/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120203.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, February 3, 2012, Vol. 13, No. 025 Headlines A R G E N T I N A * ARGENTINA: IDB OKs $300MM to Improve Transport Infrastructure B R A Z I L SONAE SIERRA: Moody's Rates R$300MM Proposed Debentures at (P)Ba2 C A Y M A N I S L A N D S BLACKROCK ELITE PORTFOLIO I: Shareholders Receive Wind-Up Report BLACKROCK ELITE PORTFOLIO II: Shareholders Receive Wind-Up Report BLACKROCK ELITE PORTFOLIO III: Shareholders Get Wind-Up Report CENTAURI CORPORATION: Shareholders Receive Wind-Up Report CHEYNE ABI: Shareholders Receive Wind-Up Report CHEYNE DISCOVERY: Shareholders Receive Wind-Up Report CHEYNE REAL: Shareholders Receive Wind-Up Report CHEYNE RENEWABLE: Shareholders Receive Wind-Up Report CHEYNE TRANSPORTATION: Shareholders Receive Wind-Up Report CORAL LEASING: Shareholders Receive Wind-Up Report FRM EQUITY FUND: Shareholders Receive Wind-Up Report FRM EQUITY MASTER: Shareholders Receive Wind-Up Report GAM INTERNATIONAL: Shareholders Receive Wind-Up Report GDI FINANCE: Shareholder Receives Wind-Up Report GOLDMAN SACHS: Shareholder Receives Wind-Up Report GRAMERCY DISTRESSED: Shareholders Receive Wind-Up Report INTANA CAPITAL MASTER: Shareholders Receive Wind-Up Report INTANA CAPITAL OFFSHORE: Shareholders Receive Wind-Up Report JUNIPER PRINCIPAL: Shareholder Receives Wind-Up Report MODELMANAGEMENT.COM: Shareholders Receive Wind-Up Report NEW REALM: Shareholders Receive Wind-Up Report PILLOW INC: Shareholders Receive Wind-Up Report SHORE FINANCE: Shareholder Receives Wind-Up Report SIGNUM ISIS: Shareholders Receive Wind-Up Report SILVER HOLDINGS: Shareholders Receive Wind-Up Report SILVER METIS ASIAN: Shareholder Receives Wind-Up Report SILVER METIS ASIAPAC: Shareholder Receives Wind-Up Report UNITED GLOBAL: Shareholders Receive Wind-Up Report XE SELECT: Shareholders Receive Wind-Up Report ZAIS ZEPHYR A-3: Shareholders Receive Wind-Up Report C O L O M B I A BANCO DAVIVIENDA: Moody's Affirms D+ Bank Finc'l Strength Ratings DESARROLLADORA HOMEX: Moody's Rates US$300MM Unsec Debt at (P)Ba3 J A M A I C A DIGICEL GROUP: Court Hears FTC's Arguments on Claro Merger M E X I C O MEXICANA AIRLINES: Prosecutors Seek Warrant for Former CEO RMBS CREYCB: Moody's Cuts Ratings on CREYCB 06U to 'B1(sf)' T R I N I D A D & T O B A G O CL FIN'L: CDB Warns Barbados Cannot Afford to Bail Out Firm - - - - - ================= A R G E N T I N A ================= * ARGENTINA: IDB OKs $300MM to Improve Transport Infrastructure --------------------------------------------------------------- The Inter-American Development Bank approved a US$300 million loan to finance the expansion, rehabilitation and improvement of roads in Argentina's Norte Grande region, connecting major production areas with local and foreign markets. The program aims to improve the accessibility, efficiency and safety on priority corridors of the National Road Network as well as feeder roads of the Provincial Road Network. Among the program's goals are to increase the Norte Grande's share of the country's total exports, reduce the number of road accident deaths, and cut travel times and vehicle operating costs. "With this operation, the IDB continues to support Argentina's efforts to close the development gap between the Norte Grande region and the rest of the country," said Fernando Orduz, IDB project team leader. The Norte Grande region comprises the provinces of Catamarca, Corrientes, Chaco, Formosa, Jujuy, Misiones, Tucuman, Salta and Santiago del Estero. It accounts for one third of the Argentine mainland and is home to approximately 8.3 million people, or 21 percent of the total population. The new program was preceded by the Norte Grande Road Infrastructure Program, which was supported by a US$1.2 billion IDB loan approved in February 2007. Some of its components include engineering works for the expansion, rehabilitation and improvement of national highways and provincial roads; the implementation of measures and construction of road safety countermeasures; and strengthening the management of provincial transport agencies well as the National Roads Directorate. This second operation will expand activities to Norte Grande provinces that were not covered by the first project. In addition, it will substantially expand road safety efforts. The US$300 million IDB loan is for a 25-year term, with a 5-year grace period and a variable interest rate based on LIBOR. Local counterpart financing will contribute US$33.5 million to the program. =========== B R A Z I L =========== SONAE SIERRA: Moody's Rates R$300MM Proposed Debentures at (P)Ba2 ----------------------------------------------------------------- Moody's