/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110217.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, February 17, 2011, Vol. 12, No. 34 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Owner Moved From Houston Prison B R A Z I L INDEPENDENCIA SA: May Liquidate as Creditors Reject Rescue Plan C A Y M A N I S L A N D S ABN AMRO MANAGEMENT: Creditors' Proofs of Debt Due March 4 ABN AMRO NOMINEES: Creditors' Proofs of Debt Due March 4 ALPINE PROPERTIES: Creditors' Proofs of Debt Due February 21 AR ASIA: Creditors' Proofs of Debt Due July 30 ASIA SPECIAL: Creditors' Proofs of Debt Due February 22 CABLE INVESTMENT: Creditors' Proofs of Debt Due March 1 CARMEL INVESTMENT: Creditors' Proofs of Debt Due February 21 CARTESIUS ADVISORS: Creditors' Proofs of Debt Due March 3 CAYMAN STANDARD: Commences Liquidation Proceedings CAYMAN STANDARD: Commences Liquidation Proceedings CHESTER GLOBAL: Creditors' Proofs of Debt Due March 3 CORP ONE: Creditors' Proofs of Debt Due February 21 CORP TWO: Creditors' Proofs of Debt Due February 21 ENERGY FLOWINVEST: Commences Liquidation Proceedings FIRST HONG KONG: Creditors' Proofs of Debt Due March 4 FLOWINVEST FUNDING: Commences Liquidation Proceedings FUEL FLOWINVEST: Commences Liquidation Proceedings GAS FLOWINVEST: Commences Liquidation Proceedings ICP STRATEGIC: Placed Under Voluntary Wind-Up INVESTCORP HAWKSTONE: Creditors' Proofs of Debt Due March 3 MENTUM FUND: Creditors' Proofs of Debt Due March 3 OIL FLOWINVEST: Commences Liquidation Proceedings PETRO FLOWINVEST: Commences Liquidation Proceedings PLANETON GP: Creditors' Proofs of Debt Due February 28 POPLAR HOLDINGS: Creditors' Proofs of Debt Due February 23 RUHRAL DEAL: Creditors' Proofs of Debt Due March 1 TRANS PACIFIC: Appoints Cleaver and Silivia as Liquidators YAGUARETE FORESTS: Creditors' Proofs of Debt Due February 21 YAGUARETE FORESTS: Creditors' Proofs of Debt Due February 21 YAGUARETE FORESTS: Creditors' Proofs of Debt Due February 21 J A M A I C A * JAMAICA: National Debt Continues to Rise M E X I C O INVERSIONES ALSACIA: Fitch Changes Rating on Senior Bonds to 'BB' MEXICANA AIRLINES: In Talks With IATA to Rejoin Systems T R I N I D A D & T O B A G O HINDU CREDIT UNION: Seeks to Block Firm Inquiry X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Owner Moved From Houston Prison ----------------------------------------------- L.M. Sixel at Houston Chronicle reports that Stanford International Bank Limited owner Robert Allen Stanford, ruled incompetent to stand trial because of addiction to drugs he's received while in federal custody, is being moved from Houston to a different detention facility. Traci Billingsley, spokeswoman for the Federal Bureau of Prisons in Washington, confirmed that Mr. Stanford has left the federal detention center in downtown Houston, according to Houston Chronicle. As reported in the Troubled Company Reporter-Latin America on January 28, 2011, The Wall Street Journal said that Judge Hittner found Mr. Stanford incompetent to stand trial following conclusions by three psychiatrists that Mr. Stanford is mentally impaired. According to The Wall Street Journal, the decision by Judge Hittner means Mr. Stanford's trial, originally scheduled to begin this month, could be delayed at least through the second half of the year. The report disclosed that Mr. Stanford's condition, according to the experts, has deteriorated since he was incarcerated in mid-2009 due to a combination of factors, including a head injury suffered in a confrontation with another inmate, a major depressive disorder and excessive medication for anxiety and depression, to which he has become addicted. About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, 2009, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was also pursued against Mr. Stanford in June 2009 before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342 (S.D. Tex.). The civil case is SEC v. Stanford International Bank, 09-cv-00298 (N.D. Tex.). =========== B R A Z I L =========== INDEPENDENCIA SA: May Liquidate as Creditors Reject Rescue Plan --------------------------------------------------------------- Lucia Kassai at Bloomberg News reports that Independencia SA may liquidate after the majority of its creditors rejected a rescue plan. The plan "didn't obtain minimum adhesion from creditors," the company's lawyer Luiz Fernando Paiva said at a meeting with about 130 representatives of creditors in Sao Paulo, according to Bloomberg. The company will seek to sell all its meatpacking plants and assets in an "organized liquidation," he revealed. Bloomberg recounts that Independencia SA, which filed for bankruptcy protection in February 2009 then halted production in October 2010, backed the rescue plan as a way to avoid forced liquidation. Bloomberg relates that on Sept. 30, the company missed an interest payment on its 2015 senior notes. It was due to pay about US$12 million on US$165 million of its 15% bonds, according to data compiled by Bloomberg. Bloomberg notes that the plan presented Jan. 31 