/raid1/www/Hosts/bankrupt/TCRLA_Public/111205.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, December 5, 2011, Vol. 12, No. 240
Headlines
A R G E N T I N A
AEROPUERTOS ARGENTINA: S&P Affirms 'B' Corporate Credit Rating
CHUBB ARGENTINA: Moody's Reviews 'Ba1' Global Currency Rating
TOYOTA COMPANIA: Moody's Assigns 'Ba1' GLCDR to Fifth Issuance
B E R M U D A
SOUTH OF ENGLAND P&I: Placed in Liquidation
B R A Z I L
BANCO VOTORANTIM: Moody's Affirms Ratings, Including C- BFSR
MRS LOGISTICA: S&P Raises Global-Scale Ratings to 'BB+'
NET SERVICOS: S&P Raises Corporate Credit Rating From 'BB+'
C A Y M A N I S L A N D S
ACWA SERVICES: Shareholder to Hear Wind-Up Report on Dec. 7
CGS CAYMAN: Placed Under Voluntary Wind-Up
CITRINE HOLDINGS: Shareholder to Hear Wind-Up Report on Dec. 7
DECISION INTERNATIONAL: Creditors' Proofs of Debt Due Dec. 9
EUREKA STRATEGIC: Commences Liquidation Proceedings
HEADLAND TECHNOLOGY: Shareholders' Final Meeting Set for Dec. 13
LAPIS INVESTMENT: Shareholder to Hear Wind-Up Report on Dec. 7
MACQUARIE CAPITAL: Creditors' Proofs of Debt Due Dec. 7
MEZZ CAP: Members Receive Wind-Up Report
MKF CAPITAL: Placed Under Voluntary Wind-Up
SEAGUL LATIN: Shareholder to Hear Wind-Up Report on Dec. 8
SHERWOOD III: Creditors' Proofs of Debt Due Dec. 7
SNOWFLAKE REALTY: Creditors' Proofs of Debt Due Dec. 7
SOUTHPORT ENERGY: Placed Under Voluntary Wind-Up
TIEDEMANN/PENTAGRAM: Shareholder to Hear Wind-Up Report on Dec. 6
TIMESCAPE GLOBAL: Shareholders' Final Meeting Set for Dec. 13
TRAFALGAR POLY: Creditors' Proofs of Debt Due Dec. 7
WDB CAPITAL: Creditors' Proofs of Debt Due Dec. 7
YOUNG & SON: Members Receive Wind-Up Report
ZHONG YUAN: Creditors' Proofs of Debt Due Dec. 5
C O L O M B I A
COLOMBIA TELECOM: Faces Liquidation Amid $3.9BB Recapitalization
C U R A C A O
ORTHOFIX INT'L: S&P Withdraws 'BB-' Corp. Credit Rating
J A M A I C A
DIGICEL GROUP: America Movil El Salvador Unit Buyout Hits a Snag
M E X I C O
MEXICHEM S.A.B.: Moody's Affirms 'Ba1' Corporate Family Rating
SARE HOLDING: Moody's Downgrades National Scale to Ba3.mx
SERVICIOS CORPORATIVOS: Moody's Cuts Unsecured Debt Rating to B1
T R I N I D A D & T O B A G O
CL FIN'L: Lascelles deMercado Wins in Black Sand Takeover Case
VITRO SAB: Arbitrator Says Restructuring May Extend Past Dec. 31
X X X X X X X X
* BOND PRICING: For the Week November 28 to December 2, 2011
- - - - -
=================
A R G E N T I N A
=================
AEROPUERTOS ARGENTINA: S&P Affirms 'B' Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' ratings,
including the corporate credit rating, on airport operator
Aeropuertos Argentina 2000 S.A. (AA2000). The outlook remained
stable.
The rating on AA2000 reflects the company's exposure to Argentine
country risk; the limited track record of the country's
regulatory framework; the volatility inherent to passenger
traffic; and the challenge of implementing the investment plan,
including construction risk, that it has agreed to with the
government," said Standard & Poor's credit analyst Candela
Macchi.
"Partially counterbalancing these factors are the company's s
very good competitive position derived from its exclusive
concession to operate 33 airports in the country, and its
manageable maturity profile for the next three years. We assess
AA2000's business risk profile as 'vulnerable,' and its financial
risk profile as 'aggressive,'" S&P said.
The stable outlook incorporates the manageable debt maturity
profile of AA2000 since its December 2010 issuance of $300
million in senior secured notes.
CHUBB ARGENTINA: Moody's Reviews 'Ba1' Global Currency Rating
-------------------------------------------------------------
Moody's Latin America has placed Chubb Argentina Seguros S.A.'s
Ba1 global local-currency and Aaa.ar Argentine national scale
insurance financial strength (IFS) ratings under review for
possible downgrade. Chubb Argentina is an indirect wholly-owned
subsidiary of The Chubb Corporation (rated A2 for senior debt)
and is based in Buenos Aires, Argentina. This rating action
follows the passage of a new resolution by the Argentine National
Insurance Superintendence on Oct. 26, 2011, which requires
Argentine primary insurers to repatriate their foreign
investments back to Argentina within the next 50 days.
Ratings Rationale
According to Moody's, the review for possible downgrade of Chubb
Argentina's IFS ratings will focus primarily on the negative
impact of the recent regulatory resolution on the company's asset
quality, capital adequacy and, to a lesser extent, profitability.
The rating agency explained that Chubb Argentina currently holds
about 35% of its investments abroad. Therefore, the investment
allocation change of its foreign, high-quality instruments into
speculative-grade Argentine assets, will affect Chubb Argentina's
financial risk profile, especially its asset quality and capital
adequacy.
Moody's added an additional challenge for Chubb Argentina and
reason for the review for possible downgrade is another recent
regulatory change in Argentina that now requires ceding companies
to use local reinsurers and limiting intercompany cessions. Diego
Kashiwakura, lead analyst for Chubb Argentina at Moody's,
commented: "The need to directly use lower-rated local reinsurers
to transfer its risks rather than reinsuring directly to highly-
rated global reinsurers, in particular, its affiliate (Federal
Insurance), could further reduce Chubb Argentina's asset quality
and economic capitalization going forward."
The rating agency noted that Chubb Argentina has consistently
reported very good profitability, with solid underwriting
results, and has been able to sustain a leading position in
certain market niches it chooses to operate -- e.g. surety,
liability and theft. The insurer also benefits from a high level
of support and oversight from its ultimate parent company, as
well as from its affiliate Federal Insurance (rated Aa2 for IFS).
