/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/110831.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 31, 2011, Vol. 12, No. 172 Headlines A R G E N T I N A BIG HOUSE: Creditors' Proofs of Debt Due October 14 FULL SEG: Creditors' Proofs of Debt Due September 30 LUIS G LEDESMA: Creditors' Proofs of Debt Due October 7 NAVILLUS SA: Creditors' Proofs of Debt Due October 14 PUNTO ESPRESSO: Files for Bankruptcy SOCIEDAD INTEGRAL: Creditors' Proofs of Debt Due October 21 VINCULOS SGR: Moody's Assigns B3 Global Local Currency IFS Rating B R A Z I L ANHANGUERA EDUCACIONAL: S&P Raises Corp. Credit Ratings to 'BB' C A Y M A N I S L A N D S ASTRAL INTERNATIONAL: Creditors' Proofs of Debt Due August 29 BAYOU INVESTMENTS: Creditors' Proofs of Debt Due September 14 CMA TECHNOLOGY: Creditors' Proofs of Debt Due September 15 HESS PERU: Creditors' Proofs of Debt Due September 15 HESS PERU: Creditors' Proofs of Debt Due September 15 HESS (MALAYSIA-BLOCK F): Creditors' Proofs of Debt Due Sept. 15 HESS (PHILIPPINES): Creditors' Proofs of Debt Due September 15 ISLAND DRIVE: Creditors' Proofs of Debt Due September 14 SFJ ASSET: Creditors' Proofs of Debt Due September 15 SFJ FUNDING: Creditors' Proofs of Debt Due September 15 J A M A I C A UC RUSAL: Suffers Big Drop in Profits for April to June Period P U E R T O R I C O COSTA DORADA: Chapter 11 Case Reassigned to Judge Enrique Lamoutte HOTEL AIRPORT: To Hire Edgardo Munoz as Bankruptcy Counsel HOTEL AIRPORT: Files Schedules of Assets & Liabilities PICHI'S INC: Schedules & Statement Due Today V E N E Z U E L A HOVENSA LLC: Moody's Assigns 'Ba2' Corporate Family Rating VITRO SAB: Creditors to Appeal Recent Ruling - - - - - ================= A R G E N T I N A ================= BIG HOUSE: Creditors' Proofs of Debt Due October 14 --------------------------------------------------- Hector Miguel Falvino, the court-appointed trustee for Big House SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 14, 2011. Mr. Falvino will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Hector Miguel Falvino Avenida Pueyrredon 468 Argentina FULL SEG: Creditors' Proofs of Debt Due September 30 ---------------------------------------------------- Francisco Fernando Rovira, the court-appointed trustee for Full Seg SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 30, 2011. Mr. Rovira will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 49, 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: Francisco Fernando Rovira Vallejos 4400 Argentina LUIS G LEDESMA: Creditors' Proofs of Debt Due October 7 ------------------------------------------------------- Norberto Manuel Palmeiro, the court-appointed trustee for Luis G Ledesma Comunicaciones SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 7, 2011. Mr. Palmeiro will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 23, 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: Norberto Manuel Palmeiro Arcos 4033 Argentina NAVILLUS SA: Creditors' Proofs of Debt Due October 14 ----------------------------------------------------- Maria Delbuono, the court-appointed trustee for Navillus SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 14, 2011. Ms. Delbuono will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 16, 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: Maria Delbuono Lavalle 1290 Argentina PUNTO ESPRESSO: Files for Bankruptcy ------------------------------------ Punto Espresso SA filed for bankruptcy. The company has defaulted on its payments last July. SOCIEDAD INTEGRAL: Creditors' Proofs of Debt Due October 21 ----------------------------------------------------------- Claudio Haimovici, the court-appointed trustee for Sociedad Integral del Plata SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until October 21, 2011. Mr. Haimovici 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. 7, 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: Claudio Haimovici Avenida Maipu 267 Argentina VINCULOS SGR: Moody's Assigns B3 Global Local Currency IFS Rating ----------------------------------------------------------------- Moody's Latin America has assigned a B3 global local currency insurance financial strength (IFS) rating and a A3.ar IFS rating on Argentina's national scale to financial guarantor V》culos SGR. The ratings outlook is stable. Ratings Rationale V》culos SGR is 50% owned by the Argentine protein producer Las Camelias S.A., with the remainder distributed among more than 300 small- and mid-sized enterprises (SMEs) whose financial obligations V》culos guarantees. Las Camelias is the fourth- largest protein producer in Argentina, and buys the SMEs' output. Outstanding guarantees are currently mainly for bank loans, but management is planning to enter the local secured checks and securitization markets. V》culos's ratings reflect the company's ownership by and tight integration with Las Camelias. V》culos and Las Camelias have common commercial and operational strategies and share some management functions, such as technology and legal. The SMEs are mainly chicken breeders that sell their output to Las Camelias, thus aligning the interests of the SMEs with Las Camelias and V》culos. Aside from its ownership by Las Camelias, V》culos's credit strengths include its good capitalization and operating efficiency compared with peers'. The company's