/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110519.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, May 19, 2011, Vol. 12, No. 98 Headlines A R G E N T I N A AVENIDA JUAN: Creditors' Proofs of Debt Due June 29 GALLETAS DE ARROZ: Creditors' Proofs of Debt Due June 30 J JUFFE: Creditors' Proofs of Debt Due June 30 REFRESCOS SUR: Creditors' Proofs of Debt Due June 27 SPORTS TRENDS: Creditors' Proofs of Debt Due June 29 B E R M U D A MULTI-STRATEGY: Creditors' Proofs of Debt Due May 25 MULTI-STRATEGY: Member to Receive Wind-Up Report on June 14 B R A Z I L CENTRAIS ELECTRICAS: Moody's Assigns 'B3' Rating to 5-Year Bond S.A. FABRICA: Moody's Affirms 'B1' Corporate Family Rating TAM SA: S&P Keeps 'B+' Corp. Credit Rating on Watch Positive C A Y M A N I S L A N D S AMERICAN PROFESSIONAL: Commences Liquidation Proceedings CCP HOLDINGS: Creditors' Proofs of Debt Due June 9 CRONUS FINANCE: Creditors' Proofs of Debt Due June 8 FOUNDATION RE II: Creditors' Proofs of Debt Due June 9 GRANITE VENTURES IV: Creditors' Proofs of Debt Due June 8 JLOC XI: Creditors' Proofs of Debt Due June 8 LOS ROBLES: Creditors' Proofs of Debt Due June 8 MAAC INVESTMENTS: Creditors' Proofs of Debt Due May 25 MABA INVESTMENTS: Creditors' Proofs of Debt Due May 25 PN ASSURANCE: Commences Liquidation Proceedings SIGNUM XENON: Creditors' Proofs of Debt Due June 8 G U Y A N A GUYSUCO: Gov't to Pay Out JM$300M in Severance to Sugar Workers J A M A I C A AIR JAMAICA: Deal With Caribbean Air to be Completed in 2 Weeks P U E R T O R I C O CARIBE MEDIA: U.S. Trustee Unable to Form Committee V E N E Z U E L A CITGO PETROLEUM: Fitch Affirms Issuer Default Rating at 'B+' X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= AVENIDA JUAN: Creditors' Proofs of Debt Due June 29 --------------------------------------------------- Alberto Hugo Samora, the court-appointed trustee for Avenida Juan Bautista Alberdi 337 SA's reorganization proceedings, will be verifying creditors' proofs of claim until June 29, 2011. Mr. Samora will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 11 in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Alberto Hugo Samora Paraguay 435 Argentina GALLETAS DE ARROZ: Creditors' Proofs of Debt Due June 30 -------------------------------------------------------- Elizabeth M. T. Zamboni, the court-appointed trustee for Galletas de Arroz SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 30, 2011. Ms. Zamboni will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 48, 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: Elizabeth M. T. Zamboni Vera 272 Argentina J JUFFE: Creditors' Proofs of Debt Due June 30 ---------------------------------------------- Aldo Bassagaisteguy, the court-appointed trustee for J. Juffe SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 30, 2011. Mr. Bassagaisteguy 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. 2, 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: Aldo Bassagaisteguy Avenida Santa Fe 2847 Argentina REFRESCOS SUR: Creditors' Proofs of Debt Due June 27 ---------------------------------------------------- Silvia Rosa Pirraglia, the court-appointed trustee for Refrescos Sur SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until June 27, 2011. Ms. Pirraglia will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 11 in Buenos Aires, with the assistance of Clerk No. 22, 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: Silvia Rosa Pirraglia Talcahuano 426 Argentina SPORTS TRENDS: Creditors' Proofs of Debt Due June 29 ---------------------------------------------------- Estudio Canapeti y Llovera Contadores Publicos, the court- appointed trustee for Sports Trends Argentina SA's reorganization proceedings, will be verifying creditors' proofs of claim until June 29, 2011. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 11 in Buenos Aires, with the assistance of Clerk No. 21, 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 17, 2012. The Trustee can be reached at: Estudio Canapeti y Llovera Contadores Publicos Argentina ============= B E R M U D A ============= MULTI-STRATEGY: Creditors' Proofs of Debt Due May 25 ---------------------------------------------------- The creditors of Multi-Strategy Series 3 Euro Trading Ltd are required to file their proofs of debt by May 25, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 9, 2011. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM 09 Bermuda MULTI-STRATEGY: Member to Receive Wind-Up Report on June 14 ----------------------------------------------------------- The member of Multi-Strategy Series 3 Euro Trading Ltd will receive on June 14, 2011, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on May 9, 2011. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM 09 Bermuda =========== B R A Z I L =========== CENTRAIS ELECTRICAS: Moody's Assigns 'B3' Rating to 5-Year Bond --------------------------------------------------------------- Moody's Investors Service assigned a B3 rating on the global scale to a 5-year senior unsecured bond offering to be issued by Centrais Eletricas do Para S.A. (CELPA) in an amount expected to be between USD250 million and USD400 million. At the same time, Moody's affirmed CELPA's B3 on the global scale and B1.br on the national scale issuer rating. The proceeds of the note issuance will be used to improve the company's liquidity position by mostly repaying short-term debt. The outlook is negative for all ratings. Ratings Rationale The B3 issuer rating reflects CELPA's weak credit metrics, characterized by high leverage and an inadequate liquidity position, the requirement of high capital expenditures and a historically poor operating performance. The ratings benefit from the inherently stable nature of the electrical distribution business relative to other businesses and the evolving regulatory framework of the electricity industry in Brazil. The ratings assessment also factors in the potential for higher tariffs during the upcoming third tariff review since the regulator is expected to recognize CELPA's expanded regulatory asset base. The application of the third tariff review, however, can be expected to moderate the increase, as reviews typically reduce electricity tariffs by passing on productivity gains to consumers. The negative outlook largely reflects Moody's concern over the company's liquidity position. The concern arises from high refinancing needs along with the potential acceleration of some long-term banking debt because of the existing cross default provisions with its ultimate holding company parent, Rede Energia S.A. (Rede; Corporate Family rating Caa1,negative), for an estimated amount of BRL 400 million. Going forward, CELPA is likely to generate stronger cash flows as measured by funds from operations (FFO) with the application of the third tariff review, which is initially scheduled for August 2011. The stronger cash flows will largely result from expected higher tariffs because of the regulator's recognition of an increased regulatory asset base as well as from expected sales volume growth, which Moody's forecasts to be above the Brazilian average sales growth. CELPA's management estimates that the regulator should recognize around BRL 1 billion in the regulatory asset base because of past capital expenditures that prior tariffs did not fully capture which could boost annual FFO by around BRL 80 million. There is no assurance that CELPA will get this tariff increase as planned, and while Moody's recognizes that the regulatory base number is feasible, Moody's has conservatively used a lower amount of around BRL 800 million in its projections which could increase annual FFO by BRL 64 million. Along with a projected average annual sales growth of as much as 7% over the next three years, the tariff adjustment should further fuel cash generation. Conversely, the third application of the tariff review by the regulator will hurt CELPA because of the transfer of productivity gains to consumers and the application of a lower WACC in the face of lower capital costs (equity and borrowings). At the end of last year, ANEEL signaled a significant reduction of tariffs for all Brazilian electricity distribution companies when it placed for public hearing the new procedures for the third electricity tariff review, to be implemented from 2011 through 2013. According to the Brazilian electricity regulatory model, all Brazilian electricity distribution companies are subject to periodic tariff reviews every four to five years in order to transfer any productivity gains to consumers. Based on public information available at ANEEL's website, a very preliminary estimate indicates that the average reduction in EBITDA for the Brazilian electricity distribution companies could reach as much as 30% if the tariff review parameters the regulator has suggested are strictly followed. Moody's expects that electricity tariffs will eventually be reduced but by a lower percentage amount than the regulator initially suggested. Moody's expects the reduction in EBITDA to stay within the 20-25% range, which translates into a tariff reduction of 5% to 7%. Moody's believes that the recognition of a higher regulatory asset base combined with the application of the new procedures for the third tariff review by the regulator will increase internal cash generation but at lower amount than projected by CELPA's management. CELPA's FFO could potentially benefit from planned higher capital expenditures, estimated at around BRL 1 billion in 2011, to reduce electricity losses, expand the distribution grid to meet the growing demand in its service territory and improve the quality of services provided to consumers. Electricity losses is a major challenge for CELPA. They are currently running at around 30%, which compares