Commenting on some of the company's primary challenges, Moody's
mentioned Chubb's modest market share in the local insurance
market (0.5%), as well as Argentina's high systemic risk and poor
operating environment.
Given Chubb Argentina's ratings are on review for a possible
downgrade and they are currently the highest possible ratings in
the country -- considering that Argentina's global local currency
rating ceiling is currently at Ba1 -- an upgrade is unlikely.
That said, the company's ratings could be confirmed should the
quality of its assets and economic capitalization not deteriorate
significantly. Moody's noted that a considerable increase in the
company's investment allocation to high risk assets -- e.g. over
80% of total invested assets -- or less commitment and support
from the parent company and affiliates could lead to a downgrade
of Chubb Argentina.
Based in Buenos Aires, Chubb Argentina is an indirect wholly-
owned subsidiary of The Chubb Corporation. At the end of the
first quarter of fiscal year 2011/2012 fiscal year, ended on
Sept. 30, 2011, Chubb Argentina reported gross written premiums
of ARS65.5 million, net income of ARS8.7 million, total assets of
ARS286.4 million, shareholders' equity of ARS126.3 million.
The principal methodology used in rating Chubb Argentina Seguros
S.A. was "Moody's Global Rating Methodology for Property and
Casualty Insurers", published in May 2010.
TOYOTA COMPANIA: Moody's Assigns 'Ba1' GLCDR to Fifth Issuance
--------------------------------------------------------------
Moody's Investors Service assigned a Ba1 global local currency
debt rating to Toyota Compania Financiera Argentina's fifth
expected issuance worth up to Ar$50 million, with a maturity of
270 days. In addition, Moody's assigned a Aaa.ar national scale
local currency debt rating to the fifth expected issuance.
The outlook for the ratings is stable.
The following ratings were assigned to Toyota Compania Financiera
Argentina's Ar$50 million issuance:
Global Local-Currency Debt Rating: Ba1
National Scale Local-Currency Debt Rating: Aaa.ar
Toyota Compania Financiera Argentina is headquartered in Buenos
Aires, Argentina, and it had assets of Ar$637.5 million and
equity
of Ar$71.6 million as of September 2011.
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B E R M U D A
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SOUTH OF ENGLAND P&I: Placed in Liquidation
-------------------------------------------
According to Bernews, Insurance Insider reported that the South
of England P&I Club has been put into liquidation after a bitter
court battle with the Bermuda Monetary Authority [BMA] over its
solvency and corporate governance.
Bernews relates that a judge ruled on Nov. 22 that the
provisional liquidation order against the independent, Bermuda-
registered specialty marine mutual should be upheld and that it
should be wound down.
A provisional order was issued on October 12 after the Bermuda
Monetary Association [BMA] raised concerns over the shipping
insurer's solvency after liquidators were ally called in by the
company's auditors, KPMG, according to the report.
The South of England P&I Club is a commercial protection and
indemnity insurer and covered a range of interesting bulk
carriers and tankers, among other vessels. The company started
trading in 2004 and was registered in Bermuda.
===========
B R A Z I L
===========
BANCO VOTORANTIM: Moody's Affirms Ratings, Including C- BFSR
------------------------------------------------------------
Moody's Investors Services affirmed all ratings assigned to Banco
Votorantim S.A., including the C- bank financial strength rating
(BFSR), the global local and foreign currency deposit ratings,
the national scale deposit ratings on the Brazilian national
scale as well as the foreign currency senior unsecured and
subordinated debt ratings assigned to the notes issued by Banco
Votorantim S.A. (Nassau Branch).
At the same time, Moody's changed to negative from stable the
outlook on Banco Votorantim's C- BFSR and on the A3 long-term
global local currency deposit rating, as well as on the Baa1
foreign currency subordinated debt rating.
The outlook on the foreign currency senior unsecured debt rating
assigned to notes issued by Banco Votorantim S.A. Nassau Branch
was changed to stable from positive, to reflect the negative
outlook on the local currency rating, from which it is derived.
The long and short-term foreign currency deposit ratings remain
constrained by Brazil's Baa2 country ceiling for foreign currency
deposits, and have a positive outlook that is aligned with the
positive outlook on the ceiling.
These ratings were affirmed and had the outlook changed to
negative from stable:
Bank Financial Strength Rating of C-
Global Long-Term Local Currency Deposit Rating of A3
Long-Term Foreign Currency Subordinated Debt Rating of Baa1
The following rating was affirmed and had the outlook changed to
stable from positive:
Long-Term Foreign Currency Senior Unsecured Debt Rating of Baa1
The following ratings remained unchanged:
Short-Term Global Local Currency Deposit Rating of Prime-2
Long-Term Foreign Currency Deposit Rating of Baa2, positive
outlook
Short-Term Foreign Currency Deposit Rating of Prime-2
Long-Term Brazilian National Scale Deposit Rating of Aaa.br,
stable outlook
Short-Term Brazilian National Scale Deposit Rating of BR-1
Rating Rationale
The affirmation of Banco Votorantim's C- BFSR primarily reflects
the bank's strong business franchise and well established market
shares in consumer finance, and in car finance in particular, as
well as in wholesale banking. In addition, Banco Votorantim has
developed a middle market lending platform that should help the
bank to expand into better yielding commercial lending products
supported by strong collateral structures while at the same time
reducing the concentration risk inherent in its corporate lending
book.
The negative outlook on the ratings reflects Moody's expectation
that Banco Votorantim's financial metrics are likely to come
under further pressure over the coming quarters as management
continues to adjust its provisioning policies and shift the
bank's consumer business mix to lower yielding assets. Moody's
said it views as positive the refocusing of the bank's operations
towards less volatile business lines as well as the increased
balance sheet protection management is seeking to achieve by
building additional reserves, maintaining high levels of
liquidity, and exiting capital intensive businesses. In the
meantime, however, Moody's expects the bank's asset quality
indicators and earnings generation capacity to weaken, which will
also reduce the pace of internal capital generation from retained
earnings.
The asset quality deterioration reported in the 3Q11 reflects
both the seasoning of the bank's car loan portfolio, which had
grown substantially during 2009 and 2010 as well as borrowers'
weakening repayment capacity. Non-performing loan ratios are
expected to remain high for the next several quarters, reflecting
less favorable economic conditions that affect the repayment
capacity of consumer borrowers. Consumer loans accounted for
roughly 60% of Banco Votorantim's consolidated loans as of
September 2011.
Moody's said that the bank presented adequate BIS capitalization
of 12.7% as of September 2011, which increases to 14.1% when
considering the easing of additional capital requirement on long
term consumer loans, announced by regulators in November 2011.
