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/raid1/www/Hosts/bankrupt/TCRLA_Public/110826.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 Friday, August 26, 2011, Vol. 12, No. 169 Headlines A R G E N T I N A BANCO HIPOTECARIO: S&P Affirms 'B' Counterparty Credit Rating B E R M U D A BLUE SEAS: Creditors' Proofs of Debt Due September 2 BLUE SEAS: Members' Final Meeting Set for September 28 BOSTOCK MEWS: Court to Hear Wind-Up Petition on September 2 BUTTERFIELD LIQUID: Creditors' Proofs of Debt Due August 31 BUTTERFIELD LIQUID: Members' Final Meeting Set for September 22 DIGICEL GROUP: Government to Update Nation on Claro Merger ITG JAPAN: Members' Final Meeting Set for September 23 STEWARDSHIP CREDIT: To Declare Second Interim Dividend on Sept. 30 TAIWAN CATALYST: Creditors' Proofs of Debt Due September 2 TAIWAN CATALYST: Members' Final Meeting Set for September 22 C A Y M A N I S L A N D S HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2 HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2 E L S A L V A D O R TELEMOVIL EL: Fitch Affirms Rating on US$450MM Sr. Notes at 'BB' M E X I C O MAXCOM TELECOMUNICACIONES: S&P Cuts LT Corp. Credit Rating to CCC+ P U E R T O R I C O CARIBE MEDIA: Files Restructuring Plan Giving Lenders Equity MADELINE P CORP: Case Summary & 10 Largest Unsecured Creditors R&G FINANCIAL: Posts US$23,737 Net Loss in July - - - - - ================= A R G E N T I N A ================= BANCO HIPOTECARIO: S&P Affirms 'B' Counterparty Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' ratings, including the counterparty credit rating, on Banco Hipotecario S.A. The outlook remains stable. "The ratings on Banco Hipotecario reflect the risk inherent in operating in Argentina," said Standard & Poor's credit analyst Cynthia Cohenfreue. "They also incorporate the challenges the bank faces in increasing its market position, and its weak operating efficiency." "However, Banco Hipotecario's strong capitalization and adequate liquidity mitigate these weaknesses, in our view," S&P said. "In accordance with our criteria, we classify Banco Hipotecario as a government-related entity (GRE) with a low likelihood of extraordinary government support," S&P related. S&P's assessment of Banco Hipotecario is based on: Limited importance because of the GRE's role as a profit- seeking enterprise in a competitive environment. Banco Hipotecario is one among other GREs, and/or its activity could be undertaken by a private-sector entity or another GRE if it ceased to exist. A limited link with the government of the Republic of Argentina (B/Stable/B) because the government, though a majority holder of equity, is a minority in voting rights and doesn't interfere more than other minority shareholders do in the GRE's strategic decisions and operations. "Amid uncertainties about the Argentine economy, we believe that the close linkage between the credit quality of Argentina and that of the country's financial system directly affect the bank's business and prospects, constraining the rating," S&P related. The stable outlook reflects that on Argentina. ============= B E R M U D A ============= BLUE SEAS: Creditors' Proofs of Debt Due September 2 ---------------------------------------------------- The creditors of Blue Seas Shipping Limited are required to file their proofs of debt by September 2, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 11, 2011. The company's liquidator is: Jennifer M. Kelly Par La Ville Place, 3rd Floor 14 Par La Ville Road Hamilton Bermuda BLUE SEAS: Members' Final Meeting Set for September 28 ------------------------------------------------------ The members of Blue Seas Shipping Limited will hold their final meeting on September 28, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 11, 2011. The company's liquidator is: Jennifer M. Kelly Par La Ville Place, 3rd Floor 14 Par La Ville Road Hamilton Bermuda BOSTOCK MEWS: Court to Hear Wind-Up Petition on September 2 ----------------------------------------------------------- A petition to wind up the operations of Bostock Mews Limited will be heard by the Supreme Court of Bermuda on September 2, 2011, at 9:30 a.m. HSBC Bank Bermuda Limited filed the petition against the company on August 1, 2011. BUTTERFIELD LIQUID: Creditors' Proofs of Debt Due August 31 ----------------------------------------------------------- The creditors of Butterfield Liquid Reserve Fund Limited are required to file their proofs of debt by August 31, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 10, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda BUTTERFIELD LIQUID: Members' Final Meeting Set for September 22 --------------------------------------------------------------- The members of