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/raid1/www/Hosts/bankrupt/TCRLA_Public/110504.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 Wednesday, May 4, 2011, Vol. 12, No. 87 Headlines A N T I G U A & B A R B U D A * ANTIGUA & BARBUDA: Reschedules 25-Year-Old Debt to France A R G E N T I N A FUCEREP: Fitch Affirms 'B' Currency Issuer Default Rating METROGAS SA: Price Waterhouse Raises Going Concern Doubt NUEVO BANCO: Fitch Affirms 'BB-' Long Term Issuer Default Rating B R A Z I L BANCO FIBRA: Moody's Affirms 'Ba2' Currency Deposit Ratings C A Y M A N I S L A N D S ADONIA IAM: Creditors' Proofs of Debt Due July 6 COLEMAN STAFFORDSHIRE: Creditors' Proofs of Debt Due May 23 CONNECTCAPITAL HOLDINGS: Creditors' Proofs of Debt Due May 26 GLOBAL HAWK: Creditors' Proofs of Debt Due May 17 LIXIN WEALTH: Creditors' Proofs of Debt Due May 24 LLOYDS TSB: Creditors' Proofs of Debt Due May 23 M-INVEST LIMITED: Creditors' Proofs of Debt Due May 17 MCDP INVESTMENT: Creditors' Proofs of Debt Due May 26 PATAGONIA ADVISORS: Creditors' Proofs of Debt Due May 17 PEREGRINE I: Wins Court OK to Make US$3-Mil. Emergency Payment PETIPA LTD: Creditors' Proofs of Debt Due May 26 PORTFOLIO OPPORTUNITY: Creditors' Proofs of Debt Due May 27 RPD SECURITIES: Creditors' Proofs of Debt Due May 26 SIGNUM III: Creditors' Proofs of Debt Due May 26 SIGNUM IVORY: Creditors' Proofs of Debt Due May 26 TOVO INVESTMENT: Creditors' Proofs of Debt Due May 16 YSG CAYMAN: Creditors' Proofs of Debt Due May 26 J A M A I C A AIR JAMAICA: T&T Mum on Controversy Surrounding CAL Board AIR JAMAICA: Minister Downplays Delay in Signing CAL Deal JAMAICA PUBLIC: Changes to Terms of Operation to be Negotiated M E X I C O METROFINANCIERA: Fitch Affirms 'CCsf' Long-Term Rating SATELITES MEXICANOS: Prices US$325 Million of Senior Secured Notes U R U G U A Y CREDIT URUGUAY: Moody's Withdraws 'D' Financial Strength Rating - - - - - =============================== A N T I G U A & B A R B U D A =============================== * ANTIGUA & BARBUDA: Reschedules 25-Year-Old Debt to France ----------------------------------------------------------- Caribbean360.com reports that Antigua and Barbuda has reached an agreement on rescheduling a 25-year-old debt to the Government of France and is preparing to sign deals with two other countries. France had agreed to a fixed interest rate of 3.1% on the US$34 million debt, payable over 15 years, according to Caribbean360.com. Caribbean360.com notes that France, Brazil and Japan are among six members of the Paris Club, which consolidated a huge chunk of Antigua and Barbuda's debt in September 2010. Caribbean360.com relates that the six members agreed to reschedule 90% of the total US$133 million debt that Antigua and Barbuda owed them. They also agreed to give the country an ease from making payments for the next seven years, Caribbean360.com discloses. Meanwhile, Caribbean360.com says, Antigua and Barbuda reached an interest free rescheduling agreement with the OPEC Fund for International Development (OFID) for its US$850,000 debt to that organization. Another creditor, the Kuwait Fund for Arab Economic Development, also expressed a willingness to reschedule US$22.75 million owed to that institution, Caribbean360.com adds. The Paris Club is an informal group of financial officials from 19 of some of the world's biggest economies, which provides financial services such as debt restructuring, debt relief, and debt cancellation to indebted countries and their creditors. ================= A R G E N T I N A ================= FUCEREP: Fitch Affirms 'B' Currency Issuer Default Rating --------------------------------------------------------- Fitch Ratings has affirmed FUCEREP's -- Cooperativa de Ahorro y Credito (FUCEREP) ratings: -- Foreign and local currency Issuer Default Rating (IDR) at 'B'; -- National long-term rating at 'BB+(uy)'; -- Support rating at '5'; -- Support rating floor at 'NF'. The Rating Outlook is Stable. Strong capitalization ratios, adequate liquidity and improving corporate governance support FUCEREP's ratings. Nevertheless, FUCEREP's ratings remained constrained by its small size and financial performance. The ratings also considered operational restrictions related to its 'Cooperativa de Intermediacion Financiera' restricted license. Positive rating actions will be linked to the success of FUCEREP's expansion plan over the medium term. On the other hand, marked deterioration in FUCEREP's solvency or performance could lead to a downgrade of its ratings. Since 2008, FUCEREP has been involved in a process of internal reorganization, which has allowed it to improve corporate governance. Fitch believes that FUCEREP's improved risk profile should allow the institution to achieve its future expansion plans. As was the case for other Uruguayan financial institutions, FUCEREP's 2010 performance was affected by the inflation adjustment. Additionally, an increase in its non-interest expenses also detracted from