America Latina Ltda. has assigned a first-time national scale rating of Aa3.br to the proposed senior unsecured debentures of Sonae Sierra (P) Ba2 global scale) and a Aa3.br corporate family national scale rating (Ba2 global scale). The rating outlook is stable. These first-time ratings were assigned: Sonae Sierra Brasil S.A. -- (P)Ba2/Aa3.br to the senior unsecured debentures -- Ba2/Aa3.br corporate family rating Sonae Sierra proposes to issue R$300 million in two series that will have a maturity of five and seven years from the issue date. The debentures have various covenants including financial covenants and limitations on the incurrence of additional debt. The proceeds from the offering will be applied toward future growth opportunities including development and acquisitions. Sonae Sierra is a leading owner, developer and manager of shopping malls in Brazil with R$3.1 billion (US$1.8 billion) in gross assets as of Sept. 30, 2011. According to Moody's, the ratings incorporate the company's strong operating performance, favorable retail sector fundamentals and a solid balance sheet with conservative leverage. The company benefits from the sector expertise of its controlling shareholders DDR based in the U.S, and Sonae Sierra in Europe. Offsetting these strengths are the risks associated with the company's large development pipeline. Other considerations are the company's short operating history as a public company and the limitations associated with its jointly owned assets. Sonae Sierra has a solid balance sheet with R$440m in cash and liquid assets that offset R$332m in debt as of September 30, 2011. Leverage as measured by total debt and preferred securities to gross assets is considered very low at only 10.6% while net debt/EBITDA is -0.7% reflecting is net cash position. The company is in a strong position to fund its growth with R$282 million construction financing available to complete its 3 projects in development; plus the R$300 million proceeds from the new debentures and its cash, targeted for new opportunities. Moody's anticipates leverage to increase as the company executes on its growth strategy but to remain low in a conservative range of 2x to 3x net debt/EBITDA. The ratings consider the portfolio's high occupancy rate at 97.4% and the very favorable retail fundamentals in Brazil with limited supply and a growing middle class with growing disposable income. The retail market in Brazil is underserved by its supply of shopping malls compared to other countries. There is a growing trend towards shopping centers compared to traditional shopping venues. On the demand side, the country's growing middle class has supported strong sales growth. Average household income growth has contributed to increased disposable income. In 2011, sales growth slowed from its rapid pace but still remains healthy. Sonae Sierra's portfolio includes interests in 10 malls in operation, mostly located throughout the populous state of Sao Paulo; and 3 new development projects in the states of Minas Gerais, Parana and Goias. The company has a diversified tenant base with the top ten tenants representing 12% of revenues. Offsetting these credit positives are the lease-up and execution risks associated with its large development pipeline. Sonae Sierra's total development costs for its pipeline represents 28.5% of gross assets as of Sept. 30, 2011 and it is estimated to be nearly 34% when compared to the company's proportionate ownership share of gross assets. The company expects to nearly double its owned share of shopping mall GLA to 389,000 sqm by year-end 2013 through its currently in place development and expansion projects. The stable outlook reflects Sonae Sierra's position as a leading shopping center company in Brazil with high portfolio occupancy; a solid balance sheet with low leverage; a good cash balance and a manageable debt maturity schedule. The outlook also incorporates management's commitment to a conservative balance sheet despite its large development pipeline. Positive ratings movement could occur through a reduction in the development pipeline to less than 15% of gross assets; gross assets approaching R$5 billion; and fully loaded fixed charge coverage (interest expense, capitalized interest and principal amortization) consistently above 2.0x. Conversely a downgrade would occur should the company experience any difficulty with the execution and lease-up of the development pipeline; net debt/EBITDA consistently above 3.5x; or the inability to show adequate liquidity for the upcoming 24 months. This is the first time Moody's rates Sonae Sierra Brasil S.A. Sonae Sierra Brasil S.A. is based in Sao Paulo and