminent basis given persistently difficult business
conditions and ensuing high financial leverage, as now exacerbated
by tightening financial covenants. In a distress scenario,
Moody's estimate ultimate recovery prospects in the range of 60%-
70% of (principally) debt claims, with subordinated debt absorbing
most of the loss severity. The one-notch downgrade of the senior
secured debt rating to B3 principally reflects the increased risk
of default, partially offset by the above-average anticipated
firm-wide recovery expectation and comparatively favorable
position of senior secured debt holders (note specifically the
reduced loss given default estimate) relative to more junior
subordinated debt holders. This completes the review for possible
downgrade initiated on September 9, 2010.
Downgrades:
Issuer: Caribe Media, Inc.
* Corporate Family Rating, Downgraded to Caa2 from B3
* Probability of Default Rating, Downgraded to Caa3 from B3
* Senior Secured Revolver due 2012, Downgraded to B3, LGD2-16%
from B2, LGD3-35%
* Senior Secured Term Loan due 2013, Downgraded to B3, LGD2-16%
from B2, LGD3-35%
Outlook Actions:
Issuer: Caribe Media, Inc.
* Outlook, Negative
Moody's does not rate Caribe's US$50.6 million (includes PIK
accretion) of subordinated notes due 2014, which are held entirely
by its primary shareholder Welsh, Carson, Anderson & Stowe.
Ratings Rationale
Caribe's Caa2 CFR reflects the company's small size and high
leverage in the face of declining demand for yellow pages
advertising from small and medium-sized businesses in Puerto Rico.
The ratings also reflect the company's high leverage with 5.2x
total debt-to-EBITDA as of June 30, 2010 (incorporating Moody's
standard adjustments). Through the six months ended June 30,
2010, revenues declined 7% to US$50 million while EBITDA fell 25%
to US$17.1 million (34% margin) due to weak advertising demand in
a soft economy, primarily in Puerto Rico, and an increase in bad
debt expense. In the same six months of 2009, Caribe generated
US$22.7 million of EBITDA with 42% margins. Moody's expect
continued weak demand for core yellow pages products and services
over the next twelve months.
Liquidity is expected to be constrained as Caribe reported
US$1.8 million of cash at June 30, 2010 and, in a scenario in
which financial covenants are violated, it would no longer have
access to US$7 million of availability on its US$10 million
revolver (excludes US$3 million of unfunded commitments from a
subsidiary of Lehman Commercial Bank). In a default scenario,
Caribe would eliminate dividends and apply available cash to
reduce debt balances as leverage ratio covenants become more
restrictive with quarterly step-downs through March 2011.
Although the company had built up cash balances through 1Q09,
dividends totaling US$29.9 million by year end 2009 notably
eliminated this liquidity cushion. In the absence of term loan
prepayments, debt balances would continue to increase as accruing
subordinated PIK debt of approximately US$6 million per year more
than offsets the US$1.5 million of scheduled annual amortization
on the term loans. In a restructuring, Moody's would expect a
good portion of the subordinated notes to be equitized.
Caribe is one of three operating groups under the LIMH parent
holding company. The two other operating groups, Local Insight
Media Regatta Holdings, Inc. (Ca, as revised, also with a negative
rating outlook) and Local Insight Media Finance, LLC (Baa3, on
review for downgrade), are also highly leveraged entities with
declining revenue prospects, neither of which are in a position to
provide needed liquidity to Caribe. Moody's estimate that total
debt for the consolidated entities exceeds US$1.8 billion with
reported debt-to-reported EBITDA of more than 7.5x for the
consolidated entity. Although debt facilities at Caribe are
legally separate from its affiliates and do not cross default to
debt instruments issued by affiliates, Moody's view is that
management, together with its advisors, may address its
refinancing strategy at a consolidated level given reliance on
intercompany dividends and affiliate management fees.
"The negative outlook reflects Moody's view that Caribe's capital
structure is unsustainable, liquidity is constrained, and demand
for the company's core yellow pages advertising products,
particularly in its Puerto Rico markets, is in decline, making it
increasingly likely that the company will default on its financial
covenants in the near term," stated Carl Salas, Vice President at
Moody's Investors Service.
A rating upgrade is deemed unlikely in the absence of an equity
injection to reduce debt levels to a more sustainable level and
more comfortably within compliance of financial maintenance
covenants. Moody's would downgrade ratings if revenue or EBITDA
were to decline below Moody's expectations or if the company were
to exchange debt securities at sub-par values.
Moody's last rating on Caribe occurred on June 23, 2009, when it
downgraded the CFR and PDR, each to B3, and downgraded associated
instrument ratings in addition to changing the outlook to
negative. On September 9, 2010, Moody's placed all ratings on
review for possible downgrade.
