/raid1/www/Hosts/bankrupt/TCRLA_Public/120411.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, April 11, 2012, Vol. 13, No. 072
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L: Receiver Fights Investors Over Pay Increase
A R G E N T I N A
FRUTIHORTICOLA SAN NICOLAS: Creditors' Proofs of Debt Due May 8
KAPNEC SA: Asks for Bankruptcy Proceedings
METROPOLIS COMPANIA: Moody's Assigns (p)B3 Long-Term Debt Ratings
PL RIVERO: Creditors' Proofs of Debt Due June 4
TEXTIL CHON-HA: Creditors' Proofs of Debt Due May 10
B A R B A D O S
REDJET: Guyana Lets Airline Keep License
G U A T E M A L A
BANCO INDUSTRIAL: S&P Affirms Issuer Credit Ratings at 'BB/B'
M E X I C O
VITRO SAB: U.S. Trial on Enforcement of Plan Set for June 4
T R I N I D A D & T O B A G O
TRINIDAD CEMENT: Unions Seek International Aid to Stop Supplies
V I R G I N I S L A N D S
FAIRFIELD SENTRY: Liquidator Files Nine New Suits
- - - - -
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A N T I G U A & B A R B U D A
===============================
STANFORD INT'L: Receiver Fights Investors Over Pay Increase
-----------------------------------------------------------
Andrew Harris and Tom Korosec at Bloomberg News report that
Robert Allen Stanford's court-appointed receiver Ralph Janvey and
his counsel asked U.S. District Judge David Godbey to increase
the amount of money he and his team of professionals can get for
marshaling and liquidating the financier's assets. Mr. Stanford
is the owner of Stanford International Bank Limited.
Mr. Stanford's defrauded investors, who haven't been repaid any
of the US$7 billion owed to them, however, opposed the motion,
according to Bloomberg.
Bloomberg notes that Mr. Janvey's outside counsel, Kevin Sadler,
argued that the receiver's team has been working at the same pay
rates since 2009. The report relates that Mr. Sadler also said
investors might have as much as US$1 billion more to recover if
the U.S. Securities and Exchange Commission sued Mr. Stanford
sooner than February 2009.
Bloomberg discloses that Mr. Janvey, whom Judge Godbey appointed
in February 2009 -- four months before Stanford was indicted --
and his outside professionals, including Baker Botts LLP (1143L),
have been paid more than US$52 million. That sum doesn't include
a court-imposed US$16 million hold-back, the report relays.
Between February 2009 and Oct. 31, 2011, the receivership accrued
US$211.1 million in cash and assets, while spending US$102.4
million on litigation, wind-down costs, professional fees and
other expenses, Bloomberg recalls.
Bloomberg notes that Messrs. Janvey and Sadler on March 9 asked
Judge Godbey to reduce the hold-back from 20% to 10%. They also
asked the court to allow them to reduce their billing discount
from 20% to 10%, Bloomberg adds.
Meanwhile, Bloomberg relates, Mr. Sadler said his regular hourly
rate has been trimmed to US$555 from US$750, while Mr. Janvey --
who regularly charges his clients US$500 an hour -- has been
billing US$340 an hour on the Stanford case and then discounting
that by 20%.
About Stanford International Bank
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under
management or advisement. Stanford Private Wealth Management
serves more than 70,000 clients in 140 countries.
On Feb. 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and
records of Stanford International Bank, Ltd., Stanford Group
Company, Stanford Capital Management, LLC, Robert Allen Stanford,
James M. Davis and Laura Pendergest-Holt and of all entities they
own or control. The February 16 order, as amended March 12,
2009, directs the Receiver to, among other things, take control
and possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.
The U.S. Securities and Exchange Commission, on Feb. 17, charged
before the U.S. District Court in Dallas, Texas, Mr. Stanford and
three of his companies for orchestrating a fraudulent, multi-
billion dollar investment scheme centering on an US$8 billion
Certificate of Deposit program.
A criminal case was pursued against him in June before the U.S.
District Court in Houston, Texas. Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice. Assistant Attorney
General Lanny Breuer, as cited by Agence France-Presse News, said
in a 57-page indictment that Mr. Stanford could face up to 250
years in prison if convicted on all charges. Mr. Stanford
surrendered to U.S. authorities after a warrant was issued for
his arrest on the criminal charges.
The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is
SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S.
District Court, Northern District of Texas (Dallas).
=================
A R G E N T I N A
=================
FRUTIHORTICOLA SAN NICOLAS: Creditors' Proofs of Debt Due May 8
---------------------------------------------------------------
Eduardo Hector Caggiano, the court-appointed trustee for
Frutihorticola San Nicolas SRL's bankruptcy proceedings, will be
verifying creditors' proofs of claim until May 8, 2012.
The Trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 51, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Eduardo Hector Caggiano
San Martin 66
Argentina
KAPNEC SA: Asks for Bankruptcy Proceedings
------------------------------------------
Kapnec SA asked for bankruptcy proceedings.
The company has defaulted on its payments last May 3, 2010.
METROPOLIS COMPANIA: Moody's Assigns (p)B3 Long-Term Debt Ratings
-----------------------------------------------------------------
Moody's Investors Service assigned a (p)B3 long term global local
and foreign currency debt ratings to Metropolis Compania
Financiera S.A.'s debt program of AR$100 million or its
equivalent in other currencies. The first takedown under the
program up to AR$20 million, which will be due in 365 days, was
also rated B3. On the national scale, the program was rated A3.ar
in local and foreign currency, and an A3.ar was also assigned to
the first takedown.
The outlook of the debt rating is stable.
The following ratings were assigned to Metropolis Compania
Financiera S.A:
AR$ 100 million senior unsecured debt program:
(P)B3 Global Local Currency Debt Rating
A3.ar Argentina National Scale Local Currency Debt Rating
(P)B3 Global Foreign Currency Debt Rating
A3.ar Argentina National Scale Foreign Currency Debt Rating
AR$ 20 million senior unsecured debt issuance:
B3 Global Local Currency Debt Rating
A3.ar Argentina National Scale Local Currency Debt Rating
Ratings Rationale
Moody's explained that the local currency senior unsecured debt
rating derives from Metropolis' B3 global local currency deposit
rating. Moody's also noted that seniority was taken into
consideration in the assignment of the debt ratings.
Metropolis Compania Financiera S.A is headquartered in Buenos
Aires, Argentina, and reported Ar$160.5 million of total assets
and Ar$ 32.8 million of shareholders' equity as of December 31,
2011.
PL RIVERO: Creditors' Proofs of Debt Due June 4
-----------------------------------------------
Estudio Sacca, Jozpa, Maroncolli y Asociados, the court-appointed
trustee for P.L. Rivero y Cia. SA's reorganization proceedings,
will be verifying creditors' proofs of claim until June 4, 2012.
The Trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 18 in Buenos Aires, with the assistance of Clerk
No. 35, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
Creditors will vote to ratify the completed settlement plan
during the assembly on March 1, 2013.
The Trustee can be reached at:
Estudio Sacca, Jozpa, Maroncolli y Asociados
Riobamba 1234
Argentina
TEXTIL CHON-HA: Creditors' Proofs of Debt Due May 10
----------------------------------------------------
Andres Landro, the court-appointed trustee for Textil Chon-Ha
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until May 10, 2012.
The Trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk
No. 15, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Andres Landro
Espinosa 1474
Argentina
===============
B A R B A D O S
===============
REDJET: Guyana Lets Airline Keep License
----------------------------------------
Trinidad Express reports that the Guyana government is leaving
the door open for REDjet (Airone Caribbean/Airone Ventures
Limited) to resume its flights, saying it will not revoke the
carrier's license.
Trinidad Express, citing The Demerara Waves Online News Service
reported, relates that Cabinet Secretary Dr. Roger Luncheon told
reporters there's no need for the country to take such action.
"I don't know it's possible that Guyana might, but then again, we
don't have to because REDjet is not flying so we don't need to.
I don't believe that you're going to pile on unnecessary agony
because once you revoke it, you've got to go through the whole
process of providing them once more with the license," the report
quoted Mr. Luncheon as saying.
Trinidad Express notes that Mr. Luncheon's comments follow those
of Antigua and Barbuda's Tourism Minister John Maginley, who said
his government is not contemplating withdrawing REDjet's licence.
As reported in the Troubled Company Reporter-Latin America on
April 2, 2012, Trinidad Express said that Trinidad and Tobago
Transport Minister Devant Maharaj said REDjet's license to fly
has been revoked by the Trinidad and Tobago Civil Aviation
Authority (TTCAA), since the Barbados Civil Aviation Department
(BCAD) by letter dated March 20, had advised REDjet that they
were suspending the Air Operators Certificate (AOC) issued the
airline. Mr. Maharaj noted that the suspension of REDjet's AOC
by the BCAD would therefore invalidate Section 6 (1) (a) of the
TTCAA regulations, which states that as one of the conditions to
grant a provisional license is that the carrier has a valid AOC
issued by the foreign authority, according to Trinidad Express.
The report noted that Mr. Maharaj said the TTCAA had written to
REDjet on March 28, requesting the airline to respond within 14
days as to why the provisional license issued to REDjet should
not be revoked or cancelled. Trinidad Express related that the
TTCAA also questioned whether REDjet had the capacity and ability
to provide a continuous and reliable service.