poorly with the 24.4% level recognized by the regulator and embedded in the electricity tariff. A reduction in these losses of one percentage point could increase annual EBITDA by around BRL 10 million. Improving service quality is also crucial to improving cash generation as the company is contractually obliged to meet the minimum technical requirements determined by the regulator. In 2010, the regulator fined CELPA BRL 80 million for not fulfilling its service quality requirements. While new investments should address this issue, Moody's does not expect a dramatic improvement in service quality over the short to medium term. Thus, Moody's expects further expenses from the payment of penalties at least for the next couple of years, although at reduced levels. Despite some forecasted improvement in CELPA's cash generation, the company's leverage will remain high over the next three years while its liquidity position remains a major challenge. Prior to any application of the expected bond proceeds, the company currently faces a sizeable BRL 990 million of debt coming due in the short-term plus sizable capital expenditures of over BRL 1billion in 2011. According to management, CELPA has already negotiated the contracting of around BRL 570 million of long-term debt mostly from BNDES (BRL 210 million) and from Eletrobras (BRL approximately BRL 360 million) to cover the bulk of the planned capital expenditures. In addition, CELPA is negotiating the borrowing of up to BRL 200 million of long-term debt with some local banks to lengthen its debt profile. The Eletrobras funding aims to complement the funding for the "Light for All Program", a federal-sponsored social program to extend electricity services to the most distant rural areas of the country, and to develop the transmission and distribution systems of the Marajo Island to include consumers of this region in the Brazilian electricity integrated system. The USD 400 million bond issuance (approximately BRL 600 million) will help CELPA make up for the cash shortfall and reduce refinancing needs to around BRL300/ 400 million which is still challenging but more manageable. In case CELPA fails in lengthening its debt profile as planned, Moody's expects that management will either borrow short-term debt or reduce capital expenditures accordingly. In the event CELPA succeeds at implementing this funding strategy, liquidity would be considered adequate if not for some existing cross default provisions with its holding company parent Rede, which could potentially accelerate as much as BRL 400 million of debt at CELPA. Management has indicated that CELPA will consider hedging the currency exposure of the principal and interest, in total or in parts, depending on market conditions. A potential major devaluation of the local currency would certainly increase leverage but with limited impact on cash flow in the short-term. The planned financial turnaround of CELPA which included the receipt of BRL530 million from Rede in the second half of 2010 coupled with this current note issuance is strategic in the long- run because Rede depends on up-streamed dividends from its operating subsidiaries to service its debt, which Moody's deems unattainable at the current operating levels. The negative rating outlook could change to stable if CELPA obtains the long-term funding as planned and at the same time the credit and liquidity risks at Rede improves so that the potential risk of accelerating CELPA's debt is significantly reduced. The ratings could be upgraded if CELPA improves its liquidity profile and obtains stronger credit metrics such that CFO before changes in working capital over total debt is greater than 8% and interest coverage is over 2.0x for a prolonged period. The ratings could be downgraded if CELPA's liquidity position further deteriorates either because it fails to lengthen its debt profile or the creditworthiness of its ultimate parent company Rede further deteriorates. Quantitatively, the ratings could be downgraded if credit metrics further weaken such that CFO before changes in working capital to debt is lower than 3% and interest coverage falls below 1.3x for a prolonged period. The principal methodology used in this rating was Regulated Electric and Gas Utilities published in August 2009. Celpa, headquartered in Belem, owns a 30-year concession contract that expires in 2028 to distribute electricity to 143 cities in the state of Para. In 2010, Celpa sold 6.1 TWh to approximately 1.7 million consumers, with net revenues of BRL1.6 billion (USD0.9 billion) which excludes BRL489 million (USD278 million) construction revenues and net loss of BRL100 million (USD57 million). Celpa is controlled by Rede Energia S.A. (REDE), which has a direct and indirect participation of 61.4% of Celpa's total capital. Rede is a major holding company with interests in the Brazilian electricity sector through