profitability. However, the entity maintained strong net interest income growth in line with its increased business volume. Credit risk is the issuer's main challenge. Asset quality ratios have consistently improved since 2007 due to more conservative lending policies and the favourable economic cycle. FUCEREP's past due loan/total loan ratio (60 days or more overdue, under local definitions) declined to 4.8% at year-end 2010 from 6.9% at year-end 2009. Although this level is higher than the financial system's average of 0.9%, it is adequate considering the segments served by FUCEREP. Resident deposits are the entity's main source of funding, in particular its savings product FONAE (45% of liabilities) and term deposits (36.6%). However, FUCEREP's deposit base is concentrated relative to similarly rated banks (IDRs of 'B-', 'B', or 'B+') and to other Uruguayan financial institutions. The 10 largest depositors accounted for 17.4% of total deposits. Liquidity is adequate. FUCEREP's capitalisation is strong relative to peers' and has improved since 2005. Fitch expects this trend to continue given the institutions improving financial performance and higher partner base. METROGAS SA: Price Waterhouse Raises Going Concern Doubt -------------------------------------------------------- MetroGAS S.A. filed on April 28, 2011, its annual report on Form 20-F for the fiscal year ended Dec. 31, 2010. Price Waterhouse & Co. S.R.L., in Buenos Aires, Argentina, expressed substantial doubt about MetroGas S.A.'s ability to continue as a going concern. The independent auditors noted of uncertainties related to the suspension of the original regime for tariff adjustments and the Company's petition for voluntary reorganization in an Argentine Court on June 17, 2010. The Company reported a net loss of ARS71.7 million on US$1.122 billion of sales for 2010, compared with a net loss of ARS78.3 million on US$1.074 billion of sales for 2009. The Company's balance sheet at Dec. 31, 2010, showed total assets of ARS2.511 billion, total liabilities of ARS1.683 billion, minority interest of ARS1.6 million, and shareholders' equity of ARS825.9 million. A complete text of the Form 20-F is available for free at: http://is.gd/0tXLMv About MetroGas Buenos Aires-based MetroGaS S.A., which listed its American Depositary Shares on the New York Stock Exchange and Buenos Aires Stock Exchange in November 1994, is Argentina's largest natural gas distribution company in terms of number of customers and volume of gas deliveries, according to the 2010 annual report of ENARGAS, an agency of the Argentine Government, which has broad authority over the gas distribution and transportation industries, including their tariffs. The Company has approximately 2.2 million customers in its service area (the city of Buenos Aires and southern and eastern greater metropolitan Buenos Aires). The Company is one of nine natural gas distribution companies formed in connection with the privatization of Gas del Estado. The suspension of the original regime for tariff adjustments and the inability to generate sufficient cash flows to pay its financial debt obligations led the Company to file a petition for a voluntary reorganization proceeding (concurso preventivo) in an Argentine court on June 17, 2010. NUEVO BANCO: Fitch Affirms 'BB-' Long Term Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings maintains on Rating Watch Positive Nuevo Banco Comercial's (NBC) foreign and local currency long-term Issuer Default Rating (IDR) of 'BB-'. Fitch also maintains on Watch Positive, the National long-term rating of 'AA(ury)' and Support Rating of '4'. At the same time, the support rating floor was affirmed at 'B'. The rating watch reflects the announcement of the acquisition of NBC by Bank of Nova Scotia (IDR: 'AA-' by Fitch) of 60% of the bank's equity, held by a consortium of foreign investors led by Advent International; the Uruguayan government owns the remaining 40% in the form of preferred stock with no voting rights. The rating watch will be resolved once the transaction is approved by Uruguayan and Canadian regulators. NBC's ratings will be upgraded to reflect the potential support from Bank of Nova Scotia. NBC's ratings reflect the bank's strong national franchise, good asset quality, high liquidity and capitalization levels, and its improving overall performance. The impact on the bank's profitability of its significant asset USD position and inflation were also taken into consideration. NBC suffered a net loss in 2010, mainly as a result of the impact of the inflation adjustment and foreign exchange losses. However, the bank's operating profit improved markedly as its operating revenues increased, fuelled by loan growth. Fitch expects NBC's operating performance to continue to improve in line with the expected increase in lending volumes. However, foreign exchange results and inflation adjustments will continue to add volatility to the bank's income statement. NBC's asset quality is good