/raid1/www/Hosts/bankrupt/TCRLA_Public/120716.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, July 16, 2012, Vol. 13, No. 140
Headlines
A R G E N T I N A
TRANSPORTADORA DE GAS: Commences Private Exchange Offer
B E R M U D A
BOSTON SCIENTIFIC: Placed Under Voluntary Wind-Up
BSC INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 16
TITAN PETROCHEMICALS: Court to Hear Wind-Up Petition on Aug. 16
B R A Z I L
BANCO CRUZEIRO: May Post US$1.23 Billion in Losses, Estado Says
BMG: Fitch Will Conclude Ratings Review After Receiving Details
C A Y M A N I S L A N D S
ARCAPITA BANK: Has Green Light to Implement Employee Programs
BIORIGIN INGREDIENTS: Creditors' Proofs of Debt Due July 25
CREF NO.4: Creditors' Proofs of Debt Due Aug. 3
ESSENTIAL GLOBAL: Shareholders' Final Meeting Set for July 26
ESSENTIAL GLOBAL MASTER: Shareholders' Meeting Set for July 26
LATINPANEL INTERNATIONAL: Shareholders' Meeting Set for Aug. 3
RILEY PATERSON: Shareholders' Final Meeting Set for Aug. 21
ROOST INVESTMENTS: Shareholders' Final Meeting Set for July 25
TOKYOR FUND: Creditors' Proofs of Debt Due July 25
VALUE PARTNERS: Shareholder to Hear Wind-Up Report on Aug. 3
VALUE PARTNERS FUND: Shareholder to Hear Wind-Up Report on Aug. 3
C H I L E
CORP GROUP: Moody's Assigns 'Ba3' Long-Term Issuer Ratings
C O L O M B I A
BANCO GNB: Fitch Assigns Issuer Default Ratings at Low-B
J A M A I C A
* JAMAICA: UK Makes GBP7.25 Million Grant for Citizen Security
M E X I C O
COMPANIA DE TRANSPORTE: Fitch Junks Rating on Two Class Notes
X X X X X X X X
* BOND PRICING: For the Week July 9 to July 13, 2012
- - - - -
=================
A R G E N T I N A
=================
TRANSPORTADORA DE GAS: Commences Private Exchange Offer
-------------------------------------------------------
Transportadora de Gas del Norte S.A. has commenced a private
exchange offer for any and all of its US$141,279,932 outstanding
Series A Notes and its US$203,630,111 outstanding Series B Notes
held by Eligible Holders for exchange consideration consisting of
a combination of a cash payment, New 7-Year Step-Up Notes and
Claim Protection Notes, as further described below. The Exchange
Offer is being conducted upon the terms and subject to the
conditions set forth in the Information Memorandum dated July 12,
2012 and the related Letter of Transmittal.
On Dec. 22, 2008, the Company suspended payments of principal and
interest on its financial debt, and, as a result, all of the
Outstanding Debt is in default.
The Company is offering to exchange each US$1,000 principal
amount of Outstanding Debt tendered and accepted for exchange in
the Exchange Offer for (i) US$494.20 principal amount of New
Step-Up Notes, (ii) US$164.68 principal amount of Claim
Protection Notes and (iii) a cash payment consisting of (a)
solely for holders who validly tender their Outstanding Debt
prior to or at 5:00 p.m., New York City time, on July 25, 2012,
US$329.45 in cash, or (b) for holders who validly tender their
Outstanding Debt after the Early Tender Date but prior to or at
11:59 p.m., New York City time, on Aug. 8, 2012 (the "Expiration
Date"), US$280.00 in cash.
The Exchange Offer is conditioned upon, among other matters set
forth in the Information Memorandum, at least 88% of the
principal amount of the Outstanding Debt being validly tendered
prior to or at the Expiration Date. Tendering holders of the
Outstanding Debt will not be entitled to withdrawal rights in the
Exchange Offer, other than to the extent required by applicable
laws, unless we extend the Expiration Date beyond Aug. 17, 2012.
Headquartered in Buenos Aires, Transportadora de Gas del Norte
SA -- http://www.tgn.com.ar/-- is one of the two largest
transporters of natural gas in Argentina, delivering
approximately 40% of the country's total gas consumption and more
than 50% of Argentine total gas exports. The northern Argentine
gas pipeline system connects major gas fields in northern and
central-western Argentina. The company benefits from an
exclusive 35-year concession contract, ending Dec. 28, 2027,
which may be extended for an additional 10 years. The parent
company is Gasinvest S.A., which has a 56.35% stake and comprises
five companies: Totalfinaelf (27.2%), Transcogas Inversora S.A.
(22.3%), Compania General de Combustibles (5%), Organizacion
Techint (27.2%), and Petroliam Nasional Berhad (18.3%). In
addition, CMS Gas Argentina holds 23.5% of Transportadora Norte's
shares, while the remaining 20% is traded on the Buenos Aires
stock exchange.
* * *
A reported in the Troubled Company Reporter-Latin America on
June 8, 2012, Fitch Ratings has withdrawn Transportadora de Gas
del Norte's (TGN) proposed USD 247.3 million debt issuance rating
of 'CCC(exp)/RR4/BB(arg)'. The rating withdrawal reflects the
suspension of the debt issuance due to the withdrawal of TGN's
proposed debt restructuring process.