the controlling of operating companies which hold concessions to distribute electricity in the states of Mato Grosso (Centrais Eletricas Matogrossenses S. A. - Cemat), Tocantins (Companhia de Energia Eletrica do Estado do Tocantins - Celtins) and Mato Grosso do Sul (Enersul). In addition, Rede operates small power distribution concessions in a number of municipalities in the states of Sao Paulo, Minas Gerais and Parana. Overall, the group serves approximately 4.5 million clients. In 2010, Rede reported consolidated net revenues of BRL5.6 billion (USD3.2 billion) which excludes BRL1.3 billion (USD725 million) construction revenues and a net loss of BRL375 million (USD213 million), and distributed 19.8 TWh of electricity, which is equivalent to approximately 4.7% of the electricity consumed in the country's national integrated system. S.A. FABRICA: Moody's Affirms 'B1' Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service has affirmed the B1 corporate family rating on the global scale to JBS S.A. At the same time the corporate family rating of S.A. Fabrica de Produtos Alimenticios Vigor was upgraded to B1 from B2. The rating alignment of Vigor to that of JBS anticipates the operational benefits with regards to synergy opportunities in areas such as personnel, logistics, procurement, commercial and marketing expenses, not excluding JBS' larger access to funding sources that should enhance Vigor's cost of funding and debt structure. The outlook for all ratings is positive. Ratings Rationale The B1 corporate family rating of JBS reflects the global strength of its operations, especially after the acquisition of US leader in the poultry segment, Pilgrim's Pride, the company's size as one of the largest protein related products' companies worldwide, and the increasing relevance of JBS' meat exports to Brazil's economy. The rating incorporates that the synergies created from Pilgrim's and Bertin's acquisitions and the financial benefits from the announced debt profile restructure can partially mitigate the effects of increased input costs on JBS' profitability in 2011. JBS will refinance up to USD 2.5 billion and reduce near term funding risk with additional cost savings. The rating also reflects improved operating margins and lower leverage, following better global market conditions. Moody's believes that these factors, combined with the consolidation of its global operations, should benefit the company's operating and cash flow metrics. On the other hand, JBS' acquisitive profile adjoin integration risk and puts pressure on its financial performance, especially with regards to leverage and cash flow generation, compared to companies at the same rating level and industry sector. The rating also reflects JBS' continued reliance on beef sales and company's idle production capacity in Brazil, albeit improving. The negative effects of higher input costs, especially grains and live cattle, in JBS' profitability since the 4Q10 and the inherent risk related to the protein business, including diseases and trading embargoes, are also relevant factors that constrain JBS' rating. In 2010, JBS reported consolidated net revenues of BRL 55 billion (approximately USD 32 billion), a 57.7% growth YoY, and 14% on organic growth basis. "The latest acquisitions added product diversification to JBS' sales and expanded its raw materials supply overseas, diminishing concentration risks", said Mr. Ricardo Kovacs, VP and Senior Analyst at Moody's. Thus, profitability measured by EBITDA margin expanded to 7.6% compared to 4.5% in 2009, with the increased participation of processed foods, pork and poultry in sales breakdown. "JBS has a challenging environment ahead to fully implement the synergies from acquisitions, to pass through increasing input costs and complete a debt restructure that will relief company's short term financing needs", said Mr. Kovacs. JBS reported negative free cash flow in 2010, as a consequence of higher cattle prices and larger inventory levels after Pilgrim's and Bertin's consolidation. In 2011, a special focus on business integration and synergies implementation instead of new acquisitions should lead JBS to be free cash flow positive. The announced debt restructuring will ease JBS' short term funding needs and reduce cost of funding. Moody's also expects a continued deleveraging in 2011 with Debt/EBITDA expected to be sustained below 4 times. Moody's regards as a credit positive the strategic shareholder BNDESPar (the equity arm of the National Development Bank) which currently has a stake of 17.02% of total shares. BNDESPar has a positive track record of elevating the overall corporate governance standards of companies in its equity investments, while BNDES itself is expected to be a source of cheaper local currency and longer term debt, notably for fixed assets financing. The positive outlook reflects Moody's expectation