and its ratios have improved. Only 2.7% of the loan book is past-due (60 days or more overdue, under local definitions). Loan loss reserves covered 8.9% of total loans and 238.4% of past-due loans at Dec. 31, 2010, which is considered ample. NBC's funding is mainly through deposits; liquidity continues to be high, with liquid assets representing 48.2% of deposits and short-term funds. NBC's capitalization is sound. Total equity represented 12.64% of assets and its Fitch Core Capital ratio 18.37% at Dec. 31, 2010. Fitch expects these ratios to go down as lending continues to grow. NBC is the third-largest private sector bank in Uruguay. Its market presence is significant in all segments and it had 6.25% of the banking system's assets at Dec. 31, 2010. =========== B R A Z I L =========== BANCO FIBRA: Moody's Affirms 'Ba2' Currency Deposit Ratings ----------------------------------------------------------- Moody's Investors Service changed to stable, from positive, the outlook on the following ratings of Banco Fibra S.A.(Fibra): the bank financial strength rating (BFSR) of D; the long-term global local- and foreign-currency deposit rating of Ba2; as well as the senior unsecured and subordinated debt ratings of Ba2 and Ba3, respectively. At the same time, Moody's changed the outlook on Fibra's Aa3.br long-term national scale deposit rating to stable. The Not Prime short-term local- and foreign-currency deposit ratings and BR-1 short-term national scale rating remained unchanged. These ratings were affirmed and had the outlook changed to stable: -- Bank Financial Strength rating: D -- Long-term global local-currency deposit rating: Ba2 -- Long-term foreign currency deposit rating: Ba2 -- Long-term foreign currency debt rating of (P)Ba2 assigned to the US$1 billion Global MTN Program -- Long-term foreign currency senior unsecured debt rating of Ba2 -- Long-term foreign currency subordinated debt rating of Ba3 -- Long-term Brazilian national scale deposit rating: to Aa3.br These ratings remain unchanged: -- Short-term global local-currency deposit rating: Not Prime -- Short-term foreign currency deposit rating: Not Prime -- Short-term foreign currency debt rating of Not Prime, also assigned to the US$1 billion Global MTN Program -- Short-term Brazilian national scale deposit rating: BR-1 Rating Rationale In changing the outlook on Fibra's ratings to stable, Moody's noted that the bank's ongoing expansion into consumer lending will likely be challenged by less favorable market conditions and by restrictive regulations, including higher capital requirement for longer dated consumer loans. Fibra, therefore, may experience a delay in the execution of its diversification strategy to the extent that additional capital may be required for the loan book, as well as in response to additional investments needed to consolidate this line of business. Moody's acknowledges that the bank's current loan mix and further growth of a granular consumer lending portfolio, which represented 34% of total loans in 2010, improve the generation of recurring earnings and reduces the inherent concentration risk of a medium size wholesale lender. It also note that asset quality indicators improved in 2010 and remain better than those of similarly rated peers, although the bank's relatively young consumer lending business could be sensitive to downturns given management's limited experience in the car finance segment, as well as the large number of new borrowers. The bank's asset quality could suffer over the medium-term in the context of rising inflation and interest rates. Sizable investments in distribution capability and consumer lending infrastructure hurt the bank's 2010 bottom line results and therefore, future synergies may take longer to realize than expected. Such investments have also affected Fibra's capital ratios to levels lower than they have been historically, a factor that reduces Fibra's competitive flexibility at a time capital allocation requirements are increasing. Capital injections from main shareholder Vicunha Group, IFC and third parties, that could include an IFC Fund, could raise BIS ratio to 16.2% and flag continued support to the bank's expansion strategy. These capitalizations are expected to increase minority participation from IFC and others to about 20% of Fibra's total shares, from current 8%, upon regulatory approval. Moody's will continue to monitor management's ability to face these challenges as it executes its plans for growth while it looks to sustain a disciplined approach to risk origination and to improve profitability metrics to recurrent levels. The last rating action on Banco Fibra was on 26 April 2010, when Moody's assigned a Ba2 foreign currency senior unsecured debt rating to the US$200 million 5.125% senior unsecured notes issued under the US$1 billion Global Medium term Note Programme, rated (P)Ba2. Other ratings remained unchanged. The principal methodologies used in rating Banco Fibra