However, the rating agency warned that the lower profitability
expected for the next 12 to 18 months will likely pressure
capital and thus limit the bank's ability to grow.
The A3 long-term global local currency deposit is the result of
(1) Banco Votorantim's unsupported rating of C- which translates
into a baseline credit assessment of Baa2 and (2) Moody's view
that the likelihood of the bank to receive support from Banco do
Brasil S.A. (BB) is high, given the strategic importance of the
partnership for BB's consumer finance expansion targets. Moody's
does not incorporate any systemic support into the bank's
ratings.
Moody's last rating action on Banco Votorantim S.A. was on
June 20, 2011, when the foreign currency deposit and debt ratings
were upgraded to Baa2 from Baa3, and to Baa1 from Baa2,
respectively. The upgrade was aligned with the upgrade of the
respective sovereign ceilings for Brazil, as the ratings are
constrained.
Banco Votorantim S.A. is headquartered in Sao Paulo, Brazil and
reported consolidated assets of R$ 124.3 billion (US$ 68.1
billion) and equity of R$ 8.7 billion (US$ 4.8 billion) as of
September 30, 2011.
MRS LOGISTICA: S&P Raises Global-Scale Ratings to 'BB+'
-------------------------------------------------------
Standard & Poor's Ratings Services raised its global-scale
ratings on Brazil-based railroad company MRS Logstica S.A. (MRS)
to 'BB+' from 'BB'. "At the same time, we raised the Brazilian
national- scale ratings to 'brAA+' from 'brAA'. The outlook is
stable," S&P said.
"The upgrade reflects our view that MRS's business risk profile
has improved and is now 'satisfactory', thanks to its resilient
operating cash flows and strong profitability; a favorable tariff
model and contract terms with its captive clients; take-or-pay
clauses even under an adverse market conditions for its clients;
and MRS's strategic importance to its shareholders who are
also the company's main clients. Furthermore, we expect no impact
on the company's operations following recent regulatory changes.
MRS continues to present strong and stable financial metrics,
with fairly low debt, and we expect them to remain so even with
its sizable expenditure plans for the next few years," S&P said.
NET SERVICOS: S&P Raises Corporate Credit Rating From 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services upgraded NET Servitos de
Comunicacao S.A., including raising the corporate credit ratings
to 'BBB-' from 'BB+' on the global scale and to 'brAAA' from
'brAA+' on the Brazilian national scale.
The outlooks are positive on the global scale and stable on the
national scale.
"The upgrade reflects our view that NET has sustained strong and
resilient cash flows, low leverage metrics, adequate liquidity,
and robust profitability, despite challenging competitive
conditions and sizable investments to add new clients," said
Standard & Poor's credit analyst Fl via Bedran.
"We believe NET has remained fairly competitive in providing
bundled packages of pay-TV, broadband, fixed-telephony, and, to a
lesser extent, mobile plans in partnership with Claro S.A. Claro
is, along with NET, ultimately controlled by America Movil S.A.B.
de C.V. (AMX; A-/Stable/--)," S&P said.
"The positive outlook indicates that we could upgrade our ratings
on NET further if AMX provides financial support to the company
once AMX-controlled Telmex Internacional S.A.B. de C.V. (Telint;
national scale: mxAAA/Stable/mxA-1+) acquires control of NET from
Globo Comunicacao e Participacoes S.A. (BBB/Stable/--). We don't
expect the likely change in control of NET to materially affect
its financial policies," S&P said.
===========================
C A Y M A N I S L A N D S
===========================
ACWA SERVICES: Shareholder to Hear Wind-Up Report on Dec. 7
-----------------------------------------------------------
The shareholder of Acwa Services Limited will receive on
Dec. 7, 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
c/o Bradley Kruger
Telephone: (345) 815-1877
Facsimile: (345) 949-9877
CGS CAYMAN: Placed Under Voluntary Wind-Up
------------------------------------------
On Oct. 24, 2011, the sole shareholder of CGS Cayman Ltd.
resolved to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt by December
to be included in the company's dividend distribution.
The company's liquidator is:
Chou, Chia-Chi
Telephone: 886-2-6608-9000 #320
Facsimile: 886-2-6618-1766
No. 73, Sec. 1, Jiayuan Rd.
Shulin Dist.
New Taipei City 238
Taiwan (R.O.C.)
CITRINE HOLDINGS: Shareholder to Hear Wind-Up Report on Dec. 7
--------------------------------------------------------------
The shareholder of Citrine Holdings Limited will receive on
Dec. 7, 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
c/o Bradley Kruger
Telephone: (345) 815-1877
Facsimile: (345) 949-9877
DECISION INTERNATIONAL: Creditors' Proofs of Debt Due Dec. 9
------------------------------------------------------------
The creditors of Decision International Master Fund Limited are
required to file their proofs of debt by Dec. 9, 2011, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 28, 2011.
The company's liquidators are:
Bernard Mcgrath
Annie Chapman
c/o Caledonian House
69 Dr. Roy's Drive
P.O. Box 1043 Grand Cayman KY1-1102
Cayman Islands
Telephone: 949-0050
Facsimile: 814-4863
EUREKA STRATEGIC: Commences Liquidation Proceedings
---------------------------------------------------
On Oct. 24, 2011, the shareholder of Eureka Strategic Services
Limited resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Nov. 30, 2011, will be included in the company's dividend
distribution.
The company's liquidator is:
Hugh Dickson
c/o James Drury
10 Market Street #765
Camana Bay Grand Cayman
Cayman Islands KY1 9006
Telephone: +1 345 769-7219
Facsimile: +1 345 949-7120
e-mail: james.drury@uk.gt.com
HEADLAND TECHNOLOGY: Shareholders' Final Meeting Set for Dec. 13
----------------------------------------------------------------
The shareholders of The Headland Technology Fund Limited will
hold their final meeting on Dec. 13, 2011, at 8:40 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
c/o Jennifer Chailler
Telephone: (345) 814 6847
LAPIS INVESTMENT: Shareholder to Hear Wind-Up Report on Dec. 7
--------------------------------------------------------------
The shareholder of Lapis Investment Limited will receive on
Dec. 7, 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
c/o Bradley Kruger
Telephone: (345) 815-1877
Facsimile: (345) 949-9877
MACQUARIE CAPITAL: Creditors' Proofs of Debt Due Dec. 7
-------------------------------------------------------
The creditors of Macquarie Capital Products (CI) Limited are
required to file their proofs of debt by Dec. 7, 2011, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 27, 2011.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
MEZZ CAP: Members Receive Wind-Up Report
----------------------------------------
The members of Mezz Cap Portfolio Holdings, Ltd. received on
Nov. 29, 2011, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Krysten Lumsden
Telephone: (345) 814 7366
Facsimile: (345) 945 3902
Grand Cayman KY1-1111
Cayman Islands
MKF CAPITAL: Placed Under Voluntary Wind-Up
-------------------------------------------
On Oct. 26, 2011, the sole shareholder of MKF Capital Limited
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Nov. 21, 2011, will be included in the company's dividend
distribution.
