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/raid1/www/Hosts/bankrupt/TCRLA_Public/120316.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, March 16, 2012, Vol. 13, No. 055 Headlines A R G E N T I N A FIDEICOMISO FINANCIERO: Moody's Rates ARS4.8MM Certs. at 'Caa2' C A Y M A N I S L A N D S BLUECUBE FUND: Shareholders' Final Meeting Set for March 26 BLUECUBE MASTER: Shareholders' Final Meeting Set for March 26 DIAMOND INC: Shareholder to Receive Wind-Up Report on March 29 DILMUN CAPITAL II: Shareholders' Final Meeting Set for March 30 FAIRFIELD RAVEN: Shareholders Receive Wind-Up Report GRENDEL LIMITED: Members Final Meeting Set for March 28 IKESEI ASSET: Shareholders' Final Meeting Set for March 30 IKESEI FUND: Shareholders' Final Meeting Set for March 30 KING SJOERD: Members Final Meeting Set for March 28 MEZZANINE CAPITAL: Shareholders' Final Meeting Set for March 19 PATEO INTERNATIONAL: Member to Hear Wind-Up Report on March 27 PENGANA GLOBAL: Shareholders' Final Meeting Set for March 30 PENGANA GLOBAL MASTER: Shareholders' Meeting Set for March 30 SAKS LIMITED: Members' Final Meeting Set for March 22 SCHEVENINGEN (NO.1): Members Final Meeting Set for March 28 T R I N I D A D & T O B A G O CL FIN'L: Special US$75 Million Fund to Help OECS Policyholders TRINIDAD CEMENT: Cement Shortage Cripples T&T Construction Sector V E N E Z U E L A * VENEZUELA: Moody's Affirms 'B1' Government Bond Rating - - - - - ================= A R G E N T I N A ================= FIDEICOMISO FINANCIERO: Moody's Rates ARS4.8MM Certs. at 'Caa2' --------------------------------------------------------------- Moody's Latin America has assigned ratings to the debt securities and certificates of Fideicomiso Financiero Supervielle Creditos 58. This transaction will be issued by Deutsche Bank (Argentina) S.A. - acting solely in its capacity as Issuer and Trustee. Moody's notes that as of March 13, the securities contemplated by this transaction have not yet settled. If any assumptions or factors considered by Moody's in assigning the ratings change before closing, Moody's could change the ratings assigned to the notes. - ARS37,200,000 in Class A Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 58", rated Aaa.ar (sf) (Argentine National Scale) and Ba1 (sf) (Global Scale, Local Currency) - ARS60,000,000 in Class B Floating Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 58", rated Aaa.ar (sf) (Argentine National Scale) and Ba1 (sf) (Global Scale, Local Currency) - ARS18,000,000 in Class C Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 58", rated Aa2.ar (sf) (Argentine National Scale) and B1 (sf) (Global Scale, Local Currency) - ARS4,800,000 in Certificates of "Fideicomiso Financiero Supervielle Creditos 58", rated Caa2.ar (sf) (Argentine National Scale) and Caa3 (sf) (Global Scale, Local Currency) Ratings Rationale The rated securities are payable from the cash flow coming from the assets of the trust, which is an amortizing pool of approximately 26,667 eligible personal loans denominated in Argentine pesos, with a fixed interest rate, originated by Banco Supervielle, in an aggregate amount of ARS 120,020,530.04. These personal loans are granted to pensioners that receive their monthly pensions from ANSES (Argentina's National Governmental Agency of Social Security - Administracion Nacional de la Seguridad Social). The pool is also constituted by loans granted to government employees of the Province of San Luis. Banco Supervielle is the payment agent entity and automatically deducts the monthly loan installment directly from the employee's paycheck and pensioner's payment. Overall credit enhancement is comprised of subordination: 69% for the Class A Fixed Rate Debt Securities, 19% for the Floating Rate Securities and 4% for the Class C Fixed Rate Securities. In addition the transaction has various reserve funds and excess spread. Moody's considered the credit enhancement provided in this transaction through the initial subordination levels for each rated class, as well as the historical performance of Supervielle's portfolio. In addition, Moody's considered factors common to consumer loans securitizations such as delinquencies, prepayments and losses; as well as specific factors related to the Argentine market, such as the probability of an increase in losses if there are changes in the macroeconomic scenario in Argentina. These factors were incorporated in a cash flow model that takes into account all the relevant features of the transaction's assets and liabilities. Monte Carlo simulations were run, which determines the expected loss for the rated securities. Moody's considered factors common to consumer loans securitizations such as delinquencies, prepayments and losses; as well as specific factors related to the Argentine market. These factors were incorporated in a cash flow