Butterfield Liquid Reserve Fund Limited will hold their final meeting on September 22, 2011, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 10, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda DIGICEL GROUP: Government to Update Nation on Claro Merger ---------------------------------------------------------- RJR News reports that the Jamaican government will provide an update on the merger between Digicel Group Limited and Claro. Daryl Vaz, the Jamaican Minister with responsibility for Information, told the news agency that the latest on the proposed deal will be outlined during the weekly post Cabinet press briefing. As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2011, RJR News said Claro dealers are contemplating legal action after complaining that they have been left in the dark on the status of the proposed Claro/Digicel Group merger, which was initially expected to be completed by the end of June. The dealers are upset that there has been no formal response to a request sent to Daryl Vaz, the Minister responsible for Information, seeking a meeting to discuss their concerns about the merger, according to RJR News. The report related that Claro dealers claimed they were racking up debts as they had received little or no goods from the company to sell and were uncertain about how they would be affected if the merger with Digicel Group went through. About Digicel Group Digicel Group Limited -- http://www.digicelgroup.com/-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state- of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barts. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of Jan. 14, 2010, the company continues to carry Moody's "Caa1" senior unsecured debt rating. ITG JAPAN: Members' Final Meeting Set for September 23 ------------------------------------------------------ The members of ITG Japan Ltd. will hold their final meeting on September 23, 2011, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 15, 2011. Nigel J.S. Chatterjee is the company's liquidator. STEWARDSHIP CREDIT: To Declare Second Interim Dividend on Sept. 30 ------------------------------------------------------------------ Stewardship Credit Arbitrage Fund, Ltd. intends to declare second interim dividend on September 30, 2011. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Nigel Chatterjee c/o Pricewaterhouse Coopers P.O. Box 1171 Hamilton HM EX Bermuda TAIWAN CATALYST: Creditors' Proofs of Debt Due September 2 ---------------------------------------------------------- The creditors of Taiwan Catalyst GP Limited are required to file their proofs of debt by September 2, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 15, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda TAIWAN CATALYST: Members' Final Meeting Set for September 22 ------------------------------------------------------------ The members of Taiwan Catalyst GP Limited will hold their final meeting on September 22, 2011, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced wind-up proceedings on August 15, 2011. The company's liquidator is: Robin J. Mayor Clarendon House, 2 Church Street Hamilton HM 11 Bermuda =========================== C A Y M A N I S L A N D S =========================== HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2 ----------------------------------------------------------------- The shareholders of Halberdier Alius Portfolio will hold their final meeting on September 2, 2011, at 10:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2 ----------------------------------------------------------------- The shareholders of Halberdier Alius Fund will hold their final meeting on September 2, 2011, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands ===================== E L S A L V A D O R ===================== TELEMOVIL EL: Fitch Affirms Rating on US$450MM Sr. Notes at 'BB' ---------------------------------------------------------------- Fitch Ratings has affirmed the local and foreign currency issuer default ratings (IDRs) of Telemovil El Salvador, S.A. and Telemovil Finance Co. Ltd (TF), including the US$450 million senior notes due 2017 issued by TF and guaranteed by Telemovil at 'BB'. The Rating Outlook is Stable. Telemovil's ratings reflect diversified service offering and platforms, leading positions in mobile and pay television services in El Salvador, strong brand recognition, extensive network coverage, sound financial profile and positive pre-dividend free cash flow. Credit quality is tempered by intense competition, limited geographic diversification and the dependence of the economy on remittances, which affects demand for telecommunications services. The ratings factor in the relationship with parent company Millicom International Cellular (Millicom), which fully owns and runs Telemovil and benefit from synergies related to the larger scale of the parent, expertise in management but also considers the payment of dividends, loans to affiliates and Millicom's financial position. For the 12 months ended June 30, 2011 Millicom reported approximately US$4.2 billion in revenues, US$1.8 billion in EBITDA, funds flow from operations of US$1.3 billion, on balance sheet indebtedness of US$2.3 billion and cash balances of US$1.0 billion. Telemovil's mobile operations have performed below expectations; however operating trends seem to be stabilizing. A tough competitive environment has pressured mobile ARPUs during the past twelve months. Despite the competitive issues, Telemovil has retain is leading market share at approximately 44% of total users. Fitch views the transaction between America Movil and Digicel, where as part of the transaction America Movil will receive Digicel's operation in El Salvador, should result in a more balanced competitive environment in the mobile segment, as three players will remain. Once the transaction is closed America Movil's Claro will increase its market share to approximately 38% and Telefonica will remain close to 18%. In Fitch's view, Telemovil's strategy of offering bundled services along with its strategy of focusing on offering differentiated mobile services should allow the company to maintain its leading market position in the medium term. The acquisitions of Millicom Cable (formerly AMNET) and Navega took more time that originally anticipated due to delays from local authorities. Millicom Cable started being consolidated into Telemovil's financial statements since May of 2011, while Navega is expected to clear authorizations and start consolidating into Telemovil by the fourth quarter of 2011. Despite this delay, the strategy and operations of these two companies are managed by Telemovil resulting in the offering of multiples services to customers. The consolidation of these companies does not affect the integration of operations and service offering to customers as they are already bundling services. Mobile operations should remain as the biggest cash flow generator. Fitch believes the competitive position of Telemovil will improve due to the offering of bundles with multiple services and expense synergies. However, currently the customers with quadruple play bundles are very limited. Millicom Cable is the leading CATV provider in El Salvador with approximately 316.6 thousand revenue generating units (RGUs) as of June 30, 2011. Millicom Cable network has close to 80% of bidirectional capability and covers approximately 600,000 homes passed. Navega provides communications services to enterprises and carriers that require broad range of services that demand higher bandwidth. Considering Millicom Cable and Navega and despite posting weaker results in the mobile segment, Telemovil has a sound financial profile. On a proforma basis, total debt to EBITDA and net debt to EBITDA should be close to 2.3 times(x) and 1.5x, respectively. Assuming the loan to the Colombian operation (described below) is collected and expected dividend payments during the year, proforma net debt to EBITDA should approximate to 1.0x. Going forward, Fitch expects that mobile operations should continue stabilizing resulting in stable credit metrics. Excess cash flow from operations after capital expenditures is expected to be used for dividend payments. Telemovil has a strong liquidity position. As of June 30, 2011 total debt was composed of the US$450 million senior notes due 2017 issued by TF and had cash balances of US$155 million of which approximately US$55 million should be used for a dividend payment during the present year. In addition in 2006, the company lent funds to a related party that owns 50% plus one share of Colombia Movil. The amount outstanding of this loan is US$155 million as of the end to the second quarter of 2011 and is due in October of 2011. It is not clear if this loan will be refinanced to a maturity that is closer to the maturity of the 2017 senior notes; but in the event that Telemovil receives the payment approximately US$120 million should remain in cash at Telemovil due to the indenture of the senior notes, further supporting liquidity. =========== M E X I C O =========== MAXCOM TELECOMUNICACIONES: S&P Cuts LT Corp. Credit Rating to CCC+ ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long-term corporate credit and senior secured ratings on Mexican telecommunications provider Maxcom Telecomunicaciones S.A.B. de C.V. to 'CCC+' from 'B-'. The outlook is negative. The '3' recovery rating on the company's senior secured debt is unchanged. "The downgrade reflects Maxcom's