is one of the leading shopping center companies in Brazil with interests in 10 malls plus 3 under development as of Sept. 30, 2011. The total portfolio GLA is 353,000 square meters (sqm) and the company's owned GLA is 204,600 sqm as of Sept. 30, 2011. Sonae Sierra Brasil launched its IPO on the Brazilian stock exchange in February 2011 under the ticker SSBR3:BR. =========================== C A Y M A N I S L A N D S =========================== BLACKROCK ELITE PORTFOLIO I: Shareholders Receive Wind-Up Report ---------------------------------------------------------------- The shareholders of Blackrock Elite Portfolio I (Euro) Limited received on January 20, 2012, 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 BLACKROCK ELITE PORTFOLIO II: Shareholders Receive Wind-Up Report ----------------------------------------------------------------- The shareholders of Blackrock Elite Portfolio II (Euro) Limited received on January 20, 2012, 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 BLACKROCK ELITE PORTFOLIO III: Shareholders Get Wind-Up Report -------------------------------------------------------------- The shareholders of Blackrock Elite Portfolio III (Euro) Limited received on January 20, 2012, 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 CENTAURI CORPORATION: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Centauri Corporation received on January 20, 2012, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: David Dyer Alan Corkish Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CHEYNE ABI: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Cheyne Abi General Partner Inc. received on January 20, 2012, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre 42 North Church Street George Town P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CHEYNE DISCOVERY: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Cheyne Discovery General Partner Inc. received on January 19, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre 42 North Church Street George Town P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CHEYNE REAL: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Cheyne Real Estate Opportunities General Partner Inc. received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre 42 North Church Street George Town P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CHEYNE RENEWABLE: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Cheyne Renewable Energy General Partner Inc. received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre 42 North Church Street George Town P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CHEYNE TRANSPORTATION: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Cheyne Transportation General Partner Inc. received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre 42 North Church Street George Town P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CORAL LEASING: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Coral Leasing Limited received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands FRM EQUITY FUND: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of FRM Equity Opportunity Fund SPC received on January 20, 2012, 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 FRM EQUITY MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of FRM Equity Opportunity Master Fund SPC received on January 20, 2012, 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 GAM INTERNATIONAL: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Gam International SPV, Ltd. received on January 6, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gotham Funds G.P. LLC c/o Bernard Seibert 535 Madison Avenue, 30th Floor New York, New York 10022 United States of America Telephone: 212-319-4100 Facsimile: 212-319-4419 GDI FINANCE: Shareholder Receives Wind-Up Report ------------------------------------------------ The shareholder of GDI Finance (Cayman) 2003 Limited received on January 23, 2012, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Mr. Richard, Wai Hung Poon Telephone: (852) 2887 8621 Facsimile: (852) 2887 8631 Harbour Centre, Room 1410, 14th Floor No. 25 Harbour Road Wanchai, Hong Kong GOLDMAN SACHS: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Goldman Sachs Trading Advisors Limited received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands GRAMERCY DISTRESSED: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Gramercy Distressed Argentina Fund Ltd received on January 20, 2012, 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 INTANA CAPITAL MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Intana Capital Master Fund Ltd received on January 20, 2012, 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 INTANA