that JBS will focus organic growth in 2011 and convert projected synergies from acquisitions into profitability, along with better cash flow generation and lower leverage. The outlook considers JBS' enhancing corporate governance, with the existence of independent audit and fiscal councils and a board of directors with five independent members, but also the absence of formal targeted financial parameters. It also reflects Moody's concerns regarding the impacts of growing input costs in JBS's operating margin and a limited capability to passthrough costs to end prices. A downgrade to the ratings could be caused by a weaker liquidity profile or a large debt financed acquisition. Quantitatively, negative rating pressure would arise should LTM Debt to EBITDA be above 6.0x (4.0x as of FY10), EBITA/Interest below 1.0 x (1.2x as of FY10) or RCF to Net Debt lower than 10% (14.2% as of FY10). All credit metrics are adjusted according to Moody's standard adjustments and definitions. The ratings could be upgraded if JBS reports stronger and less volatile consolidated cash flow, both before and after working capital changes. Quantitatively, upward pressure would require JBS to report positive free cash flow, while maintaining RCF to Net Debt above 15% and Total Debt to EBITDA below 4.0x on a sustained basis. The principal methodology used in rating JBS was the Global Food - Protein and Agriculture Industry Methodology, published September 2009. Headquartered in Sao Paulo, Brazil, JBS is the world's largest protein producer (beef, chicken, pork and lamb) in terms of revenues, slaughter capacity and production. It is the leading beef and lamb player on a global basis, the second worldwide producer of chicken, the third largest pork producer in the USA and the third largest dairy producer in Brazil, besides being one of the most important leather manufacturer globally. Founded in 1918, Vigor is one of the leading companies in terms of sales and market share in Brazil, in the milk, dairy and fat segments. Vigor has a diversified product portfolio with approximately 340 items, among them well-recognized brands such as Leco, Danubio, Faixa Azul, Amelia, and Franciscano, among others. TAM SA: S&P Keeps 'B+' Corp. Credit Rating on Watch Positive ------------------------------------------------------------ Standard & Poor's Ratings Services' 'B+' long-term corporate credit rating on Brazil-airline TAM S.A. remains on CreditWatch with positive implications, were it was placed Aug. 16, 2010. The CreditWatch placement followed TAM's announcement that it signed a nonbinding memorandum of understanding with LAN Airlines S.A. (not rated). "We expect the deal to combine both companies into one entity named LATAM Airlines Group. The transaction depends on regulatory authorities' approval, which may take several quarters," said Standard & Poor's credit analyst Piero Parolin. On Jan. 28, 2011, in response to a petition filed by Chilean consumer association CONADECUS, Tribunal de Defensa de la Libre Competencia, the antitrust authority determined to submit the proposed combination of TAM and LAN to a voluntary review procedure. "We believe this procedure could delay the combination of the two operations. Still, we expect the agreement to improve TAM's business and financial profiles, if approved. Assuming the deal goes through as proposed, TAM expects to benefit from synergies estimated at US$400 million, coupled with increased ability to manage its aggressive financial profile and heavy fleet expenses," S&P stated. "Apart from the operations' combination, our rating on TAM reflects high adjusted indebtedness, fierce competition from a lower-cost competitor in Brazil and from foreign airlines in international flights, and some degree of regulatory risk. TAM's strong and leading position in the Brazilian domestic air transportation industry, favorable growth fundamentals for the industry in the country as the economy continues to expand, and a strong brand name that reinforces passenger preference, particularly among business travelers, partially offset the risks," according to S&P. "We expect to resolve the CreditWatch status as soon as regulatory authorities reach their conclusions about the merger between LAN and TAM. This may, however, take several quarters to complete. Our assessment of TAM's improved business and financial profiles as we obtain more clarity on LATAM's strategic plan could lead us to raise our ratings on TAM," S&P added. =========================== C A Y M A N I S L A N D S =========================== AMERICAN PROFESSIONAL: Commences Liquidation Proceedings -------------------------------------------------------- At an extraordinary general meeting held on April 20, 2011, the members of American Professional Assurance Ltd resolved to voluntarily liquidate the company's business. The company's liquidators are: Kenneth M. Krys Timothy Le Cornu