model in order to determine the expected loss for the rated securities. Finally, Moody's also evaluated the back-up servicing arrangements in the transaction. In assigning the rating to this transaction, Moody's assumed a triangular distribution for defaults on the main pool centered around a most likely scenario of 10%, a minimum of 5% and a maximum of 20%. Also, Moody's assumed a triangular distribution for prepayments centered around a most likely scenario of 20%, a minimum of 15% and a maximum of 35%. These assumptions are derived from the historical performance to date of the Supervielle's pools. The model results showed 0.00% expected loss for Class A Fixed Rate Debt Securities and Class B Floating Rate Debt Securities, 4.55% expected loss for Class C Fixed Rate Debt Securities and 37.89% for the Certificates. Moody's ran several stress scenarios, including increases in the default rate assumptions. If default rates were increased 6% from the base case scenario for the pool (i.e., most likely scenario of 16%, a minimum of 11% and a maximum of 26%), the ratings of the Classes A and Class B. The ratings for Class C Fixed Rate debt securities and Certificates would be likely downgraded to Caa3 (sf) and C (sf) respectively. Moody's also considered the risk that a disruption in the flow of payments from ANSES or the Government of San Luis to pensioners and employees respectively, could severely affect the performance of the pool. Moody's believes that the ratings assigned are consistent with this risk. Finally, Moody's also evaluated the back-up servicing arrangements in the transaction. If Banco Supervielle is removed as servicer, Deutsche Bank (Argentina) S.A. will be appointed as the back-up servicer. The main source of uncertainty for this transaction is the regulatory and legal framework for the automatic deduction loans in Argentina. =========================== C A Y M A N I S L A N D S =========================== BLUECUBE FUND: Shareholders' Final Meeting Set for March 26 ----------------------------------------------------------- The shareholders of Bluecube Fund Limited will hold their final meeting on March 26, 2012, at 11:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: John Sutlic Intertrust (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034 Grand Cayman KYI 1102 Cayman Islands BLUECUBE MASTER: Shareholders' Final Meeting Set for March 26 ------------------------------------------------------------- The shareholders of Bluecube Master Fund Limited will hold their final meeting on March 26, 2012, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: John Sutlic Intertrust (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034 Grand Cayman KYI 1102 Cayman Islands DIAMOND INC: Shareholder to Receive Wind-Up Report on March 29 -------------------------------------------------------------- The shareholder of Diamond Inc will receive on March 29, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 PO Box 694 Grand Cayman Cayman Islands DILMUN CAPITAL II: Shareholders' Final Meeting Set for March 30 --------------------------------------------------------------- The shareholders of Dilmun Capital II, Limited will hold their final meeting on March 30, 2012, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands FAIRFIELD RAVEN: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Fairfield Raven Credit Opportunities Fund Ltd. received on March 12, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands GRENDEL LIMITED: Members Final Meeting Set for March 28 ------------------------------------------------------- The members of Grendel Limited will hold their final meeting on March 28, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bernard McGrath 69 Dr. Roy's Drive PO Box 1043, George Town Grand Cayman KY1 1102 Cayman Islands IKESEI ASSET: Shareholders' Final Meeting Set for March 30 ---------------------------------------------------------- The shareholders of Ikesei Asset Ltd. will hold their final meeting on March 30, 2012, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands IKESEI FUND: Shareholders' Final Meeting Set for March 30 --------------------------------------------------------- The shareholders of Ikesei Fund Ltd. will hold their final meeting on March 30, 2012, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands KING SJOERD: Members Final Meeting Set for March 28 --------------------------------------------------- The members of King Sjoerd Limited will hold their final meeting on March 28, 2012, at 12:00 noon, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bernard McGrath 69 Dr. Roy's Drive PO Box 1043, George Town Grand Cayman KY 1102 MEZZANINE CAPITAL: Shareholders' Final Meeting Set for March 19 --------------------------------------------------------------- The shareholders of Mezzanine Capital Corporation Limited