leverage, or ratio of total outstanding guarantees to investments, was historically very low, at 1 times or lower, given the approximately AR$7 million contributed by Las Camelias in 2009 and in 2010; however, the company's leverage has been increasing in recent quarters. The company's administrative expenses are in large part covered by fees and commissions; at 31 December 2011 the company's three-year average expense ratio was 97.5%, which is among the lowest in the local financial guarantor industry. However, V》culos's business is heavily concentrated in guarantees to a single economic sector, chicken breeding, and this represents a major credit challenge. Among the company's other credit weaknesses are its relatively low market presence (it accounts for less than 1% of the general guaranty system), the poor credit quality of its investments, and the weak and volatile Argentine operating environment. V》culos's investment portfolio is comprised mainly of deposits in local and foreign currencies in local banks and Argentine sovereign bonds, as local regulations for financial guarantors allow only 10% of investments to be foreign assets. These types of assets carry speculative grade ratings on a global basis. V》culos's A3.ar IFS on Argentina's national scale positions the company at the mid-point of possible outcomes for a global rating of B3. This reflects its small size, concerns with V》culos's increasing trend in leverage and its lack of product diversification. Factors that could contribute to a rating upgrade for V》culos include: a sustained improvement in the quality of its investments, a general improvement in Las Camelias's credit profile, sustained compliance with local regulations, and improvement in the operating environment and/or an upgrade of Argentina's sovereign bond rating. Factors that could contribute to a rating downgrade include deterioration in the quality of V》culos's investments, a significant level of delinquencies and claims on its financial guarantees, or a significant increase in leverage (more than 2.5 times). Based in Buenos Aires, V》culos for the first quarter of fiscal year 2011 reported total assets of AR$12 million, and a net profit of only about AR$12,000. Shareholders' equity rose 3% to total AR$12.1 million, compared with AR$11.8 million a year ago. Total outstanding guarantees totaled AR$11.4 million as of March 31, 2011. =========== B R A Z I L =========== ANHANGUERA EDUCACIONAL: S&P Raises Corp. Credit Ratings to 'BB' --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Brazil- based education service company Anhanguera Educacional Participacoes S.A., including raising the corporate credit ratings to 'BB' from 'BB-' and to 'brAA-' from 'brA' on the global and national scales. The outlook is stable. "The upgrade reflected Anhanguera's improving credit metrics, resulting from an increasingly integrated asset portfolio and a more conservative approach to financial leverage," said Standard & Poor's credit analyst Debora Confortini. In the past few quarters, Anhanguera's margins have improved consistently because of higher economies of scale stemming from its expanded schools portfolio; increasing student enrollment per campus, helping the company dilute fixed costs; and a more diversified education portfolio, with growing participation in distance learning programs. "We expect Anhanguera will fund its growth strategy with existing liquidity coming from an equity offering, resulting in relatively stable debt and improving credit metrics," S&P related. The ratings on Anhanguera reflect the company's aggressive growth strategy, both organically and through acquisitions, and the risks associated with student drop-out, delinquency, and credit losses. "We also take into account the company's challenges to integrate acquired schools into its existing asset portfolio and its exposure to the fragmented and competitive private higher education industry," S&P stated. These risk factors are mitigated by Anhanguera's local market leadership, with a growing position in learning center programs; very efficient business model based on standardized curricula and course materials; and favorable track record in capturing growth opportunities through greenfield projects and/or acquisitions. Growth prospects for undergraduate education in Brazil are strong. "The stable outlook reflects our expectation that Anhanguera will continue to gain from its large scale and high operating efficiency while holding a prudent approach to investment decisions," S&P added. =========================== C A Y M A N I S L A N D S =========================== ASTRAL INTERNATIONAL: Creditors' Proofs of Debt Due August 29 ------------------------------------------------------------- The creditors of Astral International Holdings Limited are required to file their proofs of debt by August 29, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 21, 2011. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town Tortola British Virgin Islands c/o Philip C. Pedro HSBC International Trustee Limited Compass Point Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 BAYOU INVESTMENTS: Creditors' Proofs of Debt Due September 14 ------------------------------------------------------------- The creditors of Bayou Investments Ltd are required to file their proofs of debt by September 14, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 21, 2011. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 CMA TECHNOLOGY: Creditors' Proofs of Debt Due September 15 ---------------------------------------------------------- The creditors of CMA Technology Venture Partners Limited are required to file their proofs of debt by September 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: David Peter Martin Blair c/o Custom House Fund Services (Ireland) Limited 25 Eden Quay Dublin 1 Republic of Ireland Telephone: 00353 1878 0807 Facsimile: 00353 1878 0827 HESS PERU: Creditors' Proofs of Debt Due September 15 ----------------------------------------------------- The creditors of Hess Peru (Block 120) Limited are required to file their proofs of debt by September 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: George C. Barry 1185 Avenue of the Americas New York, N.Y. 10036 United States of America HESS PERU: Creditors' Proofs of Debt Due September 15 ----------------------------------------------------- The creditors of Hess Peru (Block 119) Limited are required to file their proofs of debt by September 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: George C. Barry 1185 Avenue of the Americas New York, N.Y. 10036 United States of America HESS (MALAYSIA-BLOCK F): Creditors' Proofs of Debt Due Sept. 15 --------------------------------------------------------------- The creditors of Hess (Malaysia-Block F) Limited are required to file their proofs of debt by September 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: George C. Barry 1185 Avenue of the Americas New York, N.Y. 10036 United States of America HESS (PHILIPPINES): Creditors' Proofs of Debt Due September 15 -------------------------------------------------------------- The creditors of Hess (Philippines) Limited are required to file their proofs of debt by September 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: George C. Barry 1185 Avenue of the Americas New York, N.Y. 10036 United States of America ISLAND DRIVE: Creditors' Proofs of Debt Due September 14 -------------------------------------------------------- The creditors of Island Drive Aggressive Short Fund, Ltd. are required to file their proofs of debt by September 14, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 21, 2011. The company's liquidator is: Walkers Corporate Services Limited c/o Jennifer Chailler Telephone: (345) 814 6847 Walker House, 87 Mary Street, George Town Grand Cayman KY1 9005 Cayman Islands SFJ ASSET: Creditors' Proofs of Debt Due September 15 ----------------------------------------------------- The creditors of SFJ Asset Company are required to file their proofs of debt by September 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: Bernard Mcgrath 69 Dr. Roy's Drive PO Box 1043, George Town Grand Cayman KY1-1102 Cayman Islands SFJ FUNDING: Creditors' Proofs of Debt Due September 15 ------------------------------------------------------- The creditors of SFJ Funding Company are required to file their proofs of debt by September 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: Bernard Mcgrath 69 Dr. Roy's Drive PO Box 1043, George Town Grand Cayman KY1-1102 Cayman Islands ============= J A M A I C A ============= UC RUSAL: Suffers Big Drop in Profits for April to June Period -------------------------------------------------------------- RJR News reports that UC Rusal, owner of West Indies Alumina Company (WINDALCO) plant, has suffered a bigger than expected drop in profit. UC Rusal recorded pre-tax profits of US$427 million for the April to June period, down from US$1.3 billion last year, according to RJR News. The report relates that the rising costs and a stronger trouble outweighed price rises and increased production at UC Rusal. As reported in the Troubled Company Reporter-Latin America on July 8, 2011, RJR News said Clive Mullings, the new Jamaica minister of energy and mining, will hold a briefing with UC Rusal to ascertain the company's plans with regards to the reopen of its Kirkvine plant in Manchester on July 6. RJR News related that the plant was scheduled to resume operations on July 1 but it did not materialize. RJR News disclosed that UC Rusal threatens to postpone its July 1 plan to reopen the Kirkvine Plant in Manchester after not getting certain concessions from the Golding administration to resume production. The re-opening's delay, according to the report, will pose a setback to the recovery of Jamaica's bauxite/alumina industry. RJR News noted that the re- employment of 300 persons is also on the line if UC Rusal carries out its threat. UC Rusal is a Russian aluminum giant. ===================== P U E R T O R I C O ===================== COSTA DORADA: Chapter 11 Case Reassigned to Judge Enrique Lamoutte ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Puerto Rico notified the creditors and parties-in-interest in the Chapter 11 case of Costa Dorada Apartments Corp. that the case was reassigned to the Hon. Enrique S. Lamoutte. The case was previously assigned to Judge Sara E. De Jesus Kellogg. Costa Dorada Apartments Corp., dba Villas De Costa Dorada, in Isabela, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-03960) on May 10, 2011. The Debtor disclosed US$10.7 million in assets and US$8.6 million in liabilities as of the Chapter 11 filing. The