/raid1/www/Hosts/bankrupt/TCRLA_Public/120413.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, April 13, 2012, Vol. 13, No. 074
Headlines
A R G E N T I N A
CAMPOLONGHI DISTRIBUIDORA: Creditors' Proofs of Debt Due May 10
COMPANIA DE TRANSPORTE: S&P Affirms 'B-' Corporate Credit Rating
EL BEBUX: Creditors' Proofs of Debt Due May 15
FAST COLOR: Creditors' Proofs of Debt Due May 18
PUERTO SUR: Creditors' Proofs of Debt Due May 9
SEITC SRL: Creditors' Proofs of Debt Due June 5
SUPERVIELLE CREDITOS: Moody's Rates ARS4.8MM Certificates 'Ca.ar'
YPF SA: To Lose More Fields as Argentina Eyes Petrobras
B R A Z I L
COMPANHIA ENERGETICA: Moody's Issues Summary Credit Opinion
C A Y M A N I S L A N D S
ALPHA SHINE: Commences Liquidation Proceedings
CUSHING FUND: Creditors' Proofs of Debt Due May 10
DEL MAR SPECIAL: Creditors' Proofs of Debt Due May 10
ERRY NETWORK: Creditors' Proofs of Debt Due May 2
HAV2 (I) LIMITED: Creditors' Proofs of Debt Due May 10
HAV2 (IX) LIMITED: Creditors' Proofs of Debt Due May 10
HAV2 (XI) LIMITED: Creditors' Proofs of Debt Due May 10
HAV2 (XII) LIMITED: Creditors' Proofs of Debt Due May 10
HAV2 (XVIII) LIMITED: Creditors' Proofs of Debt Due May 10
PENDRAGON ASSET: Creditors' Proofs of Debt Due May 11
P U E R T O R I C O
HOSPITAL DAMAS: Malpractice Claimants Lose Bid to Dismiss Case
- - - - -
=================
A R G E N T I N A
=================
CAMPOLONGHI DISTRIBUIDORA: Creditors' Proofs of Debt Due May 10
---------------------------------------------------------------
Maria Rosa Lopez, the court-appointed trustee for Campolonghi
Distribuidora SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until May 10, 2012.
Ms. Lopez will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 11
in Buenos Aires, with the assistance of Clerk No. 21, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by the company and its creditors.
The Trustee can be reached at:
Maria Rosa Lopez
Paraguay 2081
COMPANIA DE TRANSPORTE: S&P Affirms 'B-' Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Argentina-based power transmission company Compania de Transporte
de Energia Electrica en Alta Tension TRANSENER S.A. to negative
from stable.
"At the same time, we affirmed our 'B-' ratings, including the
corporate credit rating, on the company," S&P said.
"The ratings affirmation reflects our expectation that, despite
Transener's weaker-than-expected financial performance, the
company will pay off its 2012 obligations with internally
generated funds and existing cash balances," said Standard &
Poor's credit analyst Candela Macchi.
"However, the negative outlook reflects our belief that because an
absence of additional disbursements from the credit facilities of
Compania Administradora del Mercado Mayorista Electrico S.A.
(CAMMESA; not rated), corresponding to cost variations from June
2005 to November 2010, reduced Transener's cash inflows in 2011;
and because Transener's operating performance is deteriorating on
higher costs amid frozen tariffs, the issuer's liquidity could
deteriorate during the next 12 to 18 months," S&P said.
CAMMESA is a nonprofit company owned by power generators,
transmitters, distributors, large users, and the Secretary of
Energy. It coordinates the payment and settlement of energy
transactions carried out in the spot market or through contracts.
"Our ratings on Transener continue to reflect the high political
and regulatory risk it faces in Argentina, high debt, weak cash
flow protection metrics, and high currency mismatch risk resulting
from mostly Argentine peso-denominated revenues and dollar-
denominated debt," S&P said.
"On the other hand, Transener's strong competitive position as the
largest power transmission company in Argentina supports the
ratings," S&P said.
EL BEBUX: Creditors' Proofs of Debt Due May 15
----------------------------------------------
Ricardo Agustin Sardon, the court-appointed trustee for El Bebux
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until May 15, 2012.