KRyS Global, Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 31237, Grand Cayman KY1-1205 Cayman Islands CCP HOLDINGS: Creditors' Proofs of Debt Due June 9 -------------------------------------------------- The creditors of CCP Holdings SPC are required to file their proofs of debt by June 9, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 16, 2011. The company's liquidator is: Stuart Sybersma c/o Karen Scott Deloitte & Touche P.O. Box 1787, Grand Cayman KY1-1109 Cayman Islands Telephone: +1 (345) 814 3312 Facsimile: +1 (345) 949 8258 e-mail: kascott@deloitte.com CRONUS FINANCE: Creditors' Proofs of Debt Due June 8 ---------------------------------------------------- The creditors of Cronus Finance Limited are required to file their proofs of debt by June 8, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 28, 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 FOUNDATION RE II: Creditors' Proofs of Debt Due June 9 ------------------------------------------------------ The creditors of Foundation RE II Ltd are required to file their proofs of debt by June 9, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 14, 2011. The company's liquidators are: Katherine Chiazza Barbara Fawcitt HSBC House, 68 West Bay Road P.O. Box 1109, Grand Cayman Cayman Islands Telephone: 914-7553 Facsimile: 949-6021 GRANITE VENTURES IV: Creditors' Proofs of Debt Due June 8 --------------------------------------------------------- The creditors of Granite Ventures IV Ltd. are required to file their proofs of debt by June 8, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 28, 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 JLOC XI: Creditors' Proofs of Debt Due June 8 --------------------------------------------- The creditors of JLOC XI Limited are required to file their proofs of debt by June 8, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 28, 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 LOS ROBLES: Creditors' Proofs of Debt Due June 8 ------------------------------------------------ The creditors of Los Robles CDO Ltd are required to file their proofs of debt by June 8, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 28, 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 MAAC INVESTMENTS: Creditors' Proofs of Debt Due May 25 ------------------------------------------------------ The creditors of Maac Investments Limited are required to file their proofs of debt by May 25, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2011. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands MABA INVESTMENTS: Creditors' Proofs of Debt Due May 25 ------------------------------------------------------ The creditors of Maba Investments Limited are required to file their proofs of debt by May 25, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 25, 2011. The company's liquidator is: Essa Zainal c/o Patricia Tricarico Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands PN ASSURANCE: Commences Liquidation Proceedings ----------------------------------------------- At an extraordinary general meeting held on March 31, 2011, the members of PN Assurance Limited resolved to voluntarily liquidate the company's business. The company's liquidators are: Megan Ogden Alissa Matthews Marsh Management Services Cayman Ltd Telephone: 345-949-7988 Facsimile: 345-949-7849 SIGNUM XENON: Creditors' Proofs of Debt Due June 8 -------------------------------------------------- The creditors of Signum Xenon Limited are required to file their proofs of debt by June 8, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 28, 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 =========== G U Y A N A =========== GUYSUCO: Gov't to Pay Out JM$300M in Severance to Sugar Workers --------------------------------------------------------------- Stabroek News reports that President Bharrat Jagdeo said that the Guyana government will pay out $300M in severance to sugar workers from Diamond who have taken legal action against the state for withholding the monies. Finance Minister Dr. Ashni Singh has been asked to find the money, according to Stabroek News. The money is expected to be released to Guyana Sugar Corporation (GuySuCo) sometime next week and later paid out to the workers, the report relates. Stabroek News notes that President Jagdeo met with the Diamond workers, numbering around 300 to personally deliver the news. Stabroek News discloses that President Jagdeo also told workers that the court decision could have gone either way -- in favor of the state or the workers. He pledged continued assistance for the sugar industry while lamenting the deep financial troubles of GuySuCo, Stabroek News adds. As reported in the Troubled Company Reporter-Latin America on December 18, 2009, Caribbean Net News said sugar workers at all sugar estates across Guyana went on strike in protest of a 3% pay increase they are set to receive from the