=============
B E R M U D A
=============
BOSTON SCIENTIFIC: Placed Under Voluntary Wind-Up
-------------------------------------------------
On June 26, 2012, the sole member of Boston Scientific
International Limited resolved to voluntarily wind up the
company's operations.
The company's liquidators are:
Mike Morrison
Charles Thresh
KPMG Advisory Limited
Crown House, 4 Par-La-Ville Road
Hamilton
Bermuda
BSC INTERNATIONAL: Court to Hear Wind-Up Petition on Aug. 16
------------------------------------------------------------
A petition to wind up the operations of BSC International Holding
Limited will be heard before the Supreme Court of Bermuda on
Aug. 16, 2012, at 2:30 p.m.
Saturn Petrochemical Holdings Limited filed the petition against
the company on July 5, 2012.
TITAN PETROCHEMICALS: Court to Hear Wind-Up Petition on Aug. 16
---------------------------------------------------------------
A petition to wind up the operations of Titan Petrochemicals
Group Limited will be heard before the Supreme Court of Bermuda
on Aug. 16, 2012, at 2:30 p.m.
Saturn Petrochemical Holdings Limited filed the petition against
the company on July 5, 2012.
===========
B R A Z I L
===========
BANCO CRUZEIRO: May Post US$1.23 Billion in Losses, Estado Says
---------------------------------------------------------------
Ney Hayashi at Bloomberg News reports that losses in Banco
Cruzeiro do Sul SA may amount to BRL2.5 billion (US$1.23 billion)
as an audit found irregularities in the bank's loan portfolio, O
Estado de S.Paulo reported, citing an audit.
Cruzeiro do Sul, which was seized by Brazil's central bank in
June amid "serious financial violations," didn't have proper
documentation for BRL1.6 billion in loans and overestimated some
assets by 900 million reais, the newspaper said, citing the audit
report from the central bank, Brazil's deposit-insurance fund,
known as FGC, and PricewaterhouseCoopers LLP, according to
Bloomberg News.
The central bank, the FGC, PwC and Cruzeiro do Sul declined to
comment, O Estado said, Bloomberg News notes.
Based in Sao Paulo, Banco Cruzeiro do Sul S.A. had total
unconsolidated assets of R$11.5 billion (US$6.2 billion) and
equity of R$1.2 billion (US$644.5 million) as of December 31,
2011.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 7, 2012, Standard & Poor's Ratings Services lowered our
long-and short-term ratings on Banco Cruzeiro do Sul to 'CC/C'
from 'B+/B' and its national scale long- and short-term ratings
to 'brCC/brC' from 'brBBB/brA-3'. "We have also placed the
ratings on CreditWatch with developing implications," S&P said.
BMG: Fitch Will Conclude Ratings Review After Receiving Details
---------------------------------------------------------------
Fitch Ratings advised that it will conclude the BMG ratings
review after receiving further details and projections regarding
the establishment of the joint venture with Itau Unibanco S.A. in
the consumer loan segment known as 'Consignado'. After its
approval and depending on the relevance of the potential impacts
of this joint venture on BMG's capital ratios and profitability,
the bank's ratings may be affected.
On July 10, 2012, BMG announced an agreement with Itau Unibanco
S.A. to form the newly named Banco Itau BMG Consignado S.A. in
which Itau Unibanco S.A. will have a 70% stake and BMG 30% stake.
The initial capital will be R$1 billion. In addition to this
capital commitment, Itau Unibanco will be providing funding of up
to R$300 million per month for the booking of loan transactions
for a period of at least five years with competitive rates.
Fitch positively views this announcement especially given the
strong commitment by Itau Unibanco (Long-term Foreign Currency
IDR 'BBB+' National Scale Rating AAA(bra) by Fitch) which is
evidenced by the Itau name on the joint venture and the extension
of a funding line at competitive rates. In addition, BMG expects
to benefit from a substantial reduction in its operational costs
as origination, monitoring, collection and other costs will be
proportionally assumed by the joint venture. Also, the creation
of this joint venture will enable a gradual reduction of BMG's
R$33 billion risk-weighted assets as existing loans come due or
are pre-paid. This is expected to result in a much-needed
improvement to BMG's regulatory capital ratios which are
currently very tight.
Over the next two years, the joint venture is expected to grow
its new loan portfolio up to R$12 billion which would nearly
double Itau Unibanco's current portfolio and significantly
increase its market share of this consumer finance segment where
it currently holds a position behind several of its main
competitors. Currently BMG has the second largest market share
of this approximately R$172 billion consumer lending segment.
Subject to regulatory approvals and internal logistics BMG
expects the joint venture to begin operating by the fourth
quarter of this year. BMG is also expected to benefit indirectly
from in the area of corporate governance in view of the
additional experience of directors provided by Itau Unibanco to
the joint venture.
BMG has shown to maintain comfortable levels of liquidity even
during the recent nervousness following the intervention of Banco
Cruzeiro do Sul and this is expected to continue while the joint
venture is being formalized.