Caribe's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and the competitive position of the company
versus others in its industry, ii) the capital structure and the
financial risk of the company, iii) the projected financial and
operating performance of the company over the near-to-intermediate
term, and iv) management's track record and tolerance of risk.
These attributes were compared against other issuers both within
and outside of Caribe's core industry and Caribe's ratings are
believed to be comparable to those of other issuers of similar
credit risk.
Caribe Media, Inc., based in Puerto Rico, owns directory
publishing operating subsidiaries in two Caribbean nations. In
Puerto Rico, Caribe owns 60% of Axesa Servicios de Informacion S.
en C. and Axesa Servicios de Informacion Inc., and in the
Dominican Republic Caribe owns 100% of Caribe Servicios de
Informacion Dominicana S.A. The company reported revenues of
approximately US$102 million for the LTM period ended June 30,
2010. The company is an indirect, wholly-owned subsidiary of
Local Insight Media Holdings, Inc. whose primary owner is Welsh,
Carson, Anderson & Stowe.
===============================
T R I N I D A D & T O B A G O
===============================
CL FINANCIAL: To Reveal New Set of Directors Soon
-------------------------------------------------
The CL Financial Limited will reveal a new set of board directors
soon, The Guardia reports. The report relates that businessman
George Nicholas III, the son of property tycoon Issa Nicholas, is
tipped to be the new chairman the company.
According to the report, economist Indira Sagewan-Ali, attorney
Guy Hannays and former Citibank executive Steve Bideshi have been
appointed to serve as the CL Financial directors.
As reported in the Troubled Company Reporter-Latin America on
April 20, 2010, Trinidad & Tobago's Newsday said that Marlon
Holder has been appointed as CL Financial's Chief Executive
Officer and Managing Director to replace Dr. Euric Bobb who cited
"personal reasons" for his departure.
The Guardian notes that this will be the second stint for Mr.
Bideshi, who also serves as an advisor to Finance Minister Winston
Dookeran, at CL Financial. The report relates for Mr. Bideshi was
recruited for the post of chief executive of CL Financial under
the PNM administration but resigned on January 12 after six months
on the job.
In July, the report notes, Mr. Holder had presented a five-year
plan for CL Financial shareholders to turn around the financially
strapped company. The report relates that the plan, which is now
in the hands of the People's Partnership Government, was expected
to turn around the company in two to three years.
CL Financial has 325 registered shareholders.
About CL Financial
CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago. Founded as an insurance company, Colonial Life
Insurance Company by Cyril Duprey, it 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
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to "ccc"
from "bb" of Colonial Life Insurance Company (Trinidad) Limited
(CLICO) (Trinidad & Tobago). The ratings remain under review with
negative implications. CLICO is an insurance member company of CL
Financial Limited (CL Financial), a diversified holding company
based in Trinidad & Tobago.
According to a TCRLA report on Feb. 20, 2009, citing Trinidad and
Tobago Express, Tobago President George Maxwell Richards signed
bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis
CL FINANCIAL: CLICO Employees Demand Job Assurance
--------------------------------------------------
Colonial Life Insurance Company (Trinidad) Limited employees
protested outside the Red House in Port of Spain Thursday
demanding an assurance from the government that they will not
suffer the same fate as former CLICO Investment Bank (CIB)
employees, Trinidad Express reports. CLICO is a unit of CL
Financial Limited.
According to the report, Banking, Insurance and General Workers
Union (BIGWU) President Vincent Cabrera said that more than 100
workers who were sent home from CIB were yet to receive severance
pay. "We are demanding, with all this money that the government
spending in CLICO, that they pay (CIB) workers severance," the
report quoted Mr. Cabrera as saying. "We want the government to
call in the union and give us an assurance that workers in CLICO,
that their jobs will be secure. If we are not careful what could
happen is that CLICO workers could end up just like the CIB
workers -- on the breadline without any money whatsoever," he
added.
CLICO employees told the Express that they felt neglected as
attention was being given to shareholders but there was no
information about what would happen to them. "In the budget we
just heard talk about British American and the CLICO merger. In
any other merger you hear about jobs being sacrificed. We want to
know what is our position and we want to know who is being
sacrificed," the report quoted employee Ricardo Modeste as saying.
The report relates Roxanne Cuffy, president of the CLICO branch of
the BIGWU, said that she was concerned that nothing was said about
the future of the employees at the company but applauded Minister
of Finance Winston Dookeran's promise to hold those responsible
for the crisis accountable.
