/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110718.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, July 18, 2011, Vol. 12, No. 140 Headlines A N T I G U A & B A R B U D A CL FINANCIAL: CLICO Policyholders Could Get Bonds A R G E N T I N A ODS: Moody's Assigns 'B3/Baa1' Ratings to US$150MM Senior Notes SALTA HYDROCARBON: Fitch Affirms US$234-Mil. Notes at 'B' B E R M U D A FOUNDING PARTNERS: Creditors' Proofs of Debt Due August 4 MOLTECH SYSTEMS: Creditors' Proofs of Debt Due July 22 MOLTECH SYSTEMS: Member to Receive Wind-Up Report on August 9 OLD MUTUAL: Creditors' Proofs of Debt Due July 22 OLD MUTUAL: Members' Final Meeting Set for August 11 B R A Z I L GOL LINHAS: Assigns 'Ba3' Rating to BRL500-Million Debentures C A Y M A N I S L A N D S ASPIN NOUVEAU: Shareholders' Final Meeting Set for August 5 ATON CAPITAL: Moody's Assigns B2/Not Prime Issuer Ratings AVCAN LEASING: Creditors' Proofs of Debt Due August 5 BALLON NOUVEAU: Shareholders' Final Meeting Set for August 5 BULL CAPITOL: Commences Liquidation Proceedings DARNAY NOUVEAU: Shareholders' Final Meeting Set for August 5 EVO GOLDEN: Members' Final Meeting Set for August 2 EVO GOLDEN: Members' Final Meeting Set for August 2 FRONTPOINT OFFSHORE: Creditors' Proofs of Debt Due August 5 FURSA OFFSHORE: Creditors' Proofs of Debt Due August 5 LYDIAN OVERSEAS: Shareholders' Final Meeting Set for August 5 MLMI CAYMAN: Shareholders' Final Meeting Set for August 5 QCR FUNDING: Shareholders' Final Meeting Set for August 16 SPREAD PROFIT: Members' Final Meeting Set for August 4 T.O. OFFSHORE: Shareholders' Final Meeting Set for August 5 URUGUAY FUTURO: Shareholders' Final Meeting Set for August 5 J A M A I C A DIGICEL GROUP: Decision on Claro Deal to be Revealed Soon P U E R T O R I C O MCS: Not Headed for Bankruptcy, Insurance Commissioner Says V E N E Z U E L A VITRO SAB: Asks U.S. Judge to Enforce Mexican Plan * VENEZUELA: Moody's Says Chavez Illness Means Uncertain Future X X X X X X X X * BOND PRICING: For the Week July 11 to July 15, 2011 - - - - - =============================== A N T I G U A & B A R B U D A =============================== CL FINANCIAL: CLICO Policyholders Could Get Bonds ------------------------------------------------- Caribbean360.com reports that Trinidad & Tobago Finance Minister Winston Dookeran said that he will soon seek Cabinet and parliamentary approvals to pay Colonial Life Insurance Company (Trinidad) Limited (CLICO) policyholders, who hold balances over TT$75,000, in the form of 20-year bonds. Recipients will not have to wait for 20 years to be paid, but once bonds are issued, they can be redeemed at a discounted rate, according to Caribbean360.com. The report relates that Mr. Dookeran said the Ministry was working out the effective discounted rate which should be applied without putting the country's debt profile at risk. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. ================= A R G E N T I N A ================= ODS: Moody's Assigns 'B3/Baa1' Ratings to US$150MM Senior Notes --------------------------------------------------------------- Moody's Latin America has assigned B3/Baa1.ar ratings to ODS' proposed up to US$150 million senior unsecured notes, with a stable outlook. This is the first time Moody's has rated ODS. ODS intends to use proceeds from the notes to refinance its short term bank debt and for working capital needs. The notes will constitute senior unsecured obligations for the issuer and will be unconditionally guaranteed on a senior unsecured basis by ODS' main subsidiaries. Ratings Rationale The ratings are supported by ODS' solid business model, strong growth and cash generation and modest leverage. Those factors are offset by ODS' dependence on public works in Argentina and exposure to different levels of Argentine' government risk (B3/Stable). Similar to other construction companies, ODS has seen strong growth in recent years, fostered by increased spending on public works and infrastructure investments by federal and local governments in Argentina. Public spending on infrastructure has risen from less than 0.5% of GDP in 2002 to close to 2.5% in 2010, while GDP has been growing at more than 8% p.a. over the same period. For 2011, we expect public spending for these projects to increase by 12,5% over the previous year. The ratings also considers ODS' strong competitive position for bidding on future public works that will presumably continue to grow over the next years. It has been the federal government's policy during recent years to stimulate economic growth with investment in public work projects, which has had a direct impact on the growth of the construction business. Over the past three years the construction industry has accounted for approximately 5% of Argentina's GDP and employed approximately 4% of its labor force. ODS benefited from this policy and it is expected to continue to benefit in the