It is important also to mention that all potential benefits and
impacts on BMG's capitalization and profitability ratios will be
reviewed by the agency as certain costs will not be able to be
transferred, such as the need to amortize the significant volume
of goodwill in the amount of BRL1.6 billion from the acquisition
of Banco Schahin, which had a direct impact on BMG's Fitch's core
capital ratio. Fitch will need to review BMG's revised business
plan and forecasts on how it will improve its capital and
profitability ratios including how it will benefit from its
accrued tax credits. BMG management has committed to provide
these details as they develop which will enable Fitch to evaluate
potential impacts to BMG's ratings.
Headquartered in Belo Horizonte, Minas Gerais, BMG has been
conducting business as a multiple bank since 1989. It is
controlled by the Pentagna Guimaraes family. In the financial
sector since 1930, the bank is the family's primary business,
however, they also hold investments in real estate, agribusiness
and the food processing sector.
Fitch currently rates BMG as follows:
BMG:
-- Long-term foreign currency Issuer Default Rating (IDR) 'B';
Outlook Stable;
-- Short-term foreign currency IDR 'B';
-- Long-term local currency IDR 'B'; Outlook Stable;
-- Short-term local currency IDR 'B';
-- National long-term rating 'BBB(bra)'; Outlook Stable;
-- National short-term rating 'F3 (bra)';
-- Viability rating 'b-';
-- Support rating '4';
-- Support rating floor 'B'.
===========================
C A Y M A N I S L A N D S
===========================
ARCAPITA BANK: Has Green Light to Implement Employee Programs
-------------------------------------------------------------
Arcapita Bank B.S.C. won U.S. bankruptcy court authority to
implement employee programs and pay (a) the Notice and Severance
Payments; (b) the Accrued Vacation Payments; (c) the Private
Pension Payments; (d) the Expatriate Expense Payments; and (e)
KERP and KEIP awards.
However, all payments, other than the KERP and KEIP awards, will
be reduced, via set-off, by the amount of any outstanding
Employee Loans; and, to the extent the aggregate balance of
Employee Loans outstanding to any Terminated Employee (or other
Employee terminated without cause during the Chapter 11 Cases)
exceeds the amount of Notice and Severance Payments, Accrued
Vacation Payments, Private Pension Payments, and Expatriate
Expense Payments otherwise due to such Employee, the excess
balance of Employee Loans (after applying the Employee Loans to
offset completely such payments otherwise due to such Employee)
may be forgiven by the Debtors acting with Committee consent or
further Court order.
The Debtors are further authorized to take any other actions
necessary to implement the KERP, KEIP and Severance Program (for
all Employees terminated without cause during the Chapter 11
Cases.
The KEIP Performance Goals, as approved by the Court, include the
completion of a business plan and delivery of the same to the
Committee by Aug. 15, 2012, the filing of a chapter 11 plan by
Oct. 1, 2012, and the completion of the reduction in force
contemplated by the Debtors.
The Debtors also are authorized to make payments under a
discretionary pool under the KERP in amounts not to exceed
$300,000, in aggregate; provided that, no Employee may receive
more than $30,000 in aggregate discretionary KERP payments absent
Committee consent, which consent will not be unreasonably
withheld.
The June 26, 2012 edition of the Troubled Company Reporter
published a summary of the revised terms of the KERP, KEIP and
Severance Program.
About Arcapita Bank
Arcapita Bank B.S.C., also known as First Islamic Investment Bank
B.S.C., along with affiliates, filed for Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 12-11076) in Manhattan on March
19, 2012. The Debtors said they do not have the liquidity
necessary to repay a US$1.1 billion syndicated unsecured facility
when it comes due on March 28, 2012.
Falcon Gas Storage Company, Inc., later filed a Chapter 11
petition (Bankr. S.D.N.Y. Case No. 12-11790) on April 30, 2012.
Falcon Gas is an indirect wholly owned subsidiary of Arcapita
that previously owned the natural gas storage business NorTex Gas
Storage Company LLC. In early 2010, Alinda Natural Gas Storage
I, L.P. (n/k/a Tide Natural Gas Storage I, L.P.), Alinda Natural
Gas Storage II, L.P. (n/k/a Tide Natural Gas Storage II, L.P.)
acquired the stock of NorTex from Falcon Gas for $515 million.
Arcapita guaranteed certain of Falcon Gas' obligations under the
NorTex Purchase Agreement.
The Debtors tapped Gibson, Dunn & Crutcher LLP as bankruptcy
counsel, Linklaters LLP as corporate counsel, Towers & Hamlins
LLP as international counsel on Bahrain matters, Hatim S Zu'bi &
Partners as Bahrain counsel, KPMG LLP as accountants, Rothschild
Inc. and financial advisor, and GCG Inc. as notice and claims
agent.
Milbank, Tweed, Hadley & McCloy LLP represents the Official
Committee of Unsecured Creditors. Houlihan Lokey Capital, Inc.,
serves as its financial advisor and investment banker.
Founded in 1996, Arcapita is a global manager of Shari'ah-
compliant alternative investments and operates as an investment
bank. Arcapita is not a domestic bank licensed in the United
States. Arcapita is headquartered in Bahrain and is regulated
under an Islamic wholesale banking license issued by the Central
Bank of Bahrain. The Arcapita Group employs 268 people and has
offices in Atlanta, London, Hong Kong and Singapore in addition
to its Bahrain headquarters. The Arcapita Group's principal
activities include investing on its own account and providing
investment opportunities to third-party investors in conformity
with Islamic Shari'ah rules and principles.
