/raid1/www/Hosts/bankrupt/TCRLA_Public/110810.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, August 10, 2011, Vol. 12, No. 157
Headlines
A R G E N T I N A
GRUPO SUPERVIELLE: Moody's Assigns 'B1' Currency Sr. Debt Rating
STANDARD BANK: Moody's Reviews 'D' BFSR for Possible Downgrade
C A Y M A N I S L A N D S
ARLO IV: Moody's Downgrades 2016 Notes Rating to 'Caa1 (sf)'
AUTOPISTAS DEL: Fitch Affirms US$162MM Sr. Secured Notes at 'B'
CAPELLA HOLDING II: Shareholders' Final Meeting Set for August 19
CATHAY STABILIS: Shareholders' Final Meeting Set for August 19
CAVALRY TECHNOLOGY: Shareholders' Final Meeting Set for August 17
DEMETER (CAYMAN): Shareholders' Final Meeting Set for August 19
DYNAMIC VISION: Shareholders Receive Wind-Up Report
KINGSWAY FUND: Shareholders' Final Meeting Set for August 15
PEQUOT FUND: Shareholder to Hear Wind-Up Report on August 26
PEQUOT OFFSHORE: Shareholder to Hear Report on August 26
RAVEL EUROPEAN: Shareholders' Final Meeting Set for August 12
RAVEL MASTER: Shareholders' Final Meeting Set for August 12
SIGNUM CGD: Shareholders' Final Meeting Set for August 19
STRAITS LION: Shareholders' Final Meeting Set for August 19
STRAITS LION SGD: Shareholders' Final Meeting Set for August 19
THAMES RIVER: Shareholders' Final Meeting Set for August 15
UNITED GLOBAL: Shareholders' Final Meeting Set for August 19
J A M A I C A
INTERTRADE FINANCE: Investors Must File Claims on Aug. 19
JAMAICA RAILWAY: Gov't Identifies Suitors Interested in Firm
G U A T E M A L A
* GUATEMALA: Fitch Affirms Issuer Default Ratings at 'BB+'
M E X I C O
VITRO SAB: Seeks US$6.2 Million From Bondholders for Fees
VITRO SAB: U.S. Units Have Until Oct. 4 to Propose Ch. 11 Plan
P U E R T O R I C O
PICHIS INC: Case Summary & 20 Largest Unsecured Creditors
T R I N I D A D & T O B A G O
CFG HOLDINGS: Fitch Assigns 'B-' Long-Term Issuer Default Rating
CL FIN'L: CLICO Policyholders Against Takeover Bid for Lascelles
DFL CARIBBEAN: Fitch Affirms, Withdraws 'BB' Long-Term IDR
- - - - -
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A R G E N T I N A
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GRUPO SUPERVIELLE: Moody's Assigns 'B1' Currency Sr. Debt Rating
----------------------------------------------------------------
Moody's Latin America assigned Aa3.ar national scale local
currency debt ratings to Grupo Supervielle S.A.'s (GS) expected
issuances of the third and fourth tranches of senior notes under
the bank's ARS 200 million global medium-term note program.
Each tranche may be issued in an amount up to ARS105 million, with
the combined issuances to total a maximum of ARS105 million.
Under the terms of the notes, the third tranche will be issued at
a floating rate only if the full ARS 105 million is not issued at
fixed rate under the fourth tranche. Moody's indicated that the
third tranche has a tenor of 18 months and matures in 2013, while
the fourth tranche has a tenor of 15 months and matures in 2012.
The instruments will be placed in the local market and governed by
Argentinean law.
At the same time, Moody's Investors Service assigned a B1 global
local currency senior debt rating to the aforementioned tranches.
The outlook on all ratings is stable.
These ratings were assigned to Grupo Supervielle S.A.:
Third tranche of floating rate senior notes up to ARS 105 million,
minus the amount issued under the fourth tranche:
B1 Global Local Currency Senior Debt Rating, with stable outlook
Aa3.ar Argentina National Scale Local Currency Senior Debt Rating
Fourth tranche of fixed rate notes up to ARS 105 million:
B1 Global Local Currency Senior Debt Rating, with stable outlook
Aa3.ar Argentina National Scale Local Currency Senior Debt Rating
Ratings Rationale
Moody's explained that the local currency senior unsecured debt
rating derives from Grupo Supervielle's B1 global local currency
issuer rating. Moody's also noted that seniority was taken into
consideration in the assignment of the debt ratings.