The company's liquidator is:
Isaac R. Khafif
c/o 950 Third Avenue #2805
New York, NY 10022
USA; or
Edgard Khafif
200 Central Park South
Apartment 98
New York, NY 10019
USA
SEAGUL LATIN: Shareholder to Hear Wind-Up Report on Dec. 8
----------------------------------------------------------
The shareholder of Seagul Latin American Equity Offshore Fund,
Ltd. will receive on Dec. 8, 2011, at 1:30 p.m., the liquidator's
report on the company's wind-up proceedings and property
disposal.
The company's liquidator is:
Ogier
c/o Jo-Anne Maher
Telephone: (345) 815-1762
Facsimile: (345) 949-9877
SHERWOOD III: Creditors' Proofs of Debt Due Dec. 7
--------------------------------------------------
The creditors of Sherwood III ABS CDO, Ltd. are required to file
their proofs of debt by Dec. 7, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Oct. 27, 2011.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
SNOWFLAKE REALTY: Creditors' Proofs of Debt Due Dec. 7
------------------------------------------------------
The creditors of Snowflake Realty Corp. are required to file
their proofs of debt by Dec. 7, 2011, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Oct. 28, 2011.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
SOUTHPORT ENERGY: Placed Under Voluntary Wind-Up
------------------------------------------------
On Oct. 26, 2011, the sole shareholder of Southport Energy
Alternatives Offshore Fund, Inc resolved to voluntarily wind up
the company's operations.
Only creditors who were able to file their proofs of debt by
Nov. 28, 2011, will be included in the company's dividend
distribution.
The company's liquidator is:
Ogier
c/o Susan Taber
Telephone: (345) 815-1889
Facsimile: (345) 949-9877
89 Nexus Way
Camana Bay Grand Cayman KY1-9007
Cayman Islands
TIEDEMANN/PENTAGRAM: Shareholder to Hear Wind-Up Report on Dec. 6
-----------------------------------------------------------------
The shareholder of Tiedemann/Pentagram Global Macro Offshore,
Ltd. will receive on Dec. 6, 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
c/o Kim Smith
Telephone: (345) 949-9876
Facsimile: (345) 949-9877
TIMESCAPE GLOBAL: Shareholders' Final Meeting Set for Dec. 13
-------------------------------------------------------------
The shareholders of Timescape Global Investments, Ltd. will hold
their final meeting on Dec. 13, 2011, at 8:30 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
TRAFALGAR POLY: Creditors' Proofs of Debt Due Dec. 7
----------------------------------------------------
The creditors of Trafalgar Poly Strategy Fund Limited are
required to file their proofs of debt by Dec. 7, 2011, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 26, 2011.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
WDB CAPITAL: Creditors' Proofs of Debt Due Dec. 7
-------------------------------------------------
The creditors of WDB Capital UK Equity Master Fund Limited are
required to file their proofs of debt by Dec. 7, 2011, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Oct. 25, 2011.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
YOUNG & SON: Members Receive Wind-Up Report
-------------------------------------------
The members of Young & Son Investment Limited received on
Nov. 25, 2011, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Buchanan Limited
P.O. Box 1170 George Town, Grand Cayman
Cayman Islands
ZHONG YUAN: Creditors' Proofs of Debt Due Dec. 5
------------------------------------------------
The creditors of Zhong Yuan 99A Limited are required to file
their proofs of debt by Dec. 5, 2011, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Oct. 28, 2011.
The company's liquidator is:
Trident Liquidators (Cayman) Ltd
c/o Mrs. Eva Moore
Trident Trust Company (Cayman) Limited
Telephone: (345) 949 0880
Facsimile: (345) 949 0881
P.O. Box 847 George Town
Grand Cayman KY1-1103
Cayman Islands
===============
C O L O M B I A
===============
COLOMBIA TELECOM: Faces Liquidation Amid $3.9BB Recapitalization
----------------------------------------------------------------
Global Telecoms Business reports that the government of Colombia
has threatened to liquidate a joint venture with Telefonica Sa if
local politicians fail to approve a $3.9 billion capitalisation
programme.
The government and Telefonica are partners in national operator
Colombia Telecomunicaciones, with the Spanish group holding a 52%
stake and the government owning the rest, GTB discloses.
According to GTB, Reuters reported that Colombian finance
minister Juan Carlos Echeverry said that the operator will "be
liquidated and its assets will be auctioned" if Colombia's
congress does not approve the capitalisation plan. The proposed
investment could enable the operator to merge with Telefonica's
mobile unit, Movistar, says GTB.
GTB relates that Mr. Echeverry said the plan must be passed
within three weeks as the operator had debts of $968 million due
by the end of 2011.
"We're supporting the capitalisation. We're ready and able to
capitalise, but if the government does not see another option
than liquidating, we would agree," the report quotes Colombia
Telecomunicaciones president Alfonso Gomez as saying.
* * *
Telefonica SA acquired a majority stake in Colombia Telecom from
the government in April. The Colombian government said that
it's better to be the owner of a minority stake of a thriving
business than a majority holder of a dying one, in defense to
criticisms from various sectors. The purchase included the
assumption of COP7.58 trillion debt, which included a US$3.26
billion pension liability and other debts totaling US$449
million.
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C U R A C A O
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ORTHOFIX INT'L: S&P Withdraws 'BB-' Corp. Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'BB-' corporate
credit rating on Curacao-based medical device producer Orthofix
International N.V., at the company's request.
=============
J A M A I C A
=============
DIGICEL GROUP: America Movil El Salvador Unit Buyout Hits a Snag
----------------------------------------------------------------
RJR News reports that America Movil, the owner of Claro Jamaica,
said it is discussing alternatives for its planned acquisition of
Digicel Group's El Salvador unit because of regulatory
restrictions on the deal.
America Movil said it has not received satisfactory government
approval, according to RJR News.
Regulators approved the transaction on the condition that America
Movil's unit in the Central American nation shed 20 megahertz of
wireless airwaves that could be granted to a competitor, RJR News
says. The report relates that the regulators said America Movil
also would have to maintain Digicel's business strategy in El
Salvador for five years.
RJR News notes that America Movil, based in Mexico City, is
seeking to boost its market position in Central America.