The Arcapita Group has roughly US$7 billion in assets under
management. On a consolidated basis, the Arcapita Group owns
assets valued at roughly US$3.06 billion and has liabilities of
roughly US$2.55 billion. The Debtors owe US$96.7 million under
two secured facilities made available by Standard Chartered Bank.
Arcapita explored out-of-court restructuring scenarios but was
unable to achieve 100% lender consent required to effectuate the
terms of an out-of-court restructuring.
Subsequent to the Chapter 11 filing, Arcapita Investment Holdings
Limited, a wholly owned Debtor subsidiary of Arcapita in the
Cayman Islands, issued a summons seeking ancillary relief from
the Grand Court of the Cayman Islands with a view to facilitating
the Chapter 11 cases. AIHL sought the appointment of Zolfo
Cooper as provisional liquidator.
BIORIGIN INGREDIENTS: Creditors' Proofs of Debt Due July 25
-----------------------------------------------------------
The creditors of Biorigin Ingredients Ltd. are required to file
their proofs of debt by July 25, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on June 20, 2012.
The company's liquidator is:
Ogier
c/o Jacqueline Haynes
Telephone: (345) 815-1759
Facsimile: (345) 949-9877
89 Nexus Way Camana Bay
Grand Cayman KY1-9007
Cayman Islands
CREF NO.4: Creditors' Proofs of Debt Due Aug. 3
-----------------------------------------------
The creditors of CREF No.4 Limited are required to file their
proofs of debt by Aug. 3, 2012, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on June 21, 2012.
The company's liquidator is:
Linburgh Martin
c/o Neil Gray
Telephone: (345) 949 8455
Facsimile: (345) 949 8499
Intertrust (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034 Grand Cayman KY1-1102
Cayman Islands
ESSENTIAL GLOBAL: Shareholders' Final Meeting Set for July 26
-------------------------------------------------------------
The shareholders of Essential Global Gaming Fund Limited will
hold their final meeting on July 26, 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:
Michael Pearson
c/o Karen Scott
Deloitte & Touche
Citrus Grove Building, 4th Floor
Goring Avenue, George Town KY1-1109
Telephone: +1(345) 814 3312
e-mail: kascott@deloitte.com
ESSENTIAL GLOBAL MASTER: Shareholders' Meeting Set for July 26
--------------------------------------------------------------
The shareholders of Essential Global Gaming Master Fund Limited
will hold their final meeting on July 26, 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:
Michael Pearson
c/o Karen Scott
Deloitte & Touche
Citrus Grove Building, 4th Floor
Goring Avenue, George Town KY1-1109
Telephone: +1(345) 814 3312
LATINPANEL INTERNATIONAL: Shareholders' Meeting Set for Aug. 3
--------------------------------------------------------------
The shareholders of Latinpanel International, Inc. will hold
their final meeting on Aug. 3, 2012, at 8:45 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
RILEY PATERSON: Shareholders' Final Meeting Set for Aug. 21
-----------------------------------------------------------
The shareholders of Riley Paterson Asian Opportunities Fund will
hold their final meeting on Aug. 21, 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:
Highwater Limited
c/o Nicole Weins
Telephone: (345) 640 2279
Facsimile: (345) 943 2294
Grand Pavilion Commercial Centre
1st Floor, 802 West Bay Road
P.O. Box 31855 Grand Cayman KY1-1207
Cayman Islands
ROOST INVESTMENTS: Shareholders' Final Meeting Set for July 25
--------------------------------------------------------------
The shareholders of Roost Investments Limited will hold their
final meeting on July 25, 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:
Appleby Trust (Cayman) Ltd
Clifton House
75 Fort Street
P.O Box 1350 Grand Cayman, KY1-1108
Cayman Islands
TOKYOR FUND: Creditors' Proofs of Debt Due July 25
--------------------------------------------------
The creditors of Tokyor Fund are required to file their proofs of
debt by July 25, 2012, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 29, 2012.
The company's liquidator is:
Ogier
c/o Jacqueline Haynes
Telephone: (345) 815-1759
Facsimile: (345) 949-9877
89 Nexus Way Camana Bay
Grand Cayman KY1-9007
Cayman Islands
VALUE PARTNERS: Shareholder to Hear Wind-Up Report on Aug. 3
------------------------------------------------------------
The shareholder of Value Partners Greater China Property Hedge
Fund will receive on Aug. 3, 2012, at 9:15 a.m., 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
VALUE PARTNERS FUND: Shareholder to Hear Wind-Up Report on Aug. 3
-----------------------------------------------------------------
The shareholder of Value Partners Greater China Property Hedge
Master Fund will receive on Aug. 3, 2012, at 9:30 a.m., 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
=========
C H I L E
=========
CORP GROUP: Moody's Assigns 'Ba3' Long-Term Issuer Ratings
----------------------------------------------------------
Moody's Investors Service assigned first time long term local and
foreign currency issuer ratings of Ba3 to Corp Group Interhold
S.A., the holding company for Chile's CorpBanca (D+/baa3/Baa1).
