/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110509.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, May 9, 2011, Vol. 12, No. 90 Headlines A R G E N T I N A CENTER SOLUTIONS: Creditors' Proofs of Debt Due June 29 ESTABLECIMIENTO TIA: Creditors' Proofs of Debt Due August 18 GRUMER SRL: Creditors' Proofs of Debt Due June 17 PALECO SA: Creditors' Proofs of Debt Due July 13 PEOPLE AND PARTNERS: Creditors' Proofs of Debt Due June 9 RUTA PUBLICIDAD: Creditors' Proofs of Debt Due June 13 VERDALET SA: Creditors' Proofs of Debt Due June 10 B R A Z I L BRENNAND ENERGIA: Moody's Assigns '(P)Ba3' Corporate Family Rating C A Y M A N I S L A N D S DIVERSIFIED SECURITIES: Shareholders' Final Meeting Set for May 27 FONTAINE TRADING: Members' Final Meeting Set for May 5 GORDON MANAGEMENT: Shareholder to Receive Wind-Up Report on May 13 HALLMEYER HOLDINGS: Shareholders' Final Meeting Set for May 20 INFORUM NO. 2: Shareholder Receives Wind-Up Report INTERNATIONAL CORPORATION: Shareholders' Meeting Set for May 27 MSR ASIA: Members' Final Meeting Set for May 24 PIKE PLACE: Shareholder to Receive Wind-Up Report on May 25 PLYMOUTH REALTY: Shareholders' Final Meeting Set for May 27 RISTORANTE SAVONA: Members Receive Wind-Up Report SEAGATE HDD: Moody's Rates Proposed US$600MM Notes at 'Ba1' D O M I N I C A N R E P U B L I C BANCO BHD: To Receive US$17.5 Million in IDB Funding J A M A I C A AIR JAMAICA: Jamaica and T&T Prime Ministers Negotiate Extension M E X I C O VITRO SAB: Has Secret Plan to Keep Units, Says Committee P A N A M A CORPORACION INTERAMERICANA: Fitch Assigns 'BB-' Long-Term IDR X X X X X X X X * BOND PRICING: For the Week May 2, to May 6, 2011 - - - - - ================= A R G E N T I N A ================= CENTER SOLUTIONS: Creditors' Proofs of Debt Due June 29 ------------------------------------------------------- Manuel Arias, the court-appointed trustee for Center Solutions SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 29, 2011. Mr. Arias will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 1, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Manuel Arias Congreso 2629 Argentina ESTABLECIMIENTO TIA: Creditors' Proofs of Debt Due August 18 ------------------------------------------------------------ Cesar Alberto Carlino, the court-appointed trustee for Establecimiento Tia Maria SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until August 18, 2011. Mr. Carlino will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 14, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Cesar Alberto Carlino Bolivia 4309 GRUMER SRL: Creditors' Proofs of Debt Due June 17 ------------------------------------------------- Dantos Ernesto Luparelli, the court-appointed trustee for Grumer SRL's reorganization proceedings, will be verifying creditors' proofs of claim until June 17, 2011. Mr. Luparelli will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 15 in Buenos Aires, with the assistance of Clerk No. 30, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Creditors will vote to ratify the completed settlement plan during the assembly on March 29, 2012. The Trustee can be reached at: Dantos Ernesto Luparelli Avenida Rivadavia 5126 Argentina PALECO SA: Creditors' Proofs of Debt Due July 13 ------------------------------------------------ Silvia Giudice, the court-appointed trustee for Paleco SA's reorganization proceedings, will be verifying creditors' proofs of claim until July 13, 2011. Ms. Giudice will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 9, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Creditors will vote to ratify the completed settlement plan during the assembly on May 18, 2012. The Trustee can be reached at: Silvia Giudice Av. Cordoba 456 Argentina PEOPLE AND PARTNERS: Creditors' Proofs of Debt Due June 9 --------------------------------------------------------- Marcos Enrique Gonzalez, the court-appointed trustee for People and Partners SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 9, 2011. Mr. Gonzalez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 12, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Marcos Enrique Gonzalez Lavalle 1537 Argentina RUTA PUBLICIDAD: Creditors' Proofs of Debt Due June 13 ------------------------------------------------------ Francisco Rogelio Cano, the court-appointed trustee for Ruta Publicidad SA's reorganization proceedings, will be verifying creditors' proofs of claim until June 13, 2011. Mr. Cano will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 13 in Buenos Aires, with the assistance of Clerk No. 25, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. Creditors will vote to ratify the completed settlement plan during the assembly on April 3, 2012. The Trustee can be reached at: Francisco Rogelio Cano Uruguay 618 VERDALET SA: Creditors' Proofs of Debt Due June 10 -------------------------------------------------- Olga Noemi Pardo, the court-appointed trustee for Verdalet SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 10, 2011. Ms. Pardo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 9 in Buenos Aires, with the assistance of Clerk No. 17, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Olga Noemi Pardo Avenida de Mayo 1370 Argentina =========== B R A Z I L =========== BRENNAND ENERGIA: Moody's Assigns '(P)Ba3' Corporate Family Rating ------------------------------------------------------------------ Moody's America Latina Ltda assigned (P) Ba3 corporate family ratings on the global scale and (P) A3.br on the Brazilian national scale to Brennand Energia S.A. (BESA) and Brennand Investimentos S.A (BISA). At the same time, Moody's assigned a (P) B1 global scale rating and a (P) Baa1.br rating on the Brazilian national scale to 14-year amortizing BRL 110 million senior secured debentures to be issued by BESA and guaranteed by BISA. Moody's also assigned a (P) B1 global scale rating and a (P) Baa1.br rating on the Brazilian national scale to 14-year amortizing BRL 55 million senior secured debentures to be issued by BISA and guaranteed by BESA. Ratings Rationale The debentures to be issued by BESA and BISA will be supported by the pledge of shares of Indiavai Energetica S/A (Indiavai) and its existing power purchase agreements. Indiavai is a small power plant with an installed capacity of 28 MW and is controlled by BESA. The (P) provisional ratings will remain in place until the full disbursement of the BRL 165 million for BESA and BISA. In case these companies fail in obtaining the full amounts as described above, Moody's will review all ratings accordingly. Given the sizeable capital expenditure program of both companies and the relative scarcity of long-term funding in Brazil, the issuance of the 14-year debentures is crucial for the successful implementation of the investment program of both companies and the expected improvement of their liquidity positions. The (P) Ba3 and (P) A3.br corporate family ratings reflect the adequate credit metrics for the rating category, the proven expertise of the companies' management in the construction and running of small hydro-power plants, the relatively stable and predictable cash flows based on the existing medium to long-term electricity supply contracts to mostly free consumers, and the implicit support of the shareholders. The relatively short track record of the companies' operating history in their present corporate form as holding companies constrains the ratings as does their embryonic corporate governance practices, sizeable capital expenditure program and the uncertainties on securing adequate financing to meet their current expansion program. The ratings of the debentures are one notch lower than the corporate family rating of BESA and BISA to reflect the structural subordination of the debt at the level of the holding companies to that of their operating subsidiaries. Lenders to operating subsidiaries generally have superior claims on cash flow generated at the operating level than debt holders at the holding company. BESA and BISA will use the proceeds of the debentures to help finance the construction of 186 MW of small hydroelectric power plants and 90 MW of three wind power farms. Preliminary estimates indicate that these projects will require around BRL 1.3 billion in total investment, to be disbursed from 2011 through 2014. The management of both companies has already entered into negotiations with BNDES and BNB to secure the remaining portion of the required funding, which Moody's estimates to be around BRL 1 billion. Although there is no assurance that BESA and BISA will obtain this funding as planned, management is confident that they will obtain the long-term financing necessary to adequately fund this rather ambitious investment program on a timely basis. Moody's agrees that obtaining this funding as planned is feasible given the strategic importance of these projects on a regional and national basis. Also helping to achieve this goal will be the proven expertise of the Brennand group in the construction and management of small hydroelectric power plants. Given the magnitude of the planned investments, Moody's forecasts a gradual deterioration of BESA' credit metrics from 2011 through 2012 in light of the concentration of capital expenditures with expected improvement thereafter. Free cash flow (FCF) will be negative during this initial construction period, which Moody's estimates will average BRL 283 million or 34% of debt. The negative FCF largely stems from the sizeable BRL 825 million capital expenditure program for the construction of 52 MW small hydro-power plants, and 90 MW of wind-power plants from 2011 to 2014. This investment amount also includes the conclusion