The company had completed the acquisition of Digicel Group's
Honduras unit and the sale of its Jamaican unit to Digicel Group,
the report discloses.
RJR News adds that Digicel Group and America Movil disclosed the
three transactions in March without disclosing financial terms.
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 Group has become a leading brand
across its 31 markets worldwide.
Digicel is incorporated in Bermuda based in Jamaica. It 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 September 27, 2011, the company continues to carry Moody's
a"Caa1" senior unsecured debt rating.
===========
M E X I C O
===========
MEXICHEM S.A.B.: Moody's Affirms 'Ba1' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service affirmed Mexichem S.A.B. de C.V.'s Ba1
Corporate Family Rating and Aa3.mx national scale rating
following an announcement by Mexichem that it had made an offer
to acquire all of the outstanding shares of Dutch plastic pipe
manufacturer Wavin N.V. for EUR8.50 per share. The offer is
currently under consideration by Wavin N.V., and if accepted, the
acquisition would be subject to certain conditions specified by
Mexichem and regulatory approvals. The rating outlook remains
stable.
Ratings Rationale
While the terms of the acquisition have not been agreed upon,
Moody's estimates that the transaction value will exceed US$900
million based on the purchase of all outstanding shares for
EUR8.50 per share and Wavin's debt balances. Mexichem has not
announced how it plans to finance the all cash offer, however, if
it were financed with existing Mexichem cash balances and debt,
Moody's will expect Mexichem's net debt to EBITDA ratio to
increase to around 2.0x (from 1.2x) on a pro forma basis as of
Sept. 30, 2011. This is in line with Mexichem's policy of
maintaining a net leverage ratio target of less than 2.0x and
would result in the company continuing to have low leverage for
its Ba1 rating. This metric includes a full year of EBITDA from
Wavin and other acquisitions completed by Mexichem over the past
year, but does not include any synergies from the acquisition.
Without additional external financing for the transaction, as of
Sept. 30, 2011, Mexichem's available liquidity provided by cash
balances and its revolver would fall to less than US$300 million.
However, Moody's expects Mexichem to generate over US$100 million
in cash by the end of the first quarter of 2012, which should
provide a more reasonable level of liquidity given the company's
aggressive expansion plans. At Sept. 30, 2011, Mexichem had over
US$700 million of availability under its US$1 billion revolving
credit facility and cash balances of approximately US$450
million.
In early 2011, Mexichem outlined for its investors general plans
to vertically integrate its operations, diversify its product
lines and expand geographically. The company indicated it
planned to spend US$3 billion on internal investments, joint
ventures and acquisitions necessary between 2011 and 2015 to
implement its strategy. Given the size of the Wavin acquisition
and other transactions completed over the past year, Moody's
expects that Mexichem may exceed its targeted spending on
acquisitions and investments, and may increase its leverage on a
sustained basis.
The Wavin acquisition will benefit Mexichem by expanding its pipe
manufacturing operations to Europe (currently, it only operates
in Latin America), increasing its captive consumption of PVC
resin (at higher margins that current exports), and providing
access to Wavin's technology that could improve efficiency of
Mexichem's existing pipe plants.
Mexichem's stable outlook assumes that the company will not
pursue another large transaction (>US$500 million) prior to the
integration of Wavin and that it will focus on increasing free
cash flow generation to provide additional liquidity to support
management's growth targets. The company's rating could be
raised if it is able to continue with its growth plans and
maintain leverage of less than 2.5x and Free Cash Flow/Debt of at
least 10% through 2012.
Mexichem, headquartered in Tlalnepantla, Mexico, is a producer of
PVC resins, pipes and related PVC products that is backwardly
integrated into chlor-alkali production. It has grown its PVC
operations rapidly through acquisitions as well as strong organic
growth, and predominately services markets in Latin America. Its
Fluorine Division operates the world's largest fluorspar mine and
is a large producer of hydrofluoric acid, which is sold globally.
SARE HOLDING: Moody's Downgrades National Scale to Ba3.mx
---------------------------------------------------------
Moody's de Mexico downgraded the national scale senior unsecured
debt rating of Sare Holding, S.A.B. de C.V. to Ba3.mx, from
Ba1.mx. Moody's also downgraded Sare's global local currency
senior unsecured debt rating to B3, from B2. The rating outlook
was revised to negative, from stable.
Ratings Rationale
The rating actions reflects Sare's significant reduction in
sales, which has placed significant stress on its earnings,
credit metrics and liquidity. The company's large exposure in
middle and higher income high rise developments coupled with
stricter underwriting by banks for mortgage funding in these
sectors has led to a slowdown in sales for the company. In
addition, the company's prospective clients have become more
cautious when making real estate investment decisions. Sare,
similar to other large developers in Mexico, has been trying to
shift its portfolio mix with more concentration on the low to
higher low-income housing, but was not able to do it so far in
2011 as it continues to focus on selling off its high rise
developments.
The negative rating outlook reflects Moody's expectation that the
company will continue to experience deterioration in its
operating profits and credit metrics. In addition, although
Sare's leverage levels have started to decline as of 3Q11 its
liquidity remains strained as it looks to refinance and extend
its bank debt.
Moody's B3 global local currency and Ba3.mx national scale issuer
ratings reflect Sare's position as one of the largest
homebuilders in Mexico in terms of housing units sold, as well as
its modest capital structure and credit metrics. Sare is a
publicly traded company, listed on the Bolsa Mexicana de Valores
(BMV), which enhances transparency and corporate governance.
These positive factors are offset by the company's increase in
leverage in 2008 and 2009 to finance its high-rise construction
projects of middle-and higher-income housing, which resulted in a
slower collection cycle, a reduction in cash inflows and which
significantly strained the company's profitability and liquidity.
The company continues to struggle with this debt burden. Other
challenges include the business's reliance on the Mexican
government's support for housing and Mexico's economic and
political environment.
Moody's stated that a return to a stable would require the
following credit metrics; EBITDA / interest expense close to 3x,
net debt to EBITDA closer to 6x. In addition, the company's
breakdown by revenues where revenues derived from the sale of
economic and low-income houses should at a minimum continue to
grow and at least be greater than 30%. On the other hand,
negative rating pressure will result from substantial missteps in
the completion of high-rise projects as well as collections and
sales of the units. Additional downward pressure on the ratings
will result from any liquidity issues and/or any further
challenges in its bond covenants compliance, as well as any
weakening of the company's current credit statistics: Total
Debt/Total Assets moving closer to 40%; Debt/EBITDA moving to 7x;
and fixed charge coverage close to or below 2x on a consistent
basis. Shifts in governmental housing policies combined with a
substantial increase in interest rates would also place negative
pressure on the ratings.