Moody's also assigned a Ba3 long term foreign currency debt
rating to Interhold's existing US$130 million Regulation S senior
notes issued in 2010 and maturing in 2015. The outlook on the
ratings is stable.
The following ratings were assigned to Interhold:
Long term local currency issuer rating: Ba3
Long term foreign currency issuer rating: Ba3
Long term foreign currency senior debt rating: Ba3
Ratings Rationale
Interhold's Ba3 issuer and debt ratings were based on the
following considerations: 1) steady and growing dividend
contributions from its main operating subsidiaries, particularly
CorpBanca, under both expected and adverse earnings scenarios; 2)
the holding's high reliance on dividends from its operating
subsidiaries to meet its obligations; and 3) the present and
potential cash needs of both the holding and the group's
expanding operations. The ratings take into account the
refinancing risks inherent in the company's strategy of
increasingly financing its acquisitions with debt alongside
ongoing capital support from its controlling and other
shareholders. The group's high growth profile and cross border
acquisition strategy, as demonstrated by the recent purchase of
control of Banco Santander Colombia, add a level of uncertainty
to the company's future cash flows that is also incorporated in
the Ba3 rating.
Interhold's Ba3 rating is anchored on the baa3 stand alone credit
assessment of CorpBanca, its largest and most profitable
operating subsidiary. However, CorpBanca, as well as the
holding's insurance subsidiaries Corpvida S.A. and Corpseguros
S.A., are regulated by the Chilean Superintendency of Financial
Institutions and Superintendency of Securities and Insurance,
respectively, and are therefore subject to minimum capital
requirements that could affect the upstreaming of dividends to
Interhold and therefore its ability to meet its debt obligations.
Moody's said that the three-notch differential between the Ba3
issuer rating of Interhold and CorpBanca's baa3 stand alone
credit assessment reflects the structural subordination of the
holding company's debtholders to all liability holders of the
regulated operating companies, particularly bank depositors and
insurance policy holders, and to all other creditors of the
operating companies, given that the debt is not guaranteed by any
of Interhold's subsidiaries.
While Interhold's senior notes are secured by a first priority
lien on a portion of Corpbanca's shares, Moody's said this
collateral does not enhance its rating of the Interhold notes and
thus views the notes as unsecured obligations of Interhold.
Proceeds of the notes were used to partially fund the 2010
purchase of 20% of the outstanding shares of VTR by one of
Interhold's shareholders, Inversiones Corp Rec, while the
remainder was used for general corporate purposes.
The Ba3 rating for the Interhold notes also takes into account
the lack of restrictions on holding company dividends. Moody's
said that this risk is not significantly mitigated by the
transaction's modest financial covenants or by restrictions on
additional debt.
Established in 1996 and incorporated in Chile, Corp Group
Interhold is the intermediate holding company for a group of
financial services and telecommunications companies, including
Corpbanca, Chile's fifth largest bank, Corp Group Vida Chile
S.A., the country's second largest provider of annuities, and VTR
Wireless, the largest cable TV and broad band provider. Its main
purpose is to invest in companies and as such its earnings derive
principally from dividends received from its operating companies.
The main challenges for Interhold in the near term center on the
financial risks related to the group's high growth and regional
acquisition strategy, particularly in light of its recent
acquisition of Banco Santander Colombia. The positive economic
outlooks for both Chile and Colombia however provide a solid
platform for healthy growth of the group's various operating
entities. Interhold is also well positioned in terms of risk
management and distribution which will allow it to take advantage
of new business opportunities through its well established brands
in the sectors in which it operates, said Moody's.
Corp Group Interhold S.A. reported unconsolidated assets of US$
1.7 billion (CLP 915.6 billion), equity of $1.36 billion, and net
income of $50.1 million as of December 31, 2011. On a
consolidated basis Interhold and its subsidiaries reported total
assets of US$ 18.3 billion and controlling shareholders' equity
of $1.36 billion as of December 31, 2011. Interhold is majority
owned and controlled by the Saieh family group with a 75.64%
stake via CG Financial Chile B.V. and CorpGroup Financial S.A.
(Chile).
===============
C O L O M B I A
===============
BANCO GNB: Fitch Assigns Issuer Default Ratings at Low-B
--------------------------------------------------------
Fitch Ratings has assigned an initial rating of 'BB+' to Banco
GNB-Sudameris (GNB).
GNB's Viability (VR) and Issuer Default Ratings (IDR) reflect its
robust asset quality, sound reserves, sufficient capital, ample
liquidity, operating efficiency, and moderate yet consistent
performance. The ratings also consider GNB's experienced
management and clear strategy. Fitch's view of GNB's
creditworthiness is tempered by its low margins; concentrated,
costlier than average deposits; and the challenges related to its
ambitious expansion plans.
Thanks to conservative risk policies and adequate structuring,
GNB's past due loan (PDL) ratios are the lowest in the Colombian
banking system and compare well to those of its regional peers.
PDL ratios could slide as the bank expands into retail, but
should remain sound and adequately covered by reserves, which,
along with the bank's bolstered capital, constitute a sizeable
cushion against unexpected losses.