to creditors by Alfredo Chang, representative of potential investors, proposed swapping 2016 bonds for convertible debt and included a 60-month grace period on 2015 bond payments. The proposal also included creating a new company, as well as delaying bank-loan payments by 40 months and cattle-rancher debt payments by 24 months, Bloomberg discloses. "If creditors don't approve the proposal, then we would probably see a case of forced liquidation," Mr. Paiva told reporters, Bloomberg notes. Creditors are set to reconvene on March 3 to vote on the liquidation. About Independencia SA Independencia SA -- http://www.independencia.com.br/-- is Brazil's fourth largest meat exporter. It filed for bankruptcy protection in 2010, after the global economic crisis caused exports to slump. Independencia S.A. filed its Chapter 15 petition on March 27, 2009 (Bankr. S.D. N.Y., Case No. 09-10903). Paul R. DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP, is the Debtor's counsel. * * * As reported in the Troubled Company Reporter-Latin America on October 4, 2010, Fitch Ratings downgraded Independencia S.A's local and foreign currency issuer default rating to 'D' from 'C'; and National scale rating to 'D(bra)' from 'C(bra)'. =========================== C A Y M A N I S L A N D S =========================== ABN AMRO MANAGEMENT: Creditors' Proofs of Debt Due March 4 ---------------------------------------------------------- The creditors of ABN Amro Management (Cayman) Limited are required to file their proofs of debt by March 4, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 13, 2011. The company's liquidator is: Richard E.L. Fogerty c/o Iain Gow Zolfo Cooper (Cayman) Limited P.O. Box 1102, Grand Cayman KY1-1102 Cayman Financial Centre, 4th Floor, Building 3 Cayman Islands Telephone: +1 (345) 946-0081 Facsimile: +1 (345) 946-0082 e-mail: iain.gow@zolfocooper.ky ABN AMRO NOMINEES: Creditors' Proofs of Debt Due March 4 -------------------------------------------------------- The creditors of ABN Amro Nominees (Cayman) Limited are required to file their proofs of debt by March 4, 2011, be included in the company's dividend distribution. The company commenced liquidation proceedings on January 13, 2011. The company's liquidator is: Richard E.L. Fogerty c/o Iain Gow Zolfo Cooper (Cayman) Limited P.O. Box 1102, Grand Cayman KY1-1102 Cayman Financial Centre, 4th Floor, Building 3 Cayman Islands Telephone: +1 (345) 946-0081 Facsimile: +1 (345) 946-0082 e-mail: iain.gow@zolfocooper.ky ALPINE PROPERTIES: Creditors' Proofs of Debt Due February 21 ------------------------------------------------------------ The creditors of Alpine Properties Ltd. are required to file their proofs of debt by February 21, 2011, be included in the company's dividend distribution. The company commenced liquidation proceedings on January 12, 2011. The company's liquidator is: William L. Nash III c/o Alan G. de Saram Telephone: 949-4544 Facsimile: 949-8460 Charles Adams Ritchie & Duckworth Zephyr House, 122 Mary Street P.O. Box 709, Grand Cayman, KY1-1107 Cayman Islands AR ASIA: Creditors' Proofs of Debt Due July 30 ---------------------------------------------- The creditors of AR Asia Select Fund are required to file their proofs of debt by July 30, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 18, 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 ASIA SPECIAL: Creditors' Proofs of Debt Due February 22 ------------------------------------------------------- The creditors of Asia Special Situations GJP1 Limited are required to file their proofs of debt by February 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on January 17, 2011. 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 CABLE INVESTMENT: Creditors' Proofs of Debt Due March 1 ------------------------------------------------------- The creditors of Cable Investment Management Ltd are required to file their proofs of debt by March 1, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 15, 2010. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands CARMEL INVESTMENT: Creditors' Proofs of Debt Due February 21 ----------------------------------------------------------- The creditors of Carmel Investment Fund are required to file their proofs of debt by February 21, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 31, 2010. The company's liquidator is: Robert Smith c/o Alan G. de Saram Telephone: 949-4544 Facsimile: 949-8460 Charles Adams Ritchie & Duckworth Zephyr House, 122 Mary Street P.O. Box 709, Grand Cayman, KY1-1107 Cayman Islands CARTESIUS ADVISORS: Creditors' Proofs of Debt Due March 3 --------------------------------------------------------- The creditors of Cartesius Advisors GP Ltd are required to file their proofs of debt by March 3, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 31, 2010. The company's liquidator is: Niall Goodsir-Cullen c/o Russell Homer Telephone: (345) 946-0820 Facsimile: (345) 946-0864 P.O. Box 2499, George Town KY1-1104 Grand Cayman Cayman Islands CAYMAN STANDARD: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on