will hold their final meeting on March 19, 2012, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David A.K. Walker c/o Paul Anderton Telephone: (345) 914 8694 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands PATEO INTERNATIONAL: Member to Hear Wind-Up Report on March 27 -------------------------------------------------------------- The member of Pateo International Group Co., Ltd. will receive on March 27, 2012, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Yhang Yan No. 27C, Zhaofenghuanqiu Tower 1800 Shanxi Road, Shanghai China Telephone: 0086-18616577668 Facsimile: 0086-2164400307 PENGANA GLOBAL: Shareholders' Final Meeting Set for March 30 ------------------------------------------------------------ The shareholders of Pengana Global Volatility (Offshore) Fund will hold their final meeting on March 30, 2012, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 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 PENGANA GLOBAL MASTER: Shareholders' Meeting Set for March 30 ------------------------------------------------------------- The shareholders of Pengana Global Volatility Master Fund will hold their final meeting on March 30, 2012, at 10:20 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 SAKS LIMITED: Members' Final Meeting Set for March 22 ----------------------------------------------------- The members of Saks Limited will hold their final meeting on March 22, 2012, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands SCHEVENINGEN (NO.1): Members Final Meeting Set for March 28 ----------------------------------------------------------- The members of Scheveningen (No.1) will hold their final meeting on March 28, 2012, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bernard McGrath 69 Dr. Roy's Drive PO Box 1043, George Town Grand Cayman KY 1102 =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: Special US$75 Million Fund to Help OECS Policyholders --------------------------------------------------------------- Trinidad Express reports Dominica Prime Minister Roosevelt Skerrit said that the Organization of Eastern Caribbean States (OECS) will continue holding talks with the Trinidad and Tobago government over the establishment of a special fund to assist policyholders affected by the collapse of insurance giant Colonial Life Insurance Company (CLICO). Mr. Skerrit said that the issue had been discussed between OECS leaders and Prime Minister Kamla Persad-Bissessar during the just-concluded 23rd Inter-sessional meeting of Caricom leaders in Suriname, according to Trinidad Express. The report relates that Mr. Skerrit said the meeting was to help the OECS address the issue of the collapse of British American Insurance Company (BAICO) and CLICO. "We have gotten some form of commitment, we have not been able to identify with Trinidad and Tobago the full amount of EC$150 million (US$55.5 million), and I think we got to about 74 million dollars (US$27.4 million). . . . So we have to further engage them to see where we could get the EC$76 million (US$28.1 million) and of course the OECS will put in about US$75 million (US$27.7 million) to create this special fund in an effort to assisting the people," the report quoted Mr. Skerrit as saying. 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. TRINIDAD CEMENT: Cement Shortage Cripples T&T Construction Sector ----------------------------------------------------------------- RJR News reports that despite receiving a shipment of cement from Jamaica, the construction sector in Trinidad and Tobago remains hard hit by the strike at Trinidad Cement Limited. Jamaica delivered four thousand tons of cement to the twin island republic last week, according to RJR News. However, the report says that the prolonged disruption at TCL is threatening the viability of the country's construction industry. RJR News notes that several projects are reportedly on hold as a result of the shortage of cement. The report relates that some contractors have turned to the black market for cement to ensure deadlines are met. As reported in the Troubled Company Reporter-Latin America on March 5, 2012, RJR News said that Trinidad Cement Limited will import cement from Jamaica as the strike by workers keeps its operations closed. It will also import supplies from Barbabos, according to RJR News. The report noted that TCL said it had arranged to get supplies from its Caribbean Cement subsidiary in Jamaica and Arawak plant in Barbados to minimize the impact of the industrial impasse. The report said that TCL said it will distribute the product throughout Trinidad and Tobago so that customers have access. Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 5, 2011, RJR News reports that Trinidad Cement Limited has now reached an agreement with its debtors on the terms and conditions attached to the repayment of its debt. The agreement will convert most of the company's debt into an 8-year facility, to be paid, quarterly, from March 2013, according to RJR News. The report related that deal also includes certain performance criteria for repaying the debt and if those are not met, the company will be penalized. ================= V E N E Z U E L A ================= * VENEZUELA: Moody's Affirms 'B1' Government Bond Rating -------------------------------------------------------- Moody's Investors Service affirmed Venezuela's B1 local currency government bond rating and B2 foreign currency government bond rating. The outlook for both ratings is stable. The affirmation of the government bond ratings considered Moody's "Sovereign Methodology Update: Narrowing the Gap -- a Clarification of Moody's Approach to Local Vs. Foreign Currency Bond Ratings." While Moody's analysis of sovereign defaults over the past two decades indicates that governments are in general equally likely to default on their domestic and foreign currency obligations, the methodology update states that distinctions between foreign and local currency government bond ratings may be maintained if and when: 1) capital mobility is limited and 2) there is evidence of bias in a government's ability and/or willingness to service debt in a particular currency. In the case of Venezuela, capital controls coupled with the government's tight control over foreign exchange earnings (as PDVSA, the state oil company, accounts for the 95% of the country's exports) satisfy the first condition and limit the risk of spillover from the foreign currency side to the local currency side of the government's balance sheet. The second condition is satisfied by the government's ability to finance itself domestically at significantly negative real interest rates coupled with the central bank's demonstrated willingness to monetize the government deficits. In addition, though the Chavez administration has never threatened to default on foreign currency obligations, its political posturing nevertheless raises questions about its willingness to pay them. While the percentage of Venezuela's debt denominated in foreign currency has fallen, it remains above 50% and will rise once the country devalues its currency, which is expected in 2013. Furthermore, although Venezuela does not currently face an external liquidity constraint given large and recurring current account surpluses and significant external financial assets, the ongoing decline in the foreign exchange reserves could become problematic in the event that oil prices drop sharply at a time when the government's faces higher refinancing requirements. Ratings Rationale Venezuela's ratings reflect underlying credit challenges that include very weak institutions, a lack of transparency in the government accounts, heavy oil dependence of both government revenues and foreign exchange earnings, growing macroeconomic and fiscal imbalances, and increasing economic distortions. These conditions are partially offset by persistent current account surpluses, the world's largest oil reserves, relatively moderate government and external debt levels, and the benefits to the government's fiscal accounts that are expected to derive from a devaluation of the currency. The stable outlook incorporates the expectation that oil prices will remain relatively elevated and oil production stable. A more predictable policy framework would support higher sustainable economic growth and could put upward pressure on the rating, as could more sustainable fiscal performance driven by improved management of oil resources and/or tighter control of expenditures. Conversely, an accelerated deterioration of the government's financial position driven by higher spending or a sudden drop in oil prices could place downward pressure on the ratings. Concurrent with this action, Moody's has adjusted Venezuela's country ceilings. Local currency bond and deposit ceilings have been lowered to Ba3 from A3 and Baa1, respectively. The foreign currency bond ceiling has been lowered to B2 from B1. The foreign currency deposit ceiling has been affirmed at B3. The lower country ceilings capture the strong control exercised by the Venezuelan government over foreign currency, which limits the access to foreign currency of other domestic entities. They also acknowledge the strong indirect linkages between the government's ability to service its domestic debt and that of other domestic entities through their joint dependence on the real economy, shared institutional framework, and vulnerability to many common event risks, as well as the high level of government interference in the private sector. The principal methodology used in this rating was Sovereign Bond Ratings published in September 2008. *********** 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 * * *