Deposits comfortably fund the loan portfolio but have a
relatively high cost and are moderately concentrated given the
banks important institutional business. However, GNB has a large
liquidity position coupled with a sizable and liquid investment
portfolio -- due to its market-maker status -- that provide the
bank the resources, market access and know-how to adequately
manage its liquidity.
Given its relatively low-risk loan and investment portfolios and
higher than average funding cost, GNB has relatively low margins.
Operating revenues are bolstered by non-interest revenues while a
wise use of technology and a cost-conscious management help GNB
achieve very good efficiency ratios that compare well to those of
its regional peers. ccordingly, GNB has shown a consistent
albeit moderate performance since its turnover (2003); its
profitability is below that of its peers but is quite stable.
GNB is led by a team of bankers with significant experience in
the industry and a successful track record turning around
troubled banks and carrying-out mergers and acquisitions. GNB is
well positioned in niche markets (middle market, payroll lending,
ATMs, cash management, among others) based on strong relationship
management, rapid decision-making and adequate use of technology.
In May 2012, GNB agreed to acquire HSBC's operations in Colombia,
Paraguay, Peru and Uruguay. In Fitch's opinion, the transaction
is strategically positive for GNB, as it acquired fairly clean
banks with adequate deposit funding that operate in generally
stable economies. The acquisition fits GNB's growth strategy and
the banks' size and market share allow GNB to gradually introduce
the products that it successfully distributes in Colombia.
Growth potential is important, especially in Peru and Uruguay
while GNB's core market remains sound.
Fitch has reviewed the initial projections and GNB's capital
plans to accompany this expansion. The impact on capital ratios
and profitability would be moderately negative at the closing of
the transaction (1H'13) while asset quality and reserve coverage
would be affected only marginally given the good asset quality of
the acquired banks. Fresh capital injections would take place as
each bank is effectively acquired, thus mitigating most of the
impact on capital; expected improvements in cost control at the
acquired banks would underpin profitability.
GNB expects to turn around the acquired banks within the first
year, posting a modest but growing net profit. In the first
couple of years, the newly acquired banks' performance would
improve due to lower costs (when compared to HSBC's cost
structure) in spite of significant re-structuring costs. Later
on, synergies and economies of scale would underpin profits and
contribute to improve efficiency and increase capital generation.
Fitch expects that GNB will maintain Fitch Core Capital to Risk
Weighted Assets ratios above 10%. Initial projections show that
GNB's consolidated performance and capital metrics would improve
within 12-18 months of the acquisition. Then, as GNB implements
its turnaround plan, capital ratios and profitability would inch
closer to GNB's historical levels (within 18-30 months) but
remain below the levels of end-2011.
As is usually the case with M&As, the acquisitions and turnover
plans are not without risks. Competition is important in all
markets, and some customers, used to dealing with a global bank,
may migrate to other banks. GNB plans to roll-out a retention
campaign to minimize customer attrition which is nevertheless
embedded in its projections. GNB's track record in acquiring,
integrating and banks turn-arounds mitigates execution risk.
GNB's ratings could be negatively affected if the capital plan is
not executed as projected and/or if GNB's (or one of its newly
acquired subsidiaries') performance declines more than expected.
In addition, should the financial profile of the acquired
entities, in terms of funding, capital and profitability,
deteriorate beyond the base case projections, GNB's ratings would
be pressured downward.
On the other hand, given the implementation challenges of the
acquisition and GNB's financial standing -- with adequate capital
but below-average profitability -- as well as the highly
competitive environment in Colombia and the new markets GNB
enters, a potential upgrade of GNB's ratings is highly dependent
on structural changes in terms of capital and profitability
coupled with an uneventful merger/acquisition.
The transaction is to be completed in 2013; the four banks will
be gradually acquired between 3Q'12 and 2Q'13. Fitch will
closely monitor the performance of the acquired banks, and that
of GNB to take appropriate rating actions should GNB's plans
deviate significantly from its base case.
Fitch rates GNB as follows:
-- Long-term foreign currency Issuer Default Rating (IDR):
'BB+'; Outlook Stable;
-- Short-term foreign currency IDR: 'B';
-- Long-term local currency IDR: 'BB+'; Outlook Stable;
-- Short-term local currency IDR: 'B';
-- Viability rating: 'bb+';
-- Support Rating: '4';
-- Support floor: 'B+';
Fitch Currently Rates Banco GNB-Sudameris as follows:
-- National Scale Long-Term Rating: 'AA+(col)';
-- National Scale Short-Term Rating: 'F1+(col)'.
GNB is a medium-sized Colombian universal bank that has
successfully positioned itself in several niches (corporate
middle market, sub-national public entities, payroll consumer
lending among others) and enjoys a 3.3% market share by assets.
The bank has grown steadily since 2003, consolidated its business
model and achieved consistent performance metrics. GNB is
controlled by a well-regarded local family.
=============
J A M A I C A
=============
* JAMAICA: UK Makes GBP7.25 Million Grant for Citizen Security
--------------------------------------------------------------
The United Kingdom's Department for International Development
(DFID) will contribute GBP7.25 million to expand a citizen
security program designed to reduce crime and violence in high-
risk communities in Jamaica, the Inter-American Development Bank
announced today.