The third tranche will be denominated, subscribed and paid in
Argentine pesos. The fourth tranche will be denominated in U.S.
dollars but will be subscribed and paid in Argentine pesos at the
exchange rate applicable on each payment date. As payments on
both tranches will be made in Argentine pesos, Moody's rates the
issuances on a local currency basis.
Grupo Supervielle S.A. is headquartered in Buenos Aires,
Argentina, and reported consolidated assets of ARS7.983,1 million
and consolidated equity of ARS635 million, as of March 2011.
STANDARD BANK: Moody's Reviews 'D' BFSR for Possible Downgrade
--------------------------------------------------------------
Moody's Investors Service placed on review for possible downgrade
Standard Bank Argentina's (Standard Argentina) ratings following
the announcement of the acquisition of majority control (80%
share) of the bank by Industrial and Commercial Bank of China
Limited (ICBC) from Standard Bank of South Africa. The ratings
under review include the bank's D bank financial strength rating,
Ba1 local currency deposit and unsecured debt ratings. At the
same time Moody's Latin America placed under review the Aaa.ar
national scale local currency deposit and debt ratings.
These ratings were placed on review for possible downgrade:
* Bank Financial Strength Rating at D
* Long term global local currency deposit rating at Ba1
* Long term national scale local currency deposit rating at Aaa.ar
* Global local currency senior unsecured debt rating at Ba1
* National scale local currency senior unsecured debt rating at
Aaa.ar
Ratings Rationale
The review for possible downgrade of Standard Argentina's ratings
is based on the announced change of ownership and control of the
bank as well as uncertainties regarding the ultimate strategy and
growth plans and the level and probability of financial support of
the new owner (Moody's currently rates ICBC D+ for financial
strength, mapping to a Ba1 baseline credit assessment). The
transaction also entails execution and implementation risks in
light of ICBC's relative lack of experience in the Argentinean
market.
Moody's said its review will encompass an evaluation of the new
owner's strategic plan and its financial implications with respect
to the financial strength rating as well as the level and
probability of support from the new owner with regard to the local
currency rating.
ICBC will pay US$600 million for an 80% stake in Standard
Argentina according to a statement to the Hong Kong stock exchange
made on August 5, 2011. The remaining 20% of the shareholdings
will be owned by Standard Bank South Africa. Completion of the
transaction is subject to regulatory approvals from the
Argentinean Central Bank.
Standard Bank Argentina S.A. is headquartered in Buenos Aires,
with assets of ARS14.6 billion and loans of ARS7.5 billion as of
March, 2011.
===========================
C A Y M A N I S L A N D S
===========================
ARLO IV: Moody's Downgrades 2016 Notes Rating to 'Caa1 (sf)'
------------------------------------------------------------
Moody's Investors Service performed this rating action on the
notes issued by ARLO IV Ltd. The transaction is a synthetic CDO
referencing a managed portfolio of corporate entities.
Issuer: ARLO IV Limited
-- Series 2006 (Bichumi Global 1) US$200,000,000 Secured
Limited Recourse Credit-Linked Notes due 2016, Downgraded to
Caa1 (sf); previously on Oct 21, 2009 Downgraded to B3 (sf)
Ratings Rationale
The rating action is the result of the overall credit
deterioration of the reference portfolio and the losses on the
notes due to credit events.
Since last rating action, the transaction has experienced credit
events on Ambac Financial Group Inc, Anglo Irish Bank Corporation
Plc and CIT Group Inc.
Together with prior credit events on Lehman Brothers Inc, Glitnir
banki hf and Landsbanki Islands hf, the more recent credit events
completely eroded the remaining subordination and incurred losses
to the tranche. The incurred loss currently amounts to 2.1% of
the original tranche size.
Excluding Ca/C rated reference entities and those subject to
credit events, the 10-year weighted average rating factor (WARF)
of the portfolio slightly lowered from 279 in last rating review
in October 2009 to 247 now, equivalent to Baa1.
Moody's rating action factors in a number of sensitivity analyses
and stress scenarios, discussed below. Results are given in terms
of the number of notches' difference versus the base case, where
higher notches correspond to lower expected losses, and vice-
versa:
- MIRs are modeled in place of the corporate fundamental ratings
to derive the default probability of the reference entities in
the portfolio. The gap between an MIR and a Moody's corporate
fundamental rating is an indicator of the extent of the
divergence in credit view between Moody's and the market. The
result of this run is three notches lower than that of the base
case.
