/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110225.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, February 25, 2011, Vol. 12, No. 40 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Owner Joins Madoff at North Carolina Prison B R A Z I L MARFRIG ALIMENTOS: S&P Affirms 'B+' Global Scale Ratings C A Y M A N I S L A N D S 139 MOBILE: Shareholders' Final Meeting Set for March 15 AGA INTERNATIONAL: Shareholders' Final Meeting Set for March 21 CHEYNE LEVERAGE: Shareholders' Final Meeting Set for March 18 CHEYNE SPECIAL: Shareholders' Final Meeting Set for March 18 DUKE FUNDING: Shareholders' Final Meeting Set for March 21 HGM ASSET: Shareholders' Final Meeting Set for March 18 IT ESTATE: Shareholders' Final Meeting Set for March 18 JUBILEE INCORPORATIONS: Member to Hear Wind-Up Report on Feb. 28 KALLISTA CREDIT: Shareholders' Final Meeting Set for March 16 KALLISTA CREDIT: Shareholders' Final Meeting Set for March 16 KALLISTA CREDIT: Shareholders' Final Meeting Set for March 16 MAJESBIC COMPANY: Member to Hear Wind-Up Report on February 28 MH GROUP: Member to Hear Wind-Up Report on March 17 PENDRAGON (MERLIN): Shareholders' Final Meeting Set for March 8 SIMAC TRADING: Shareholders' Final Meeting Set for March 10 SKY HOLDING: Shareholders' Final Meeting Set for March 18 UBS-ARMR 2007-2: Shareholders' Final Meeting Set for March 18 VALHALLA SYNERGY: Shareholders' Final Meeting Set for March 15 VALHALLA SYNERGY: Shareholders' Final Meeting Set for March 15 WATERLOO FULLY: Shareholders' Final Meeting Set for March 21 M E X I C O MEXICANA AIRLINES: PC Capital Acquires Firm - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Owner Joins Madoff at North Carolina Prison ----------------------------------------------------------- Deal Book reports that Stanford International Bank Limited owner Robert Allen Stanford was transferred to the Federal Correctional Complex in Butner, N.C., where Bernard L. Madoff is serving a 150- year prison sentence. Mr. Stanford is awaiting trial on charges that he ran a US$7 billion Ponzi scheme, according to Deal Book. As reported in the Troubled Company Reporter-Latin America on January 28, 2011, The Wall Street Journal related that Judge Hittner found Mr. Stanford incompetent to stand trial following conclusions by three psychiatrists that Mr. Stanford is mentally impaired. According to The 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 Journal 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. Deal Book notes that Judge Hittner denied a defense request to place Mr. Stanford in a private hospital for treatment, noting that he was a flight risk. Instead, Judge Hittner, the report relates, singled out the Federal Medical Center in Butner, N.C., as a suitable place for Mr. Stanford's treatment. 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 =========== MARFRIG ALIMENTOS: S&P Affirms 'B+' Global Scale Ratings -------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed the 'B+' global scale and 'brBBB+' national scale ratings on Brazil-based food producer Marfrig Alimentos S.A. The outlook is stable. "S&P believes Marfrig has limited capacity to reduce debt levels, even though recent acquisitions have improved the company's business profile," said Standard & Poor's credit analyst Flavia Bedran. Marfrig's improved asset portfolio and geographic diversification should bring more stable cash flow generation, but the company's deleveraging may be lengthy because of the lower EBITDA contribution of acquired businesses coupled with unfavorable market fundamentals in some countries where Marfrig operates, such as Argentina and Uruguay. The ratings on Marfrig reflect the company's highly leveraged financial profile, which is a result of several acquisitions in the past few years, as well as potential margin volatility because of the exposure to global commodity prices, and still-limited benefits from its stronger business portfolio. S&P assess Marfrig's business profile as fair because of its well- diversified portfolio that includes protein, industrialized processed food, and food distribution; its efficient distribution network in Brazil and in operations abroad; the economies of scale in cattle and grain sourcing, and large retail chain negotiations; and the maintenance of adequate liquidity to cushion against market volatility. S&P believes that favorable demand fundamentals, mostly in Brazil, will allow the company to pass on the increased cost of raw materials to clients, which occurred recently with the hike in cattle and grain prices. However, Marfrig might face problems integrating Keystone's operations and merging the expected benefits of its asset portfolio. Consolidated EBITDA margin is expected to be lower than the historical average (projected at 6%-7%), given Keystone's traditionally lower margin businesses, although Keystone's more predictable and consistent cash flow somewhat offsets the high volatility of commodity-type fresh meat sales. As Marfrig integrates its assets and increases the utilization capacity of its plants, it should face some working capital needs, which, combined with high capital expenditure and sizable