These ratings were downgraded with a negative outlook:
Sare Holding, S.A.B. de C.V. -- national scale senior unsecured
debt rating to Ba3.mx, from Ba1.mx; national scale issuer rating
to Ba3.mx, from Ba1.mx; global scale local currency senior
unsecured debt rating to B3, from B2; and global scale local
currency issuer rating to B3, from B2.
Moody's last action with respect to Sare took place on Aug. 18,
2010 when Moody's downgraded the national scale senior unsecured
debt rating of Sare Holding, S.A.B. de C.V. ("Sare") to Ba1.mx,
from Baa2.mx. Moody's also downgraded Sare's global local
currency senior unsecured debt rating to B2, from B1. The rating
outlook was revised to stable, from negative.
Sare Holding, S.A.B de C.V, based in Mexico City, Mexico, is a
fully integrated, diversified homebuilder engaged in the
development, construction, marketing, consulting, and sales of
affordable, middle- and upper-income housing developments in
Mexico. Sare was founded in 1967 and first developed single-
family homes and office buildings in 1977.
SERVICIOS CORPORATIVOS: Moody's Cuts Unsecured Debt Rating to B1
----------------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured debt
rating of Servicios Corporativos Javer, S.A.P.I. de C.V. to B1,
from Ba3. The rating outlook was revised to stable from negative.
Ratings Rationale
The ratings downgrade reflects continued pressure on Javer's
operating metrics, particularly Debt/EBITDA and Fixed Charge
Coverage versus similarly rated peers as a result of weaker than
expected earnings. The company recently reduced its earnings and
cash flow targets for 2011 as a result of fewer than anticipated
subsidies for vertical housing in its target markets. The
company has faced several challenges over the past 12-18 months
with slower sales volumes, much of which can be attributed to the
company's concentrated geographic exposure to North Eastern
Mexico. Certain cities within this region have faced drug-
related violence which has negatively affected employment due to
an exodus of companies to safer areas in Mexico, thus translating
to slower homes sales pace. Previously, Javer's sales in the
North East region had been affected by political elections,
Hurricane Alex and Infonavit pre-sale shortfalls. Javer is
expected to meet expected margin targets of approximately 20% by
year-end, however as a result of a change in sales mix to more
middle-income housing and lower sales volume.
Positively, Javer has made strides to diversify its geographic
exposure to other states, particularly the State of Mexico,
Queretaro and Jalisco which over time should help to dilute the
negative effects of weakness in any one region. In addition, the
company's liquidity is excellent, with over 90% of the company's
outstanding debt obligations are due in 2021 as a result of the
company's execution of an exchange offer of its US dollar-
denominated senior unsecured notes in April in which an
additional US$30 million was issued under the same terms as the
new notes.
The stable rating outlook reflects Moody's expectation that Javer
will continue in its efforts to diversify geographically into
other states, particularly the State of Mexico, Queretaro and
Jalisco while at least maintaining its credit metrics at current
levels. Furthermore, Moody's also expects that Javer will
continue to focus on targeting its current product mix, which
focuses on the low and middle-income segments of the population
with access to an Infonavit or Fovissste credit, while
maintaining high quality construction.
Moody's stated that a ratings upgrade is unlikely in the short to
intermediate term, however would be predicated on steady and
sustained improvement in operating statistics, specifically with
EBITDA margins above 20%, Fixed Charge Coverage closer to 3.0x
and Debt/EBITDA below 2.0x. A downgrade would result should
there be further mishaps in reaching titling and sales targets
and any additional weakening of current credit metrics, such as
EBITDA margins falling below 15%, debt/EBITDA at or above 4x on a
sustained basis.
This rating was downgraded with a stable outlook:
Servicios Corporativos Javer, S.A.P.I. de C.V. -- Senior
Unsecured Debt Rating to B1, from Ba3
The last rating action with respect to Javer was on Jan. 11, 2011
when Moody's affirmed the senior unsecured debt rating at Ba3 and
revised the outlook to negative from stable.
Servicios Corporativos Javer, S.A.P.I. de C.V., headquartered in
Monterrey, Mexico is one of the largest privately-owned, fully
integrated homebuilders engaged in the development, construction,
marketing and sale of affordable housing in Mexico. The firm
reported assets of US$6,601 million Mx pesos and equity of
US$1,380 million Mx pesos at Sep. 30, 2011.
===============================
T R I N I D A D & T O B A G O
===============================
CL FIN'L: Lascelles deMercado Wins in Black Sand Takeover Case
--------------------------------------------------------------
The Gleaner reports that Lascelles deMercado & Company Limited
(LdM) management said the Supreme Court ruled that it is not in
any obligation to issue a director's circular in response to its
hostile takeover bidders St. Lucia-based Black Sand Acquisition
Limited. Lascelles deMercado is a subsidiary of CL Financial
Limited.
The Supreme Court also ruled that Black Sand's offer to take
control of LdM was non-compliant with the Securities (Takeovers
and Mergers) Regulations and the rules of the Jamaica Stock
Exchange, according to The Gleaner.
As reported in the Troubled Company Reporter-Latin America on
Sept. 29, 2011, Jamaica Gleaner said that Lascelles deMercado has
turned to the courts to compel the Financial Services Commission
to declare the amended hostile bid by St. Lucia-based Black Sand
Acquisition Limited as being non-compliant with the regulator's
takeover rules. Trinidad & Tobago Newsday said that Lascelles
deMercado has rejected a takeover bid by Black Sand Acquisition.
Lascelles deMercado Secretary Jane George said that the Board of
Directors viewed Black Sand's offer as an "unsolicited and
unfunded . . . opportunistic attempt by former director William
McConnell to persuade CL Financial's noteholders to foreclose on
the [Lascelles deMercado] shares held by them as collateral and
sell [the shares] to Black Sand for less than half the price paid
for them by the CL Financial group," according to T&T Newsday.
Ms. George said that Lascelles deMercado's skepticism about the
offer lay partly on Black Sand's incompliance with the JSE rules
and the Securities (Take-Overs and Mergers) Regulations, T&T
Newsday noted. Trinidad Express said Black Sand plans to acquire
90% of Lascelles de Mercado's ordinary shares, all its 6%
preference shares and its 15% preference shares.
Meanwhile, in a separate The Gleaner report, Steven Jackson,
business reporter writes that Lascelles deMercado recorded a 15%
dip in net profit to JM$2.36 billion for the year ending
September 2011, as it earned nearly JM$1 billion less from
investment as a direct result of the Jamaica Debt Exchange. The
report notes that excluding the JDX adjustment, net profit
increased eight per cent year on year, management said in
statements obtained by the news agency.