- Moody's conducts a sensitivity analysis consisting of notching
down by one the ratings of reference entities in the Banking,
Finance, Insurance and Real Estate sectors. The result of this
run is comparable to the base case.
- Another sensitivity analysis is to replace the Senior Unsecured
rating of banks in Europe by their Subordinate rating. The
result of this run is also comparable to the base case.
In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, and
specific documentation features. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, may influence the final rating decision.
AUTOPISTAS DEL: Fitch Affirms US$162MM Sr. Secured Notes at 'B'
---------------------------------------------------------------
Fitch Ratings has affirmed the 'B' rating on US$162 million
outstanding senior secured notes for Autopistas del Nordeste
(Cayman) Ltd. The Rating Outlook is revised to Positive from
Stable.
Key Rating Drivers:
-- Strong Support from Government: The government pledged a
Minimum Revenue Guarantee (MRG) throughout the life of the
notes, recognized as a financial obligation by the
Government;
-- Limited Competition: Autopistas del Nordeste (AdN)
significantly reduces the travel distance between Santo
Domingo and Samana;
-- Predictable Operating Costs: A fixed operation and
maintenance agreement with experienced operator considerably
reduces cost escalations;
-- Substantial Counterparty Risk: The legal framework and
business environment in Dominican Republic are consistent
with the country's 'B' credit rating;
-- Low Traffic Performance: The road is currently in a ramp-up
period. Traffic performance has been below projections for
this period and revenues highly depend on MRG support.
What Could Trigger a Rating Action?
-- Government fails to pay amounts owed under the concession
agreement including MRG;
-- Traffic performance significantly improves, allowing the
project to become self-sustained.
Security
The notes are secured by all revenues received by the company, the
rights of the concession, contracts and all issued and outstanding
shares of the company pledged to the Trustee.
Credit Update
The toll road, completed in 2009, connects Santo Domingo with the
northern province of Samana. The project extends along 106
kilometers (approximately 66 miles) and includes three toll
plazas. In comparison to alternative roads, AdN considerably
reduces the travel distance between Santo Domingo and Samana.
Traffic performance is currently going through a ramp-up period
and improving at a slower pace than initially projected.
The project's ability to timely meet its financial obligations
heavily relies upon the government support. The government,
through the Ministry of State of Public Works and Communications,
pledged a MRG to ensure the timely payment of the road's financial
obligations.
The MRG was designed to cover the costs associated with the
operations and maintenance, and to service the debt issued for the
construction of the road.
The Congress of Dominican Republic previously approved the
Memorandum of Completion of the Stage of Design Revision and
Traffic Demand Study, and the Memorandum of Completion of the
Stage of Realizing the Financial Closing. Congress approval of
the memorandums formalized the obligation of the Dominican
government towards the project, as stated in the Concession
Contract. Fitch is of the view that this explicit financial
obligation by the government largely reduces revenue risk.
The project also has in placed a partial political risk guarantee
provided by the Multilateral Investment Guarantee Agency (MIGA).
In the event that the government fails to meet timely payments
under the MRG, the MIGA policy will be triggered. Expected
disputes over a breach of contract will be solved through the
American Arbitration Association in New York courts.
Under the MIGA guarantee, MIGA would make a compensation payment
of an amount up to 51% of any scheduled interest or principal of
the outstanding debt, due to political events including breach of
contract.
Autopistas del Nordeste (Cayman) Limited is the issuer, created
under the laws of the Cayman Islands, which is an exempted limited
liability company owned by a consortium composed by: Organizacion
de Ingenieria Internacional SA, Odinsa Holding Inc., CI Grodco S
en CA Ingenieros Civiles, Grodco Panama, Consorcio Remix,
Caribbean Basin Construction Corporation Ltd.