interest payments, should lead to negative free operating cash flow this year, limiting capacity to significantly reduce its leverage parameters. S&P expects adjusted debt to EBITDA to improve very gradually from S&P's projection of about 6.7x by December 2011. S&P views Marfrig's liquidity as adequate. Cash reserves accounted for Brazilian reais (BRL)5.3 billion as of Sept. 30, 2010, out of which BRL1.52 billion was disbursed in fourth-quarter 2010 to pay down Keystone's acquisition. Total adjusted debt amounted to BRL12 billion in September 2010, from which BRL2.2 billion matures in the short term. According to S&P's criteria, S&P adjust the company's debt to include the BRL2.5 billion convertible debentures issued to fund Keystone's acquisition, renegotiated taxes, discounted trade receivables, and operating leases. S&P considers Marfrig to have some refinancing risks to roll over short-term debt (mainly export finance operations) at the same time it invests in working capital to increase the capacity of slaughtering plants and to integrate acquired assets. However, S&P views the company's access to equity and credit markets, and long-term relationship with banks as positive, which has enabled it to refinance loans and gradually extend its debt profile. S&P expects free operating cash flow to remain negative in 2011, given the company's sizable capital expenditure and working capital needs. Financial covenants are calculated based on balance sheet debt and are very comfortable. The stable outlook reflects S&P's expectation that Marfrig will deliver more stable cash flows with higher participation of branded products and distribution services in consolidated revenues. S&P also believe that positive growth fundamentals in most markets in which it is present will allow Marfrig to gradually increase cash generation to help it deleverage. S&P could raise the ratings if the company reduces adjusted leveraged ratios, including a total adjusted debt to EBITDA consistently below 6x coupled with maintaining adequate liquidity. If the company lags deleveraging because of additional debt to fund further acquisitions or if unfavorable market conditions occur, including higher raw material prices that would hurt operating margins or weaken liquidity, S&P could lower the ratings. =========================== C A Y M A N I S L A N D S =========================== 139 MOBILE: Shareholders' Final Meeting Set for March 15 -------------------------------------------------------- The shareholders of 139 Mobile Internet (Cayman) Limited will hold their final meeting on March 15, 2011, at 10:00 a.m., to receive the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Ye Bing Tu Zhi Sen Telephone: 8610-66496085 Facsimile: 8610-66496027 16th Floor, No. 131A North Xidan Avenue Xicheng District Beijing, China 100032 AGA INTERNATIONAL: Shareholders' Final Meeting Set for March 21 --------------------------------------------------------------- The shareholders of Aga International, Ltd. will hold their final meeting on March 21, 2011, at 12:00 noon, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Glenn Garaudy 3500 North Causeway Blvd. Suite 600, Metairie Louisiana 70002 U.S.A. CHEYNE LEVERAGE: Shareholders' Final Meeting Set for March 18 ------------------------------------------------------------- The shareholders of Cheyne Leverage Special Purpose Asset Vehicle Inc. will hold their final meeting on March 18, 2011, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands CHEYNE SPECIAL: Shareholders' Final Meeting Set for March 18 ------------------------------------------------------------ The shareholders of Cheyne Special Purpose Asset Vehicle Inc. will hold their final meeting on March 18, 2011, at 9:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands DUKE FUNDING: Shareholders' Final Meeting Set for March 21 ---------------------------------------------------------- The shareholders of Duke Funding High Grade II-S / EGAM I, Ltd. will hold their final meeting on March 21, 2011, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands HGM ASSET: Shareholders' Final Meeting Set for March 18 ------------------------------------------------------- The shareholders of HGM Asset Finance Cayman Limited will hold their final meeting on March 18, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Cayman Islands Telephone: (345)949-8244 Facsimile: (345)949-5223 IT ESTATE: Shareholders' Final Meeting Set for March 18 ------------------------------------------------------- The shareholders of IT Estate Holdings Inc. will hold their final meeting on March 18, 2011, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands JUBILEE INCORPORATIONS: Member to Hear Wind-Up Report on Feb. 28 ---------------------------------------------------------------- The sole member of Jubilee Incorporations will receive on February 28, 2011, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: HSBC Trustee (Singapore) Limited 21 Collyer Quay, #09-01 HSBC Building Singapore 049320 KALLISTA CREDIT: Shareholders' Final Meeting Set for March 16 ------------------------------------------------------------- The shareholders of Kallista Credit