were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007. Banco Fibra S.A. is headquartered in Sao Paulo, Brazil and had total consolidated assets of R$10,048.3 million (US$6,016 million) and equity of R$792.3 million (US$474.3 million) as of Dec. 31, 2010. =========================== C A Y M A N I S L A N D S =========================== ADONIA IAM: Creditors' Proofs of Debt Due July 6 ------------------------------------------------ The creditors of Adonia Iam Limited are required to file their proofs of debt by July 6, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 12, 2011. The company's liquidator is: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands COLEMAN STAFFORDSHIRE: Creditors' Proofs of Debt Due May 23 ----------------------------------------------------------- The creditors of Coleman Staffordshire Offshore Investments (No.1) Limited are required to file their proofs of debt by May 23, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 11, 2011. The company's liquidators are: Robin Lee McMahon Elizabeth Anne Bingham c/o Barry MacManus Telephone: (+1 345) 814 8997 Facsimile: (+1 345) 814 8529 Ernst & Young Ltd, 62 Forum Lane Camana Bay PO Box 510, Grand Cayman KY1-1106 Cayman Islands CONNECTCAPITAL HOLDINGS: Creditors' Proofs of Debt Due May 26 ------------------------------------------------------------- The creditors of Connectcapital Holdings are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 14, 2011. 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 GLOBAL HAWK: Creditors' Proofs of Debt Due May 17 ------------------------------------------------- The creditors of Global Hawk Ltd. are required to file their proofs of debt by May 17, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 13, 2011. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands LIXIN WEALTH: Creditors' Proofs of Debt Due May 24 -------------------------------------------------- The creditors of Lixin Wealth Fund are required to file their proofs of debt by May 24, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 21, 2011. The company's liquidator is: Mr. Li Jing Telephone: 852 3719 1150 Facsimile: 852 2907 6172 Cosco Tower, Rooms 2301-05, 23rd Floor 183 Queens Road Central Hong Kong LLOYDS TSB: Creditors' Proofs of Debt Due May 23 ------------------------------------------------ The creditors of Lloyds TSB Finance Investments (Cayman) Limited are required to file their proofs of debt by May 23, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 11, 2011. The company's liquidators are: Robin Lee McMahon Elizabeth Anne Bingham c/o Barry MacManus Telephone: (+1 345) 814 8997 Facsimile: (+1 345) 814 8529 Ernst & Young Ltd, 62 Forum Lane Camana Bay PO Box 510, Grand Cayman KY1-1106 Cayman Islands M-INVEST LIMITED: Creditors' Proofs of Debt Due May 17 ------------------------------------------------------ The creditors of M-Invest Limited are required to file their proofs of debt by May 17, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 13, 2011. The company's liquidators are: Peter Anderson Graham Robinson c/o RHSW (Cayman) Limited, Windward 1 Regatta Office Park, West Bay Road Grand Cayman KY1-1103 Cayman Islands MCDP INVESTMENT: Creditors' Proofs of Debt Due May 26 ----------------------------------------------------- The creditors of MCDP Investment Ltd. are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 12, 2011. 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 PATAGONIA ADVISORS: Creditors' Proofs of Debt Due May 17 -------------------------------------------------------- The creditors of Patagonia Advisors Ltd. are required to file their proofs of debt by May 17, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 5, 2011. The company's liquidator is: Ogier c/o Danielle Walker Telephone: (345) 815-1880 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands PEREGRINE I: Wins Court OK to Make US$3-Mil. Emergency Payment -------------------------------------------------------------- As widely reported, Peregrine I LLC won approval from the U.S. Bankruptcy Court for the District of Delaware to make an emergency US$3.1 million payment to the company that staffs its drilling vessel, preventing the ship from being abandoned in Brazil and keeping its bankruptcy afloat. Dow Jones' DBR Small Cap reports just several days after seeking Chapter 11 protection, Peregrine asked the U.S. Bankruptcy Court in Wilmington, Del., to let it pay Brazilian company Etesco Drilling Co. US$3.1 million immediately. The report relates that the company needed the court's permission because the payment would let Etesco jump in line in front of Peregrine's other, higher-ranking creditors, who are also waiting to be paid. Judge Brendan L. Shannon approved the request, court papers show, DBR Small Cap said. According to Peregrine, DBR Small Cap says, Etesco had said if it didn't get the funds to make payroll, it would terminate its agreement to operate Peregrine's deepwater- drilling vessel and could remove employees from