of construction of an existing hydro-power project of 26 MW scheduled to start operations in 2012. On December 21, 2010, ANEEL formally authorized the 21 MW Ibirama small power plant to start operations. In 2013, BESA is likely to reap the benefits of the 90 MW in wind power farms scheduled to start operating in January 2013 along with other small hydro-power plants that are planned to start operating in the second half of 2012. Moody's projects that BESA's cash from operations (CFO Pre WC) to debt will reach 10% in 2014 and 13.3% in 2015, up from the previous three-year estimated average of 9.2%. Interest coverage (CFO Pre WC +interest/ interest expense) is projected at 2.2x in 2014 and 2.5x in 2015, up from 2.1x in the previous three year period. Moody's projections are relatively conservative in that the assumptions for capital expenditures were estimated at the high end of the investment estimate range. On the other hand, Moody's assumed that BESA will obtain adequate funding on a timely basis and that the power plants and wind farms will start operating as scheduled. BISA is also engaged in a sizeable investment program to construct 108 MW of small hydro- power plants and conclude the construction of two small hydro-power plants of 20 MW. Moody's projects that BISA's credit metrics will remain relatively stable from 2011 through 2014 despite a capital expenditure program estimated at BRL 488 million during this period. As compared to BESA, BISA's pace of investment will be more evenly distributed through the next four years, which will allow BISA to post better credit metrics than BESA. Moody's forecasts that BISA's CFO before WC to debt ratio will remain relatively strong for the rating category at around 18.7% in the first two years of Moody's projections and decrease thereafter to around 15.6% as a result of higher capital expenditures. Interest coverage will decrease from 4.3x in 2010 to 2.1x in 2014 and then stabilize and gradually improve from 2.2x in 2016 by the time the 54.4 MW hydro-power plants come on stream along with a reduced level of capital expenditures barring any new projects from that time on. Moody's conservatively included in its projections the 54.4 MW power plants scheduled to be constructed from 2014 through 2015. These power plants are still pending the granting of the environmental license, which is the first step to obtain the regulator's formal authorization for their construction. The major downside risks for BESA's and BISA's projections are inadequate funding in terms of tenor and cost and unexpected delays in the construction of these power plants, in particular, the wind power farms whose production has been fully negotiated in the regulated market for delivery at the beginning of 2013. Further capital expenditures would also impair the companies' ability to service debt in case those excess expenditures are not substantially funded with equity contributions. The stable outlook of the (P) Ba3 and (P) A3.br corporate family ratings reflects Moody's expectations that BESA and BISA will secure adequate long-term financing on a timely basis so that they can maintain a healthy liquidity position during the construction and completion of the power plants as they come on stream as planned. While Moody's foresees a deterioration of credit metrics from 2011 through 2013, they should remain adequate for the rating category. The ratings could be upgraded if BESA and BISA improve their corporate governance practices such as including the publication of quarterly financial statements, the elimination of inter- company loans and an extended track record of operations. Quantitatively, the ratings could be upgraded if the CFO Pre WC to net debt ratio stays above 12 % and interest coverage becomes higher than 3.0x both on a sustainable basis. The ratings could be downgraded if BESA and BISA do not secure adequate long-term funding as scheduled or if there is a considerable delay in the construction of the power plants. Ratings could also be downgraded if the company enters into additional capital expenditures so that there is a deterioration in liquidity or leverage increases beyond what Moody's is forecasting. Quantitatively, the ratings could be downgraded if CFO before WC to net debt ratio falls below 8% and interest coverage becomes lower than 1.8x for a prolonged period. The principal methodology used in this rating was Global Unregulated Utilities and Power Companies published in August 2009. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".br" for Brazil. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Implementation Guidance published in August 2010 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings." Brennand Energia S.A. (BESA) is a holding company controlled by a diverse number of holding companies that represent the interests of certain members of the Ricardo Brennand family. BESA was formed in 2006 and currently controls seven small hydro-power plants with an installed capacity of 154 MW and assured energy of 120.6 MW. In 2010, BESA posted net consolidated sales of BRL 143 million (US$81 million) and net profit of BRL 62 million (US$35 million). In December 2010, the shareholders capitalized BESA through the integration of 56% of the voting capital and 32.3% of the total capital of Alto Jauru, a small hydro- power plant of 22 MW of installed capacity. Brennand Investimentos S.A. (BISA) is a holding company controlled by a group of holding companies that represent the interests of another arm of the Ricardo Brennand family. BISA was founded in 2000 and controls two hydro-power plants and five small hydro- power plants with an installed capacity of 155 MW and assured energy of 111 MW. In 2010, BISA posted net sales of BRL 157 million (US$90 million) and net profit of BRL 62 million (US$35 million). =========================== C A Y M A N I S L A N D S =========================== DIVERSIFIED SECURITIES: Shareholders' Final Meeting Set for May 27 ------------------------------------------------------------------ The shareholders of Diversified Securities Limited will hold their final meeting on May 27, 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: Raymond E. Whittaker FCM Ltd. Telephone: 345-946-5125 Facsimile: 345-946-5126 P.O. Box 1982, Grand Cayman KY-1104 Cayman Islands FONTAINE TRADING: Members' Final Meeting Set for May 5 ------------------------------------------------------ The members of Fontaine Trading Ltd. will hold their final meeting on May 5, 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: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622, Grand Cayman KY1-1203 Cayman Islands GORDON MANAGEMENT: Shareholder to Receive Wind-Up Report on May 13 ------------------------------------------------------------------ The shareholder of Gordon Management Ltd. will receive on May 13, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694, Grand Cayman Cayman Islands HALLMEYER HOLDINGS: Shareholders' Final Meeting Set for May 20 -------------------------------------------------------------- The shareholders of Hallmeyer Holdings Limited will hold their final meeting on May 20, 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. INFORUM NO. 2: Shareholder Receives Wind-Up Report -------------------------------------------------- On April 22, 2011, the shareholder of Inforum No. 2 Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694, Grand Cayman Telephone: 949 8666 Facsimile: 949 0626 INTERNATIONAL CORPORATION: Shareholders' Meeting Set for May 27 --------------------------------------------------------------- The shareholders of International Corporation Limited will hold their final meeting on May 27, 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: Raymond E. Whittaker FCM Ltd. Telephone: 345-946-5125 Facsimile: 345-946-5126 P.O. Box 1982, Grand Cayman KY-1104 Cayman Islands MSR ASIA: Members' Final Meeting Set for May 24 ----------------------------------------------- The members of MSR Asia Acquisitions V, Inc. will hold their final meeting on May 24, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands PIKE PLACE: Shareholder to Receive Wind-Up Report on May 25 ----------------------------------------------------------- The shareholder of Pike Place Capital Offshore, Ltd. will receive on May 25, 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: Ogier c/o Catherine Pham Telephone: (345) 94909876 Facsimile: (345) 949-9877 PLYMOUTH REALTY: Shareholders' Final Meeting Set for May 27 ----------------------------------------------------------- The shareholders of Plymouth Realty Company Limited will hold their final meeting on May 27, 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: Raymond E. Whittaker FCM Ltd. Telephone: 345-946-5125 Facsimile: 345-946-5126 P.O. Box 1982, Grand Cayman KY-1104 Cayman Islands RISTORANTE SAVONA: Members Receive Wind-Up Report ------------------------------------------------- On April 24, 2011, the members of Ristorante Savona Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. 