Guyana Sugar Corporation for 2009, which will be paid in 2010. According to the report, an arbitration panel ruled that the workers should receive the 3% increase that they are demanding. However, the report related, the corporation said it cannot make the payments. About Guysuco The Guyana Sugar Corporation -- http://www.guysuco.com/-- is a Guyanese sugar company owned by the government. It is the country's largest cultivator and producer of sugar, a commodity which is responsible for approximately 20% of Guyana's annual revenue and 40% of all agricultural production. They are also notable of Demerara Sugar, and also honey and sweeteners. ============= J A M A I C A ============= AIR JAMAICA: Deal With Caribbean Air to be Completed in 2 Weeks --------------------------------------------------------------- RJR News reports that Jamaica Finance Minister Audley Shaw is expressing confidence that Caribbean Airlines Limited's takeover of Air Jamaica Limited will be completed in two weeks. Mr. Shaw said the notice issued to Caribbean Air to complete the transaction was not a sign of impatience in sealing the deal, according to RJR News. It was a mere formality to preserve all rights under the agreements which were signed earlier and against the background of the two week extension which expired on Monday, according to Mr. Shaw. 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. 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. 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. ===================== P U E R T O R I C O ===================== CARIBE MEDIA: U.S. Trustee Unable to Form Committee --------------------------------------------------- Roberta A. DeAngelis, the United States Trustee for Region 3, said that despite efforts to contact eligible unsecured creditors for Caribe Media Inc. to date, she has not received a sufficient number of creditors willing to serve on a committee of unsecured creditors. Accordingly, the U.S. Trustee is unable to appoint a committee pursuant to 11 U.S.C. Sec.1102(a). About Caribe Media Caribe Media Inc. owns publication rights for certain print and Internet directories in the Dominican Republic and Puerto Rico. Caribe Media owns 60% of Axesa Servicios de Informacion, S. en C., a Yellow Pages publisher in Puerto Rico and the official publisher of all telephone directories for Puerto Rico Telephone Company, Inc., the largest local exchange carrier in Puerto Rico, and US$100% of Caribe Servicios de Informacion Dominicana, S.A., the sole directory publisher in the Dominican Republic with the exclusive right to publish under the brand of Codetel, the largest telecom operator in the Dominican Republic. Caribe Media is wholly owned by CII Acquisition Holding Inc. They are affiliates of Local Insight Media Holdings, Inc. Caribe Media and CII filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-11387 and 11-11388) on May 3, 2011. Caribe Media is being represented by lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel. Lawyers at Curtis, Mallet-Prevost, Colt & Mosle LLP will serve as conflicts counsel. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. Local Insight Media is also a debtor in its own Chapter 11 pending in Delaware. Local Insight Media filed in 2010. It is also being represented by lawyers at Kirkland and Pachulski. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Fitch Affirms Issuer Default Rating at 'B+' ------------------------------------------------------------ Fitch Ratings has affirmed these existing ratings of CITGO Petroleum Corporation: -- Issuer Default Rating (IDR) at 'B+'; -- Senior Secured Credit Facility at 'BB+'; -- Secured Term Loan at 'BB+'; -- Fixed-Rate Industrial Revenue Bonds (IRBs) at 'BB+'. Fitch has also revised the Rating Outlook on CITGO's IDR to Positive from Stable. The main drivers of the revised Outlook include: -- Rapid improvements in the company's financial performance, prompted by a backdrop of improving global refining fundamentals; -- CITGO's access to heavily discounted WTI-linked crudes; -- The company's recent de-leveraging, which has reduced balance sheet debt to approximately US$1.503 billion at the end of the first quarter versus US$2.202 billion at year-end 2009; -- Completion of Ultra Low Sulfur Diesel (USLD) construction at Lemont and Corpus Christi, which was the last major piece of near term mandatory capex at the company and should clear the way for improved FCF generation, all else equal. The unusually wide spread between North American benchmark crude oil WTI and global waterborne crudes such as Brent has been a key driver of CITGO's high profitability year-to-date in 2011. The Brent-WTI spread - normally in the range of +/- US$3 per barrel - has blown out to a US$10-US$15/barrel discount, due in significant part to ramped up production from Canadian Oil Sands and U.S. shale oil plays, matched to still-limited