CAPITAL OFFSHORE: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Intana Capital Offshore Fund, Ltd received on January 20, 2012, 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 JUNIPER PRINCIPAL: Shareholder Receives Wind-Up Report ------------------------------------------------------ The shareholder of Juniper Principal Protected Notes 1999-1 Ltd. received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands MODELMANAGEMENT.COM: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Modelmanagement.Com received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gavin Lowe PO Box 2636 Strathvale House, 90 North Church Street Grand Cayman, KY1-1102 Cayman Islands Telephone: 1 345 943 5555 NEW REALM: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of New Realm Island Fund, Ltd. received on January 20, 2012, 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 PILLOW INC: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Pillow Inc. received on January 10, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: UBS Nominees Ltd. c/o Stephen R. Nelson Telephone: 949-4544 Facsimile: 949-7073 Charles Adams Ritchie & Duckworth Zephyr House, 122 Mary Street PO Box 709 Grand Cayman KY1-1107 Cayman Islands SHORE FINANCE: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Shore Finance Limited received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands SIGNUM ISIS: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Signum Isis Limited received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands SILVER HOLDINGS: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Silver Holdings LDC received on January 20, 2012, 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 SILVER METIS ASIAN: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Silver Metis Asian Smaller Companies Fund received on Jan. 23, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Samir Dilip Mehta Telephone: (345) 949 6258 Facsimile: (345) 945 28 77 c/o Campbell Corporate Services Limited Scotia Centre, 4th Floor P.O. Box 268 George Town Grand Cayman KY1-1104 Cayman Islands SILVER METIS ASIAPAC: Shareholder Receives Wind-Up Report --------------------------------------------------------- The shareholder of Silver Metis Asiapac Fund received on Jan. 23, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Samir Dilip Mehta Telephone: (345) 949 6258 Facsimile: (345) 945 28 77 c/o Campbell Corporate Services Limited Scotia Centre, 4th Floor P.O. Box 268 George Town Grand Cayman KY1-1104 Cayman Islands UNITED GLOBAL: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of United Global Investment Grade CDO III Limited received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands XE SELECT: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of XE Select Fund, Ltd. received on January 20, 2012, 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 ZAIS ZEPHYR A-3: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Zais Zephyr A-3, Ltd. received on January 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands =============== C O L O M B I A =============== BANCO DAVIVIENDA: Moody's Affirms D+ Bank Finc'l Strength Ratings ----------------------------------------------------------------- Moody's Investors Service affirmed all of Banco Davivienda S.A.'s ratings and changed the outlook to negative, from stable, following the announcement on Jan. 24, 2012 of the acquisition of HSBC's bank, insurance, and financial and service companies in El Salvador, Costa Rica, and Honduras. These ratings were affirmed with a negative outlook: D+ bank financial strength rating and Baa3/Prime-3 long and short term local and foreign currency deposit ratings. Davivienda's D+ BFSR translates to a baseline credit assessment (BCA) of Ba1. Ratings Rationale In changing the outlook on Davivienda's ratings to negative from stable, Moody's noted that the acquisition of HSBC Central America is a sizable one, representing 23% of Davivienda's assets as of 30 September 2011, and it is also the bank's first major cross border investment. Moody's believes that by venturing outside of its home market, Davivienda will likely be exposed to increased credit, market, and foreign exchange risks within several developing Central American countries that could have a negative effect on its liquidity and profitability. Moody's also noted that the acquired banks' modest profitability, high operating cost structures, and still high credit costs will continue to demand close attention by management, particularly in regards to integration and risk management plans for the new entity, and could hurt Davivienda's consolidated earnings. Moody's will monitor the effect on asset quality, if any, of