the vessel, which Peregrine said would result in "severe" consequences. About Peregrine I LLC Headquartered in Cayman Islands, Peregrine I LLC, is an offshore drilling company backed by a unit of General Electric Co. Peregrine I, LLC, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-11230) on April 25, 2011. Russell C. Silberglied, Esq., at Richards, Layton & Finger, in Wilmington, Delaware, serves as counsel. The Debtor estimated assets and debts of US$100,000,001 to US$500,000,000 as of the Chapter 11 filing. The Company said US$190 million of a US$259 million loan is unpaid. The list of 20 largest unsecured creditors said that WestLB AG, Banco Bilbao Vizcaya Argentaria, Dexia Credit Local, DVB Bank, GE VFS Financing Holding, Inc., HSH Nordbank AG, Santander Asset Finance PLC, and Sumitomo Mitsui Banking Corp., are owed money on account of the loan, although the percentage held by each lender is not available at this time. PETIPA LTD: Creditors' Proofs of Debt Due May 26 ------------------------------------------------ The creditors of Petipa Ltd are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 5, 2011. The company's liquidator is: Eleanor G. Fisher c/o Iain Gow Zolfo Cooper (Cayman) Limited P.O. Box 1102, Cayman Financial Centre Building 3, 4th Floor Grand Cayman KY1-1102 Cayman Islands Telephone: +1 (345) 946-0081 Facsimile: +1 (345) 946-0082 e-mail: iain.gow@zolfocooper.ky PORTFOLIO OPPORTUNITY: Creditors' Proofs of Debt Due May 27 ----------------------------------------------------------- The creditors of Portfolio Opportunity SPC are required to file their proofs of debt by May 27, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 4, 2011. The company's liquidator is: Banque Privee Edmond De Rothschild Europe 20 Boulevard Emmanuel Servais L-2535 Luxembourg RPD SECURITIES: Creditors' Proofs of Debt Due May 26 ---------------------------------------------------- The creditors of RPD Securities Inc. are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company's liquidator is: Flavio Marcio Passos Barreto Alameda Santos 466-11 Andar-01418000- Sao Paulo- SP-Brasil Brazil SIGNUM III: Creditors' Proofs of Debt Due May 26 ------------------------------------------------ The creditors of Signum III Limited are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 14, 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 SIGNUM IVORY: Creditors' Proofs of Debt Due May 26 -------------------------------------------------- The creditors of Signum Ivory Limited are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 14, 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 TOVO INVESTMENT: Creditors' Proofs of Debt Due May 16 ----------------------------------------------------- The creditors of Tovo Investment Ltd. are required to file their proofs of debt by May 16, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 14, 2011. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands YSG CAYMAN: Creditors' Proofs of Debt Due May 26 ------------------------------------------------ The creditors of YSG Cayman Limited are required to file their proofs of debt by May 26, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 14, 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 ============= J A M A I C A ============= AIR JAMAICA: T&T Mum on Controversy Surrounding CAL Board --------------------------------------------------------- RJR News reports that Winston Dookeran, Trinidad and Tobago's Finance Minister, has remained mum on the ongoing controversy surrounding the board of Caribbean Airlines Limited. RJR News relates that RJR News says that Mr. Dookeran would only say that he had written to Prime Minister Kamla Persad-Bissessar. The airline is scheduled to sign a shareholders agreement in two weeks to officially take control of Air Jamaica Limited, according to RJR News. RJR News discloses that Mrs. Persad- Bissessar was quoted in a Trinidadian newspaper as saying that Cabinet's Finance and General Purposes Committee believed that the Caribbean Airlines board should not be dissolved. RJR News notes that Mrs. Persad- Bissessar said she had received a note from Mr. Dookeran, in which he recommended that the CAL board be dissolved and that certain persons be considered to fill the vacancies. As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2011, RadioJamaica said that Mr. Persad-Bissessar has intervened in what may be a brewing disagreement between CAL Chairman George Nicholas and other members of the board. RadioJamaica noted that sources said that the directors were upset with aspects of Caribbean Airlines' operations. Prime Minister Persad-Bissessar received a complaint about Mr. Nicholas as Chairman of the board, and that a request was made for him to be removed from the post, the sources added. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2010, Trinidad and Tobago Caribbean Airline on May 1, 2010, acquired Air Jamaica for US$50 million and operated six Air Jamaica aircraft and eight of its routes. Jamaica got a 16% stake in the merged operation, with CAL owning 84%. According to a TCR- LA report on June 29, 2009, RadioJamaica News said the Jamaican government indicated it will name a buyer for cash-strapped Air Jamaica. RadioJamaica related the airline has been hemorrhaging over US$150 million per annum and the government has had to foot the massive bill. In addition, RadioJamaica said, Air Jamaica currently has over US$600 million in loans outstanding. As of Aug. 18, 2010, the airline continues to carry Moody's "B3" long-term corporate family, and senior unsecured debt ratings. AIR JAMAICA: Minister Downplays Delay in Signing CAL Deal --------------------------------------------------------- RJR News reports that Jamaica Finance Minister Audley Shaw is downplaying concerns regarding the delay in the signing of a document to consummate the Caribbean Airlines Limited/Air Jamaica Limited deal. As reported in the Troubled Company Reporter Latin America on April 29, 2011, Trinidad and Tobago Newsday said that final signing of the document which would consummate the Caribbean Airlines Limited/Air Jamaica Limited deal has been postponed following high level discussions with officials of both Jamaica and Trinidad and Tobago. Final date for the signing is on April 30, 2011. Sources said all the legal paperwork has not as yet been completed and as a result, an agreement has to be negotiated with the government of Jamaica for a postponement at least until May 15, according to T&T Newsday. When RJR News caught up with the finance minister, he indicated that there are some minor issues that need to be resolved. "So just by virtue of timing, because they involve minor adjustments to the shareholder agreement and of course you have to have the Attorney General in Trinidad look at it, the Attorney General in Jamaica look at it. I spoke with the Minister of Finance of Trinidad, Winston Dookeran and the Prime Minister also spoke with the Prime Minister of Trinidad who is on a visit to Brazil," RJR News quotes Mr. Shaw as saying. RJR News notes that Caribbean Airlines was given a 12-month transition period which ends Saturday, to integrate Air Jamaica into its operations. It has the option of walking away without penalty, RJR News relates. About Air Jamaica Headquartered in Kingston, Jamaica, Air Jamaica Limited -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2010, Trinidad and Tobago Caribbean Airline on May 1, 2010, acquired Air Jamaica for US$50 million and operated six Air Jamaica aircraft and eight of its routes. Jamaica got a 16% stake in the merged operation, with CAL owning 84%. According to a TCR- LA report on June 29, 2009, RadioJamaica News said the Jamaican government indicated it will name a buyer for cash-strapped Air Jamaica. RadioJamaica related the airline has been hemorrhaging over US$150 million per annum and the government has had to foot the massive bill. In addition, RadioJamaica said, Air Jamaica currently has over US$600 million in loans outstanding. As of Aug. 18, 2010, the airline continues to carry Moody's "B3" long-term corporate family, and senior unsecured debt ratings. JAMAICA PUBLIC: Changes to Terms of Operation to be Negotiated -------------------------------------------------------------- RJR News reports that Jamaica Finance Minister Audley Shaw said the government intends to seek amendments to the terms and conditions under which the Jamaica Public Service Company operates. However, RJR News relates, Mr. Shaw did not expound on what amendments will be made, but he said the changes will be sought as the JPS prepares to admit a new partner in its ownership structure. "I wish to announce that the government intends to use the opportunity of an imminent change in the ownership structure of the JPSCO to enter into dialogue on a range of issues affecting the terms and conditions of their operations in Jamaica. There is precedent for this as when Mirant sold its shares (in the JPSCO) to Marubeni, significant amendments were made to the license under which the JPSCO now operate. It is time to have further dialogue with the JPSCO," RJR News quotes Mr. Shaw as saying. The change, which Mr. Shaw said will be sought to JPSCO' operating conditions, are expected to be a condition of the regulatory approval needed to consummate the deal under which Korean energy company, East-West Power (EWP) is to get a stake in JPSCO, RJR News says. Headquartered in Kingston, Jamaica -- https://www.jpsco.com/ -- Jamaica Public Service Company Limited is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has roughly 582,000 customers who are served by a workforce of more than 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and roughly 14,000 kilometers of distribution and transmission lines. * * * As reported in the Troubled Company Reporter-Latin America on March 12, 2010, RadioJamaica said that the multi-billion dollar show down between the Jamaica Public Service and the three unions -- BITU, NWU