December 31, 2010, the members of Cayman Standard Corporate Services Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by February 14, 2011, will be included in the company's dividend distribution. The company's liquidator is: Troy M. R. Jacob Telephone: (345) 926-1100 c/o P.O. Box 2758 103 Carmen Blvd, Grand Cayman KY1-1111 Cayman Islands CAYMAN STANDARD: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on December 31, 2010, the members of Cayman Standard Corporate Services Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Troy M. R. Jacob Telephone: (345) 926-1100 c/o PO Box 2758, 103 Carmen Blvd Grand Cayman KY1-1111 Cayman Islands CHESTER GLOBAL: Creditors' Proofs of Debt Due March 3 ----------------------------------------------------- The creditors of Chester Global Emerging Markets Fund Ltd. are required to file their proofs of debt by March 3, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 14, 2011. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258, Grand Cayman KY1-1104 Cayman Islands CORP ONE: Creditors' Proofs of Debt Due February 21 --------------------------------------------------- The creditors of Corp One, Ltd. are required to file their proofs of debt by February 21, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 31, 2010. The company's liquidator is: Jon Edward Goldman c/o Campbell Corporate Services Limited Scotia Centre P. O. Box 268, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 2648 CORP TWO: Creditors' Proofs of Debt Due February 21 --------------------------------------------------- The creditors of Corp Two, Ltd. are required to file their proofs of debt by February 21, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 31, 2010. The company's liquidator is: Jon Edward Goldman c/o Campbell Corporate Services Limited Scotia Centre P. O. Box 268, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 2648 ENERGY FLOWINVEST: Commences Liquidation Proceedings ---------------------------------------------------- At an extraordinary meeting held on January 13, 2011, the members of Energy Flowinvest Capital Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by February 14, 2011, will be included in the company's dividend distribution. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands FIRST HONG KONG: Creditors' Proofs of Debt Due March 4 ------------------------------------------------------ The creditors of First Hong Kong Title Limited are required to file their proofs of debt by March 4, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 16, 2010. The company's liquidator is: Philip Andrew Walden c/o P.O. Box 10338, Grand Cayman KY1-1003 Telephone: 345-949-7232 e-mail: clawrence@ky.equitytrust.com Cayman Islands FLOWINVEST FUNDING: Commences Liquidation Proceedings ----------------------------------------------------- At an extraordinary meeting held on January 12, 2011, the members of Flowinvest Funding Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by February 13, 2011, will be included in the company's dividend distribution. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands FUEL FLOWINVEST: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on January 13, 2011, the members of Fuel Flowinvest Capital Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by February 14, 2011, will be included in the company's dividend distribution. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands GAS FLOWINVEST: Commences Liquidation Proceedings ------------------------------------------------- At an extraordinary meeting held on January 13, 2011, the members of Gas Flowinvest Capital Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by February 14, 2011, will be included in the company's dividend distribution. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands ICP STRATEGIC: Placed Under Voluntary Wind-Up --------------------------------------------- On December 23, 2010, the Grand Court of Cayman Islands entered an order that winds up the operations of ICP Strategic Credit Income Master Fund Ltd. The company's liquidator is: Hugh Dickson c/o Phillip Tyrrell Telephone: (345) 815-8246 Facsimile: (345) 949-7120 P.O. Box 1370, Grand Cayman KY1-1108 Cayman Islands INVESTCORP HAWKSTONE: Creditors' Proofs of Debt Due March 3 ----------------------------------------------------------- The creditors of Investcorp Hawkstone SLP Limited are required to file their proofs of debt by March 3, 2011, be included in the company's dividend distribution. The company commenced liquidation proceedings on December 31, 2010. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands MENTUM FUND: Creditors' Proofs of Debt Due March 3 -------------------------------------------------- The creditors of Mentum Fund Limited are required to file their proofs of debt by March 3, 2011, be included in the company's dividend distribution. The company commenced liquidation proceedings on December 31, 2010. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands OIL FLOWINVEST: Commences Liquidation Proceedings ------------------------------------------------- At an extraordinary meeting held on January 13, 2011, the members of Oil Flowinvest Capital Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by February 14, 2011, will be included in the company's dividend distribution. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands PETRO FLOWINVEST: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary meeting held on January 13, 2011, the members of Petro Flowinvest Capital Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by February 14, 2011, will be included in the company's dividend distribution. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands PLANETON GP: Creditors' Proofs of Debt Due February 28 ------------------------------------------------------ The creditors of Planeton GP are required to file their proofs of debt by February 28, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 20, 2011. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands POPLAR HOLDINGS: Creditors' Proofs of Debt Due February 23 ---------------------------------------------------------- The creditors of Poplar Holdings Ltd. are required to file their proofs of debt by February 23, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 5, 2011. The company's liquidator is: David Shute c/o Wardour Management Services Limited Telephone: (345) 945-3301 Facsimile: (345) 945-3302 P.O. Box 10147, Grand Cayman KY1-1002 Cayman Islands RUHRAL DEAL: Creditors' Proofs of Debt Due March 1 -------------------------------------------------- The creditors of Ruhral Deal Limited are required to file their proofs of debt by March 1, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 20, 2011. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands TRANS PACIFIC: Appoints Cleaver and Silivia as Liquidators ---------------------------------------------------------- On January 11, 2011, the Grand Court of the Cayman Islands entered an order for the appointment of G. James Cleaver and Brian Silivia as liquidators of Trans Pacific Insurance Corporation. The liquidators can be reached at: G. James Cleaver Zolfo Cooper P.O. Box 1102, Grand Cayman KY1-1102 4th Floor, Building 3, Cayman Financial Centre George Town Cayman Islands Brian Silivia BRI Ferrier, Level 13 1 Castlereagh Street Sydney NSW 2000 Australia YAGUARETE FORESTS: Creditors' Proofs of Debt Due February 21 ------------------------------------------------------------ The creditors of Yaguarete Forests Holdings LDC are required to file their proofs of debt by February 21, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 20, 2011. The company's liquidator is: Antoinettta D. Mucilli 6363 Main Street, Williamsville NY 14221 U.S.A. YAGUARETE FORESTS: Creditors' Proofs of Debt Due February 21 ------------------------------------------------------------ The creditors of Yaguarete Forests Proceso LDC are required to file their proofs of debt by February 21, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 20, 2011. The company's liquidator is: Antoinettta D. Mucilli 6363 Main Street, Williamsville NY 14221 U.S.A. YAGUARETE FORESTS: Creditors' Proofs of Debt Due February 21 ----------------------------------------------------------- The creditors of Yaguarete Forests Tierra LDC are required to file their proofs of debt by February 21, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on January 20, 2011. The company's liquidator is: Antoinettta D. Mucilli 6363 Main Street, Williamsville NY 14221 U.S.A. ============= J A M A I C A ============= * JAMAICA: National Debt Continues to Rise ------------------------------------------ RadioJamaica reports that Jamaica Finance Minister Audley Shaw said he successfully borrowed US$400 million at the lowest rate Jamaica has ever borrowed money on the international capital markets. Mr. Shaw, who went on a whirlwind sales mission to raise the money, said the amount was borrowed at 7 point 95%, according to RadioJamaica. The report relates that it was pointed out that the offer was overwhelmingly oversubscribed reflecting that the international community has confidence in the government meeting its repayments. RadioJamaica discloses that the money that was borrowed will be used to repay loans of the same amount that matures in May this year. Last year, RadioJamaica recounts, the Minister said he would be seeking to borrow the money at no more than 8%. * * * As of February 16, 2011, Jamaica continues to carry Standard and Poor's "B-" currency long-term debt ratings and "C" currency short-term debt ratings. The country continues to carry Moody's "B3" country ceiling foreign bank deposit rating and "Ba3" country ceiling long-term foreign currency debt rating. =========== M E X I C O =========== INVERSIONES ALSACIA: Fitch Changes Rating on Senior Bonds to 'BB' ----------------------------------------------------------------- Fitch Ratings has revised the expected rating assigned to Inversiones Alsacia's US$464 million senior secured bonds to 'BB(exp)' from 'BB+(exp)' . The bonds are expected to be issued