upcoming years. ODS's construction revenues have grown from ARS900 million in 2008 to more than ARS2,200 million in 2010. The ratings are constrained by ODS' exposure to Argentine's government credit risk, geographic concentration in Argentina, and focus on a limited number of segments of the construction market, with civil works and electromechanical works accounting for more than 80% of total revenues. Additional factors include the high degree of revenues and profits volatility given the high inflation environment in Argentina. ODS's contracts that include price-adjustment clauses may translate in lower than anticipated profits for the company due to delays or frictions in passing on increased costs or due to the inflationary process. Although ODS's leverage is modest and positions it well in the current rating category, Moody's note that ODS' debt is higher than that of its Argentine peers. ODS' rapid growth requires stepped up investments in capex and working capital that have been debt financed, resulting in debt metrics that are weaker than those of its peers. In addition, the notes will be dollar denominated while ODS' revenues are generated in pesos, in Argentina. Liquidity Moody's considers ODS' liquidity position as adequate. As of March 31, 2011, ODS had cash and short term investments of approximately ARS420 million, an amount almost equivalent to its short term debt of ARS400 million at the same date. ODS main source of funding has been short term debt from local Argentine financial institutions, advance payments from clients and suppliers' financing. Through the proposed notes offering, ODS intends to extend its maturity profile by using the proceeds to substantially reduce accounts payable and short term bank debt. Moody's believes the issuance of the notes will increase ODS' financial flexibility make resources available to continue to develop new projects. The stable outlook considers Moody's expectation of continued growth in ODS's construction revenues, supported by the many public works under development in Argentina. The outlook also reflects Moody's expectation of margin stabilization and the maintenance of moderate leverage. An upgrade of the ratings or outlook could occur if ODS is able to lower its exposure to the public sector in Argentina to below 60% while stabilizing its construction margins. A reduction in leverage leading to a debt to EBITDA ratio of less than 1.5 times could also add upward rating pressure. The ratings could be negatively impacted by a substantial increase in leverage, the company's inability to stabilize its profits or a deterioration in liquidity. Quantitatively, a debt to EBITDA of more than 4 times and operating profits declining to below 6% could add negative pressure on the ratings. In addition, the ratings could come under downward pressure by a material decrease in public works in Argentina or by a deterioration in the terms of payment from its main clients. Based in Argentina, ODS is a holding company engaged in the construction and real estate businesses, operating through its main subsidiaries Iecsa (construction business) and Creaurban (real estate development). Both, Iecsa and Creaurban, are in turn the guarantors under the notes. ODS is a full-scope provider of engineering, procurement and construction services; it designs and builds large-scale infrastructure and other projects, including highways, railways, bridges, buildings, dams, power generation facilities, oil and gas pipelines and distribution networks, transmission lines and transformation stations and sanitation plants, as well as provide toll-road concession services. Ghella s.p.a (not rated) is ODS' main shareholder. Ghella is an Italian construction company, created in 1884, with a long and diversified international track record and specialization in the construction of tunnels and subterranean works. SALTA HYDROCARBON: Fitch Affirms US$234-Mil. Notes at 'B' --------------------------------------------------------- Effective as of July 11, 2011, Fitch Ratings affirms Salta Hydrocarbon Royalty Trust's global scale foreign currency rating for its US$$234 million targeted amortization notes at 'B'. The Rating Outlook is Stable. This rating level is equal to Argentina's sovereign and country ceiling ratings and addresses the timely payment of interest and ultimate payment of principal by the final maturity date: Dec. 28, 2015. The target maturity date is Dec. 28, 2012. The bonds continue to amortize with the target schedule being the outstanding balance of USD$62.8 million. Recent collections have been decreasing due to lower oil and gas production levels registered in the last two years that have not been off-set by prices. In 2010, the oil and gas production of the Province of Salta declined 16.0% and 11.5%, respectively, while the royalties were reduced in 11.2% compared to 2009 figures. In the first four months