lower revenue generation, continued negative free operating cash flow, and a cash position that restricts the company's financial flexibility," said Standard & Poor's credit analyst Marcela Duenas. "Furthermore, the downgrade reflects our ongoing concerns regarding Maxcom's limited liquidity, particularly its ability to refinance its bond maturity in 2014." "Our rating reflects the company's highly leveraged financial profile and its vulnerable business profile; declining revenues and industry position due to the strong competition from land line, mobile telephony, and cable operators; and negative FOCF due to a capital-intensive industry. In addition, frequent management changes continue to be a rating factor," S&P said. Maxcom's telecom service offerings, including quadruple-play bundled packages at very competitive prices, and expertise in managing customer credit partially mitigate the weaknesses. ===================== P U E R T O R I C O ===================== CARIBE MEDIA: Files Restructuring Plan Giving Lenders Equity ------------------------------------------------------------ Michael Bathon at Bloomberg News reports that Caribe Media Inc. filed a reorganization plan that would give control of the company to its lenders. Senior secured lenders, owed about US$127 million, would get all of the reorganized company's equity and share in a US$55 million exit loan, for a projected recovery of 79% to 95%, according to the plan. Subordinated noteholders owed about US$58.5 million won't receive any recovery under the plan. About Caribe Media Caribe Media Inc. owns publication rights for certain print and Internet directories in the Dominican Republic and Puerto Rico. Caribe Media owns 60% of Axesa Servicios de Informacion, S. en C., a Yellow Pages publisher in Puerto Rico and the official publisher of all telephone directories for Puerto Rico Telephone Company, Inc., the largest local exchange carrier in Puerto Rico, and US$100% of Caribe Servicios de Informacion Dominicana, S.A., the sole directory publisher in the Dominican Republic with the exclusive right to publish under the brand of Codetel, the largest telecom operator in the Dominican Republic. Caribe Media is wholly owned by CII Acquisition Holding Inc. They are affiliates of Local Insight Media Holdings, Inc. Caribe Media and CII filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-11387 and 11-11388) on May 3, 2011. Caribe Media is being represented by lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel. Lawyers at Curtis, Mallet-Prevost, Colt & Mosle LLP serve as conflicts counsel. Local Insight Media is also a debtor in its own Chapter 11 pending in Delaware. Local Insight Media filed in 2010. It is also being represented by lawyers at Kirkland and Pachulski. MADELINE P CORP: Case Summary & 10 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Madeline P. Corp. Paseo San Juan G-22 Calle Adoquines San Juan, PR 00926 Bankruptcy Case No.: 11-07058 Chapter 11 Petition Date: August 20, 2011 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Wigberto Lugo Mender, Esq. LUGO MENDER & CO Centro Internacional De Mercadeo Carr 165 Torre 1, Suite 501 Guaynabo, PR 00968 Tel: (787) 707-0404 E-mail: wlugo@lugomender.com Estimated Assets: US$50,001 to US$100,000 Estimated Debts: US$1,000,001 to US$10,000,000 Debtor-affiliate filing for Chapter 11: Petition Debtor Case No. Date ------ -------- ---- Ramoni Inc. 11-07059 08/20/2011 Assets: US$1,000,001 to US$10,000,000 Debts: US$1,000,001 to US$10,000,000 The petitions were signed by Ramon Portela-Fernandez, president. A list of Madeline P. Corp.'s 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-07058.pdf A list of Ramoni's 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-07059.pdf R&G FINANCIAL: Posts US$23,737 Net Loss in July ----------------------------------------------- BankruptcyData.com reports that R&G Financial Corporation filed with the U.S. Bankruptcy Court a monthly operating report for July 2011. For the period, the Company reported a net loss of US$23,737 on zero revenue. About R&G Financial San Juan, Puerto Rico-based R&G Financial Corporation was the direct parent of R-G Premier Bank of Puerto Rico, a state- chartered nonmember bank, through which RGFC primarily conducted its business. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 10-04124) on May 14, 2010. Brent R. McIlwain, Esq., Robert W. Jones, Esq., Esq., at Patton Boggs LLP, in Dallas; and Jorge I. Peirats, Esq., at Pietrantoni, Mendez & Alvarez, in Hato Rey, P.R., serve as the Debtor's bankruptcy counsel. The Debtor disclosed US$40,213,356 in assets and US$420,687,694 in debts as of the Petition Date. *********** 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 * * *