in accordance with Rule 144A of the Securities Act in the U.S. and pursuant to Regulation S outside the U.S. The revised rating is based on changes in interest rates to 8% from 7.5% along with other changes in the capital structure. Although the change in interest rate is 50 basis points, the modification sufficiently reduces the project's financial flexibility to a level commensurate with a 'BB' rating. Fitch has been assured that no further changes are expected to materialize prior to financial closing. The final rating is contingent upon the receipt of final documents conforming to information already received. The bonds will be secured by a first lien interest of total revenues and contract rights, as well as all assets owned by Inversiones Alsacia, S.A. and Express de Santiago Uno, S.A. excluding the Huachuraba bus terminal. Both companies are bus concessionaires of the Transantiago System, which provides mass urban bus/metro transportation services to the City of Santiago in Chile. The transaction will result in the acquisition of shares of Express not currently owned by GPS Group (Alsacia's owner) and the refinancing of all the existing debt of both Alsacia and Express. As of February 14, GPS Group already owns 47% of Express and will acquire the remaining 53% of the shares with part of the proceeds from the bond offering. The greater portion of the proceeds will be used to prepay outstanding loans (including fees and penalties) of both companies. Express will be a guarantor and co-obligor of Alsacia's issuance. Aggregate cash flows will be controlled by an onshore administrative trust and an offshore collateral trust constituted in Banco Santander Chile and The Bank of New York Mellon, respectively. The onshore trust will be the recipient of all revenues and will make payments according to a semi-annual budget. Since actual disbursements may deviate up to 10% from the budgeted amounts, such deviation was contained in Fitch's stress scenarios. The acquisition is expected to be completed almost simultaneously with the bond's issuance. Upon completion, both concessionaires will become an affiliated group of entities under the control of GPS Group. Alsacia and Express intend to have a common executive management team; in addition, Alsacia may enter into a contract to manage Express' business. With the acquisition, the two aim to become the largest Transantiago bus operator in Santiago and to obtain cost savings derived by synergies. Since it began operations, the Transantiago System has had revenue shortfalls; hence, in 2009 the National Subsidy for Public Passengers Transport Law was enacted, establishing an annual subsidy that has two components. One is permanent for a fixed amount of up to CLP $115 billion but is insufficient to fully cover the annual deficit, while the other is transitory for an additional amount of CLP $393 billion, which expires after 2014. Fitch believes that although termination of the transitory subsidy is a credit concern, the system is a top priority project for the Government, so continuity of both subsidies is likely to occur. Bus concessionaires are compensated by the level of service offered in relation to an operating plan negotiated with Transantiago for each month. Revenues respond to changes in the number of traveled kilometers, passenger demand variation, key drivers of the operational costs (inflation, exchange rate, fuel, labor, etc.), and the passenger capacity of the fleet. Therefore, the contractual revenue formula protects operators' financial margins, and reduces the fluctuation of profitability. Revenues are not tied to passengers' paid fee, but to service availability. Concession agreement limits demand risk and eliminates the effect of passenger tariff fluctuations; thus, revenues are largely dependent on the timeliness, frequency and quality of the services provided by the concessionaires. The bond will be issued with a 7.5-year tenor, maturing in August 2018, two months before both concessions' expiration date. Interest and principal payments are due semi-annually in February and August and follow a predefined amortizing schedule. Foreign exchange risk will be mitigated by a CLP/USD participating swap contracted with an affiliate Bank of America Merrill Lynch (BAML), with a prefixed protection range. There will be a reserve fund for overhaul expenses equivalent to six months worth of expenses, and a US$8 million initial cash contribution set up to strengthen liquidity in the first payment dates. A contingency reserve account will also support debt service payments and will be funded with US$22 million in upfront cash and maintained with an amount equivalent to six months of debt service. This reserve fund, in turn, will be partially funded with a US$12.5 million bank loan from Banco Internacional. Principal amortization of this loan will be subordinate to the bond, but interest payments will be senior to debt service. However, interest payments of this bank loan are not material for the bond's cash flows. Distributions and