CAPELLA HOLDING II: Shareholders' Final Meeting Set for August 19
-----------------------------------------------------------------
The shareholders of Capella Holding II will hold their final
meeting on August 19, 2011, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345) 949-8244
Facsimile: (345) 949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
CATHAY STABILIS: Shareholders' Final Meeting Set for August 19
--------------------------------------------------------------
The shareholders of Cathay Stabilis CDO Limited will hold their
final meeting on August 19, 2011, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345) 949-8244
Facsimile: (345) 949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
CAVALRY TECHNOLOGY: Shareholders' Final Meeting Set for August 17
-----------------------------------------------------------------
The shareholders of Cavalry Technology Institutional, Ltd. will
hold their final meeting on August 17, 2011, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
John Milani
Two Embarcadero Center
Suite 600
San Francisco
California 94111
United States of America
DEMETER (CAYMAN): Shareholders' Final Meeting Set for August 19
---------------------------------------------------------------
The shareholders of Demeter (Cayman) Limited will hold their final
meeting on August 19, 2011, at 11:30 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
DYNAMIC VISION: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Dynamic Vision Limited received on June 16,
2011, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Chwang-Shen Wen
No. 16, Li-Hsin Road
Science Based Industrial Park
Hsinchu
Taiwan
ROC
Telephone: 03 578 6688
Facsimile: 03 563 2999
KINGSWAY FUND: Shareholders' Final Meeting Set for August 15
------------------------------------------------------------
The shareholders of Kingsway Fund Limited will hold their final
meeting on August 15, 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:
David A.K. Walker
c/o Sarah Moxam
Telephone: (345) 914 8634
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
PEQUOT FUND: Shareholder to Hear Wind-Up Report on August 26
------------------------------------------------------------
The sole shareholder of Pequot Diversified Offshore Fund, Ltd.
will receive on August 26, 2011, at 10:00 a.m., the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Ogier
Jo-Anne Maher
Telephone: (345) 815-1762
Facsimile: (345) 949-9877
PEQUOT OFFSHORE: Shareholder to Hear Report on August 26
--------------------------------------------------------
The sole shareholder of Pequot Diversified Offshore Portfolio,
Ltd. will receive on August 26, 2011, at 10:05 a.m., the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ogier
Jo-Anne Maher
Telephone: (345) 815-1762
Facsimile: (345) 949-9877
RAVEL EUROPEAN: Shareholders' Final Meeting Set for August 12
-------------------------------------------------------------
The shareholders of The Ravel European Fund Limited will hold
their final meeting on August 12, 2011, at 10:30 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Ian D. Stokoe
c/o Sarah Moxam
Telephone: (345) 914 8634
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
RAVEL MASTER: Shareholders' Final Meeting Set for August 12
-----------------------------------------------------------
The shareholders of Ravel Master Fund Limited will hold their
final meeting on August 12, 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:
Ian D. Stokoe
c/o Sarah Moxam
Telephone: (345) 914 8634
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
SIGNUM CGD: Shareholders' Final Meeting Set for August 19
---------------------------------------------------------
The shareholders of Signum CGD Limited will hold their final
meeting on August 19, 2011, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345) 949-8244
Facsimile: (345) 949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
STRAITS LION: Shareholders' Final Meeting Set for August 19
-----------------------------------------------------------
The shareholders of Straits Lion Asia CDO I Limited will hold
their final meeting on August 19, 2011, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
David Dyer
Telephone: (345) 949-8244
Facsimile: (345) 949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
STRAITS LION SGD: Shareholders' Final Meeting Set for August 19
---------------------------------------------------------------
The shareholders of Straits Lion SGD CDO I Limited will hold their
final meeting on August 19, 2011, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345) 949-8244
Facsimile: (345) 949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
THAMES RIVER: Shareholders' Final Meeting Set for August 15
-----------------------------------------------------------
The shareholders of Thames River Kingsway Fund Limited will hold
their final meeting on August 15, 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:
David A.K. Walker
c/o Sarah Moxam
Telephone: (345) 914 8634
Facsimile: (345) 945 4237
P.O. Box 258 Grand Cayman KY1-1104
Cayman Islands
UNITED GLOBAL: Shareholders' Final Meeting Set for August 19
------------------------------------------------------------
The shareholders of United Global Credits CDO Ltd will hold their
final meeting on August 19, 2011, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345) 949-8244
Facsimile: (345) 949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
=============
J A M A I C A
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INTERTRADE FINANCE: Investors Must File Claims on Aug. 19
---------------------------------------------------------
RJR News reports that a notice from the Financial Services
Commission disclosed that investors in Intertrade Finance
Corporation should present claims along with supporting documents
to temporary manager Ernst and Young's Linval Freeman by
Aug. 19.
RJR News notes that FSC assumed temporary management of the firm
on Aug. 3.
The FSC said that, during the period, its officers will be able to
examine the records of Intertrade Finance and any of its
subsidiaries, as maintained at the company's offices in Kingston,
according to RJR News. The report notes that this will allow the
Commission to ascertain the true financial condition of the
company and further scrutinize its compliance with the terms of
its license.