of 2011 the production and royalties continue the negative trend with -13.3%; -8.6% and -17.7%, respectively, over the same period of 2010. The agency expects that the royalties will continue to reduce due to the depletion of the existing wells and the fact that they will not be replaced with new reserves. This situation could imply that the bonds may not reach the target amortization, extending full amortization of the notes beyond 2012. The negative trend in production level is in line with key credit concerns for the energy sector in Argentina. Government interference is evidenced through price control and export taxes among other items, affecting new investment decisions. This situation implies that the country ceiling rating acts as a cap for this rating. The notes have this credit enhancement: i) Liquidity Reserve: equivalent to six-month of interest (as of June 2011, US$$3.6 million, ii) Insurance policy covering timely interest payments given by Ace Bermuda Insurance Ltd. The policy covers political risks comprising inconvertibility of pesos into dollars and non-transferability outside of Argentina in a timely manner; expropriation, confiscation, nationalization or other discriminatory legislative action depriving the Trust to use or control their accounts ('inconvertibility events'). iii) Holdback events that upon the occurrence and during the continuance of each of them, the Trustee will retain all excess collections. These holdback events are related to production levels, reserves, and debt service coverage ratios. As of June, 2011, all the ratios were not triggered; nevertheless, the production ratio is at 0.907, very near to the threshold level of 0.90. The majority of the transaction's legal documents are governed under foreign law. The transaction was structured as a true sale and securitized certain future royalty payments due to the province of Salta from the oil and gas companies. The oil and gas companies signed notice and acknowledgement contracts which obligate them to make payments into the collection account. In accordance with the documents, the cash flows should be legally protected under Argentine law. While these protections exist, the rating on this transaction has always anticipated a heightened degree of political risk given the onshore nature of these cash flows. The risk of a potential restructuring has been reduced over the past year as the province continues to receive excess collections and has shown relatively good economic performance. Fitch does not believe that the current administration, which has recently renewed its mandate until 2015 (legal maturity of the notes), has any intention of restructuring these notes. ============= B E R M U D A ============= FOUNDING PARTNERS: Creditors' Proofs of Debt Due August 4 --------------------------------------------------------- The creditors of Founding Partners Global Fund Inc & Founding Partners Global Fund Ltd are required to file their proofs of debt by August 4, 2011, to be included in the company's dividend distribution. The company's liquidator is: Ian Stokoe c/o Elizabeth Osborne Telephone: (345) 914 8686 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands MOLTECH SYSTEMS: Creditors' Proofs of Debt Due July 22 ------------------------------------------------------ The creditors of Moltech Systems Limited are required to file their proofs of debt by July 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 7, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda MOLTECH SYSTEMS: Member to Receive Wind-Up Report on August 9 ------------------------------------------------------------- The member of Moltech Systems Limited will receive on August 9, 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 July 7, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda OLD MUTUAL: Creditors' Proofs of Debt Due July 22 ------------------------------------------------- The creditors of Old Mutual Group Limited are required to file their proofs of debt by July 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 7, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda OLD MUTUAL: Members' Final Meeting Set for August 11 ---------------------------------------------------- The members of Old Mutual Group Limited will hold their final meeting on August 11, 2011, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on July 7, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda =========== B R A Z I L =========== GOL LINHAS: Assigns 'Ba3' Rating to BRL500-Million Debentures ------------------------------------------------------------- Moody's Investors Service has affirmed its Ba3 corporate family rating and senior unsecured ratings for Gol Linhas Aereas Inteligentes S.A. and Gol Finance, but revised the ratings outlook to negative from stable. At the same time Moody's America Latina Ltda. has assigned a Ba3 global scale and A3.br national scale ratings to