aligning these entities' credit and provisioning policies to those of Davivienda's, considering that respective operating environments are currently less benign than that in Colombia. Moody's views positively management's decision to finance the US$801 million acquisition of HSBC Central America with the proceeds from its preferred share issuance of COP 716 billion (US$370 million), completed last December, and on-balance liquidity. Nevertheless, upon conclusion of the acquisition, Davivienda's tangible capital ratio, excluding goodwill, will decrease to levels reported prior to the issuance, which Moody's considers weak. The announced acquisition may challenge the execution of Davivienda's current business strategy in Colombia, where the bank continues to expand and strengthen the corporate lending franchise it acquired from Bancafe (Granbanco). Davivienda also faces tough competition from much larger and more entrenched institutions both within Colombia and in Central America. Moody's nevertheless acknowledges the bank's well established operation that is focused on consumer and mortgage lending, and which could be successfully implemented in its new Central American franchise. Davivienda's Baa3 deposit ratings incorporate one notch of uplift from the Ba1 baseline credit assessment because of Moody's assessment of a high probability of systemic support from the Colombian government in light of the bank's important domestic deposit and lending franchise. Davivienda is headquartered in Bogota, Distrito Capital, Colombia. As of June 30, 2011, Davivienda reported US$18.5 billion in assets, US$13 billion in loans, US$12 billion in deposits, US$2.2 billion in shareholders' equity, and net income of US$162 million. DESARROLLADORA HOMEX: Moody's Rates US$300MM Unsec Debt at (P)Ba3 ----------------------------------------------------------------- Moody's Investors Service assigned a (P)Ba3 global scale foreign currency rating to Desarrolladora Homex, S.A.B. de C.V.'s proposed senior unsecured debt issuance of approximately US$300 million. Ratings Rationale The new notes will have a maturity of five years, will rank pari passu with other unsecured debt, and will be guaranteed by the company's wholly-owned major subsidiaries, which represent approximately 95% of the company's EBITDA (Proyectos Inmobiliarios de Culiacan, Casas Beta del Norte, Casas Beta del Noroeste, Desarrolladora de Casas del Noroeste, Casas Beta del Noroeste y Casas Beta del Centro). In addition, the company will hedge all of the interest and principal against foreign exchange risk. Proceeds from this new issuance will be used to refinance existing debt, much of it short-term. With this proposed issuance, Homex will have no substantial debt maturities until 2015, a credit plus. Moody's current global scale foreign currency rating continues to reflect Desarrolladora Homex's position as one of the top five homebuilders in Mexico in terms of housing units sold, as well as its conservative capital structure and sound profitability and liquidity. Challenges still include the high costs of land and infrastructure in Homex's markets, and some speculative homebuilding by Homex and its competitors. The stable rating outlook is based on Moody's determination that Homex's capable management team executes strong internal controls, construction expertise and efficient practices. Moody's believes that Homex has strong franchise value, with a well- recognized brand and a valuable land reserve strategy. The stable outlook also reflects Moody's expectation that Homex will at least maintain its current credit metrics and continue to improve efficiencies in land development. Furthermore, Moody's also expects that Homex will continue to focus on targeting its current product mix, while maintaining high quality construction and its market leadership. Moody's stated that rating improvements could result from bringing Total Debt/EBITDA closer to 1.5X, Total Debt/Total Assets under 15%, fixed charge coverage over 3.5X (including capitalized interest and with the adoption of NIF D-6) on a consistent basis, while at a minimum maintaining EBITDA margins in the low to mid 20% range. Continued improvement in its sector leadership would also be a plus. Downward rating pressure would result from substantial missteps in its strategic plan, which includes some international expansion and its tourist division, as well as total debt to total asset levels approaching 35% on a sustained basis. EBITDA margins below 15% and fixed charge coverage consistently below 2.0X (including capitalized interest and with the adoption of NIF D-6) would also reflect negatively in the rating. Further, Increased costs of land and