As reported in the Troubled Company Reporter-Latin America on
May 27, 2011, RJR News said that restrictions have been placed on
the operations of Intertrade Finance Corporation after it was
served with a cease and desist order by the FSC. The order was
issued to Joan Powell, Intertrade Finance's Chief Executive
Officer and its Directors Gavin Chen, Christopher Malcolm and
Herbert Malcolm, according to RJR News. RJR News noted that FSC
said the order was based on the company misrepresenting clients on
the nature of the securities in which they had invested, its
failure to pay over sums to certain clients in keeping with their
instructions, and a review of its interim financial statements and
other documents. RJR News disclosed that FSC said the information
showed that Intertrade Finance may have misrepresented total funds
under management and its liabilities. The Commission has raised
concern about the firm's liquidity, cash flow, capital as well as
the protection of its clients and said the cease and desist order
restricts Intertrade Finance from doing new business, RJR News
added.
Intertrade Finance Corporation is a securities firm in Jamaica.
JAMAICA RAILWAY: Gov't Identifies Suitors Interested in Firm
------------------------------------------------------------
RJR News reports that Jamaica Finance Minister Audley Shaw said
the government has identified suitors with interest in its 45%
stake in Jamaica Railway Corporation, which is owned through
Clarendon Alumina Partners. The report relates that Mr. Shaw made
the disclosure but stopped short of naming the suitors.
It had been rumored early this year that Swiss commodities trader,
Glencore, was interested in the governments' shares in Jamalco,
the report says.
RJR News notes that the Jamaican government is trying to sell its
stake in the company because of a forward sales agreement for
bauxite in 2002, which has gone horribly wrong, and is now costing
tax payers billions of dollars each year. Up to the end of 2010,
the agreement cost taxpayers US$12 billion and is slated to cost
an additional US$15 billion if it is not sold by the end of 2013,
according to RJR News.
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
Aug. 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.
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G U A T E M A L A
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* GUATEMALA: Fitch Affirms Issuer Default Ratings at 'BB+'
----------------------------------------------------------
Fitch Ratings has taken these rating actions on the Issuer Default
Ratings (IDRs) and Country Ceiling for Guatemala:
-- Foreign currency IDR affirmed at 'BB+';
-- Local currency IDR affirmed at 'BB+';
-- Foreign currency short-term IDR affirmed at 'B';
-- Country ceiling affirmed at 'BBB-'.
The Rating Outlook remains Stable.
Guatemala's 'BB+' ratings are supported by the country's track
record of macroeconomic stability, a solid debt repayment record
and its modest public and external debt burdens relative to 'BB'
peers.
However, Guatemala's ratings are likely to be constrained to
speculative grade over the medium term owing to the country's weak
social and governance indicators, its limited fiscal flexibility
highlighted by a narrow revenue base and continued spending
pressures, as well as its modest growth prospects. More
importantly, the agency has not seen policy momentum to alleviate
these constraints.
The Guatemalan economy continues to recover from the aftermath of
the global financial crisis. Fitch expects GDP growth to reach
3.3% in 2011 driven by favorable domestic demand and a good
performance of external trade and a further recovery in overseas
remittances, although downside risks remain owing to the weakness
in the economic performance of the U.S.
'Overall macroeconomic stability has been a key strength of
Guatemala's economy; however, a higher growth trajectory is
required for Guatemala to improve its relatively weak social
indicators' said Lucila Broide, Director at Fitch Ratings'
Sovereign group.
The public debt burden rose to 24.4% of GDP (below the 'BB' median
of 40.5%) from 20.1% in 2008 in the aftermath of the global
financial crisis and successive natural disasters as fiscal
deficits rose to over 3% of GDP from an average of 1.6% in 2000-
08. However, the rise in government indebtedness is in line with
that observed for the 'BB' median and Guatemala's financing needs
remain relatively modest owing to the favorable composition.
Nonetheless, Fitch notes that Guatemala's narrow tax intake, its
high revenue earmarking, and the vulnerability to external and
weather-related shocks underscore the need for it to consolidate
its fiscal accounts and preserve a low level of government
indebtedness.
'Guatemala's need to proceed with faster fiscal consolidation to
re-build some fiscal space increasingly requires a revenue-
enhancing tax reform' added Broide.