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 SEAGATE HDD: Moody's Rates Proposed US$600MM Notes at 'Ba1' ----------------------------------------------------------- Moody's Investors Service assigned a Ba1 rating to the proposed US$600 million 10.5-year senior unsecured notes offering to be issued by Seagate HDD Cayman, a wholly-owned subsidiary of Seagate Technology HDD Holdings. The rating outlook is stable. Ratings Rationale "Seagate has some flexibility at the Ba1 rating to incur this incremental debt given that Moody's expects EBITDA to expand after mid-year 2011 as new products with higher average selling prices and richer margins begin to ramp in fiscal 2012," says Moody's Vice President, Gregory Fraser. Through the end of fiscal 2012 (June 2012), Moody's expects Seagate's total debt to EBITDA (Moody's adjusted) will remain below the 2.0x level, compared to about 1.7x as of April 1, 2011. To the extent EBITDA remains depressed because of a delay in ramping new products, the Ba1 rating can still absorb a somewhat higher-than-anticipated financial leverage in the range of 2-3x total debt to EBITDA (Moody's adjusted), though Seagate would be more weakly positioned in the rating category. Seagate's Ba1 Corporate Family Rating (CFR) reflects its leadership position with the broadest product offering in the hard disk drive (HDD) industry, and ability to generate significant free cash flow during business upcycles to establish the financial flexibility to withstand the inevitable cyclical downturns. Nonetheless, there is significant EBITDA variability as a result of the single product-line focus, HDD industry volatility and intense competition. The rating also considers the significant R&D and capital investments that Seagate must continually deploy in order to develop and manufacture next-generation products to offset declining average selling prices on its existing products. Moody's expects Seagate to use the debt proceeds to reinvest in its disk drive business by selectively expanding capacity for new storage product categories and to meet potential increased demand from industry consolidation (i.e., Western Digital's pending acquisition of Hitachi GST and Seagate's pending combination with Samsung's HDD operations). Moody's expects Seagate to maintain at least US$1.3 billion of cash, and Moody's expects free cash flow of at least US$500 million over the next 12 months. This anticipated cash balance is after funding the US$687.5 million cash portion of the Samsung HDD operations purchase, paying the recently reinstated US$300 million annual dividend and paying the US$559 million senior note maturing October 2011. The stable outlook incorporates Moody's favorable long-term outlook for the HDD storage sector as a result of potential industry consolidation offset by Moody's near-term expectation of moderating volume growth and pricing pressure. Despite near-term revenue pressure, Moody's anticipates Seagate will generate positive free cash flow with gross margins at least in the 19% to mid-20% range. The CFR could be upgraded if Seagate: (i) lowers volatility in average selling prices, profitability and cash flows; (ii) achieves a more variable cost structure; (iii) reduces gross debt below US$1 billion; (iv) consistently maintains adjusted EBITDA above average historical levels (i.e., greater than US$1.6 billion); and (v) maintains balance sheet cash of at least US$1.75 billion. Ratings could be downgraded with a loss of technological leadership or sustained market share losses in the HDD industry, which result in diminished profits. Additionally, Moody's could downgrade the rating with debt to EBITDA above 3x, if Seagate generated operating losses and/or negative free cash flow on a sustained basis or engaged in aggressive financial policies. This is a summary of the rating actions and Moody's current ratings for Seagate: Issuer: Seagate HDD Cayman Assignments: -- US$600 Million Senior Unsecured Notes due 2021 -- Ba1 (LGD- 4, 62%) LGD Assessment Revisions: -- US$600 Million Senior Unsecured Notes due May 2020, currently Ba1, LGD assessment revised to (LGD-4, 62%) from (LGD-4, 63%) -- US$750 Million Senior Unsecured Notes due December 2018, currently Ba1, LGD assessment revised to (LGD-4, 62%) from (LGD-4, 63%) Issuer: Seagate Technology HDD Holdings Current Ratings: -- Corporate Family Rating -- Ba1 -- Probability of Default Rating -- Ba1 -- Speculative Grade Liquidity Rating -- SGL-1 -- US$559 Million (US$600 Million original face amount) Senior Unsecured Notes due October 2011 -- Ba1 (LGD-4, 63%) -- US$403 Million (US$430 Million original face amount) Guaranteed Senior Secured Second Priority Notes due May 2014 -- Baa3 (LGD-2, 20%) LGD Assessment Revisions: -- US$599 Million (US$600 Million original face amount) Senior Unsecured Notes due October 2016, currently Ba1, LGD assessment revised to (LGD-4, 62%) from (LGD-4, 63%) Net proceeds are expected to be used for general corporate purposes. The assigned ratings are subject to review of final documentation and no material change in the terms and conditions of the transaction as advised to Moody's. The principal methodologies used in this rating were Global Technology Hardware published in September 2010, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. With headquarters in Scotts Valley, CA, Seagate Technology HDD Holdings is a worldwide leader in the design, manufacture and marketing of disk drive products used as the primary medium for storing electronic information