About REDjet
REDjet (Airone Caribbean/Airone Ventures Limited) is a startup
low-cost carrier (LCC) based at the Grantley Adams International
Airport in Christ Church, Barbados, near Bridgetown.
Incorporated in Barbados, the privately owned airline features a
fleet of McDonnell Douglas MD-82 and MD-83 aircraft.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 26, 2012, RJR News reports that REDjet's decision to
suspend all flights came a day after the airline announced the
addition of its new route to Antigua and Barbuda. REDjet
officials are calling on the Barbadian government for close to
$8,000,000 in assistance, and to receive the same subsidies as
other airlines, RJR News noted. The report disclosed that Mr.
Maharaj said governments cannot continue to expose themselves as
a guarantor to private enterprises.
=================
G U A T E M A L A
=================
BANCO INDUSTRIAL: S&P Affirms Issuer Credit Ratings at 'BB/B'
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its issuer credit
ratings on Guatemala-based commercial bank Banco Industrial S.A.
(BI) at 'BB/B'. The outlook remained negative.
The stand-alone credit profile (SACP) remains unchanged at 'bb+'.
"The ratings reflect BI's 'strong' business position within the
Guatemalan banking system, which in our view has a low level of
financial penetration, 'moderate' capital and earnings, and
'moderate' risk position," S&P said.
"Even though the bank relies on a stable and growing customer
deposit base, we believe it has a similar funding and liquidity
profile as the rest of the industry in Guatemala," said Standard
& Poor's credit analyst Laurence Wattraint.
This results in "average" funding and "adequate" liquidity.
"We limit the ratings on the bank by our ratings on the Republic
of Guatemala (foreign currency: BB/Negative/B; local currency:
BB+/Negative/B) because we believe it does not meet the
conditions our bank criteria specify for us to rate it higher
than the sovereign," S&P said.
"Our outlook on BI is negative, mirroring that on Guatemala. We
could lower the ratings if we downgraded the sovereign. If we
revised the outlook on the sovereign to stable, we would do the
same on BI," S&P said.
Ratings Score Snapshot
To From
Issuer Credit Rating BB/Negative/B
BB/Negative/B
SACP bb+ bb+
Anchor bb+ bb+
Business Position Strong (+1) Strong (+1)
Capital and Earnings Moderate (0) Moderate(0)
Risk Position Moderate (-1) Moderate(-1)
Funding and Liquidity Average and Average and
Adequate(0) Adequate (0)
Support 0 0
GRE Support 0 0
Group Support 0 0
Sovereign Support 0 0
Additional Factors -1 -1
===========
M E X I C O
===========
VITRO SAB: U.S. Trial on Enforcement of Plan Set for June 4
-----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Vitro SAB must convince a U.S. bankruptcy judge at a
trial beginning June 4 that the procedure used by the Mexican
court in approving the company's reorganization "meets the
fundamental standards of fairness in the U.S." Bondholders have
opposed the Mexican reorganization, saying it was improperly
based on US$1.9 billion in insider votes to overcome opposition
from holders of some of the US$1.2 billion in defaulted bonds.
According to the report, U.S. Bankruptcy Judge Harlin "Cooter"
Hale in Dallas said in a ruling April 4 that he will determine at
the June trial whether enforcing the Mexican reorganization
"would be manifestly contrary to the public policy of the U.S."
Mr. Rochelle notes that Judge Hale may never have a chance to
rule, in view of appeals the bondholders are taking in two other
courts. In an appeal to be argued on May 1, the U.S. Court of
Appeals in New Orleans might reach the question of whether the
Mexican plan violates notions of fairness and thus shouldn't be
enforced in the U.S. The bondholders are also appealing Judge
Hale's ruling from last year that gave Vitro protection in
Chapter 15. On April 5, U.S. District Judge A. Joe Fish in Dallas
asked both sides to submit more papers on the question of whether
Vitro's two foreign representatives meet the statutory standard
required to sustain a Chapter 15 case.
The suit in bankruptcy court to decide if the Mexican
reorganization will be enforced in the U.S. is Vitro SAB de CV
v. ACP Master Ltd. (In re Vitro SAB de CV), 12-03027, U.S.
Bankruptcy Court, Northern District Texas (Dallas). The
bondholders' appeal in the circuit court is Ad Hoc Group of
Vitro Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV),
11-11239, U.S. Court of Appeals for the Fifth Circuit (New
Orleans). The bondholders' appeal of Chapter 15 recognition is
Ad Hoc Group of Vitro Noteholders v. Vitro SAB de CV (In re
Vitro SAB de CV), 11-02888, U.S. District Court, Northern
District of Texas (Dallas).