land development would result in negative rating pressure, as would an adverse shift in governmental housing policy. These ratings were assigned with a stable outlook: Desarrolladora Homex, S.A.B. de C.V. -- Proposed US$ senior unsecured notes at (P)Ba3 The last rating action with respect to Homex was on Sept. 28, 2011 when Moody's affirmed Homex's senior unsecured debt rating (foreign currency) at Ba3, and its global scale local currency issuer rating at Ba3. Concurrently, Moody's de Mexico affirmed Homex's national scale issuer rating at A3.mx. The rating outlook was stable. Desarrolladora Homex, S.A.B. de C.V. [NYSE: HXM] is based in Culiacan, Sinaloa, Mexico. The firm reported assets of approximately MXN39,591 million and equity of approximately MXN13,641 million as of Sept. 30, 2011. Homex is a homebuilder engaged in the development, construction, marketing and sale of mostly affordable housing in Mexico. ============= J A M A I C A ============= DIGICEL GROUP: Court Hears FTC's Arguments on Claro Merger ---------------------------------------------------------- RJR News reports that Jamaica Supreme Court will start hearing arguments into the challenge of the Fair Trading Commission regarding the merger between Digicel Limited Group and Claro Jamaica. Digicel Group has filed a suit challenging the FTC's jurisdiction in the matter, according to RJR News. As reported in the Troubled Company Reporter-Latin America on Jan. 9, 2012, Jamaica Observer said that telecommunications company, LIME, endorsed the lawsuit filed in the Supreme Court against the Digicel Limited and Claro Jamaica merger by the Fair Trading Commission and supports the Commission's position that the deal is anti-competitive. The FTC suit follows on legal action taken by LIME last year to compel the Commission to oppose the merger in the interest of Jamaican consumers, according to Jamaica Observer. 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 "Caa1" senior unsecured debt rating. =========== M E X I C O =========== MEXICANA AIRLINES: Prosecutors Seek Warrant for Former CEO ---------------------------------------------------------- Latin American Herald Tribune reports that Mexican federal prosecutors have asked a judge to order the arrest of former Compania Mexicana de Aviacion or Mexicana Airlines Chief Executive Officer Manuel Borja for tax evasion. An unnamed spokesman for the federal Attorney General's Office said that Mr. Borja, the airline's CEO until August 2010 when Mexicana Airline halted operations amid serious financial woes, failed to pay more than MXN404 million (some US$31 million) in taxes, according to Herald Tribune. The report notes that the spokesman said AG's office now is only waiting for the judge to issue the arrest warrant for tax fraud, a serious crime in Mexico for which the accused is not entitled to release on bail. In 2011, Herald Tribune recalls that the Airline Pilots Association (ASPA) filed a fraud complaint with the AG's office against Mexicana's then-owner hotel operator Grupo Posadas and Borja. "We're waiting for those responsible for the crisis affecting Mexicana to be punished for it," ASPA leader Fernando Perfecto said, Herald Tribune relates. The report notes that Mr. Perfecto said that in addition to the fraud complaint, which was supported by documents filed as part of the bankruptcy proceedings, ASPA also sued Grupo Posadas for alleged violations of securities law, accusing it of hiding "relevant" information pertaining to its handling of the airline's shares. About Mexicana Airlines Compania Mexicana de Aviacion or Mexicana Airlines -- http://www.mexicana.com/--is a privately held airline and a subsidiary of Nuevo Grupo Aeronautico. Founded in 1921, Mexicana is the oldest commercial carrier in North America. Charles Lindbergh piloted the first trip for Mexicana between Brownsville, Texas, and Mexico City. Grupo Mexicana de Aviacion is the parent of Compania Mexicana. Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click) and Mexicana Inter S.A. de C.V. (Mexicana Link). Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's largest airline, filed for bankruptcy in the U.S. and Mexico on Aug. 2, 2010. In the U.S., the company filed in the U.S. Bankruptcy Court in Manhattan for Chapter 15 bankruptcy protection (case no. 10-14182), and in Mexico, it filed for the equivalent of Chapter 11. Maru E. Johansen, foreign representative of Compania Mexicana, estimated in the Chapter 15 petition that the company has assets of US$500 million to US$1 billion and debts of more than US$1 billion. William C. Heuer, Esq., at Duane Morris LLP, serves as counsel to Ms. Johansen. Mexicana de Aviacion stated that despite its bankruptcy filing, it expects to continue to operate normally, and that such filings did not affect the operations of Click Mexicana and Mexicana Link, which are independent companies from Mexicana de Aviacion. RMBS CREYCB: Moody's Cuts Ratings on CREYCB 06U to 'B1(sf)' ----------------------------------------------------------- Moody's de Mexico S.A. de C.V. has downgraded its ratings on CREYCB 06U certificates to B1(sf) (Global Scale, Local Currency) from Ba1(sf) and to Baa2.mx(sf) (National Scale Rating) from A1.mx(sf). The ratings on CREYCB 06-2U (Class B certificates) of Ca(sf) (Global Scale, Local Currency) and Ca.mx(sf) (National Scale) are not affected. The downgrade to CREYCB 06U ratings is due to the increased pressures on timely payment of interest to senior certificates holders. This is a result of the consistent deterioration of the mortgage pool reflected by rising delinquencies and of higher operational expenses, related mostly to collection costs. The downgrade also reflects the slow pace of foreclosures and REO sales relative to the pool's high delinquency. Originator: Hipotecaria Credito y Casa S.A. de C.V., SOFOL Issuer: Banco Invex S.A., Institucion de Banca Multiple, solely as trustee Primary Servicer: ABC Capital, S.A., Institucion de Banca Multiple -- Class A certificates CREYCB 06U ratings downgraded to B1(sf) (Global Scale, Local Currency) from Ba1(sf) and to Baa2.mx(sf) (National Scale Rating) from A1.mx(sf) Ratings Rationale Pool performance deteriorated steadily last year. Past due loans (+90 days) and Real Estate Owned (REO) assets now account for 29.4% of the original pool balance; up from 25.4% the previous year. Geographical concentration also increased, with the states Baja California and Jalisco accounting for 33.9% of the outstanding balance of current loans, but 47.5% of the outstanding balance of total delinquent loans. This indicates that specific factors in those states may be causing rapid migration in non-performing loans from early to late delinquencies and reducing cash flows collections to the trust. At the same time, servicing fees are higher than historical levels and the trustee is making monthly reimbursements to the servicer for costs related to REO management. The ongoing deterioration in pool performance, coupled with the increase in trust expenses, resulted in insufficient interest collections in December 2011 for interest payments on the CREYCB 06U and CREYCB 06-2U certificates. Under the transaction documents, the trustee makes the payments on the certificates according to a dual waterfall, using the interest collections (net of fees and expenses) to pay interest on the certificates, and the principal collections to pay down the principal. The trustee has had to use funds in a cash reserve, which contains one month's of interest payments for the Class A and B certificates twice during the last three months to cover interest shortfalls. As of December 2011, the reserve contained an amount equivalent to approximately 75% of the monthly interest payments for both certificates. The interest coverage ratio (ICR) for the CREYCB 06U debt certificates, calculated by dividing interest collections (net of fees and expenses) by the interest on the senior certificates, has been declining to between 0.98 times and 1.30 times in the last twelve months. Moody's considers this level to be somewhat low and volatile in comparison to other Mexican RMBS. If cashflows from interest collections continue to decline or collection costs remain higher than historical levels, the net interest collections available to make interest payments will remain insufficient, resulting in the continued use of the reserve funds and the potential failure to make full interest payments on the certificates. The primary servicer's efforts to improve collections and recoveries on early and late delinquent loans will be key to restoring collections to levels sufficient to make the payments. As of March 2011, the servicer had obtained all the necessary authorizations to initiate repossession procedures and complete REO sales. This should result in a higher number of REOs in the future, which should translate into higher collections. However, according to the transaction documents cashflows from REO sales can be used for principal payments only. In addition, the foreclosure and sale process can increase operational expenses (including servicing fees), which would further reduce interest collections available to pay interest on the certificates. Moody's may have to again downgrade the CREYCB 06U ratings if the ICR continues to decline or the pool performance metrics deteriorate further. Credit protection for CREYCB 06U is adequate for