the BRL500 million senior unsecured debentures of VRG Linhas Aereas S.A., Gol's wholly-owned subsidiary. The change in the outlook to negative reflects the challenging operating environment with increasing competition and higher operating costs, and the anticipated increase in leverage from these factors and the proposed acquisition of Webjet. The company announced on July 8 that it has entered into a memorandum of understanding for the acquisition of Webjet Linhas Aereas SA, Brazil's fourth largest airline. The completion of the proposed transaction is subject to legal and technical due diligence, shareholder and regulatory approvals. The deal is expected to close by mid 2012. Ratings affirmed are: Issuer: Gol Linhas Aereas Inteligentes S.A. -- Corporate Family Rating: Ba3 Issuer: Gol Finance -- 7.5% US$225 million senior unsecured notes due 2017: Ba3/Negative -- 8.75% US$200 million senior unsecured perpetual notes: Ba3/Negative New rating assigned: Issuer: VRG Linhas Aereas S.A -- BRL500 million senior unsecured notes: Ba3/A3.br/Negative Ratings Rationale While favorable macro economic conditions in Brazil continue to enhance the upward social mobility of the country and the attractiveness of air travel, yields for the industry have been on a decline since 2004 as new entrants such as Azul and Webjet have used aggressive pricing as a means to gain market share. This contributed to the industry's overall reported operating losses of more than BRL5.7 billion over the last five years, according to data from ANAC (the Brazilian civil aviation agency). Gol has been steadily losing market share over this timeframe and we expect this negative trend to continue for the foreseeable future offset in part by the increasing volume of air traffic. Additionally, the stubbornly high fuel costs, including the increase in cracking costs, particularly hurts low-fare operators like Gol, given their inability to fully hedge fuel cost and pass on the increases to consumers. The proposed acquisition of Webjet will strenghten's Gol position in a number of key markets like Sao Paulo (Guarulhos), Rio de Janeiro (Santo Dumont and Galeo), Brasilia (President Jucelino Kubitchek) and Bello Horizonte (Confins). Gol should also be able to materially improve Webjet's operating margins by gradually replacing its aging fleet that consists of B7373-300 aircrafts with the more fuel efficient and low maintenance B737-700 and -800 NG aircrafts. The acquisition price of BRL311 million includes a cash payment of BRL96 million and the assumption of BRL214.7 million of net debt (excluding aircraft leases). Pro-forma for this transaction, Moody's expects the company's lease adjusted leverage to increase 7.0 times at the end of 2011, up from 5.3 times at the end of 2010. The Ba3 global scale and A3.br national scale rating assigned to the BRL$500 million local debt issuance by Varig Linhas Areas S.A., Gol's principal operating subsidiary, reflects its strong position in the still attractive macro-economic environment in Brazil, which continues to support high-single to low-double digit demand growth for air travel. It also reflects the company's commitment to reduce leverage to below 4.5x on a lease adjusted basis, pursue disciplined capacity expansion and maintain its focus on reducing operating costs. Proceeds from the debt issuance will allow Gol to strengthen its financial flexibility and maintain cash and short-term investments equal to 25% of LTM revenues. While it is unlikely that ratings would experience upward pressure over the near- to medium-term, upward pressure on the outlook or rating is possible if Gol is able to: (i) reduce its lease adjusted leverage to below 4.0x on a gross basis (5.38x in the LTM ended in March 2011); (ii) generate adjusted retained cash flow to net debt of between 25% and 35% (17.0% in the LTM ended in March 2011); (iii) maintain EBIT to interest coverage of about 4x (1.6x in the LTM ended in March 2011); and (iv) further strengthen its financial flexibility. On the other hand, downward pressure on Gol's ratings could occur if: (i) it is unlikely to bring down its leverage to pre-acquisition levels within two years; (ii) fuel prices remain persistently high; (iii) the Brazilian real is weak; (iv) there is further deterioration in the competitive environment; (v) it pursues additional debt financed acquisitions; and (vi) it sees a meaningful deterioration in financial flexibility. A departure from the company's current low-cost business model would also be viewed as a negative development and could potentially result in a ratings downgrade. Moody's last rating action on Gol Finance and Gol Linheas Aereas Inteligentes S.A. was on July 14, 2010, when Moody's raised the company's CFR to Ba3 from B1 and similarly raised the ratings on its senior unsecured notes. Gol Linheas Aereas Inteligentes S.A. ("Gol"), the second-largest Brazilian carrier by