Mr. Sardon will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 9 in Buenos Aires, with the assistance of Clerk
No. 18, 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:
Ricardo Agustin Sardon
Cerrito 436
Argentina
FAST COLOR: Creditors' Proofs of Debt Due May 18
------------------------------------------------
Maria Cristina Pomm, the court-appointed trustee for Fast Color
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until May 18, 2012.
Ms. Pomm will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 11
in Buenos Aires, with the assistance of Clerk No. 22, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by the company and its creditors.
The Trustee can be reached at:
Maria Cristina Pomm
Viamonte 1337
Argentina
PUERTO SUR: Creditors' Proofs of Debt Due May 9
-----------------------------------------------
Julio Alberto Villalba, the court-appointed trustee for Puerto Sur
Agraria SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until May 9, 2012.
Mr. Villalba 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:
Julio Alberto Villalba
Viamonte 1464
Argentina
SEITC SRL: Creditors' Proofs of Debt Due June 5
-----------------------------------------------
Marta Estela Acuna, the court-appointed trustee for SEITC SRL's
reorganization proceedings, will be verifying creditors' proofs of
claim until June 5, 2012.
Ms. Acuna will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 5 in
Buenos Aires, with the assistance of Clerk No. 10, 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 22, 2013.
The Trustee can be reached at:
Marta Estela Acuna
Combate de los Pozos 129
Argentina
SUPERVIELLE CREDITOS: Moody's Rates ARS4.8MM Certificates 'Ca.ar'
-----------------------------------------------------------------
Moody's Investors Service rates Supervielle Creditos 59, which is
a transaction that will be issued by Equity Trust S.A. -- acting
solely in its capacity as Issuer and Trustee.
Moody's notes that as of April 11, 2012, the securities
contemplated by the 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 59", rated Aaa.ar
(sf) (Argentine National Scale) and Ba1 (sf) (Global Scale,
Local Currency)
- ARS63,600,000 in Class B Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos 59", rated Aaa.ar
(sf) (Argentine National Scale) and Ba1 (sf) (Global Scale,
Local Currency)
- ARS14,400,000 in Class C Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos 59", rated Aa2.ar
(sf) (Argentine National Scale) and B1 (sf) (Global Scale,
Local Currency)
- ARS4,800,000 in Certificates of "Fideicomiso Financiero
Supervielle Creditos 59", rated Ca.ar (sf) (Argentine National
Scale) and Ca (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 24,652 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banco
Supervielle, in an aggregate amount of ARS120,008,703.58.
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, 16% 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,
5.68% expected loss for Class C Fixed Rate Debt Securities and
47.02% 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,
Equity Trust 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.
YPF SA: To Lose More Fields as Argentina Eyes Petrobras
-------------------------------------------------------
Rodrigo Orihuela at Bloomberg News reports that Juan Ferreiro,
head of the provincial energy institute, said YPF SA will probably
lose three licenses for fields in the southern province of Santa
Cruz where it produces 11% of its crude.
Santa Cruz Governor Daniel Peralta will probably issue a decree
withdrawing the licenses on April 12, Mr. Ferreiro said in a
statement obtained by the news agency. Bloomberg relates that
Mr. Ferreiro said the province is also weighing whether Petrobras
Argentina SA (PESA), a unit of Brazil's state-run Petroleo
Brasileiro SA, and China Petroleum & Chemical Corp. (600028),
known as Sinopec, are complying with their investment plans.
Bloomberg notes that the pressure on YPF SA prompted Deutsche Bank
AG and Raymond James Inc. to lower the stock's rating.
Raymond James cut YPF SA to market perform from outperform because
of "the potential loss of key production areas in Santa Cruz and
Chubut," analysts Emiliano Wachs and Federico Chapto said in a
report Bloomberg notes.
Last week, the report recalls that Neuquen became the first
province to withdraw licenses from companies other than YPF, by
pulling areas from Petrobras, Tecpetrol SA and Azabache Energy
Inc.
Meanwhile, Bloomberg says that China National Offshore Oil Corp.,
known as CNOOC, is preparing a 9.16 billion euro ($12 billion) bid
for YPF pending approval from Argentina's government, Spain's El
Confidencial reported.