"The decline in profitability has been impacted by the large IAS
19 employee benefit adjustment in 2010, which increased the
profit of the investments segment in that year. . . . This
adjustment largely reflected the reduction in long-term interest
rates subsequent to the implementation of the Jamaica Debt
Exchange in February 2010. . . . Excluding the effect of IAS 19,
adjustments from both years profit before tax would have shown an
increase of eight per cent above the previous year," stated the
financials, the report adds.
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.
VITRO SAB: Arbitrator Says Restructuring May Extend Past Dec. 31
----------------------------------------------------------------
Jonathan Roeder at Bloomberg News reports that court-appointed
arbitrator, Javier Navarro-Velasco, said Vitro, S.A.B. de C.V.
probably won't conclude its debt restructuring by year-end as the
company anticipates.
External creditors, who oppose Vitro's restructuring proposal,
will raise more legal challenges with the judge in the case, Mr.
Navarro-Velasco told the news agency in a telephone interview.
Mr. Navarro-Velasco, Bloomberg notes, will present the proposal
to the judge by Dec. 5 and said he expects 70% of creditors,
including intercompany debt controlled by subsidiaries, to
approve.
Vitro SAB said it expects to complete a deal "before year's end,"
according to Bloomberg. The report relates that the company's
debt includes US$814.6 million of new bonds maturing in 2019 and
$95.8 million of mandatory convertible debt. Vitro said Nov. 22
that shareholders approved the plan, Bloomberg notes.
Bloomberg discloses that Jacob Steinfeld, a JPMorgan Chase & Co.
analyst in New York, said consenting creditors would likely get
securities and cash with a recovery on current face value of 47.6
percent to 60%, depending on how many holders agree; while non-
consenting creditors would recover less, he said.
Bloomberg adds that Mr. Navarro-Velasco said the mandatory
convertible bonds could now convert to a 20% stake in Vitro SAB
and said the proposed interest rate on the notes is 12%, compared
with the originally proposed 10.5% rate. Vitro SAB doesn't have
the capacity to take on more debt, and the proposal "is a viable
plan and it's also fair for creditors," Mr. Navarro-Velasco
added, Bloomberg notes.
As reported in the Troubled Company Reporter-Latin America on
Nov. 14, 2011, Bill Rochelle, the bankruptcy columnist for
Bloomberg News, said that a group holding some of Vitro SAB's
$1.2 billion of defaulted bonds said that a reorganization
proposed by the conciliator late last month in the Mexican court
is "virtually identical" to the Mexican glassmaker's own proposal
from December 2010. According to the report, although the
conciliator's proposal was advertised by Vitro as having economic
improvements for debt holders, the ad hoc bondholder group says
the new provisions are inconsequential because the company still
would have the right to repurchase newly issued convertible
debentures at a steep discount to face value. In addition, the
debentures can't be converted to stock absent a payment default.
In their filing in U.S. Bankruptcy Court in Dallas, the
bondholders also take issue with a new provision in the
conciliator's plan which would deny a distribution to any
bondholder that doesn't consent. The bondholders call it a
"highly coercive provision which discriminates against non-
consenting creditors."
Meanwhile, Bloomberg says that Mr. Navarro-Velasco said external
creditors have presented motions for him to be dismissed as the
case's arbitrator and the judge may decide on the requests within
45 days.
Jaime Guerra, a lawyer representing the group of dissenting
bondholders in Mexico, confirmed that the bondholders have asked
for Mr. Navarro-Velasco's removal because "he hasn't fulfilled
his duties as arbitrator," according to Bloomberg.
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 a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.
Vitro 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).
The Vitro parent told the Mexico stock exchange that it received
sufficient acceptances of its reorganization pending in a court
in Monterrey. The approval vote was evidently obtained using
claims of affiliates. The bondholders are opposing the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full. Bondholders
previously cited an "independent analyst" who estimated the
Mexican plan was worth 49% to 54% of creditors' claims.
In the present Chapter 15 case, the Debtor seeks to block any
creditor suits in the U.S. pending the reorganization in Mexico.
Chapter 11 Proceedings
A group of noteholders opposed the exchange -- namely Knighthead
Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc.,
Davidson Kempner Distressed Opportunities Fund LP, and Brookville
Horizons Fund, L.P. 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. 0-47477);
Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478);
B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479);
Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480);
Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP
Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP
Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX
Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro
Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485).
A bankruptcy judge in Fort Worth, Texas, denied involuntary
Chapter 11 petitions filed against four U.S. subsidiaries. On
April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro
America LLC and three other U.S. subsidiaries -- that were
subject to the involuntary petitions into voluntary Chapter 11.
The Texas Court on April 21 denied involuntary petitions against
the eight U.S. subsidiaries that didn't consent to being in
Chapter 11.
Kurtzman Carson Consultants is the claims and notice agent to
Vitro America, et al. Alvarez & Marsal North America LLC, is the
Debtors' operations and financial advisor.
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Vitro America, et al., has selected Sarah
Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq.,
and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York, as counsel. Blackstone Advisory Partners L.P.
serves as financial advisor to the Committee.