petition was signed by Carlos R. Fernandez Rodriguez, its president. HOTEL AIRPORT: To Hire Edgardo Munoz as Bankruptcy Counsel ---------------------------------------------------------- Hotel Airport Inc. seeks permission from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Edgardo Munoz, PSC, as counsel for the Debtor. Upon retention, the firm, will among other things: a) advise the Debtor with respect to its duties, powers, and responsibilities in this case under the laws of the United States and Puerto Rico in which debtor-in-possession conducts its operations, b) advise the Debtor in connection with determination on whether reorganization is feasible and if not, helping the Debtor in the orderly liquidation of assets, and c) prepare on behalf of the Debtor the necessary complaints, answers, orders, reports, memoranda of law and/or any other legal paper or document required in the case. To the best of the Debtor's knowledge, in the attached verified statement, Edgardo Munoz, Esq., and his firm have disclosed their connection (if any) with the creditors, any party-in-interest, their attorneys, their accountants, the U.S. Trustee, or the personnel of the US Trustee. To the best of the Debtor's knowledge, Edgardo Munoz nor his firm represent or hold any interest adverse to the debtor or the estate in the matters for which he is being engaged pursuant to 11 U.S.C. Sec. 327. To the best of the Debtor's knowledge, Edgardo Munoz nor his firm are disinterested persons within the meaning of 11 U.S.C. Sec. 101. The firm has received a retainer in the amount of US$10,000 plus the additional sum of US$1,039 to cover filing fees, which sums were paid by debtor from funds generated from the operations of its business. An additional sum of US$10,000 has been agreed to and shall be distributed upon proper notice and hearing, and after court authorization required, and shall be held as additional retainer to be credited with the final application for compensation to be submitted under 11 U.S.C. Sec. 330. Professional services shall be charged at the rate of US$280 per hour plus costs and expenses. About Hotel Airport Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011. Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo Munoz, PSC, serves as bankruptcy counsel. In its petition, the Debtor estimated US$10 million to US$50 million in both assets and debts. The petition was signed by David Tirri, its president. HOTEL AIRPORT: Files Schedules of Assets & Liabilities ------------------------------------------------------ Hotel Airport Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------- ----------- A. Real Property US$0.00 B. Personal Property $8,547,993 C. Property Claimed as Exempt D. Creditors Holding Secured Claims US$11,067,536 E. Creditors Holding Unsecured Priority Claims $51,271 F. Creditors Holding Unsecured Non-priority Claims $160,050,584 ----------- ----------- TOTAL US$8,547,993 US$171,169,392 About Hotel Airport Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011. Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo Munoz, PSC, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by David Tirri, its president. PICHI'S INC: Schedules & Statement Due Today -------------------------------------------- Pichi's Inc. sought and obtained an order from the U.S. Bankruptcy Court for the District of Puerto Rico extending the time to file its remaining Schedules today, Aug. 31, 2011. Charles A. Cuprill, Esq., of Charles Alfred Cuprill, PSC Law Offices, attorney for the Debtor, states that the Debtor is in the process of gathering the necessary information and documents to properly file its remaining Schedules. However, to this date Debtor has been unable to complete this task within the expected time. About Pichi's Inc. Pichi's Inc. owns and operates the Best Western Pichi's Hotel in Guayanilla, Puerto Rico. Pichi's filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06583) on Aug. 3, 2011. Judge Mildred Caban Flores presides over the case. Charles Alfred Cuprill, PSC Law Offices, serves as the Debtor's bankruptcy counsel. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultants. In its petition, the Debtor estimated US$10 million to US$50 million in both assets and debts. The petition was signed by Luis A. Emmanuelli Gonzalez, president. ================= V E N E Z U E L A ================= HOVENSA LLC: Moody's Assigns 'Ba2' Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service assigned a Corporate Family Rating of Ba2 to HOVENSA LLC and downgraded the company's industrial revenue bonds to Ba2 from Baa3. Moody's also assigned a probability of default rating (PDR) of Ba2. The rating outlook is stable. Ratings Rationale The downgrade and assignment of the CFR reflect the refining joint-venture's mounting losses and negative cash flows, and expectations for continuing earnings pressure in medium-term, which will result in increasing dependence on its owners for financial support. However, the ratings are underpinned by the continued willingness of its partner owners, Hess Corporation (Baa2, stable) and Petroleos de Venezuela (PDVSA B1 LC issuer rating), to provide tangible financial support to HOVENSA. HOVENSA's earnings pressures and negative cash flows stem from its dependence on Brent-linked crudes, which are trading at a substantial