the B1(sf)/ Baa2.mx(sf) ratings. Moody's projected net loss for this transaction is 27.4% of the outstanding balance of the loan pool, assuming a severity of loss of 50.0%. This compares to a projected lifetime credit enhancement, including overcollateralization, remaining excess spread and cash reserves, equivalent to 30.4% of the outstanding balance. Moody's notes that the ratings of the certificates are highly sensitive to the amounts to be recovered from REO sales. The uncertainty surrounding recoveries is considerable, given the limited number of REO sales completed to date. In monitoring this transaction, Moody's assumes that recoveries will be equivalent to 50% of the current loan amount, which already incorporates the fact that the pool benefits from SHF's mortgage insurance will be equivalent to around 24.9% of the current pool balance. In addition, the servicing agreement will expire in 2013 and it will have to be extended or a new servicer will have to be found, which compounds the uncertainty regarding the operational aspects of the transaction. When rating mortgage backed securitizations in Mexico, Moody's prepares a loan-by-loan cash flow analysis that takes into account scheduled interest and principal collections on the mortgages, a distribution of cumulative gross default scenarios on the mortgage portfolio, severity and recovery rate assumptions, an assumed cumulative prepayment percentage, the priority of payments due to investors, and any particular characteristics of the transaction such as credit enhancement levels, reserves, and any type of guarantee benefiting the Note holders. The main assumptions underlying Moody's expectations of the future performance of the collateral are the cumulative gross default percentage, the cumulative prepayment percentage, and the severity of loss given a loan default. For cumulative gross defaults, Moody's uses a triangular distribution stressing the mortgage cash flows in a range of default scenarios and timing defaults along a default curve. The assumed severity of loss on defaulted loans takes into account numerous variables, including, but not limited to, the balance of the loan at the time of default, recovery lags, and downward adjustments to the original property value to stress the value of the property at liquidation. For each of the cumulative gross default scenarios, Moody's allocates the available cash flows according to the priority of payments stipulated in the transaction documents. Moody's applies varying weights, or probabilities of occurrence, to each of the cumulative gross default scenarios according to the triangular distribution to arrive at an aggregate weighted average expected loss on the notes. Moody's also calculates a weighted average life for the notes, which together with its weighted average loss and idealized loss tables, it uses to assign a rating to the notes. =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: CDB Warns Barbados Cannot Afford to Bail Out Firm ----------------------------------------------------------- Caribbean360.com reports that Caribbean Development Bank (CDB) President Dr. Warren Smith warned the Barbados government that the country cannot afford to dig deep to bail out Colonial Life Insurance Company (Trinidad) Limited. CLICO is a subsidiary of CL Financial Limited. "I don't think that the Government of Barbados is in any position to be able to dig deep to come up with resources to bail out either their own or the Eastern Caribbean countries, and the Eastern Caribbean countries can't afford to do that," Caribbean360.com quoted Dr. Smith as saying. Dr. Smith added that he did not see any solutions to the CLICO situation that were either practical or affordable, according to Caribbean360.com. The report notes that CDB is a part of a committee trying to seek a solution to the situation which unfolded when CL Financial in Trinidad collapsed in 2009, and has tabled numerous solutions to resolve the British American Insurance problem. Caribbean360.com discloses that Dr. Smith warned, the solution to the problem will be a very expensive one, and the committee is recommending a burden-sharing approach between Trinidad and the Eastern Caribbean countries. However, Dr. Smith also made it clear that any attempt by countries to bail out all CLICO and British American policyholders and investors using state funds will be a dangerous undertaking, 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. *********** 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, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. 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 Peter Chapman at 240/629-3300. * * * End of Transmission * * *