The U.S. Vitro companies sold their assets to American Glass
Enterprises LLC, an affiliate of Sun Capital Partners Inc., for
US$55 million.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week November 28 to December 2, 2011
------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
ARGENT-$DIS 8.28 12/31/2033 USD 66.77
ARGENT-$DIS 8.28 12/31/2033 USD 66
ARGENT-$DIS 8.28 12/31/2033 USD 68.75
ARGENT-PAR 1.18 12/31/2038 ARS 42.21
ARGENT-DIS 7.82 12/31/2033 EUR 55
ARGENT-DIS 7.82 12/31/2033 EUR 54.75
ARGENT-DIS 7.82 12/31/2033 EUR 58.5
ARGENT-DIS 4.33 12/31/2033 JPY 42
ARGENT-PAR 0.45 12/31/2038 JPY 15
ARGENT-PAR&GDP 0.45 12/31/2038 JPY 8
ARGNT-BOCON PRE9 2 3/15/2014 ARS 77.5
INVERSORA ELEC 6.5 9/26/2017 USD 43.93
PROV BUENOS AIRE 9.625 4/18/2028 USD 62.84
PROV BUENOS AIRE 10.875 1/26/2021 USD 68.15
PROV BUENOS AIRE 9.375 9/14/2018 USD 70.72
PROV BUENOS AIRE 9.375 9/14/2018 USD 70.89
BRAZIL
------
BANCO CRUZEIRO 8.875 9/22/2020 USD 69.75
BANCO CRUZEIRO 8.25 1/20/2016 USD 77
REDE EMPRESAS 11.125 USD 65
REDE EMPRESAS 11.125 USD 68
REDE EMPRESAS 11.125 USD 68
CAYMAN ISLAND
-------------
BANCO BPI (CI) 4.15 11/14/2035 EUR 43.36
BCP FINANCE BANK 5.01 3/31/2024 EUR 52.5
BCP FINANCE BANK 5.31 12/10/2023 EUR 54.88
BCP FINANCE CO 5.543 EUR 32.21
BCP FINANCE CO 4.239 EUR 33.17
BES FINANCE LTD 5.58 EUR 33
BES FINANCE LTD 4.5 EUR 39
CAM GLOBAL FIN 6.08 12/22/2030 EUR 69.88
CHAODA MOD AGRI 3.7 9/1/2015 USD 45.92
CHINA AUTOMATION 7.75 4/20/2016 USD 65.25
CHINA FORESTRY 10.25 11/17/2015 USD 67
CHINA FORESTRY 10.25 11/17/2015 USD 66.63
CHINA HUIYUAN JU 4 4/29/2016 USD 70.48
CHINA MED TECH 4 8/15/2013 USD 60.25
CHINA MED TECH 6.25 12/15/2016 USD 59.1
CHINA NICKEL 10 12/12/2012 HKD 74.4
CHINA SCE PROPER 10.5 1/14/2016 CNY 66.98
CHINA SUNERGY 4.75 6/15/2013 USD 60
DUBAI HLDNG COMM 6 2/1/2017 GBP 72.12
EFG ORA FUNDING 1.7 10/29/2014 EUR 49.43
ESFG INTERNATION 5.753 EUR 32.83
EVERGRANDE REAL 9.25 1/19/2016 CNY 69.66
FANTASIA HOLDING 14 5/12/2015 USD 71.75
FANTASIA HOLDING 14 5/12/2015 USD 73.25
GLORIOUS PROPERT 13 10/25/2015 USD 68.03
GREENTOWN CHINA 9 11/8/2013 USD 72.38
GREENTOWN CHINA 9 11/8/2013 USD 72.38
IMCOPA INTL CAYM 5 12/19/2014 USD 33
JA SOLAR HOLD CO 4.5 5/15/2013 USD 68
JINKOSOLAR HOLD 4 5/15/2016 USD 40.47
KAISA GROUP 8 12/20/2015 CNY 72.52
LDK SOLAR CO LTD 10 2/28/2014 CNY 45.05
LDK SOLAR CO LTD 4.75 4/15/2013 USD 56.08
LDK SOLAR CO LTD 4.75 4/15/2013 USD 54.65
LDK SOLAR CO LTD 4.75 4/15/2013 USD 62.75
LUPATECH FINANCE 9.875 USD 36.13
LUPATECH FINANCE 9.875 USD 36.5
MARFRIG OVERSEAS 9.5 5/4/2020 USD 73.02
MARFRIG OVERSEAS 9.5 5/4/2020 USD 72.63
MINGFA GROUP INT 5.25 5/23/2016 HKD 70.92
POLARCUS LTD 2.875 4/27/2016 USD 74.03
POWERLONG RE HLD 13.75 9/16/2015 USD 67
POWERLONG RE HLD 13.75 9/16/2015 USD 67.75
POWERLONG RE HLD 11.5 3/17/2014 CNY 67.4
RENHE COMMERCIAL 13 3/10/2016 USD 76
RENHE COMMERCIAL 11.75 5/18/2015 USD 76.06
SOLARFUN POWER H 3.5 1/15/2018 USD 50
SOLARFUN POWER H 3.5 1/15/2018 USD 66.05
SPG LAND HOLDING 13.5 4/8/2016 USD 63.07
SUNTECH POWER 3 3/15/2013 USD 42.34
SUNTECH POWER 3 3/15/2013 USD 42.5
TEXHONG TEXTILE 7.625 1/19/2016 USD 68.02
TEXHONG TEXTILE 7.625 1/19/2016 USD 71.25
TRINA SOLAR LTD 4 7/15/2013 USD 75.19
YUZHOU PROPERTIE 13.5 12/15/2015 USD 67.5
YUZHOU PROPERTIE 13.5 12/15/2015 USD 68.37
CHILE
-----
AGUAS NUEVAS 3.4 5/15/2012 CLP 0.223
CGE DISTRIBUCION 3.25 12/1/2012 CLP 30.03
COLBUN SA 3.2 5/1/2013 CLP 73.07
ESVAL S.A. 3.8 7/15/2012 CLP 25.31
MASISA 4.25 10/15/2012 CLP 19.74
QUINENCO SA 3.5 7/21/2013 CLP 24.96
PANAMA
------
NEWLAND INT PROP 9.5 11/15/2014 USD 61.5
PUERTO RICO
-----------
BANCO SANTANDER 6.1 6/1/2032 USD 63.11
BANCO SANTANDER 6.3 6/1/2032 USD 63.28
PUERTO RICO CONS 6.5 4/1/2016 USD 61
PUERTO RICO CONS 6.2 5/1/2017 USD 61.99
VENEZUELA
---------
PETROLEOS DE VEN 5.5 4/12/2037 USD 45
PETROLEOS DE VEN 5.375 4/12/2027 USD 46.78
PETROLEOS DE VEN 5.25 4/12/2017 USD 60.04
PETROLEOS DE VEN 5.125 10/28/2016 USD 62
PETROLEOS DE VEN 5 10/28/2015 USD 67.25
PETROLEOS DE VEN 8.5 11/2/2017 USD 71.28
PETROLEOS DE VEN 8.5 11/2/2017 USD 71.03
PETROLEOS DE VEN 4.9 10/28/2014 USD 75.91
VENEZUELA 7 3/31/2038 USD 54
VENEZUELA 7 3/31/2038 USD 54.36
VENEZUELA 6 12/9/2020 USD 58
VENEZUELA 7.65 4/21/2025 USD 58.5
VENEZUELA 8.25 10/13/2024 USD 61
VENEZUELA 9.25 5/7/2028 USD 64.75
VENEZUELA 9 5/7/2023 USD 66
VENEZUELA 7 12/1/2018 USD 66.5
VENEZUELA 9.25 9/15/2027 USD 67.52
VENEZUELA 7.75 10/13/2019 USD 67.63
VENEZUELA 9.25 9/15/2027 USD 67.78
VENZOD - 189000 9.375 1/13/2034 USD 64.5
***********
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 * * *