and UCASE -- representing workers at the company has entered the penultimate stage before the Industrial Disputes Tribunal. The report related that the IDT heard testimony from the Chairman of JPSCO, Tommy Fukuda who was called as the last witness. According to the report, Mr. Fukuda maintained that JPSCO has paid the US$2.3 billion it owed the workers following the 2001 job reclassification exercise. However, the report related, the three unions argued that the company still owed the workers an additional JM$500 million to JM$600 million in retroactive, overtime and redundancy payments. =========== M E X I C O =========== METROFINANCIERA: Fitch Affirms 'CCsf' Long-Term Rating ------------------------------------------------------ Fitch Ratings has affirmed two series of a Construction Bridge Loan transaction (CBLs) originated and serviced by Metrofinanciera, S.A.P.I. de C.V., SOFOM, E.N.R. (Metrofinanciera: Metrofinanciera Trust 650 Class A -- Long-term rating at 'CCsf', removed from Rating Watch Negative; -- National long-term rating at 'CC(mex)', removed from Rating Watch Negative. Metrofinanciera Trust 650 Class B -- National long-term rating at 'C(mex)', In addition, the Recovery Rating on the class A notes of Metrofinanciera Trust 650 has been affirmed at 'RR4', reflecting average recovery prospects within the 31%-50% range. The current ratings on the CBLs are based on the high levels of delinquencies among the projects on both principal and interest, which result in a significantly negative impact on the flows collected. Furthermore, the asset/liability position of the trust indicates an inadequate level of bridge loans to support the transaction on a stand-alone basis and it therefore relies on receivables due from Metrofinanciera. The liquidity concerns are more acute in the long-run since the trust is able to generate some cash and has a significant balance to maintain sufficient liquidity in the short term. Nonetheless, the ongoing cash flows are not sufficient to significantly amortize the class A notes and will ultimately depend on Metrofinanciera's ability to recover upon the various projects. Due to the early amortization event declared on 2009 holders of the class B notes have not been receiving interest or principal payments in accordance with the Indenture. Fitch upgraded Metrofinanciera's foreign and local currency Issuer Default Ratings (IDRs) to 'CCC' from 'RD' (long-term) in November 2010, reflecting the successful completion of a previously agreed distressed debt exchange through a bankruptcy process, which it had been negotiating since April 2009. This exchange largely mitigated refinancing and liquidity risk. However, the ratings reflect its negative core capital and the challenges relating to gradually restoring its commercial competitive position. As of March 31, 2011, the trust has these assets and liabilities: Cash in Trust: -- Metrofinanciera Trust 650 Class A & B: MXP 230,427,963.93. Adjusted outstanding Bridge Loan Balance: -- Metrofinanciera Trust 650 Class A & B: MXP 744,340,459.69. Outstanding Bond Balance: -- Metrofinanciera Trust 650 Class A: MXP 1,253,205,881.08. -- Metrofinanciera Trust 650 Class B: MXP 214,000,000.00 Cash in Trust does not include any Reserve Account. According to the monthly reports provided by the trustee, as of March 31, 2011, Metrofinanciera Trust 650 Class A & B has a balance of accounts receivable from Metrofinanciera of US$389 million, and a balance of non-performing loans over 90 days equal to 95% of the outstanding bridge loan balance. The trust has a total of 85 projects each facing various levels of impairment. The recovery prospects on the underlying projects will vary significantly depending on the individual circumstances. SATELITES MEXICANOS: Prices US$325 Million of Senior Secured Notes ------------------------------------------------------------------ Satelites Mexicanos, S.A. de C.V. and Satmex Escrow, S.A. de C.V. disclosed that the US$325 million aggregate principal amount of senior secured notes due 2017 to be issued, subject to Bankruptcy Court approval, in a private placement under rule 144A and Regulation S of the Securities Act of 1933 have been priced. The Notes were priced at par and will bear interest at an annual rate of 9.50%. The Notes Offering is scheduled to close on May 5, 2011. On April 6, 2011, Satmex, together with certain of its subsidiaries, filed a voluntary petition for a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. The petitions were filed with the U.S. Bankruptcy Court in the District of Delaware. Based on the preliminary tabulation of votes filed with the Prepackaged Plan, the only two voting classes of creditors voted overwhelmingly to accept the Prepackaged Plan, for which a confirmation hearing is scheduled on May 11, 2011. The Notes will be issued by Satmex Escrow, a bankruptcy-remote wholly owned subsidiary of Satmex. If Satmex's Prepackaged Plan is confirmed and certain other conditions are