About CL Financial
CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago. Founded as an insurance company, Colonial Life
Insurance Company by Cyril Duprey, it 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$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to "ccc"
from "bb" of Colonial Life Insurance Company (Trinidad) Limited
(CLICO) (Trinidad & Tobago). The ratings remain under review with
negative implications. CLICO is an insurance member company of CL
Financial Limited (CL Financial), a diversified holding company
based in Trinidad & Tobago.
According to a TCRLA report on Feb. 20, 2009, citing Trinidad and
Tobago Express, Tobago President George Maxwell Richards signed
bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis
===============
X X X X X X X X
===============
* BOND PRICING: For the Week September 13, to September 17, 2010
----------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
ALTO PALERMO SA 11 6/11/2012 USD 42.5
ARGENT- DIS 5.83 12/31/2033 ARS 33
ARGENT-$DIS 8.28 12/31/2033 USD 60
ARGENT-PAR 1.18 12/31/2038 ARS 76
ARGENT-?DIS 7.82 12/31/2033 EUR 69.5
ARGENT-?DIS 7.82 12/31/2033 EUR 67
ARGENT-DIS 4.33 12/31/2033 JPY 42
ARGENT-PAR&GDP 0.45 12/31/2038 JPY 8
BANCO MACRO SA 10.75 6/7/2012 USD 71.627044
BOGAR 2018 2 2/4/2018 ARS 34.65
MENDOZA PROVINCE 5.5 9/4/2018 USD 81.176064
BRAZIL
CESP 9.75 1/15/2015 BRL 73.333317
CAYMAN ISLAND
BANCO BPI (CI) 4.15 11/14/2035 EUR 67.789
BANIF FIN LTD 3 12/31/2019 EUR 56.25
BARION FUNDING 0.63 12/20/2056 GBP 18.48022
BARION FUNDING 1.44 12/20/2056 GBP 32.394386
BCP FINANCE CO 4.239 EUR 68.991667
BCP FINANCE CO 5.543 EUR 71.339286
BES FINANCE LTD 6.984 2/7/2035 EUR 63.51073
BES FINANCE LTD 5.58 EUR 68.964262
CHINA MED TECH 4 8/15/2013 USD 74.5
CHINA SUNERGY 4.75 6/15/2013 USD 72.25
DUBAI HLDNG COMM 6 2/1/2017 GBP 69.35375
EFG ORA FUNDING 1.7 10/29/2014 EUR 66.759
ESFG INTERNATION 5.753 EUR 70.208333
FERTINITRO FIN 8.29 4/1/2020 USD 66.79
INDEPENDENCIA IN 12 12/30/2016 USD 8.25
INDEPENDENCIA IN 15 3/31/2015 USD 55.5
MAZARIN FDG LTD 1.44 9/20/2068 GBP 29.668924
PUBMASTER FIN 6.962 6/30/2028 GBP 71.219
SHINSEI FIN CAYM 6.418 USD 64.660673
SHINSEI FINANCE 7.16 USD 65.0625
SHINSEI FINANCE 7.16 USD 65.375
AGUAS NUEVAS 3.4 5/15/2012 CLP 1.2187
ESVAL S.A. 3.8 7/15/2012 CLP 50.280285
PUERTO RICO
PUERTO RICO CONS 6.5 4/1/2016 USD 51
VENEZUELA
PETROLEOS DE VEN 5.5 4/12/2037 USD 43.120571
PETROLEOS DE VEN 5.375 4/12/2027 USD 43.697074
PETROLEOS DE VEN 5.125 10/28/2016 USD 51.137797
PETROLEOS DE VEN 5 10/28/2015 USD 54.111671
PETROLEOS DE VEN 5.25 4/12/2017 USD 54.759473
PETROLEOS DE VEN 4.9 10/28/2014 USD 59.618757
VENEZUELA 7 3/31/2038 USD 50.86
VENEZUELA 7 3/31/2038 USD 51
VENEZUELA 6 12/9/2020 USD 52.75
VENEZUELA 7.65 4/21/2025 USD 55.5
VENEZUELA 8.25 10/13/2024 USD 58.25
VENEZUELA 7 12/1/2018 USD 59.75
VENEZUELA 7.75 10/13/2019 USD 60.5
VENEZUELA 9.25 5/7/2028 USD 61.5
VENEZUELA 9 5/7/2023 USD 62.25
VENEZUELA 5.75 2/26/2016 USD 63.75
VENEZUELA 9.25 9/15/2027 USD 67.09
VENEZUELA 9.25 9/15/2027 USD 67
VENZOD - 189000 9.375 1/13/2034 USD 61.5
***********
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., Frederick,
Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C.
Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2010. 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$625 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 Christopher Beard at 240/629-3300.
* * * End of Transmission * * *