additional senior debt are possible provided specific covenants are met such as a minimum backward and forward looking coverage ratios in levels that are consistent with Fitch's applicable criteria. Key Rating Drivers: Rating sustainability will mainly depend on Alsacia's ability to keep its operational efficiency while thoroughly sharing its know- how with Express in order to transform Express into a more efficient concessionaire. Currently, Express is a larger operation than Alsacia, whose fleet is about 56% the size of Express'. Finally, the rating might be impacted by the level of synergies expected to be realized by the technical (not formal) merger. Credit Summary: Although demand levels were practically stable in 2009 and 2010 with around 330 million passengers, the past year closed with gross revenues of over CLP $162 billion (approximately US$335 million). Revenues increased by 12.8% versus 2009 for the two concessionaires jointly. The increased revenue combined with expense reduction efforts resulted in stronger operating profit margins. Looking forward, Fitch created different scenarios to calculate future cash flows. Such scenarios include stresses to specific variables like: passenger demand, service fulfillment ratio level, inflation rate, achievement of expected synergies, diesel price, expenses, and exchange rate. The structure showed certain sensitivity to negative performance from variables that depend on management operations (expenses control, service fulfillment index, and synergies achievement, in that order). In addition, the structure demonstrated resilience to significant changes in variables entailed in the concession's revenue indexation. Key Credit Strengths: -- The system is strategic for Santiago, since it offers an essential service to the city. -- It has the support of a strong legal framework in a country rated 'A+' with a Stable Outlook with experience in concessions of public services, specifically in the transportation sector. -- There is no refinancing risk. -- Concessionaires hold a combined market share of over 40% of Transantiago's main line bus operations. -- Limited, yet strong track record of service performance; as reflected in the historical operating statistics. -- Sponsor has experience in operating bus rapid transit systems in other Latin American countries. -- Limited exposure to demand risk. -- Predictable cash flows with an indexed availability payment structure, with about 40% of fixed revenues. -- There will be a cross-currency swap with a highly rated institution in order to reduce exchange rate risk. -- The debt structure has tight covenants for equity distributions and additional debt; protecting the currently rated bond from potential deterioration in expected coverage levels. -- Fixed interest rate will be paid, eliminating rate volatility risk. -- The initial US$8 million liquidity fund to be created in order to strengthen cash flows at the beginning. Key Credit Concerns: -- The transitory portion of the government subsidy expires in 2014, and hence is subject to political risk that the subsidy may be reduced from current levels. -- Although synergies are likely to occur with the acquisition of EXPRESS, several operative risks may arise. As such, some synergies may occur at lower than expected levels, or may be subject to delays or not occur at all. This is particularly a risk when considering the acquirer company's operations is smaller than those of the acquired enterprise. -- Labor union ability to hamper activities and operations. -- New competition from metro expansion, potentially affecting concessionaires' level of service in 2011. -- Although concession renovation is likely to occur in 2018, a two month tail of cash flow is available to repay debt before handover of project. MEXICANA AIRLINES: In Talks With IATA to Rejoin Systems ------------------------------------------------------- Paul Kiernan at Dow Jones Newswires reports that Compania Mexicana de Aviacion or Mexicana Airlines is in discussions with the International Air Transport Association (IATA), to possibly rejoin key ticketing and settlement systems as the company seeks to emerge from bankruptcy proceedings. "They have reached out to IATA and we are currently in talks," Dow Jones quotes an unnamed spokesman for the Association as saying. "If Mexicana is able to comply with the rules of the system and submit the necessary security deposit, they are welcome to again become active," the spokesman said, according to the report. Dow Jones' Newswires recounts that IATA suspended Mexicana Airlines in August from its financial settlement system, used by most travel agencies to book airline tickets, and inter-airline billing clearinghouse when the carrier was unable to post a security deposit. The report relates that Mexicana Airlines, along with domestic subsidiaries Click and Link, were grounded later that month amid bankruptcy proceedings. Airlines can sell tickets directly to customers without using IATA's systems, the spokesman noted, Dow Jones' Newswires relates. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2011, Bloomberg News said that Labor Minister Javier Lozano said Mexicana Airlines may resume operations by the end of the month with 40 planes and 40 routes. An agreement with new investors may be reached in the coming days to rescue bankrupt airline operator, Mr. Lozano said in an interview with Mexico City-based Radio Formula, according to Bloomberg. Foreign investment will be part of Mexicana's new capital structure, Mr. Lozano added, Bloomberg noted. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/--is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on August 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings did not affect the operations of Click Mexicana and Mexicana Link, which are independent companies from Mexicana de Aviacion. =============================== T R I N I D A D & T O B A G O =============================== HINDU CREDIT UNION: Seeks to Block Firm Inquiry ----------------------------------------------- Curtis Rampersad at Trinidad Express reports that attorneys representing Hindu Credit Union (HCU) and its President Harry Harnarine filed an application in the High Court for judicial review of Trinidad and Tobago President George Maxwell Richards's decision to appoint a Commission of Enquiry into the company. The commission, expected to begin in a few months, will also enquire into the failure of the CL Financial Limited and its subsidiary wealth management companies, according to Trinidad Express. Attorney Wesley Debideen of Mansfield Chambers in Port of Spain filed the HCU's application at 3:00 p.m., Feb. 14, 2011, in the High Court, Port of Spain. Trinidad Express notes that the application names Attorney General Anand Ramlogan and the lone commissioner in the enquiry, Queen's Counsel Sir Anthony Colman, as respondents. The report relates that Mr. Harnarine and the HCU are seeking an order that the credit union be granted leave for judicial review of the President's decision to issue a Commission of Enquiry into HCU. The HCU seeks to have the judicial review act as a stay of proceedings against the Commission of Enquiry and further asks the High Court to quash the decision of the President to issue the Commission of Enquiry, according to filed court documents, Trinidad Express notes. The report relates that HCU wants the court to declare the commission null and void, that it is an abuse of the court's process, and that it is unlawful and illegal, among other requests. Trinidad Express says that HCU also wants Attorney General Ramlogan to recuse himself from matters involving the HCU. The application suggested that there were several current criminal and civil matters before the courts involving the HCU and a Commission of Enquiry at the same time would be an abuse of process, the report adds. About Hindu Credit Hindu Credit Union Co-Operative Society Limited (HCU) -- http://www.ourhcu.com/-- is headquartered in Borough, Chaguanas, in Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on July 28, 2008, the High Court of Trinidad and Tobago granted the government full control of Hindu Credit as the company faces financial difficulties, leaving depositors in limbo despite requests from lawyers. In June 2008, chartered accountants Ernst and Young inspected Hindu Credit's books, accounts, and records after a public outcry and calls for an internal audit. Charles Mitchell, the Commissioner for Co-Operative Development, represents Hindu Credit's depositors. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Feb. 3-5, 2011 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casuarina Resort & Spa, Grand Cayman Island Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 24-25, 2011 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 4, 2011 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Hyatt Regency Century Plaza, Los Angeles, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 7-9, 2011 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition Duberstein U.S. Courthouse, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - Florida Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10-12, 2011 AMERICAN BANKRUPTCY INSTITUTE SUCL/ Alexander L. Paskay Seminar on Bankruptcy Law and Practice Marriott Tampa Waterside, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 17-19, 2011 AMERICAN BANKRUPTCY INSTITUTE Byrne Judicial Clerkship Institute Pepperdine University School of Law, Malibu, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ April 27-29, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott, Chicago, IL Contact: http://www.turnaround.org/ May 5, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - New York City Association of the Bar of the City of New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 6, 2011 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Hilton New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Julie Anne G. Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. 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 * * *