As reported in the Troubled Company Reporter-Latin America on
April 3, 2012, Bloomberg News said that YPF SA is set to
lose its most productive field after Chubut province said it
plans to revoke more of the company's licenses. Chubut decided to
end four more concessions, starting with the company's Manantiales
Behr field, because of YPF SA's failure to comply with contracts
in the province, Governor Martin Buzzi said in a March 31
statement obtained by Bloomberg. Bloomberg noted that the field
accounted for about 9.6% of YPF SA's production last year,
according to figures from Argentina's Energy Secretariat. YPF SA
has lost 12 licenses in five provinces since March 14
after President Cristina Fernandez de Kirchner's government
demanded higher investment to curb output declines and help cut
imports, Bloomberg noted. Bloomberg, citing Newspaper Pagina/12,
relates that Argentina is preparing to take control of YPF, citing
officials it didn't identify. That followed similar local media
reports that the government is weighing a takeover, Bloomberg
relayed.
About YPF SA
Headquartered in Buenos Aires, Argentina, YPF S.A. is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (downstream). The company is a subsidiary
of Repsol YPF, S.A., a Spanish company engaged in oil exploration
and refining, which holds 99.04% of its shares. Its
international operations are conducted through its subsidiaries,
YPF International S.A. and YPF Holdings Inc.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 6, 2012, Dow Jones' DBR Small Cap reports that Argentina's
largest oil and gas producer, YPF SA, said it won't exercise an
option to lift its stake in the parent company of natural gas
distribution firm Metrogas SA after failing to reach an agreement
with creditors.
As of March 20, 2012, the company continues to carry Fitch
Rating's "B+" long-term foreign currency default rating and "BB"
long-term local currency issuer default rating.
===========
B R A Z I L
===========
COMPANHIA ENERGETICA: Moody's Issues Summary Credit Opinion
-----------------------------------------------------------
Moody's Investors Service issued a summary credit opinion on
Companhia Energetica de Sao Paulo and includes certain regulatory
disclosures regarding its ratings. The release does not
constitute any change in Moody's ratings or rating rationale for
Companhia Energetica de Sao Paulo.
Moody's current ratings on Companhia Energetica de Sao Paulo are:
LT Corporate Family Ratings domestic currency rating of Ba1
Senior Unsecured domestic currency rating of Ba1
Senior Unsecured foreign currency rating of Ba1
Senior Unsecured MTN foreign currency rating of (P)Ba1
Ratings Rationale
With 94% of its voting shares owned by SP (Baa3, Stable), CESP is
considered a Government-Related Issuer (GRI) in accordance with
Moody's rating methodology entitled "The Application of Joint
Default Analysis to Government-Related Issuers (GRIs)". Moody's
methodology for GRIs incorporates the Company's stand-alone credit
risk profile or Baseline Credit Assessment (BCA) as well as the
likelihood that both entities would default at the same time and
the probability that the controlling shareholder would provide
extraordinary support for the Company's debt obligations.
The Ba1 GRI rating of CESP results from the application of joint-
default analysis of the Company's BCA of 12, the Baa3 rating for
SP, Moody's view of high dependence (the likelihood that both
entities would default at the same time), and high probability of
extraordinary support from the controlling shareholder (SP).
Moody's assessment of CESP's BCA of 12 (mapping to Ba2) is based
on its methodology for the rating of "Unregulated Utilities and
Power Companies" (published in August 2009) and reflects: (i) the
Company's predictable cash flows; (ii) CESP's medium to long-term
supply contracts with the regulated market; (iii) an evolving
regulatory environment that has undergone significant development
but still provides low assurance of timely recovery of costs and
investments; and (iv) refinancing risk, given the Company's
continued focus on de-leveraging its balance sheet.
Despite Moody's forecast of continued improvement in the credit
metrics in the medium term, CESP's BCA rating is constrained by
the potential risks associated with cash disbursements in
connection with existing BRL1.8 billion contingent liabilities in
the Company's balance sheet, currency exposure, and the
uncertainties over the renewal of CESP's concessions that will
expire in 2015.
Rating Outlook
The stable outlook reflects Moody's perception that recent
operating performance is sustainable over the next three to four
years as long as there is no continuing significant depreciation
of the local currency and/or a spike of interest rates, and the
expected payment of contingent liabilities remains relatively
unchanged. The stable outlook also reflects Moody's expectation
that a privatization of CESP will not occur in the near term and
that implied state government support is not likely to change.