With the presidential elections approaching in September 2011,
political tensions have increased. As a consequence, a political
gridlock has prevented Congress from approving certain
multilateral loans for the current fiscal year. Despite the
announced political agreement to approve these loans, should
Congress fail to do so, the government is committed to cutting
spending to maintain timely debt service.
Fitch highlights that regardless of the ultimate winner of the
presidential elections, the new president will continue to face
challenges to further boost the country's growth potential and
attend to its social needs in the context of low fiscal
flexibility. Despite these challenges, Fitch believes that broad
macroeconomic stability will likely be preserved.
Significant progress in addressing social and other structural
weaknesses will be critical for achieving an upgrade. In this
regard, implementation of reforms which strengthen public finances
and promote higher rates of economic growth would be viewed
positively. Conversely, Guatemala's credit ratings could be
negatively affected by a relative macroeconomic under-performance
compared with rating peers, as well as a sustained deterioration
in its fiscal and external solvency indicators.
===========
M E X I C O
===========
VITRO SAB: Seeks US$6.2 Million From Bondholders for Fees
---------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that 10 subsidiaries of Vitro SAB, the Mexican glassmaker,
filed papers asking the bankruptcy judge in Dallas to assess
US$6.2 million in damages against bondholders who filed
unsuccessful involuntary Chapter 11 petitions. The dispute goes
to the bankruptcy judge for decision on Aug. 23.
Mr. Rochelle recounts that holders of some of Vitro's US$1.2
billion in defaulted bonds filed involuntary Chapter 11 petitions
last year against the 10 Vitro subsidiaries and others. Some put
themselves into Chapter 11 this year and later sold their
businesses. In April, the bankruptcy judge in Texas denied the
involuntary petitions against 10 subsidiaries that hadn't elected
Chapter 11 voluntarily.
Mr. Rochelle relates that the 10 subsidiaries that escaped
bankruptcy filed papers on Aug. 3 based on a provision in
bankruptcy law they say automatically entitles them to recovery of
attorneys' fees expended in successfully fighting off an
involuntary petition. The 10 Vitro subsidiaries said the
involuntary petitions caused "an onslaught of adverse publicity"
that led to a "precipitous drop in sales." In addition, they
said, "certain vendors began to tighten trade terms." Vitro
companies said that the involuntary petitions were part of a
"coordinated three-front war aimed at gaining undue leverage over
Vitro's restructuring efforts."
The Vitro companies said they took a "substantial voluntary
reduction of the fees they incurred." The US$6.2 million request
includes US$5.8 million for lawyers' time charges, plus expenses.
The Vitro papers say almost 12,800 hours of lawyers' time was
spent in fighting with bondholders.
About Vitro America
Headquartered in Memphis, Tennessee, Vitro America is a leading
fabricator, distributor, and installer of glass in the
construction, automotive replacement, and furniture markets. The
company serves more than 40,000 customers from more than 100
locations throughout the United States.
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.
The U.S. subsidiaries subsequently sold their businesses to an
affiliate of Sun Capital Partners Inc. for US$55 million.
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.
VITRO SAB: U.S. Units Have Until Oct. 4 to Propose Ch. 11 Plan
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
extended Vitro Asset Corp., et al.'s exclusive periods to file and
solicit acceptances for the proposed chapter 11 plan until Oct. 4,
2011, and Dec. 3, respectively.
As reported in the Troubled Company Reporter on July 6, 2011, the
Debtors ask the Court to extend their exclusive periods until
Oct. 2, 2011, and Dec. 1, respectively.
An affiliate of Sun Capital Partners Inc. bought the operations of
Vitro's U.S. subsidiaries for about US$55 million. The price rose
some US$15 million at auction. The sale was completed on June 17.
The Debtors related that though the sale's closing has enabled
them to turn their attention toward the preparation of a plan, the
value of additional potentially significant assets and the nature,
amount, and validity of each class of claims may remain
indeterminate until September 2011.
Prior to the June 17 closing of the sale of substantially all the
Debtors' assets to American Glass Enterprises LLC, the resources
of the Debtors and the Debtors' professionals were dominated by
the sale process. Furthermore, prior to the conclusion of the
auction and the June 13 entry of the order approving the sale, the
total amount of assets available for distribution were unknown.
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.
The U.S. subsidiaries subsequently sold their businesses to an
affiliate of Sun Capital Partners Inc. for US$55 million.
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.
=====================
P U E R T O R I C O
=====================
PICHIS INC: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Pichis, Inc.