Jamaica, which suffers the highest homicide rate in the
Caribbean, has identified citizen security as one of its most
pressing issues. To address it, the Jamaican government has
developed a long-term, nationwide crime prevention strategy and
is carrying out targeted efforts to improve citizen security
conditions in five parishes with the highest incidences of
serious crimes.
The UK grant, equivalent to about US$11.3 million, will help the
Jamaican government reach a total of 50 communities under its
Citizen Security and Justice Program (CSJP), currently financed
with a US$21 million IDB loan approved in 2009. At present, the
CSJP is being carried out in 39 communities with risk factors
such as gang presence, high youth unemployment rates and a
generalized sense of lawlessness.
The CSJP builds on international best practices for strengthening
community mobilization and governance, expanding social and
economic inclusion opportunities for young people and promoting a
law-abiding culture. According to assessments by the Planning
Institute of Jamaica, communities participating in the program
have experienced sharp declines in homicides, shootings and
violence-related injuries.
With the resources provided by DFID, the CSJP will engage local
leaders to run community action committees and participate in the
preparation of safety and development plans tailored to the needs
and priorities of their neighborhoods. At least 7,300 young
people will receive financial assistance to attend vocational
training courses as well as opportunities for internships in
businesses. In addition, the program will finance activities such
as training in parenting skills, anger management, conflict
resolution and remedial education.
Part of the UK grant will enable the Jamaican government to cover
administrative costs and expenses incurred by the CSJP in order
to avoid disruptions in the services and activities in the
communities where the program is already in operation.
===========
M E X I C O
===========
COMPANIA DE TRANSPORTE: Fitch Junks Rating on Two Class Notes
-------------------------------------------------------------
Fitch Ratings has downgraded the ratings of Compania de
Transporte de Energia Electrica en Alta Tension Transener S.A.
(Transener) as follows:
-- Long-term Foreign Currency Issuer Default Rating (IDR) to
'CCC' from 'B-';
-- Long-term Local Currency IDR to 'CCC' from 'B-';
-- 2016 notes to 'CCC/RR4' from 'B-/RR4';
-- 2021 notes to 'CCC/RR4' from 'B-/RR4'.
The downgrade reflects Transener's continued generation of
negative free cash flow (cash flow from operations minus capital
expenditures and dividends) during the past two years and through
the first quarter of 2012 and its business model challenges due
to lack of tariff increases in a context of rising costs. Fitch
expects that these factors increase the probability that EBITDA
could be negative in 2012; leverage could increase above 10x, and
FCF is likely to remain negative.
Fitch expects that the company's internally generated funds and
liquidity position of ARP 115 million as of March 2012 will be
sufficient to face this year's interests and capital
expenditures. However, the potential absence of payments agreed
with the regulator over the next 12 to 18 months could put
pressure on the company's ability to meet 2013's opex and capex.
In 2010 and 2011, Transener has partially relied on disbursements
from the Wholesale Electric Market Administrator (CAMMESA) to
face its operating needs and capital expenditures. Such
disbursements were made under an agreement reached between the
company and the Secretary of Energy in December 2010 on the
amount of cost increases Transener had in the period June 2005 -
November 2010. The timing of such disbursements is uncertain and
subject to the discretion of the regulator and availability of
funds at CAMMESA. Up to date, Transener has received
approximately 21% of the amount agreed.
The political and regulatory risk related to Transener's business
is considered high. Transener's full-tariff review is pending
since 2002. Offsetting factors relate to its strong competitive
position as the largest transporter of high voltage electricity
in Argentina, and its priority of payment from its offtaker,
CAMMESA. It also encompasses an adequate amortization schedule
with no major maturities until 2021.
For the 12 month period ended Dec. 31, 2011, the company had USD
154 million of total debt. This figure compares with USD 33
million of EBITDA, resulting in a total debt/EBITDA ratio of
4.7x, and interest coverage ratios of 1.7x.