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. But an appellate court in Mexico
reinstated the reorganization in April 2011. Following the
reinstatement, Vitro SAB on April 14, 2011, 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 received sufficient acceptances of its
reorganization by using the US$1.9 billion in debt owing to
subsidiaries to vote down opposition by bondholders. The holders
of US$1.2 billion in defaulted bonds opposed the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full.
Vitro announced in March 2012 that it has implemented the
reorganization plan approved by a judge in Monterrey, Mexico.
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.
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.
U.S. subsidiaries of Vitro SAB are having their cases converted
to liquidations in Chapter 7, court records in January 2012 show.
In December, the U.S. Trustee in Dallas filed a motion to convert
the subsidiaries' cases to liquidations in Chapter 7. The
Justice Department's bankruptcy watchdog said US$5.1 million in
bills were run up in bankruptcy and hadn't been paid.
===============================
T R I N I D A D & T O B A G O
===============================
TRINIDAD CEMENT: Unions Seek International Aid to Stop Supplies
---------------------------------------------------------------
RJR News reports that unions supporting the Oilfields Workers'
Trade Union, which is leading the strike at Trinidad Cement
Limited have sought help from their international counterparts to
prevent shipments of cement from reaching the twin island
republic.
Seamen and Waterfront Workers Trade Union President, Michael
Annisette, made the revelation as he joined several other trade
union heads at the strike camp in front TCL's Claxton Bay plant
to show solidarity with workers, according to RJR News.
The report relates that a call was also made to the Trinidadian
government to buy out shares in Trinidad Cement.
RJR News says that Mr. Annisette said the Unions will resist
efforts by TCL to use local ports to bring in cement
About Trinidad Cement
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 I R G I N I S L A N D S
==========================
FAIRFIELD SENTRY: Liquidator Files Nine New Suits
-------------------------------------------------
Lisa Uhlman at Bankruptcy Law360 reports that the foreign
representative charged with recovering allegedly fraudulent
transfers for Fairfield Sentry Ltd. filed nine new adversary
proceedings in the Bernard Madoff feeder fund's bankruptcy
proceedings, seeking to claw back more than $65.5 million.
Kenneth Krys, who is in charge of winding down Fairfield Sentry,
Fairfield Sigma Ltd. and Fairfield Lambda Ltd. in a British
Virgin Islands proceeding, filed the complaints in New York
against Albemar Participation Ltd., Barclays Bank SA Madrid,
Jared Trading Ltd./BVI and six others.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970. The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler
LLP as his counsel, and (iii) removed the SIPA Liquidation
proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No.
08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners
LLP as claims agent.
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
US$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed
Madoff Securities International Limited in London under
bankruptcy protection pursuant to Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
As of Feb. 17, 2012 and in the 38 months since his appointment,
the SIPA Trustee has recovered or entered into agreements to
recover more than $9 billion, representing roughly 52% of the
roughly $17.3 billion in principal estimated to have been lost in
the Ponzi scheme by BLMIS customers who filed claims. The
recoveries exceed prior restitution efforts related to Ponzi
schemes both in terms of dollar value and percentage of stolen
funds recovered. Pro rata distributions from the Customer Fund
to BLMIS customers whose claims have been allowed by the SIPA
Trustee totaled $325.7 million.
Mr. Picard has filed 1,000 lawsuits seeking $100 billion from
banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The
trustee has seen more than $28 billion of his claims tossed by
district judges.
About Fairfield Sentry
Fairfield Sentry is being liquidated under the supervision of the
Commercial Division of the High Court of Justice in the British
Virgin Islands. It is one of the funds owned by the Fairfield
Greenwich Group, an investment firm founded in 1983 in New York
City. Fairfield Sentry and other Greenwich funds had among the
largest exposures to the Bernard L. Madoff fraud.
Fairfield Sentry Limited filed for Chapter 15 protection (Bankr.
S.D.N.Y. Case No. 10-13164) on June 14, 2010.
Greenwich Sentry, L.P., and an affiliate filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. 10-16229) on Nov. 19, 2010,
hoping to settle lawsuits filed against it in connection with its
investments with Bernard L. Madoff.
On May 18, 2009, Irving H. Picard, the trustee liquidating the
estate of Mr. Madoff and his firm, Bernard L. Madoff Investment
Securities, LLC, filed a lawsuit against Fairfield Sentry and
Greenwich, seeking the return of US$3.55 billion that Fairfield
withdrew from Madoff during the period from 2002 to Mr. Madoff's
arrest in December 2008. Since 1995, the Fairfield funds
invested about US$4.5 billion with BLMIS.
Mr. Picard claims that Fairfield knew or should have known about
the fraud give that it received from BLMIS unrealistically high
and consistent annual returns of between 10% and 21% in contrast
to the vastly larger fluctuations in the S&P 100 Index.
***********
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
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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.
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