P.O. Box 560115
Guayanilla, PR 00656-0560
Bankruptcy Case No.: 11-06583
Chapter 11 Petition Date: August 3, 2011
Court: United States Bankruptcy Court
District of Puerto Rico (Ponce)
Debtor's Counsel: Charles Alfred Cuprill, Esq.
CHARLES A CURPILL, PSC LAW OFFICE
356 Calle Fortaleza
Second Floor
San Juan, PR 00901
Tel: (787) 977-0515
E-mail: cacuprill@cuprill.com
Estimated Assets: US$10,000,001 to US$50,000,000
Estimated Debts: US$10,000,001 to US$50,000,000
The petition was signed by Luis A. Emmanuelli Gonzalez, president.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Caribe General Construction US$1,164,256
Constructors Contractors
2053 Ponce By Pass
Suite 201
Ponce PR00717 1308
CRIM Real Property Tax $787,875
P.O. Box 70235
San Juan, PR 00936 8235
Bally Technologies Gaming systems; Lease $565,652
Lockbox 749335
Los Angeles CA 90074
Departamento De Hacienda Payroll Tax $260,564
De PR Witholdings
Bankruptcy Section (424B)
PO Box 9024140
San Juan PR 00902 4140
Aristrocat Technologies Lease of Equipment $252,208
Inc.
7230 Amigo Street
Las Vegas NV 89119
Departamento De Hacienda Sales and Use Tax $177,475
De PR
PR Electric Power Electric Power $156,641
(PREPA) Aut Services
State Insurance Fund Workmen's Compensation $147,325
Corp. Insurance
Atronic International Lease of Equipment $136,320
WMS Gaming Corporate Financing Equipment $104,263
Receipts
Internal Revenue Payroll Tax $93,090
Services Witholdings
Best Western Hotel Franchise Fees $84,615
International
HMS Gaming LLC Konami Machines $76,515
Banco Popular De Credit Card Purchases $47,642
Puerto Rico Visa
Compana De Turismo De Room Tax $36,516
PR
Lavanderias Del Sur Laundry Services $33,595
Reel Games Inc. Lease of Equipment $33,480
Departamento Del Trabajo Payroll Tax $31,983
Y Recursos Humanos
Manuel A. Nunez, Esq. Legal Services $29,843
Capitol Security Police Security Services $27,866
Inc.
===============================
T R I N I D A D & T O B A G O
===============================
CFG HOLDINGS: Fitch Assigns 'B-' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has assigned a 'B-' Long-Term Issuer Default Rating
(IDR) to CFG Holdings Ltd. (CFG). The Rating Outlook is Stable.
CFG's IDRs are driven by its adequate asset quality, sound
recurring core profitability (excluding the amortization of
intangibles), adequate leverage, and diversified target markets:
Aruba, Curacao, Bonaire, Trinidad & Tobago, Saint Maarten and
Panama. Despite the former, the ratings are limited by heightened
refinancing risk due to the concentrated and short-term nature of
its funding (CFG's largest weakness), and the burden of
intangibles on its overall profitability.
The Stable Outlook reflects the expectation that asset quality and
recurring profitability will remain in line with current trends,
while CFG's capital levels will benefit from its conservative
growth strategy and dividend retention policies. A failure to
refinance the current bank facility and reduce the encumbered
levels of its assets, and/or a sudden deterioration on its asset
quality metrics will negatively affect the ratings.
Funding is a structural weakness of CFG, despite its cash flow
generation. The current funding structure -- a one-year (residual
tenor) secured bank facility -- is not aligned with the average
tenor of its assets (around three years) and encumbers a
significant portion of productive assets (around 70% of total
gross receivables).
Considering its niche market, unsecured consumer loans, CFG's
lending policies are deemed adequate and have allowed the entity
to preserve its asset quality in the recent economic downturn,
although the average level of impaired loans is relevant (around
12% for 60 days overdue and 5% for 90 days overdue as of December
2010) and net charge-offs have been around 6% in the last two
years. CFG's asset quality metrics are supported by its efficient
collection process (payroll deduction and automatic charges in
bank accounts, as opposed to regular cash payments on branches).
Recurring profitability is sound due to CFG's adequate risk-
adjusted margins and good efficiency levels, although overall
profitability is hindered by the sizable burden of the
amortization of the goodwill and intangibles associated with the
acquisition of its operating subsidiaries in 2006. As such, CFG
has posted a recurring average ROAA of 1.7% in the last four
years, though volatile and below the average of other similarly
rated companies. Given the stability of its asset quality ratios,
prudent growth strategy and controlled overhead, CFG's recurring
profitability should remain adequate, although overall
profitability will be affected by the long amortization period of
the intangibles.