What Could Change the Rating - Up
CESP's ratings could be upgraded if the State of Sao Paulo's Baa3
issuer rating improves and the uncertainties with respect to the
scheduled expiration of CESP's concessions in 2015 are addressed,
or, if there is an improvement in CESP's cash generation such that
CFO Pre W/C to Debt remains above 20% and cash flow interest
coverage stays above 3.6x on a sustainable basis. Lower
contingent liability payments could also contribute to a possible
upgrade.
What Could Change the Rating - Down
CESP's ratings could be downgraded if there is a downgrade in the
State of Sao Paulo's rating and/or a deterioration in CESP's cash
generation, such that CFO Pre W/C to Debt falls below 12% and cash
flow interest coverage declines below 2.0x for an extended period
of time. Higher contingent liability payments could also worsen
the Company's credit metrics, and therefore contribute to a
possible downgrade.
The principal methodology used in this rating was Regulated
Electric and Gas Utilities published in August 2009.
===========================
C A Y M A N I S L A N D S
===========================
ALPHA SHINE: Commences Liquidation Proceedings
----------------------------------------------
On March 19, 2012, the members of Alpha Shine Limited resolved to
voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Chou Chien-Jung
No. 95 Huli Rong Road, Xiamen
China
CUSHING FUND: Creditors' Proofs of Debt Due May 10
--------------------------------------------------
The creditors of The Cushing Fund (Offshore), Ltd. are required to
file their proofs of debt by May 10, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 21, 2012.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
DEL MAR SPECIAL: Creditors' Proofs of Debt Due May 10
-----------------------------------------------------
The creditors of Del Mar Special Opportunities Intermediate Fund
Ltd. are required to file their proofs of debt by May 10, 2012, to
be included in the company's dividend distribution.
The company commenced liquidation proceedings on March 21, 2012.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
ERRY NETWORK: Creditors' Proofs of Debt Due May 2
-------------------------------------------------
The creditors of Erry Network Technology Ltd. are required to file
their proofs of debt by May 2, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on March 26, 2012.
The company's liquidator is:
Richard Finlay
c/o Noel Webb
Telephone: (345) 814 7394
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
HAV2 (I) LIMITED: Creditors' Proofs of Debt Due May 10
------------------------------------------------------
The creditors of HAV2 (I) Limited are required to file their
proofs of debt by May 10, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 23, 2012.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
HAV2 (IX) LIMITED: Creditors' Proofs of Debt Due May 10
-------------------------------------------------------
The creditors of HAV2 (IX) Limited are required to file their
proofs of debt by May 10, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 23, 2012.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
HAV2 (XI) LIMITED: Creditors' Proofs of Debt Due May 10
-------------------------------------------------------
The creditors of HAV2 (XI) Limited are required to file their
proofs of debt by May 10, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 23, 2012.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
HAV2 (XII) LIMITED: Creditors' Proofs of Debt Due May 10
--------------------------------------------------------
The creditors of HAV2 (XII) Limited are required to file their
proofs of debt by May 10, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 23, 2012.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
HAV2 (XVIII) LIMITED: Creditors' Proofs of Debt Due May 10
----------------------------------------------------------
The creditors of HAV2 (XVIII) Limited are required to file their
proofs of debt by May 10, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on March 23, 2012.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
PENDRAGON ASSET: Creditors' Proofs of Debt Due May 11
-----------------------------------------------------
The creditors of Pendragon Asset Management Limited are required
to file their proofs of debt by May 11, 2012, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on March 23, 2012.
The company's liquidator is:
Stuart Sybersma
c/o Amanda Kong
Deloitte & Touche
P.O Box 1787 Grand Cayman KY1-1109
Cayman Islands
Telephone: +1 (345) 814 2298
Facsimile: +1 (345) 949 8238
e-mail: aekong@deloitte.com
=====================
P U E R T O R I C O
=====================
HOSPITAL DAMAS: Malpractice Claimants Lose Bid to Dismiss Case
--------------------------------------------------------------
Bankruptcy Judge Edward A. Godoy denied the request of medical
malpractice claimants for dismissal of the Chapter 11 bankruptcy
cases of Hospital de Damas, Inc., a not-for-profit corporation
organized under the laws of the Commonwealth of Puerto Rico.