premium, and from rising fuel costs and sporadic operating problems. Cash flow deficits have resulted in higher debt as HOVENSA has borrowed under its bank credit facility to fund working capital needs and cover cashflow shortfalls. The company has shut down its older crude distillation units, reducing capacity by 30% to 350,000 bpd. The shutdown should help reduce crude and operating costs, leading to a better balance on crude feedstocks, plant utilization, higher value product output, and improved earnings in the future. In the meantime, HOVENSA will need to rely on both of its owners for financial support to pay down bank debt and to fund working capital and capital spending requirements, a significant change from earlier years when the refinery generated free cash flow and operated on a standalone basis. Moody's notes that HOVENSA's debt is non-recourse to its owners. The rising need for owner support is negative as an indicator of financial stress and relative to HOVENSA's ability to operate as a standalone entity. At the same time, the ratings continue to be supported by the refinery's status as a strategic asset for both owners. As a complex large-scale refinery, HOVENSA is important to Hess as a provider of refined products for its East Coast retail system. It is also significant outlet for heavy Venezuelan crude under a long-term supply contract with PDVSA. The owners have the ability and stated intent to provide financial and liquidity support during a period of elevated crude prices and compressed margins. This tangible support should enable HOVENSA to pay down bank borrowings and provide coverage of debt service on its industrial revenue bonds. HOVENSA's stable outlook is based on the expectation that the owners will continue to provide sufficient financial support to service its debt and meet liquidity needs, and that the in the medium-term refinery will return to profitability. In conjunction with the assignment of the Ba2 CFR, Moody's assigned a probability of default rating of Ba2 and loss given default of LGD3 (39%), reflecting the pari passu status of the senior secured bank debt and industrial revenue bonds. Under the LGD methodology, trade payables have increased in line with higher crude prices and relative to Hovensa's actual debt level, resulting in a notching up of the senior secured debt. However, we are overriding that outcome given the volatility of crude prices. HOVENSA L.L.C. is a refinery joint-venture owned by subsidiaries of Hess Corporation (rated Baa2, stable outlook), and Petroleos de Venezuela, SA. (PDVSA, rated B1 GLC Issuer Rating with a stable outlook). With 350,000 bpd of crude capacity, it ranks among the largest refineries in the western hemisphere. The joint-venture was formed in 1998 to own and operate the refinery originally owned by Hess and located in St. Croix, U. S. Virgin Islands. VITRO SAB: Creditors to Appeal Recent Ruling -------------------------------------------- Vitro, S.A.B. de C.V.'s creditors said they will appeal a recent ruling that would let the company vote on its restructuring terms -- putting Vitro itself ahead of other creditors. A Monterrey-based judge last week ruled that under Mexico's bankruptcy law, Vitro qualifies as a creditor because of its US$1.9 billion of intercompany debt, giving it an advantage over other creditors when it comes to deciding its US$3.4 billion restructuring plan, according to Reuters. The report notes that creditors said allowing Vitro SAB to vote on its restructuring terms would discourage foreign investors from investing in Mexican bonds and raise financing costs for Mexican companies. "In my opinion, this puts the Mexican financial system in a crisis," Reuters quoted said Jesus Guerra, a lawyer at Guerra Gonzalez y Asociados, as saying. "I think Vitro is being very optimistic in respect to this (ruling)," he added. Mr. Guerra, who represents a group of Vitro SAB's creditors with about US$750 million in Vitro bonds, said they will present their appeal next week, Reuters notes. The report relates that Mr. Guerra said that even if the creditors' appeal were thrown out, they would file for an "amparo," which is a type of injunction. Reuters relays that should the verdict stand, Mr. Guerra said, it would send a message to investors that they could not be certain what would happen in a Mexican bankruptcy because the rules were not clear. However, the report relates, not all investors are convinced the Vitro case would damage Mexico's debt market. "It's something we're watching closely, but it's not really changing our investment thesis as it is right now," Reuters quoted Carlos Legaspy, president of San Diego-based Precise Securities, as saying. While Vitro's effort to vote on its intercompany debt in the bankruptcy proceedings will likely raise financing costs for the company in the future, it will not necessarily mean higher spreads for other Mexican debt issuers, Mr. Legaspy said, the report relates. Mr. Legaspy, Reuters adds, said that even if the appeal failed, most likely lenders would simply require Mexican issuers to agree to additional small print stating that they would not be able to vote on intercompany debt in the event of bankruptcy. 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. *********** 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 * * *