Despite the ability to reduce its financial debt by 15% since
2008, CFG's current cash flow is considered weak given the short-
term nature of the current bank facility that funds its
operations. A prospective midterm issuance will extend current
maturities but refinancing risk will still be high given the
expected cash flow generation.
CFG's capital levels are sound compared to the inherent risk of
its business model, even considering the significant weight of the
goodwill and intangibles (44% of total equity as of March 2011),
with an adjusted equity to assets ratio of 26%. Financial Leverage
(adjusted by intangibles) stands at 2.4 times, in line with other
entities of similar profile, although the concentrated nature of
the financial debt negatively affect this measure.
CFG is a leading non-bank consumer finance company with
established business in Trinidad & Tobago, Curacao, Aruba,
Bonaire, Saint Maarten and Panama. CFG was incorporated in 2006,
as a result of the acquisition of Wells Fargo Financial's Latin
American Consumer Finance Operations by Irving Place Capital, a
private equity company.
Fitch assigns these ratings:
-- Long-term Foreign Currency IDR 'B-'; Outlook Stable;
-- Short-term Foreign Currency IDR 'B'.
CL FIN'L: CLICO Policyholders Against Takeover Bid for Lascelles
----------------------------------------------------------------
Trinidad Express reports that the Colonial Life Insurance Company
(Trinidad) Limited Policyholders Group is not supporting a foreign
takeover bid for Lascelles de Mercardo. CLICO and Lascelles de
Mercardo are subsidiaries of CL Financial Limited.
"Having carefully reviewed the takeover bid offer documents of
Black Sand Acquisition Inc re: Lascelles de Mercardo,
unfortunately, the CLICO Policyholders Group cannot support what
appears to be a calculated and overly ambitious attempt by its
former managing director, William Mc Connell, to snap up the
shares of this valuable CL Financial subsidiary at knockdown/fire
sale prices given the very vulnerable position in which the parent
company has found itself," policyholders group Chairman
Peter Permell said in a statement obtained by the news agency.
"The CPG is persuaded that not only would such support be ill-
advised but it would be tantamount to shooting one's self in the
foot," he added.
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.
Meanwhile, RJR News relates that Lascelles de Mercado has released
improved financial results. RJR News notes that net profit for
the nine months ended June was JM$470 million higher at just over
JM$2 billion. Lascelles de Mercado also saw revenue increase by
JM$1.1 billion to JM$20.7 billion.
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.
DFL CARIBBEAN: Fitch Affirms, Withdraws 'BB' Long-Term IDR
----------------------------------------------------------
Fitch Ratings affirms and withdraws the Long-term Issuer Default
Rating (LT IDR) of 'BB' for DFL Caribbean Holdings Limited and its
subsidiary, Development Finance Limited.
The affirmation of the IDR reflects Fitch's view that there
continues to be a moderate probability of support, reflected in
the '3' Support rating, from its existing ownership base in the
event of need. The government of Trinidad and Tobago currently
owns 28% of the shares.
In addition, the Individual and Viability ratings, which measure
standalone financial strength, are placed on Rating Watch
Negative.
This action reflects Fitch's belief that financial pressure has
significantly increased, given the firm's large exposure
concentrations, impaired loans and operations in riskier markets.
Fitch's ratings are being withdrawn due to a lack of information.
Established in 1970, the group converted to a holding company
structure in 2007 under parent company, DFL Caribbean Holdings
Limited. The group focuses on SMEs (small to medium enterprises)
and microfinance. The largest subsidiary is Development Finance
Limited.
Fitch affirms and withdraws these ratings:
DFL Caribbean Holdings Limited
-- Long-term IDR at 'BB';
-- Short-Term IDR at 'B';
-- Support rating at '3'.
Development Finance Limited
-- Long-term IDR at 'BB';
-- Short-term IDR at 'B';
-- Support rating at '3'.
Fitch places these ratings on Rating Watch Negative and
subsequently withdraws them:
DFL Caribbean Holdings Limited
-- Individual rating 'D';
-- Viability rating of 'bb';
-- Preferred Stock rating 'B-'.
Development Finance Limited
-- Individual rating 'D';
-- Viability rating of 'bb'.
***********
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 * * *