satisfied, Satmex Escrow will merge with and into Satmex in connection with the emergence of Satmex and its subsidiaries from Chapter 11, which is expected on May 26, 2011. Upon satisfaction of the Escrow Conditions and emergence from Chapter 11, the net proceeds from the Notes Offering will be used to repay Satmex's existing First Priority Senior Secured Notes due 2011 and, along with the proceeds of a US$96.25 million fully- backstopped rights offering of equity securities to holders of Satmex's Second Priority Senior Secured Notes due 2013, fund the completion of the Satmex's Satmex 8 replacement satellite as well as position the company to pursue growth opportunities. Following the emergence from bankruptcy, the Notes will be senior secured obligations of Satmex, will be guaranteed on a senior secured basis by each of its U.S. Subsidiaries, and will be secured by substantially all of the assets of Satmex and its wholly-owned U.S. subsidiaries. The Notes have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws. Further, the Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements and, therefore, will be subject to substantial restrictions on transfer. The Notes Offering is being made only to qualified institutional buyers inside the United States and to certain non-U.S. investors located outside the United States. About Satmex SAB Satelites Mexicanos, S.A. de C.V., (Satmex) is a Mexico-based provider of fixed satellite services in the Americas, with coverage to more than 90% of the population to the Americas, including more than 45 nations and territories. Satmex also provides Latin American television programming in the United States. One of only two privately managed FSS providers based in Latin America, Satmex has a fleet comprised of three satellites. Satmex 5 and Satmex 6 generate the adjusted EBITDA for Satmex. A third satellite, Solidaridad 2, is inclined orbit but does not generate any adjusted EBITDA. Construction of Satmex 8 is expected to be completed by July 2012. Satmex also intends to pursue plans for a new satellite, to be named Satmex 7. Satmex first filed for bankruptcy in August 2006 in New York and exited four months later with a plan to repay creditors owed about US$743 million with new debt and equity. Satmex, with affiliates Alterna'TV International Corporation and Alterna'TV Corporation, again filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-11035) on April 6, 2011. The Debtors disclosed US$441.6 million in total assets and US$531.6 million in total debts as of March 23, 2011. In its schedules, Satmex disclosed US$393,427,253 in total assets and US$457,699,978 in total debts on a stand-alone basis. Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, serves as the Debtor's bankruptcy counsel in the present Chapter 11 case. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' financial advisor. Rubio Villegas & Asociados, S.C., serves as the Debtors' special Mexican corporate and regulatory counsel. Jefferies & Company, Inc., is the financial advisor to supporting second lien noteholders. Ropes & Gray LLP is the U.S. counsel to supporting second lien noteholders. Cervantes Sainz serves as Mexican counsel to supporting 2nd lien noteholders. Dechert LLP is the U.S. counsel to supporting holders of first priority notes. Galicia Abogados, S.C., is the Mexican counsel to supporting holders of first priority notes. Bracewell & Giuliani LLP is the U.S. counsel to Series B. Directors. Kuri Brena Sanchez Ugarte Y Aznar is Mexican counsel to Series B. Directors. Morgan, Lewis & Bockius LLP is the U.S. counsel for SCT for Mexico Government. Casares, Castelazo, Frias, Tenorio Y Zarate, SC, is the Mexican counsel for SCT for Mexico Government. Detente Group is the financial advisor for SCT for Mexico Government. Latham & Watkins LLP is the U.S. counsel to Jefferies Finance. Creel, Garcia-Cuellar, Aiza Y Enriquez is the Mexican counsel for Jefferies. ============= U R U G U A Y ============= CREDIT URUGUAY: Moody's Withdraws 'D' Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service has withdrawn the credit rating for its own business reasons. Ratings Rationale The bank has no rated foreign currency debt outstanding. Credit Uruguay Banco S.A., located in Montevideo, had UR$28.1 billion in assets, UR$25.3 billion in deposits, and UR$1.9 billion in equity as of December 2010. These ratings of Credit Uruguay Banco S.A. were withdrawn: -- Bank financial strength rating: D, stable outlook -- Global Long-Term Local-Currency Deposit Rating: Baa3, stable outlook -- Global Long-Term Foreign Currency Deposit Rating: Ba2, stable outlook -- Global Short-Term Local Currency Deposit Rating: Prime- 3, stable outlook -- Global Short-Term Foreign Currency Deposit Rating: Not Prime, stable outlook -- National Scale Local Currency Deposit Rating: Aa1.uy, stable outlook -- National Scale Foreign Currency Deposit Rating: Aa3.uy, stable outlook *********** 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 * * *