market share, as provided by ANAC, operates as a low-cost carrier. It provides passenger airline service to all Brazil's major cities and a number of destinations across South America. Webjet is a low-cost domestic carrier operating 154 daily flights to 13 domestic destinations, such as Guarulhos, Galeao, Brasilia and Salvador. It has a fleet of 24 aircrafts, all of which are B737-300s. The airline, founded in 2005 and owned by Brazilian tour operator CVC, has been growing rapidly over the last few years and had a 5% share of the market at the end of 2010. =========================== C A Y M A N I S L A N D S =========================== ASPIN NOUVEAU: Shareholders' Final Meeting Set for August 5 ----------------------------------------------------------- The shareholders of Aspin Nouveau Investments Limited will hold their final meeting on August 5, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands ATON CAPITAL: Moody's Assigns B2/Not Prime Issuer Ratings --------------------------------------------------------- Moody's Investors Service has assigned global scale ratings to Aton Capital Group ("ACG"): B2/Not Prime long-term and short-term foreign currency and local currency issuer ratings. The outlook for the long-term ratings is stable. Moody's assessment of the issuer's ratings is largely based on ACG's audited financial statements for 2010, 2009 and 2008 prepared under IFRS. Ratings Rationale Moody's observes that ACG's issuer ratings reflect (i) risky and unstable markets in which the group operates, aggravated by concentration of revenues on a limited number of products and lack of international geographical diversification; (ii) lack of scale and modest positions outside its core business of retail brokerage, which could make it difficult to withstand intensifying competition and exposes the company to the risk of additional operating losses owing to its sizeable investments in infrastructure and people; (iii) a complex organisational structure consisting of a large number of individual entities, which could result in some structural subordination from operating entities and exposure to various legal risks as well as transparency issues (whereby some businesses and risks could reside outside the ACG umbrella); (iv) poor regulation of the majority of markets in which the group operates may fail to limit and control industry-related and company-specific risks; (v) volatile earnings which have substantial correlation to the Russian securities markets; and (vi) some appetite (albeit currently low) for financing of investment projects and other long-term financing -- including those of shareholders; ACG's liquidity, capital and brand could be jeopardized if large-scale projects are pursued. At the same time, Moody's notes that ACG's ratings are supported by: (i) its reasonable position in retail brokerage which benefits from a good geographical platform in Russia; (ii) moderate market risk appetite and conservative liquidity management, which positions the company favourably to withstand significant market stress; (iii) low appetite for those products in which the company lacks experience; and (iv) good capital position due to the company's low-leverage policy, which is sufficient to accommodate credit and market risks. In light of the aforementioned constraints, ACG's ratings are unlikely to be upgraded in the medium term. However, positive rating drivers would include (i) continuous franchise development and (ii) improved diversification in terms of asset class instruments, clients and geography, which could result in lower volatility of earnings. In Moody's opinion, a lower risk profile -- stemming from improved risk management practices -- and the maturing of Russia's financial markets should also represent positive rating drivers. Downward pressure could be exerted on the ratings as a result of significant liquidity deterioration and significant capital erosion due to high credit risks mainly associated with related-party or other long-term financing. The rating agency adds that significant loss of franchise, leading to reduced revenue streams which could not be compensated by appropriate cost-cutting measures, could also have negative rating implications. Based in the Cayman Islands, ACG is the holding company which unites under its umbrella a number of sub-holding and operating companies in various jurisdictions while the majority of business is related to Russia. ACG recorded total assets of US$540 million and equity of US$234 million at YE2010 according to audited financial statements. AVCAN LEASING: Creditors' Proofs of Debt Due August 5 ----------------------------------------------------- The creditors of Avcan Leasing Limited are required to file their proofs of debt by August 5, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 15, 2011. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands BALLON NOUVEAU: Shareholders' Final Meeting Set for August 5 ------------------------------------------------------------ The shareholders of Ballon Nouveau Investments Limited will hold their final meeting on August 5, 2011, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands BULL CAPITOL: Commences Liquidation Proceedings ----------------------------------------------- On June 23, 2011, the shareholder of Bull Capitol, Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by July 5, 2011, will be included in the company's dividend distribution. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands DARNAY NOUVEAU: Shareholders' Final Meeting Set for August 5 ------------------------------------------------------------ The shareholders of Darnay Nouveau Investments Limited will hold their final meeting on August 5, 2011, at 9:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands EVO GOLDEN: Members' Final Meeting Set for August 2 --------------------------------------------------- The members of Evo Golden State Fund Ltd. will hold their final meeting on August 2, 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 EVO GOLDEN: Members' Final Meeting Set for August 2 --------------------------------------------------- The members of Evo Golden State Master Fund Ltd will hold their final meeting on August 2, 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 FRONTPOINT OFFSHORE: Creditors' Proofs of Debt Due August 5 ----------------------------------------------------------- The creditors of Frontpoint Offshore Leveraged Multi-Strategy Fund Series A, Ltd. are required to file their proofs of debt by August 5, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 20, 2011. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands FURSA OFFSHORE: Creditors' Proofs of Debt Due August 5 ------------------------------------------------------ The creditors of Fursa Offshore Global Event Driven Fund Ltd are required to file their proofs of debt by August 5, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 15, 2011. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands LYDIAN OVERSEAS: Shareholders' Final Meeting Set for August 5 ------------------------------------------------------------- The shareholders of Lydian Overseas Partners, Ltd. will hold their final meeting on August 5, 2011, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands MLMI CAYMAN: Shareholders' Final Meeting Set for August 5 --------------------------------------------------------- The shareholders of MLMI Cayman NIM 2005-NC1, Ltd. will hold their final meeting on August 5, 2011, at 8:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands QCR FUNDING: Shareholders' Final Meeting Set for August 16 ---------------------------------------------------------- The shareholders of QCR Funding, Inc. will hold their final meeting on August 16, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lisa Clarke Telephone: (345) 945-2187 Facsimile: (345) 945-2197 P.O. Box 30464 Grand Cayman KY1-1202 Cayman Islands SPREAD PROFIT: Members' Final Meeting Set for August 4 ------------------------------------------------------ The members of Spread Profit International Holding (Cayman Islands) Company Limited will hold their final meeting on August 4, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kuan, Yu-Wen Michelle R. Bodden-Moxam Telephone: 946-6145 Facsimile: 946-6145 Portcullis TrustNet (Cayman) Ltd. The Grand Pavilion Commercial Centre Oleander Way 802 West Bay Road P.O. Box 32052 Grand Cayman KY1-1208 Cayman Islands T.O. OFFSHORE: Shareholders' Final Meeting Set for August 5 ----------------------------------------------------------- The shareholders of T.O. Offshore Fund, Ltd. will hold their final meeting on August 5, 2011, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Titan Advisors, LLC 2 International Drive, Suite 200 Rye Brook, NY 10573 USA URUGUAY FUTURO: Shareholders' Final Meeting Set for August 5 ------------------------------------------------------------ The shareholders of Uruguay Futuro will hold their final meeting on August 5, 2011, at 8:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands ============= J A M A I C A ============= DIGICEL GROUP: Decision on Claro Deal to be Revealed Soon --------------------------------------------------------- Caribbean360.com reports that Digicel Group will find out soon whether its proposed takeover of the Jamaican operations of mobile provider, Claro, will be approved, more than three months after the deal was announced. Minister with responsibility for Information, Telecommunications and Special Projects, Daryl Vaz, said a final joint decision is expected within the next two weeks from the Spectrum Management Authority, the Office of Utilities Regulation and the Fair Trading Commission, according to Caribbean360.com. As reported in the Troubled Company Reporter-Latin America on May 31, 2011, RJR News related that planned deal between Digicel Group Limited and Claro has hit a snag. The snag comes just weeks before the merger is expected to get regulatory approval, the report noted. A separate TCRLA report on March 23, 2011, citing RadioJamaica, related that Digicel signed the agreement with America Movil. The deal will also see Digicel selling its business in El Salvador and Honduras to America Movil, according to RadioJamaica. The RJR News noted that telecommunication company LIME Jamaica has asked the government, the Office of Utilities Regulations, and the Fair Trading Commission to assess the deal. LIME asserted that assessment should be done before approval of the deal is given by the relevant minister, the RJR News stated. About Digicel Group Digicel Group Limited -- http://www.digicelgroup.com/-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state- of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barths. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of Jan. 14, 2010, the company continues to carry Moody's "Caa1" vsenior unsecured debt rating. ===================== P U E R T O R I C O ===================== MCS: Not Headed for Bankruptcy, Insurance Commissioner Says ----------------------------------------------------------- Caribbean Business reports that Puerto Rico Insurance Commissioner Ramon Cruz said that MCS remains solvent and is not headed toward bankruptcy. There has been speculation in the media that MCS may seek bankruptcy protection in the wake of the exit of its MCS-HMO unit from the government-funded Mi Salud program and the related impending loss of some 850,000 beneficiaries, according to Caribbean Business. "The company remains solvent. Allegations that MCS may file for bankruptcy area incorrect," Mr. Cruz said after a meeting of Gov. Luis Fortu�o's Economic Advisory Council, Caribbean Business relates. Insurance companies in Puerto Rico are regulated by the Insurance Commissioner's Office. "In cases of insolvency it is the Insurance Commissioner's Office that turns to the court and it is the office that handles any insolvency process, which is not something we are contemplating for MCS," he said. MCS maintains that its other two business lines remain money- making enterprises, the report adds. ================= V E N E Z U E L A ================= VITRO SAB: Asks U.S. Judge to Enforce Mexican Plan -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports Vitro SAB had a pivotal hearing July 14 in U.S. Bankruptcy Court in Dallas, where the Mexican glassmaker will try to persuade the judge to enforce whatever bankruptcy reorganization a court in Mexico eventually approves. The hearing is to decide whether Vitro's Mexican bankruptcy should be recognized as the "foreign main proceeding" under Chapter 15 of U.S. bankruptcy law. According to the report, the Mexican and U.S. bankruptcies are being opposed by holders of some of the US$1.2 billion in bonds in default for more than two years. The bondholders contend the U.S. court ultimately shouldn't enforce a Mexican reorganization if Vitro succeeds in persuading the Mexican judge to cram it down on bondholders by using US$1.9 billion in intercompany claims voting in favor of the reorganization. The bondholders contend that Vitro is ineligible for Chapter 15 because only the conciliator from the Mexican proceeding is entitled to represent the company in courts abroad. Mr. Rochelle reports that Vitro argued in papers filed this week that the company itself is entitled to file under Chapter 15, just like a U.S. company is a debtor-in-possession in Chapter 11 cases. Mr. Rochelle notes that if the bankruptcy judge in Dallas doesn't approve Vitro's Chapter 15 petition for whatever reason, even a successful outcome in Mexico may be futile since Vitro could be unable to enforce the Mexican reorganization plan in the U.S. 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 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. On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced a voluntary judicial reorganization proceeding under the Ley de Concursos Mercantiles before the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, the United Mexican States. On June 30, 2011, Vitro Packaging filed a chapter 15 petition (Bankr. N.D. Tex. Case No. 11-34224). Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro Packaging de Mexico S.A. de C.V. The Foreign Representatives are represented by David M. Bennett, Esq., Katharine E. Battaia, Esq., and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz, Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley & McCloy LLP. Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P. Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok, LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq., Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert LLP. Chapter 11 Proceedings A group of noteholders, namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P., opposed the exchange. 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. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC is the Debtors' operations and financial advisor. 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. * VENEZUELA: Moody's Says Chavez Illness Means Uncertain Future --------------------------------------------------------------- In light of Venezuelan President Hugo Chavez's recent cancer surgery and still-uncertain health, the outcome of next year's presidential election could have far reaching credit implications for a country whose debt metrics have deteriorated markedly over the last two years, says Moody's Investors Service. Mr. Chavez returned to Caracas on July 4 after a three-week stay in Cuba where he was treated for cancer. Projecting an image of strength since his return, Mr. Chavez is certain to run for re- election in 2012 unless physically unable to do so. "A Chavez victory would reassert his grip on power and guarantee relative political stability, at least in the near term, and also mean a continuation of his policy of timely debt service payments," said Moody's Vice President and Senior Analyst Patrick Esteruelas, author of the report. "Also, Venezuela's favorable amortization profile over the next several years will limit rollover risks despite the recent notable decline in liquid external assets." The government of Venezuela has a foreign-currency rating of B2 and a local-currency rating of B1, both with a stable outlook, but its metrics have suffered as a result of growing macroeconomic imbalances, the public sector's growing indebtedness, and a declining cushion of external liquid assets. "Chavez's re-election would also likely be accompanied by a steady deterioration of Venezuela's credit fundamentals over the longer term," said Mr. Esteruelas. "Continued reliance on price and foreign exchange controls, aggressive state encroachment, and regular intimidation of the private sector will reinforce distortions and put renewed pressure on public external liquidity." An opposition victory, says the Moody's report, could be accompanied by a more market-oriented policy mix supported by capital inflows and enhanced investment prospects, but the transition would be very challenging and with potentially large near-term negative credit surprises. "The opposition to Chavez has become more competitive since performing well in the 2008 gubernatorial and mayoral elections and in last year's congressional elections, and is rallying around younger, more charismatic candidates" said Mr. Esteruelas. "However, a new opposition government would have to contend with a Chavista movement with deep roots across Venezuela's institutional and economic structure, setting the stage for a potentially damaging conflict." The report, "Venezuela faces an uncertain political future with mixed credit implications," is available at moodys.com. =============== X X X X X X X X =============== * BOND PRICING: For the Week July 11 to July 15, 2011 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ---- ARGENTINA --------- ARGENT- DIS 5.83 12/31/2033 ARS 153.79 ARGENT-PAR 1.18 12/31/2038 ARS 56.84 ARGENT-DIS 7.82 12/31/2033 EUR 71.75 ARGENT-DIS 7.82 12/31/2033 EUR 70 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 33.25 BOGAR 2018 2 2/4/2018 ARS 32.15 PRO12 2 1/3/2016 ARS 116.2 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 26.86 BCP FINANCE BANK 5.01 3/31/2024 EUR 39.93 BCP FINANCE BANK 5.31 12/10/2023 EUR 42.23 BCP FINANCE CO 4.23 EUR 44.55 BCP FINANCE CO 5.54 EUR 43.62 BES FINANCE LTD 5.58 EUR 44.05 BES FINANCE LTD 4.5 EUR 44.37 BES FINANCE LTD 6.62 EUR 54.99 BES FINANCE LTD 5.77 2/7/2035 EUR 55.06 CHINA MED TECH 4 8/15/2013 USD 73.25 EFG ORA FUNDING 1.7 10/29/2014 EUR 53.61 ESFG INTERNATION 5.75 EUR 45.5 IMCOPA INTL CAYM 10.37 12/19/2014 USD 36.15 SOLARFUN POWER H 3.5 1/15/2018 USD 68.94 CHILE ----- AGUAS NUEVAS 3.4 5/15/2012 CLP 0.64 CGE DISTRIBUCION 3.25 12/1/2012 CLP 29.41 ESVAL S.A. 3.8 7/15/2012 CLP 38.03 LA POLAR SA 3.8 10/10/2017 CLP 50.03 MASISA 4.25 10/15/2012 CLP 28.85 QUINENCO SA 3.5 7/21/2013 CLP 38.33 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 57 PUERTO RICO CONS 6.5 4/1/2016 USD 63.65 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 49.77 PETROLEOS DE VEN 5.3 4/12/2027 USD 52.01 PETROLEOS DE VEN 5.25 4/12/2017 USD 63.73 PETROLEOS DE VEN 5.12 10/28/2016 USD 64.67 PETROLEOS DE VEN 5 10/28/2015 USD 69.53 VENEZUELA 7 3/31/2038 USD 59.65 VENEZUELA 7 3/31/2038 USD 59.83 VENEZUELA 6 12/9/2020 USD 63 VENEZUELA 7.65 4/21/2025 USD 66 VENEZUELA 8.25 10/13/2024 USD 69.25 VENEZUELA 7 12/1/2018 USD 72 VENEZUELA 9.25 5/7/2028 USD 72.75 VENEZUELA 9 5/7/2023 USD 73.25 VENEZUELA 7.75 10/13/2019 USD 73 VENZOD - 189000 9.37 1/13/2034 USD 73 *********** 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, 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 * * *