Arbitrage Fund Limited will hold their final meeting on March 16, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hugh Dickson c/o Phillip Tyrrell P.O. Box 1370, Grand Cayman KY1- 1108 Cayman Islands Telephone: (345) 815 8246 Facsimile: (345) 949 7120 KALLISTA CREDIT: Shareholders' Final Meeting Set for March 16 ------------------------------------------------------------- The shareholders of Kallista Credit Arbitrage Master Fund Limited will hold their final meeting on March 16, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hugh Dickson c/o Phillip Tyrrell P.O. Box 1370, Grand Cayman KY1- 1108 Cayman Islands Telephone: (345) 815 8246 Facsimile: (345) 949 7120 KALLISTA CREDIT: Shareholders' Final Meeting Set for March 16 ------------------------------------------------------------- The shareholders of Kallista Credit Opportunities Fund Limited will hold their final meeting on March 16, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hugh Dickson c/o Phillip Tyrrell P.O. Box 1370, Grand Cayman KY1- 1108 Cayman Islands Telephone: (345) 815 8246 Facsimile: (345) 949 7120 MAJESBIC COMPANY: Member to Hear Wind-Up Report on February 28 -------------------------------------------------------------- The sole member of Majesbic Company Limited will receive on February 28, 2011, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited P.O. Box 71, Craigmuir Chambers Road Town, Tortola British Virgin Islands MH GROUP: Member to Hear Wind-Up Report on March 17 --------------------------------------------------- The sole member of MH Group Limited will receive on March 17, 2011, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Hepburn Bruce 14 Chesterfield Road Chiswick, London England W4 3HG United Kingdom PENDRAGON (MERLIN): Shareholders' Final Meeting Set for March 8 --------------------------------------------------------------- The shareholders of Pendragon (Merlin) Fund Inc. will hold their final meeting on March 8, 2011, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma c/o Jennifer Chailler Deloitte & Touche P.O. Box 1787, Grand Cayman KY1-1109 Cayman Islands Telephone: (345) 949-7500 Facsimile: (345) 949-8258 SIMAC TRADING: Shareholders' Final Meeting Set for March 10 ----------------------------------------------------------- The shareholders of Simac Trading will hold their final meeting on March 10, 2011, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. Christopher D. Johnson is the company's liquidator. SKY HOLDING: Shareholders' Final Meeting Set for March 18 --------------------------------------------------------- The shareholders of Sky Holding Company II Ltd. will hold their final meeting on March 18, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands UBS-ARMR 2007-2: Shareholders' Final Meeting Set for March 18 ------------------------------------------------------------- The shareholders of UBS-ARMR 2007-2, Ltd. will hold their final meeting on March 18, 2011, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands VALHALLA SYNERGY: Shareholders' Final Meeting Set for March 15 -------------------------------------------------------------- The shareholders of Valhalla Synergy Ltd. will hold their final meeting on March 15, 2011, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre, 42 North Church Street George Town P.O. Box 1348, Grand Cayman KY1-1108 Cayman Islands VALHALLA SYNERGY: Shareholders' Final Meeting Set for March 15 -------------------------------------------------------------- The shareholders of Valhalla Synergy Master Fund Ltd. will hold their final meeting on March 15, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre, 42 North Church Street George Town P.O. Box 1348, Grand Cayman KY1-1108 Cayman Islands WATERLOO FULLY: Shareholders' Final Meeting Set for March 21 ------------------------------------------------------------ The shareholders of Waterloo Fully Invested Fund, Ltd will hold their final meeting on March 21, 2011, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands =========== M E X I C O =========== MEXICANA AIRLINES: PC Capital Acquires Firm ------------------------------------------- Radio Cadena Agramonte reports that after six months of negotiations, PC Capital is the new owner of Mexicana de Aviacion or Mexicana Airlines. The airline will reopen ticket sales on Feb. 28. According to Radio Cadena Agramonte, citing press reports, with the announcement that Tenedora K transferred the shares to the airport group, there were also reported the names of the new investors of the company, among which appear a Bolivian-born businessman, who owns Avianca airlines. After the payment of Mexicana Airlines' shares, Fernando Perfecto, secretary general of the Air Line Pilots Association (ALPA), said all the decisions should be made to form the new board of directors, Radio Cadena Agramonte discloses. Radio Cadena Agramonte notes that Mr. Perfecto stated that at this early stage, operations will be resumed with 280 pilots, a figure that will increase gradually to reach 400 for the first half of this year. 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. *********** 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 * * *