logistical takeaway capacity out of Cushing, OK to the Gulf coast, as well as the impact of supply disruptions in Libya. This gap has provided a near-term windfall for refiners positioned to take advantage of cheaper, landlocked North American crudes. CITGO has been able to take advantage of these crudes both at its 167,000 bpd Lemont, IL refinery (which can take about 100,000 bpd of heavy Canadian crudes directly), and at its Gulf coast refineries, which have WTI-related contract pricing on a portion of imported barrels. CITGO's EBITDA for the first quarter of 2011 alone stood at a very robust US$541 million, versus US$585 million for all of 2010, as calculated by Fitch. CITGO's recent credit metrics have shown substantial improvement. At March 31, 2011, the company had debt/EBITDA leverage of 1.26 times (x), EBITDA/interest coverage of 6.06x, and LTM FCF of US$926 million. The company's liquidity was good at March 31, 2011 and totaled US$1.193 billion, comprised of cash of US$56 million, revolver availability of US$714 million, and A/R securitization availability of US$423 million. Liquidity has also improved following the company's 2010 debt refinancing, which included the conversion of all of CITGO's variable rate IRBs (which required revolver-backed LoCs) to fixed rate IRBs which do not require such support. CITGO repurchased US$290 million in IRBs which it currently holds in treasury. Headroom on key covenants was good at YE 2010 and included a debt- to-cap ratio of 45.5% (versus a 60% limit), an interest coverage ratio of 5.02x (versus a 1.5x limit), and official liquidity of US$731.5 million (versus a US$400 million limit). The completion of ULSD projects at Lemont and Corpus Christi in 2010 should help improve CITGO's FCF on a go-forward basis as it marks the last major required capex initiative due in the near term. Near term maturities are manageable following the 2010 refinancing and include amortizations of existing term loans, with the next major maturity due the 2015 term loan 'B', of which US$134.5 million remained at March 31, 2011. CITGO's ratings remain constrained by their strong linkage to parent Petroleos de Venezuela SA (PDVSA; IDR 'B+' with a Stable Outlook), which is evidenced through the dividend policy to PDVSA, frequent appointments of PDVSA personnel into CITGO executive and board positions, CITGO's contracts to take approximately 250,000 bpd of PDVSA crude at its Gulf coast refineries, and uncertainty about the parent's ultimate intentions regarding its subsidiary. However, it is important to note that there are strong covenant protections in CITGO's secured debt which restrict the ability of the parent to dilute CITGO's credit quality. These include debt- to-cap limits, minimum liquidity, and minimum interest coverage ratios (all of which are tightened in the event CITGO upstreams dividends to its parent). The notching between the IDR and secured ratings reflects the strength of the underlying security package, which was expanded in 2010 to include the 167,000 bpd Lemont refinery, in addition to CITGO's Lake Charles and Corpus Christi refineries, petroleum inventories, and select accounts receivables. Catalysts for an upgrade to the credit include higher ratings at the parent level, or additional evidence that CITGO's strong financial performance and recent reductions in leverage will be sustained going forward. Catalysts for a downgrade include another leg down in refining fundamentals, a liquidity crunch; or credit deterioration at the parent level resulting in more financial pressure on CITGO. Note that removal of secured lenders from the capital structure could weaken the rationale for any notching between CITGO and PDVSA, given the substantial protections secured bondholder covenants provide to all CITGO bondholders. Looking forward, Fitch anticipates that CITGO will be meaningfully free cash flow (FCF) positive in 2011 and 2012, due to the combination of further improvements in global refining fundamentals, the favorable impact of wide (but declining) spreads between Brent and WTI, and reduced mandatory capex requirements. Fitch anticipates that a meaningful portion of CITGO's cash flows may be paid out in the form of dividends. CITGO's other obligations are manageable. CITGO's pension was underfunded by US$186.9 million at year-end 2010 versus US$197.8 million the year prior. The improvement in funding status stemmed primarily from improved actual return on plan assets. CITGO's asset retirement obligation (ARO) was US$18.5 million at year-end 2010, down modestly from levels seen the year prior. Rental expense for operating leases declined to US$140 million versus US$171 million the year prior, and included product storage facilities, office space, computer equipment, and vessels. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Julie Anne G. Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *