/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110808.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, August 8, 2011, Vol. 12, No. 155 Headlines A R G E N T I N A DLF SRL: Creditors' Proofs of Debt Due September 5 EDICIONES LEAR: Creditors' Proofs of Debt Due October 5 LIRTEX SA: Creditors' Proofs of Debt Due September 26 NEWCLEAN SRL: Creditors' Proofs of Debt Due September 5 PLASTICA SUR: Applied for Bankruptcy Protection QUINTA FUNDACION: Creditors' Proofs of Debt Due September 1 RENT TRACK: Creditors' Proofs of Debt Due September 26 REXCEL SA: Creditors' Proofs of Debt Due September 28 RIO CUARTO: Moody's Assigns 'B1' Local Currency Ratings RT CONSTRUCCIONES: Creditors' Proofs of Debt Due September 8 TEXTIL IRIGOYEN: Creditors' Proofs of Debt Due September 1 TSG SOLUTION: Creditors' Proofs of Debt Due September 1 B R A Z I L GOL LINHAS: Moody's Lowers Corporate Family Rating to 'B1' H A I T I * HAITI: IDB OKs US$11MM Grant for Business Development Services J A M A I C A JAMAICA RAILWAY: Needs JM$400MM to Resume Island Wide Rail Service M E X I C O CFG HOLDINGS: S&P Gives 'B-' LT Counterparty Credit Rating P U E R T O R I C O NATIONAL GROUP: Judge Orders Firm to Go Into Receivership T R I N I D A D & T O B A G O CL FIN'L: Lascelles Bid Could Have Been Higher, Blacksand Says * TRINIDAD & TOBAGO: Unions to Continue Demonstrations X X X X X X X X * BOND PRICING: For the Week August 1, to August 5, 2011 - - - - - ================= A R G E N T I N A ================= DLF SRL: Creditors' Proofs of Debt Due September 5 -------------------------------------------------- Enrique Jose Battellini, the court-appointed trustee for DLF SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 5, 2011. Mr. Battellini will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 36, 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: Enrique Jose Battellini Lavalle 1718 Argentina EDICIONES LEAR: Creditors' Proofs of Debt Due October 5 ------------------------------------------------------- Silvia Isabel Gonzalez Meana, the court-appointed trustee for Ediciones Lear SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 5, 2011. Ms. Meana will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of Clerk No. 8, 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 Isabel Gonzalez Meana Condarco1319 Argentina LIRTEX SA: Creditors' Proofs of Debt Due September 26 ----------------------------------------------------- Carlos Alberto Menendez, the court-appointed trustee for Lirtex SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 26, 2011. Mr. Menendez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 16 in Buenos Aires, with the assistance of Clerk No. 32, 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: Carlos Alberto Menendez Neuquen 2936 Argentina NEWCLEAN SRL: Creditors' Proofs of Debt Due September 5 ------------------------------------------------------- Miguel Adolfo Kupchik, the court-appointed trustee for Newclean SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 5, 2011. Mr. Kupchik will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 9 in Buenos Aires, with the assistance of Clerk No. 17, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Miguel Adolfo Kupchik San Luis 3067 Argentina PLASTICA SUR: Applied for Bankruptcy Protection ----------------------------------------------- Plastica Sur SA applied for bankruptcy protection. The company has defaulted on its payments last July 15. QUINTA FUNDACION: Creditors' Proofs of Debt Due September 1 ----------------------------------------------------------- Griselda Isabel Eidelstein, the court-appointed trustee for Quinta Fundacion del Puerto SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 1, 2011. Ms. Eidelstein will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 41, 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: Griselda Isabel Eidelstein Lambare 1140 Argentina RENT TRACK: Creditors' Proofs of Debt Due September 26 ------------------------------------------------------ Ana Maria Bluverman, the court-appointed trustee for Rent Track SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 26, 2011. Ms. Bluverman will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 10, 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: Ana Maria Bluverman Parana 774 Argentina REXCEL SA: Creditors' Proofs of Debt Due September 28 ----------------------------------------------------- Estudio Kullahian, Diaz & Asociados, the court-appointed trustee for Rexcel SA's reorganization proceedings, will be verifying creditors' proofs of claim until September 28, 2011. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 3 in Buenos Aires, with the assistance of Clerk No. 5, 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 July 2, 2012. The Trustee can be reached at: Estudio Kullahian Diaz & Asociados Uruguay 750 RIO CUARTO: Moody's Assigns 'B1' Local Currency Ratings ------------------------------------------------------- Moody's Latin America has assigned local currency ratings of B1 (Global Scale) and Aa3.ar (Argentina National Scale) to the Municipality of Rio Cuarto's AR$12 million Short-Term Treasury Notes. The assigned ratings are in line with the municipality's issuer ratings, which Moody's has affirmed at the same time. The notes, which will be sold under a Dutch auction scheme, are going to be issued in three offers of AR$2 million, AR$4 million and AR$6 million, with a maturity of 60, 90 and 120 days, respectively. The issuance will be guaranteed by the pledge of the rights and flows of the Contributions on Commerce, Industry and Services Companies. According to local regulation, it is mandatory that the maturity of these notes cannot exceed the fiscal year in which they are issued. Ratings Rationale The assigned ratings reflect Moody's view that the willingness and capacity of the Municipality of Rio Cuarto to honor these short- term treasury notes is in line with the municipality's long-term credit quality as captured in the B1/Aa3.ar issuer ratings. The amount to be issued represents a low 4% of Rio Cuarto's 2010 total revenue and 3% of total revenues expected for 2011. According to local regulation the purpose of the issuance of ST Treasury Notes is to cover seasonal cash shortfalls. In this particular transaction, the objective of the municipality is to get funding for extraordinary one-time capital expenditures: the municipality intends to use the proceeds to buy 1,100 plots of land, which will then be sold as part of a social program for middle-class people. "Moody's expects the municipality should have adequate resources to repay the notes when they come due as a consequence of the strong coverage provided by the pledged amounts. As a result, the current issuance does not create a meaningful refinancing risk for the municipality or have a significant impact on its credit quality", according to Moody's analyst Patricio Esnaola. "We note that if the municipality incurred additional short-term debt in the future, it could place negative pressure on the municipality's issuer ratings", added the analyst. The ratings are constrained by the operating environment for regional and local governments in Argentina, which is characterized by very high GDP volatility, and a very low ranking on the World Bank's Government Effectiveness Index, indicating a high level of systemic risk, offset by a GDP per capita that is high for a developing country. "This operating environment is characterized by an institutional framework under which regional and local governments carry significant responsibility for public services while nearly all rely heavily on federal transfers under the country's tax sharing regime, which results in a low level of fiscal flexibility", said Esnaola. RT CONSTRUCCIONES: Creditors' Proofs of Debt Due September 8 ------------------------------------------------------------ Ana Maria Bluverman, the court-appointed trustee for RT Construcciones SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 8, 2011. Ms. Bluverman will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 9, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Ana Maria Bluverman Parana 774 Argentina TEXTIL IRIGOYEN: Creditors' Proofs of Debt Due September 1 ---------------------------------------------------------- Carlos Alberto Perez, the court-appointed trustee for Textil Irigoyen SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 1, 2011. Mr. Perez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 46, 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: Carlos Alberto Perez Montevideo 765 Argentina TSG SOLUTION: Creditors' Proofs of Debt Due September 1 ------------------------------------------------------- Susana Mabel Costa, the court-appointed trustee for TSG Solution Argentina SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 1, 2011. Ms. Costa will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 38, 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: Susana Mabel Costa Alicia Moreau de Justo 2030 Argentina =========== B R A Z I L =========== GOL LINHAS: Moody's Lowers Corporate Family Rating to 'B1' ---------------------------------------------------------- Moody's Investors Service has lowered to B1 from Ba3 the corporate family rating ("CFR") and senior unsecured ratings for Gol Linhas Aereas Inteligentes S.A. ("GOL") and Gol Finance. Moody's America Latina Ltda. lowered VRG Linhas Aereas S.A.'s BRL 500 million senior unsecured notes to B1 from Ba3 and the national scale rating to Baa2.br from A3.br. The outlook is now stable. Ratings downgraded are: Issuer: Gol Linhas Aereas Inteligentes S.A. - Corporate Family Rating: B1/Stable from Ba3/Negative Issuer: Gol Finance - 7.5% US$225 million senior unsecured notes due 2017: B1/Stable from Ba3/Negative - 8.75% US$200 million senior unsecured perpetual notes: B1/Stable from Ba3/Negative Issuer: VRG Linhas Aereas S.A - BRL 500 million senior unsecured notes: B1/Baa2.br/Stable from Ba3/A3.br/Negative Ratings Rationale The downgrade to B1 reflects Moody's view that the longer than expected pressure on yields, combined with an unexpected increase in a number of operating costs will result in a significant erosion of GOL's earnings and cash flow as reflected in the company's recent downward adjustment in guidance. As a result, financial metrics, including coverage and leverage measurements, will deteriorate to levels that are no longer commensurate with the Ba rating category. Leverage is also expected to increase over the near-to-medium term from the strategically beneficial pending acquisition of low cost carrier Webjet. Additionally, while GOL's liquidity remains strong following the recent BRL 500 million debt offering, expected weakening of earnings and cash flow will make it challenging for the company to maintain its target of keeping cash on hand equal to 25% of LTM revenues. This cash buffer, in Moody's opinion, is a critical ratings driver given the air travel industry's inherent vulnerability to sudden external shocks. The B1 rating reflects the favorable macro economic conditions in Brazil which continue to enhance the upward social mobility of the country and the attractiveness of air travel, the company's position as the second largest domestic carrier with strong market positions at all of the country's important airports, and a cost structure which benefits from a modern all B-737-700 and -800 NG fleet and the company's historically strong cost discipline. On the other hand, the rating also takes into consideration the ongoing pressure on system wide yields which have been on a decline since 2004 as new entrants such as Azul and Webjet have grown share using aggressive pricing and the associated decline on GOL's market share. The rating also considers that GOL's low fare business model makes it difficult to absorb the negative impact of higher fuel prices, and the volatile nature of the industry. On July 28, 2011, GOL revised downwards for the second time this year its operating margin guidance for fiscal 2011 reflecting its expectation for continued downwards pressure on yields and an increase in certain operating costs. For the full year, GOL now expects operating margins of between 1.0% and 4.0%, down from the prior already downward revised guidance of 6.5% -10.0%. During the first half of 2011, system wide domestic demand has increased in the mid teens, roughly keeping pace with new capacity being added. Demand, while benefitting from continued strong macro- economic fundamentals in Brasil and which has brought air travel within the reach of more people, was also boosted by aggressive pricing behavior from rapidly growing new entrants such as Webjet and Azul. Contrary to earlier expectations GOL now does not expect yields to recover in real terms for the remainder of the year. Combined with its focus on operating margins rather than share growth, this has actually led to GOL seeing its market share decline to 37.5% from 40.8% during the first half of 2011. GOL also has experienced upwards pressure on its cost structure. In addition to continued stubborn high oil prices and wide crack spreads, the company reported rising labor costs, higher government imposed taxes, costs related to discontinued charters for its remaining fleet of B767 aircraft and costs related the termination of certain contracts which it expects in the future to results in cost savings. Under the leadership of GOL's new financial management team which joined the company after the acquisition of VARIG, the company strengthened its financial flexibility through a combination of issuing new equity, lengthening the company's debt maturity profile and adopting a number of sound financial principles. These principles include for example raising the minimum cash on hand to 25% of LTM revenues, targeting lease adjusted leverage of 4.5 times (using a 5 times multiple for lease adjustment), hedging 35-40% of its fuel expenses over the next twelve months and targeting an EBIT margin of 15%. Given the inherent volatility of the airline sector, Moody's views maintenance of these principles as a critical driver for GOL's ratings. Following the last operating margin revision combined with the pro-forma impact of the pending Webjet acquisition, Moody's still expect GOL to maintain a manageable debt maturity profile with BRL 260 million coming due over 2011-2013 period. However, Moody's believes that maintaining cash balances equal to 25% of LTM revenues (BRL 1.8 billion in March 2011) could likely require the company to tap the capital markets again. The stable outlook is based on three basic fundamentals. First, from an industry perspective, Moody's expects yields to stabilize towards the end of the year as demand for air travel increases given seasonal dynamics. Additionally, Moody's would view the pending merger between TAM and LAN, when approved, to be supportive for the industry from a competitive perspective. Second, as more signs materialize around the world of a more challenging macro economic outlook, Moody's believes that upwards pressure on oil prices will be modest over the near term unless there were to be a major decline in the value of the U.S. dollar. Third, Moody's expects GOL to step up its initiatives to find additional cost optimization opportunities that at least offset the recent expansion of operating costs, and renew the favorable cost structure that has been a long time hallmark of the company's competitive differentiation. While it is unlikely that ratings or ratings outlook would experience upward pressure over the near-to medium-term, upward pressure is possible if GOL is able to: i) meaningfully reduce its lease adjusted leverage to below 5.0x on a gross basis (5.38x in the LTM ended in March 2011), ii) generate adjusted retained cash flow to net debt of between 20% and 25% (17.0% in the LTM ended in March 2011), iii) maintain EBIT to interest coverage of about 2.0x (1.6x in the LTM ended in March 2011), and iv) further strengthen its liquidity and financial flexibility. On the other hand, downward pressure on GOL's ratings could occur if: i) GOL is unable to maintain minimum unencumbered cash of at least BRL 1 billion, ii) it is unlikely to bring down its leverage to below 7.0 times within 12 months, iii) it is unable to reverse the current trend of increasing operating costs; iv) fuel prices remain persistently high, v) the Brazilian real weakens materially, vi) there is further deterioration in the competitive environment, vii) its financial flexibility were to materially deteriorate. 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, Gol Linheas Aereas Inteligentes S.A. and VRG Linhas Aereas S.A was on July 13, 2011, when Moody's revised the ratings outlook to negative from stable and assigned a Ba3 global scale and A3.br national scale ratings to the company's new BRL 500 million senior unsecured debentures of VRG Linhas Aereas S.A., Gol's wholly-owned subsidiary. Gol Linhas Aereas Inteligentes S.A., 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. ========= H A I T I ========= * HAITI: IDB OKs US$11MM Grant for Business Development Services ---------------------------------------------------------------- An US$11 million grant from the Inter-American Development Bank to Haiti will support a program to provide business development and training services to micro, small and medium-size enterprises (MSMEs) to expand their access to credit, strengthen their management, and boost their productivity. By some estimates there are some 10,000 small and medium-sized businesses with more than 10 and fewer than 100 employees in Haiti. Microenterprises, which employ fewer than 10 workers, number about 375,000. Small enterprises typically face obstacles to obtain loans in Haiti, where the financial system has focused on the opposite ends of the potential client range: corporate borrowers with formal financial records, and informal entrepreneurs who rely on short- term microcredit. The project will help MSMEs obtain professional assistance to gather and organize their financial information, as well as to prepare proper business plans to present to local financial institutions in their efforts to gain access to credit for expansion and improvement investment projects. In addition, the project will offer small businesses access to training to improve management and worker skills and other services to increase their productivity once they have obtained credit. Training and advisory services will also be available for eligible local financial institutions to improve credit officers' ability to analyze business plans and expand the range of financial products for MSMEs. The project will be carried out by the Haitian Central Bank's Industrial Development Fund, which is also running a US$35 million partial credit guarantee program for restructuring loans to companies hit by last year's earthquake. The business development and training services project dovetails with other initiatives backed by the IDB and other donors to promote private sector investment and employment in Haiti. With US$65 million in financial support from Spain, the IDB's Inter-American Investment Corporation has established the Social Investment Fund, which will work with local financial institutions to expand lending to Haitian SMEs. The IDB and other donors are also preparing projects to provide quasi-equity to SMEs and to promote their participation in value chains with larger businesses, particularly in manufacturing and agriculture. The IDB is Haiti's leading multilateral donor. Since the earthquake it has approved more than US$350 million in new grants and disbursed more than US$255 million to support recovery and long-term investments in sectors such as energy, agriculture, water and sanitation, transport and education. ============= J A M A I C A ============= JAMAICA RAILWAY: Needs JM$400MM to Resume Island Wide Rail Service ------------------------------------------------------------------ RJR News reports that Jamaica Railway Corporation is projected to need close to JM$400 million in order to fully resume its passenger railway service in Jamaica. Mike Henry, minister of Transport and Works, is admitting that there are major challenges in coming up with the required funds, according to RJR News. The report relates that Mr. Henry said the matter will be discussed at a meeting with the company's management this week. "I'm still trying to access US$380 million for the restoration of the railway out of the US$500 million that the previous government should have used to implement the railway coming out of the sale of the cement shares. The railway shouldn't really be having these struggles, but I'm trying to work through the system to ensure that we access those funds and begin to move, to answer the public's cry of what should never have been handled the way it was, in terms of the railway being closed," RJR News quoted Mr. Henry as saying. About Jamaica Railway Corporation The Jamaica Railway Corporation was established under the Jamaica Railway Corporation Act. The corporation is established to control the expenditure of the corporation whether on revenue or capital account; to ensure that the annual revenues of the corporation are sufficient to meet all charges properly chargeable to revenue; and to direct and control any expansion or extension of the railway and the construction of any new railway. * * * As reported in the Troubled Company Reporter-Latin America on August 20, 2010, RadioJamica said that the Transport Minister has confirmed the resignation of Harold Brady, as Chairman of the Board of the Jamaica Railway Corporation. The report related that Mr. Brady's departure comes more than two months before the October 31 expiration of the life of the Board of the JRC. According to RadioJamiaca, Mr. Brady's resignation caused some concern among government officials, as his departure brought an abrupt halt to the Transport Ministry's plans to divest the "failing" JRC as quickly as possible. The report recounts that the Railway Corporation ceased operations several years ago and is now on the list of entities to be merged and retained by the Transport Ministry. =========== M E X I C O =========== CFG HOLDINGS: S&P Gives 'B-' LT Counterparty Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' long-term counterparty credit rating to CFG Holdings Ltd. and Subsidiaries (CFGLTD). The outlook is stable. "Our rating on CFGLTD is limited by highly concentrated funding sources, expected high refinancing risk given the company's future dependence on market debt, and a relatively high maturity gap. In addition, the company shows modest profitability levels, despite its focus on consumer lending. CFGLTD's adequate asset quality and capitalization ratios and a satisfactory market position support the ratings," S&P related. CFGLTD is a holding company that mainly offers consumer loans to the low-income segment through its Island Finance subsidiaries in Aruba, Bonaire, Curacao, Saint Maarten, and Trinidad & Tobago; and Financiera el Sol in Panama. "In our opinion, the company has good brand recognition in these countries and adequate market position as measured by portfolio (from 2% of consumer loans in Trinidad & Tobago and Panama to 10%-15% of the consumer portfolio in Aruba, Bonaire, Curacao, and Saint Maarten). In the next three years the company plans to begin operating in Puerto Rico and Barbados. In our opinion, incursion into these markets will be gradual and conservative," S&P said. The company's funding sources are highly concentrated. Currently the company funds all its operations with a single commercial bank credit line that it plans mostly to substitute with one long-term market-debt issue. After this operation S&P expects the company's funding to come from two sources: 83.3% from the market issue and 16.7% from the commercial bank line. "In our opinion, although CFGLTD's funding structure will be slightly more diversified, it will remain highly concentrated compared to most of its peers'. In addition, refinancing risk will be higher, as it is more difficult to renegotiate or refinance debt with the market than with a bank under stressful scenarios. In our opinion, in the event of a market disruption and an adverse liquidity scenario, in which the company would not be able to refinance its debt upon maturity, CFGLTD would have significant problems raising enough liquidity to pay for its market debt," S&P related. "The stable outlook incorporates our expectation that CFGLTD will maintain a concentrated funding base and that profitability ratios will improve gradually, which will be reflected in increasing capitalization ratios. We also expect the company to maintain adequate asset-quality ratios and NPA coverage. We could upgrade CFGLTD upon a major diversification of its funding sources and improved asset-and-liability management that leads to a manageable maturity gap in its balance. Conversely, increasing NPA ratios and falling profitability and capitalization levels could pressure the ratings. Portfolio growth above our expectations or an aggressive entrance into new markets could also result in a negative rating action," S&P added. ===================== P U E R T O R I C O ===================== NATIONAL GROUP: Judge Orders Firm to Go Into Receivership --------------------------------------------------------- A.M. Best reports that a Florida judge ordered National Group Insurance Co. into receivership saying it is a prospective hazard to its policyholders, creditors or the public. The report relates that Florida Department of Financial Services has taken over operations of the National Group. The Second Judicial Circuit Court ordered the Company into receivership for purposes of rehabilitation, according to the report. The report relates that the Department of Financial Services will continue to process and pay claims, and, while the company stopped writing new and renewal business on June 24, current existing policies remain in force. Under the court order, A.M. Best notes, the department takes possession of all property and assets, including securities and certificates of deposit, of the insurer; authorizes payment of expenses, collects debts and commences legal proceedings, if necessary. A.M. Best relates that the court order requires officers, directors and employees of National Group to fully cooperate with the department, which is authorized to conduct an investigation to "uncover and make fully available to the Court the true state of Respondent's financial affairs." Regulators in Puerto Rico in May issued an order of rehabilitation for National Insurance Co., the parent of National Group, and as part of the rehabilitation process, members of the board of directors, the chief executive officer and the chief operating officer resigned their positions, BestWire News reported, A.M. Best relates. National Group Insurance Co. is a commercial multiperil and automobile liability writer focusing on small- to medium-size commercial accounts. The company currently has approximately 10,500 policyholders. =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: Lascelles Bid Could Have Been Higher, Blacksand Says -------------------------------------------------------------- RJR News reports BlackSand said its US$371 million takeover for Lascelles de Mercardo, could have been higher, had it not been for heavy cash withdrawal from the company. Lascelles de Mercardo recently paid out US$35 million in dividend to shareholders, which was seen as "milking" the company to support its beleaguered parent owner, CL Financial Limited Group, according to RJR News. The report notes BlackSand through its broker, Pan Caribbean Financial Services, said that had that dividend not been paid, the value of the company would have been 9% higher. RJR News relates that BlackSand said its offer price of US$3.86 reflects the reduction in the value of Lascelles de Mercardo. BlackSand said it will formally submit the Takeover Bid Circular to the Jamaica Stock Exchange on August 5, for shareholders to consider. As reported in the Troubled Company Reporter-Latin America on Aug. 2, 2011, Trinidad Express said that Black Sand plans to acquire 90% of Lascelles de Mercardo's ordinary shares, all its 6% preference shares and its 15% preference shares. Lascelles de Mercardo's shares are traded on the Jamaican Stock Exchange. In a statement from Jamaica-based Pan Caribbean Financial Services Ltd, the principal broker of the bid, Black Sand said Lascelles shareholders US$3.86 each for ordinary shares and US$0.29 for its 6% preference shares and US$0.23 for its 15% preference shares, according to Trinidad Express. TCRLA noted that RJR News said Lascelles de Mercardo former boss William McConnell will lead Black Sand in the takeover. RJR News related that Black Sand said it's seeking to take over the company because it believes the future of the company is in serious jeopardy. CL Spirits defaulted on US$342 million of notes issued in Trinidad and Tobago and Jamaica that are secured by a pledge of CL Financial's shares in Lascelles de Mercardo, Black Sand said in a statement obtained by Trinidad Express. 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. * TRINIDAD & TOBAGO: Unions to Continue Demonstrations ------------------------------------------------------ Camille Bethel at Trinidad Express reports that Trinidad & Tobago trade unions and their membership are expected to continue with their demonstration action, leading up to a planned national shutdown. Following the failed meeting with Prime Minister Kamla Persad- Bissessar after she refused to negotiate on the removal of a 5% wage cap the unions declared industrial action with the threat of a national shutdown, according to Trinidad Express. The report notes that Oilfields Workers' Trade Union (OWTU) President General Ancel Roget said that the union would visit communities, Community-based Environmental Protection and Enhancement Program (CEPEP) workers, the maxi-taxi associations as well as contractors, at the Pointe-a-Pierre refinery to drum up support for the workers. Trinidad Express discloses that hundreds of workers representing 13 of the 18 unions demonstrated outside the San Fernando General Hospital, City Hall, and Petrotrin on July 29. The report relates that officials at the various work places said the demonstration had no effect on operations last week but workers represented by OWTU said they would protest every day outside their workplace until better terms and conditions of work are negotiated. The report notes that Mr. Roget said the Prime Minister was attempting to allay fears by saying the strike action was limited. =============== X X X X X X X X =============== * BOND PRICING: For the Week August 1, to August 5, 2011 -------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ---- ARGENTINA --------- ARGENT- DIS 5.83 12/31/2033 ARS 161 ARGENT- PAR 1.18 12/31/2038 ARS 59 ARGENT- DIS 7.82 12/31/2033 EUR 71.5 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 BANCO MACRO SA 10.75 6/7/2012 USD 70.5 BODEN 2014 2 9/30/2014 ARS 34.3 BOGAR 2018 2 2/4/2018 ARS 33.25 PRO12 2 1/3/2016 ARS 116.1 CAYMAN ISLAND ------------- BCP FINANCE CO 5.543 EUR 41.82 BCP FINANCE CO 4.239 EUR 41.42 BES FINANCE LTD 5.58 EUR 40.66 BES FINANCE LTD 4.5 EUR 42.61 CHINA MED TECH 4 8/15/2013 USD 69.75 EFG ORA FUNDING 1.7 10/29/2014 EUR 53.67 ESFG INTERNATION 5.75 EUR 41.7 IMCOPA INTL CAYM 10.38 12/19/2014 USD 36.15 PUBMASTER FIN 6.96 6/30/2028 GBP 55.51 PUBMASTER FIN 8.44 6/30/2025 GBP 58.16 REG DIV FUNDING 5.25 1/25/2036 USD 56.5 REG DIV FUNDING 5.25 1/25/2036 USD 56.5 SOLARFUN POWER H 3.5 1/15/2018 USD 70.97 CHILE ----- AGUAS NUEVAS 3.4 5/15/2012 CLP 0.841 CGE DISTRIBUCION 3.25 12/1/2012 CLP 29.66 ESVAL S.A. 3.8 7/15/2012 CLP 24.83 LA POLAR SA 3.8 10/10/2017 CLP 50.2 MASISA 4.25 10/15/2012 CLP 29 QUINENCO SA 3.5 7/21/2013 CLP 24.73 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 53.16 PUERTO RICO CONS 6.5 4/1/2016 USD 68.16 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 49.26 PETROLEOS DE VEN 5.3 4/12/2027 USD 52.01 PETROLEOS DE VEN 5.1 10/28/2016 USD 64.2 PETROLEOS DE VEN 5.2 4/12/2017 USD 64.83 PETROLEOS DE VEN 5 10/28/2015 USD 69.12 VENEZUELA 7 3/31/2038 USD 58.5 VENEZUELA 7 3/31/2038 USD 59.36 VENEZUELA 6 12/9/2020 USD 62.65 VENEZUELA 7.65 4/21/2025 USD 63.9 VENEZUELA 8.2 10/13/2024 USD 67 VENEZUELA 9.25 5/7/2028 USD 70 VENEZUELA 9 5/7/2023 USD 71.6 VENEZUELA 7 12/1/2018 USD 70.5 VENEZUELA 7.7 10/13/2019 USD 71.85 VENEZUELA 9.25 9/15/2027 USD 74.82 VENZOD - 189000 9.3 1/13/2034 USD 71.25 *********** 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 * * *