in systems ranging from personal computers and consumer electronics to data centers. ================================== D O M I N I C A N R E P U B L I C ================================== BANCO BHD: To Receive US$17.5 Million in IDB Funding ---------------------------------------------------- The Inter-American Development Bank and Banco BHD of the Dominican Republic signed the contracts for US$17.5 million financing facility that will strengthen Banco BHD's capital to further expand its long-term lending to the corporate sector, including small and medium enterprises (SMEs). The facility consists of a senior five-year loan of up to US$5 million and an eight-year subordinated loan of up to US$12.5 million from the IDB's Ordinary Capital. The transaction will provide long-term financing to Banco BHD, which will in turn on-lend to corporate and SME clients -- key market segments that drive sustainable economic development in the Dominican Republic. The subordinated loan will strengthen Banco BHD's capitalization, further promoting lending activities as the loan will meet Tier II capital criteria according to the country's banking regulator. IDB President Luis Alberto Moreno and Banco BHD President Luis Molina Achecar signed the loan agreements in a ceremony held Wednesday at the IDB headquarters in Washington, DC. At the signing, Moreno reiterated the IDB's support for initiatives that strengthen the private sector, especially in smaller economies such as the Dominican Republic. "With this facility, we will support the economic growth of the SME sector in the Dominican Republic through Banco BHD, while at the same time strengthening the bank's capitalization, which will have a multiplier effect in its ability to provide long-term financing in the country." Molina Achecar commented: "Signing this agreement gives us great satisfaction because it not only affirms that the Inter-American Development Bank has confidence in Banco BHD, a business relationship of which we are very proud, but it also reaffirms our commitment to well-functioning corporate governance, respect for the environment and a pursuit of best practices in the region." This project is a strategic component of the beyondBanking program carried out by the Financial Markets Division of the IDB's Structured and Corporate Finance Department. Through its program pillars, beyondBanking recognizes the catalytic role of banks in promoting economic growth and corporate change and in deepening capital markets. It seeks to contribute to the Bank of the Future -- a banking business model that balances financial with social returns in order to foster an inclusive, environmentally friendly and transparent financial sector. This project is specifically aligned with the program's accessBanking pillar, which targets financial deepening strategies for those traditionally under- served by the financial system. About IDB The Inter-American Development Bank is the principal source of financing for economic and social development projects in Latin America and the Caribbean. The IDB offers its financial products and technical resources to reduce poverty and inequality in a sustainable way. The Structured and Corporate Finance Department is responsible for non-sovereign guarantee operations, including loans and partial credit guarantees. The department's financial markets strategy incorporates the beyondBanking program, which seeks to encourage financial intermediaries in the region to adopt socially and environmentally sustainable, and governance practices through loans, risk mitigation products and technical assistance. About Banco BHD Banco BHD is the third largest bank in the Dominican Republic, and the second largest private sector bank. Its majority shareholder is Grupo BHD, a Dominican holding company with interests in financial services, through Centro Financiero BHD (CFBHD). Banco Sabadell of Spain, Banco Popular of Puerto Rico and the IFC are the other shareholders of CFBHD. BHD also participates in IDB's Trade Finance Facilitation Program (TFFP). * * * As reported in the Troubled Company Reporter-Latin America on Jan. 19, 2011, Fitch Ratings affirmed the ratings and revised the outlook of Banco BHD's long-term foreign and local currency issuer default rating to Positive from Stable, after a similar change on the Outlook of the sovereign rating. ============= J A M A I C A ============= AIR JAMAICA: Jamaica and T&T Prime Ministers Negotiate Extension ---------------------------------------------------------------- RJR News reports that George Nicholas, Chairman of Caribbean Airlines Limited, went ahead and negotiated a two-week extension in finalizing the deal with Air Jamaica without consulting the CAL board or the line minister. Guardian Media said Mr. Nicholas disclosed the delay in an e-mail sent on April 29 to Caribbean Airline's directors, and copied to Transport Minister Jack Warner as well as acting Prime Minister Winston Dookeran, according to RJR News. RJR News notes that Guardian Media said an extension had been negotiated by Prime Minister of Trinidad and Tobago, Kamla Persad- Bissessar, and Prime Minister of Jamaica, Bruce Golding. The Guardian website said Mr. Nicholas did not consult with Mr. Warner, Mr. Dookeran, or the CAL board but dealt directly with the prime minister, RJR News discloses. RJR News says the Guardian understands that Mr. Nicholas' email was in response to an email sent to the prime minister by Mr. Warner. Mr. Warner's email outlined Caribbean Airlines' position with respect to Air Jamaica and the urgent need to formalize the Shareholders' Agreement, RJR News adds. As reported in the Troubled Company Reporter Latin America on April 29, 2011, Trinidad and Tobago Newsday said 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 band Trinidad and Tobago. Final date for the signing was set for April 30, 2011. 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. =========== M E X I C O =========== VITRO SAB: Has Secret Plan to Keep Units, Says Committee -------------------------------------------------------- Bill Rochelle, Bloomberg News' bankruptcy columnist, reports that the creditors' committee for U.S. subsidiaries of Vitro SAB charged in a court filing May 4 that the Mexican glassmaker didn't properly disclose how it hopes to retain an interest in the U.S. businesses after a court-approved sale. A hearing for approval of sale procedures was scheduled for May 6, 2011, in U.S. Bankruptcy Court in Dallas. According to the report, the Creditors Committee, in its objection to Vitro's proposed procedures for auction and sale, alleges that the prospective buyer, Grey Mountain Partners LLC from Boulder, Colorado, "may be related to, or acting on behalf of" Vitro itself. The Committee points to, among other things, a statement in Vitro's earnings report for the first quarter, where the company says it "is considering maintaining an ownership participation at the end of the sale process." The Committee, Bloomberg adds, alludes to reports in the Mexican press pointing to discussions where Vitro would become a minority owner after the businesses are sold to Grey Mountain. The Committee also contends there is no need for an immediate sale, noting how the motion for a sale was filed one day after the U.S. companies filed their Chapter 11 cases on April 6. Mr. Rochelle relates that the Creditors Committee contends there was an insufficient marketing effort, as demonstrated by the higher offer already made by competitor Arch Aluminum & Glass Co. Inc., an affiliate of Sun Capital Partners Inc., a private-equity investor from Boca Raton, Florida. The Committee likewise contends there is "at least one alternative lender" who won't require selling the assets "on an expedited basis." Arch is offering US$45 million without a breakup fee, while Grey Mountain's contract is US$44 million with a 3% breakup fee. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Vitro America, et al., have tapped Louis R. Strubeck, Jr., Esq., and William R. Greendyke, Esq., at Fulbright & Jaworski LLP, in Dallas, Texas, as counsel. Kurtzman Carson Consultants is the claims and notice agent. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. =========== P A N A M A =========== CORPORACION INTERAMERICANA: Fitch Assigns 'BB-' Long-Term IDR ------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' Long-Term Issuer Default Rating to Corporacion Interamericana para el Financiamiento de Infraestructura. The Rating Outlook is Stable. CIFI's IDRs and Individual Rating reflect the operational support provided by its shareholders, which is complemented by the entity's expertise and track record in infrastructure financing, its experienced management, along with its conservative risk policies. The ratings also factor the inherent risks that small and recently established financial institutions face, including high concentrations on both sides of the balance sheet and limited diversification of revenues. The Stable Outlook reflects that Fitch does not anticipate substantial changes in CIFI's risk profile in the foreseeable future. However, CIFI's ratings may benefit from further diversification on both sides of balance sheet and from a more ample base of revenues. In turn, unexpected deterioration in asset quality and/or capital ratios could trigger a downgrade. CIFI's risk management policies are conservative and complemented by the shareholders' oversight. CIFI's policies encourage asset diversification by country and sector; however, concentration by project/obligor remains high (assets comprised 46 exposures at year-end 2010). On the plus side, the small size of the portfolio allows for a comprehensive and continuous follow-up that is key to timely detection of potential problems and the adoption of appropriate remedial action. Most of CIFI's facilities are structured in the form of A/B syndicated loans, in which a multilateral acts as 'Lender of Record'. In such cases, CIFI shares the same rights as the multilateral institution, including preferred creditor status. Such status provides some benefits in terms of the transfer and convertibility risks, although it does not provide meaningful benefit in terms of inherent credit risk. Loan loss reserves have far exceeded realized loan losses, but may be limited should a large debtor default. Positively, CIFI has never had a loan payment delayed more than 90 days and most of the exposures are secured by a collateral. CIFI's funding relies on a limited number of syndicated loans and shareholders. At year-end 2010, CIFI's liabilities comprised nine long-term loans and four short-term revolving credit facilities. Despite the low diversification of funding sources, CIFI has some flexibility to access additional funds as it has committed credit facilities that are not fully used and, following CIFI's plans to diversify its funding, should have even higher undrawn levels. At year-end 2010, Fitch Core Capital to Risk Weighted Assets stood at 28.91% while the Basel I Capital ratio was 28.84%, well above the minimum of 16% that CIFI aims to maintain in the long-run, which, in Fitch's view, is adequate. CIFI's operating profits have increased steadily over the last years, achieving satisfactory levels. Operating return on average assets (ROAA) for 2010 stood at 2.58% and Operating return on average equity (ROAE) at 8.52%. However, total revenues rely heavily on interest income. Medium-term growth prospects are dependent on future capital injections, as assets are expected to continue growing faster than internal capital generation. Founded in 2001 under the laws of Costa Rica, and re-domiciled in Panama on April 4, 2011, CIFI is a non-deposit-taking financial institution specializing in providing financing to medium-sized private sector infrastructure projects in Latin America and the Caribbean. CIFI was founded by a group of international and multilateral financial institutions that includes among others, Caja Madrid, IIC, and CABEI, which provide operational support for CIFI's activities in addition to funding facilities. CIFI reported total assets of USD260 million at year-end 2010. Fitch has assigned these ratings to CIFI: -- Long-term IDR at 'BB-'; Outlook Stable; -- Short-term IDR at 'B'; -- Individual Rating at 'D'; -- Support Rating at '5'; -- Support Floor at 'NF'. =============== X X X X X X X X =============== * BOND PRICING: For the Week May 2, to May 6, 2011 -------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT- DIS 5.83 12/31/2033 ARS 159 ARGENT-PAR 1.18 12/31/2038 ARS 61.75 ARGENT-DIS 7.82 12/31/2033 EUR 74 ARGENT-DIS 7.82 12/31/2033 EUR 75.25 ARGENT-DIS 4.33 12/31/2033 JPY 42 ARGENT-PAR&GDP 0.45 12/31/2038 JPY 8 BODEN 2014 2 9/30/2014 ARS 32.65 BOGAR 2018 2 2/4/2018 ARS 32.5 PRO12 2 1/3/2016 ARS 124.125 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 37.259 BCP FINANCE BANK 5.01 3/31/2024 EUR 49.408 BCP FINANCE BANK 5.31 12/10/2023 EUR 52.052 BCP FINANCE CO 4.239 EUR 66.55 BCP FINANCE CO 5.543 EUR 66.667 BES FINANCE LTD 5.772 2/7/2035 EUR 55.255 BES FINANCE LTD 4.5 EUR 65 BES FINANCE LTD 5.58 EUR 65.667 BES FINANCE LTD 6.625 EUR 72.606 EFG ORA FUNDING 1.7 10/29/2014 EUR 62.996 ESFG INTERNATION 5.753 EUR 59.334 IMCOPA INTL CAYM 10.375 12/19/2014 USD 36.5 PUBMASTER FIN 8.44 6/30/2025 GBP 60.013 SHINSEI FINANCE 7.16 USD 77.498 CHILE ----- BANCO BPI (CI) 4.15 11/14/2035 EUR 37.259 AGUAS NUEVAS 3.4 5/15/2012 CLP 1.667 CGE DISTRIBUCION 3.25 12/1/2012 CLP 40.052 ESVAL S.A. 3.8 7/15/2012 CLP 37.801 MASISA 4.25 10/15/2012 CLP 29.755 QUINENCO SA 3.5 7/21/2013 CLP 38.242 PERU ----- TELEFON DEL PERU 2.875 4/22/2028 PEN 74.927 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 57 PUERTO RICO CONS 6.5 4/1/2016 USD 63.375 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 45.896 PETROLEOS DE VEN 5.375 4/12/2027 USD 47.353 PETROLEOS DE VEN 5.25 4/12/2017 USD 61.088 PETROLEOS DE VEN 5.125 10/28/2016 USD 62.975 PETROLEOS DE VEN 5 10/28/2015 USD 66.407 PETROLEOS DE VEN 8.5 11/2/2017 USD 71.769 PETROLEOS DE VEN 8.5 11/2/2017 USD 72.064 PETROLEOS DE VEN 4.9 10/28/2014 USD 74.82 VENEZUELA 7 3/31/2038 USD 56.25 VENEZUELA 7 3/31/2038 USD 56.685 VENEZUELA 6 12/9/2020 USD 59.25 VENEZUELA 7.65 4/21/2025 USD 61.25 VENEZUELA 8.25 10/13/2024 USD 63.65 VENEZUELA 9.25 5/7/2028 USD 67 VENEZUELA 9 5/7/2023 USD 68 VENEZUELA 7.75 10/13/2019 USD 68.5 VENEZUELA 7 12/1/2018 USD 70.5 VENEZUELA 9.25 9/15/2027 USD 72.03 VENEZUELA 9.25 9/15/2027 USD 72.044 VENZOD - 189000 9.375 1/13/2034 USD 67.85 *********** 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 * * *