Nitza Enid Sanchez-Rodriguez, Alma Estela Sanchez-Rodriguez, Jose
Ivan Sanchez-Rodriguez, Altamira Rodriguez-Perez, Carlos Alberto
Rodriguez-Perez, Alba Marta Rodriguez-Perez, Dr. Sonia Hodge,
Russell Rodriguez-Perez, and Mayra Lillian Nigaglioni on Feb. 28,
2012, filed a motion to dismiss alleging that the debtor was
operating the hospital without a license and that the debtor's
operation of the hospital was illegal and unlawful. The medical
malpractice claimants also allege, among other things, bad faith
based on false statements and misrepresented facts by the debtor
in prejudice to the creditors. They argue that the debtor's bad
faith warrants the dismissal of the case pursuant to section 1112
of the Bankruptcy Code.
Olga Maldonado and her son Josue Narvaez Maldonado, Lizbeth Vargas
Colon and Jaime M. Cedeno in representation of their minor
daughter Lizbeth Cedeno Vargas, Baudilio Luciano Ortiz, Joel
Luciano Caraballo, Juan Orta Rodriguez, Juan Orta Lopez de
Victoria, Ferando Vargas Lopes de Victoria, and Tomas Orta Lopez
de Victoria filed joinders to the Dismissal Motion.
The debtor opposed dismissal by denying any bad faith on its part
and alleging, among other things, that the debtor has been
operating the hospital since 1987 and that said operation is legal
and accepted by the pertinent regulatory agency. The Unsecured
Creditors Committee also opposed dismissal alleging that the
malpractice claimants failed to carry their burden of showing that
cause exists under section 1112 even if the court were to find
that the debtor lacked the required licenses to operate the
hospital.
On May 31, 2011, the Debtor filed its disclosure statement and
plan of reorganization. At the hearing on the disclosure
statement held on Oct. 20, 2011, the court gave the Debtor an
opportunity to amend its disclosure statement and plan. An
amended disclosure statement and plan were filed jointly by the
Debtor and Unsecured Creditors Committee on Nov. 4, 2011. At the
Dec. 6, 2011 hearing on the amended disclosure statement, the
Court approved the amended disclosure statement and set the
confirmation hearing on the amended plan for Feb. 9, 2012.
Prior to the confirmation hearing, two of the medical malpractice
claimants and the other medical malpractice claimants filed an
objection to the confirmation of the amended plan. Two other
groups of medical malpractice creditors joined that objection.
The objections, among other things, allege that the court has no
jurisdiction over the self-insurance fund from which the amended
plan proposes to pay all of the medical malpractice creditors. At
the confirmation hearing, the Court refrained from hearing
evidence on the amended plan and questioned the Debtor about the
Court's jurisdiction over the self-insurance fund. The Debtor was
given time to file a stipulation as to the self-insurance fund,
and the confirmation hearing was continued to March 23, 2012. The
March 23 date was converted from a hearing on confirmation to one
on the motion to dismiss, and the hearing on the confirmation of
the amended plan was rescheduled to April 27, 2012.
A copy of the Court's April 9, 2012 Opinion and Order is available
at http://is.gd/M89348from Leagle.com.
About Hospital Damas
Ponce, Puerto Rico-based Hospital Damas, Inc., operates, since
1987, Hospital Damas, a general acute care hospital, providing
critical care, general medical and skilled nursing services. The
Company filed for Chapter 11 bankruptcy protection (Bankr. D.
P.R. Case No. 10-08844) on Sept. 24, 2010. According to its
schedules, the Debtor disclosed US$24,017,166 in total assets and
US$21,267,263 in total liabilities.
Attorneys at Charles A. Cuprill, P.S.C., in San Juan, Puerto
Rico, represent the Debtor as counsel. Jorge P. Sala Law Offices
serves as the Debtor's labor law special counsel, to be assisted
by special counsel Fiddler, Gonzalez & Rodriguez, P.S.C.
Attorneys at Kilpatrick Townsend & Stockton LLP, in Atlanta, Ga.,
represent the Official Committee of Unsecured Creditors as
counsel.
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
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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
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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 * * *