Triggers for a negative rating action include a significant
deterioration in the company's liquidity. Triggers for a
positive rating action include a full tariff review that
reconstitutes the company's economic equation.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week July 9 to July 13, 2012
----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
ALTO PALERMO SA 7.875 5/11/2017 USD 82
ARGENT-$DIS 8.28 12/31/2033 USD 63.8
ARGENT-$DIS 8.28 12/31/2033 USD 66.5
ARGENT-PAR 1.18 12/31/2038 ARS 40.3
ARGENT-EURDIS 7.82 12/31/2033 EUR 65.5
ARGENT-EURDIS 7.82 12/31/2033 EUR 53.5
ARGENT-EURDIS 7.82 12/31/2033 EUR 54
ARGENT- DIS 4.33 12/31/2033 JPY 42
ARGENT- PAR 0.45 12/31/2038 JPY 15
ARGENT- PAR&GDP 0.45 12/31/2038 JPY 8
ARGNT-BOCON PRE9 2 3/15/2014 ARS 66.8
BANCO DE GALICIA 8.75 5/4/2018 USD 73
BANCO DE GALICIA 8.75 5/4/2018 USD 71.1
BANCO MACRO SA 9.75 12/18/2036 USD 65
BANCO MACRO SA 9.75 12/18/2036 USD 62
BANCO MACRO SA 9.75 12/18/2036 USD 60
BONAR X 7 4/17/2017 USD 71
CAPEX SA 10 3/10/2018 USD 62.2
CAPEX SA 10 3/10/2018 USD 59.6
CIA LATINO AMER 9.5 12/15/2016 USD 74.1
CITY OF BUENOS 9.95 3/1/2017 USD 72.9
CITY OF BUENOS 9.95 3/1/2017 USD 72.1
EMP DISTRIB NORT 9.75 10/25/2022 USD 34
EMP DISTRIB NORT 9.75 10/25/2022 USD 35.6
EMP DISTRIB NORT 10.5 10/9/2017 USD 50
PROV BUENOS AIRE 9.625 4/18/2028 USD 51.1
PROV BUENOS AIRE 9.375 9/14/2018 USD 55.9
PROV BUENOS AIRE 9.375 9/14/2018 USD 57
PROV BUENOS AIRE 10.875 1/26/2021 USD 57.5
PROV BUENOS AIRE 10.875 1/26/2021 USD 58.1
PROV BUENOS AIRE 11.75 10/5/2015 USD 69.3
PROV BUENOS AIRE 9.25 4/15/2017 USD 72
PROV BUENOS AIRE 11.75 10/5/2015 USD 69.5
PROV DE CORDOBA 12.375 8/17/2017 USD 57.9
PROV DE CORDOBA 12.375 8/17/2017 USD 58.1
PROV DE MENDOZA 5.5 9/4/2018 USD 70.2
RAGHSA CONSTRUCC 8.5 2/16/2017 USD 85
SALTA PROVINCE 9.5 3/16/2022 USD 76.2
TRANSENER 9.75 8/15/2021 USD 40.5
TRANSENER 9.75 8/15/2021 USD 47.5
TRANSPORT DE GAS 7.875 5/14/2017 USD 73.5
BRAZIL
------
BANCO BONSUCESSO 9.25 11/3/2020 USD 60
BANCO BONSUCESSO 9.25 11/3/2020 USD 55
BANCO CRUZEIRO 8.875 9/22/2020 USD 31
BANCO CRUZEIRO 8.875 9/22/2020 USD 29.6
BANCO CRUZEIRO 7 7/8/2013 USD 51
BANCO CRUZEIRO 7.625 4/21/2014 USD 55.9
BANCO CRUZEIRO 8.25 1/20/2016 USD 55.8
BANCO CRUZEIRO 8.5 2/20/2015 USD 53.9
BANCO CRUZEIRO 8.25 1/20/2016 USD 53.6
BANCO CRUZEIRO 8.5 2/20/2015 USD 53.1
BANCO CRUZEIRO 8 9/17/2012 USD 70.2
CESP 9.75 1/15/2015 BRL 75.1
REDE EMPRESAS 11.125 USD 44.1
REDE EMPRESAS 11.125 USD 44.1
REDE EMPRESAS 11.125 USD 50
SIFCO 11.5 6/6/2016 USD 70.9
CAYMAN ISLAND
-------------
BANCO BPI (CI) 4.15 11/14/2035 EUR 56
BCP FINANCE BANK 5.01 3/31/2024 EUR 51.5
BCP FINANCE BANK 5.31 12/10/2023 EUR 53.9
BCP FINANCE CO 4.239 EUR 27.5
BCP FINANCE CO 5.543 EUR 27.8
BES FINANCE LTD 5.58 EUR 38.7
BES FINANCE LTD 4.5 EUR 49
CAM GLOBAL FIN 6.08 12/22/2030 EUR 64.9
CHINA FORESTRY 10.25 11/17/2015 USD 58.2
CHINA FORESTRY 10.25 11/17/2015 USD 56.9
CHINA SUNERGY 4.75 6/15/2013 USD 74
EFG HELLAS CAYMA 9 6/8/2019 EUR 52.5
EFG ORA FUNDING 1.7 10/29/2014 EUR 50.2
ESFG INTERNATION 5.753 EUR 31.7
GOL FINANCE 8.75 USD 76.7
GOL FINANCE 8.75 USD 71.1
JINKOSOLAR HOLD 4 5/15/2016 USD 45.2
LDK SOLAR CO LTD 10 2/28/2014 CNY 37
LDK SOLAR CO LTD 4.75 4/15/2013 USD 49.5
LDK SOLAR CO LTD 4.75 4/15/2013 USD 70.1
LUPATECH FINANCE 9.875 USD 67
LUPATECH FINANCE 9.875 USD 66.6
PUBMASTER FIN 5.943 12/30/2024 GBP 71.7
PUNCH TAVERNS 4.767 6/30/2033 GBP 71.9
RENHE COMMERCIAL 13 3/10/2016 USD 50.8
RENHE COMMERCIAL 13 3/10/2016 USD 59.5
RENHE COMMERCIAL 11.75 5/18/2015 USD 53
RENHE COMMERCIAL 11.75 5/18/2015 USD 52.9
SOLARFUN POWER H 3.5 1/15/2018 USD 68.7
SOLARFUN POWER H 3.5 1/15/2018 USD 69
SUNTECH POWER 3 3/15/2013 USD 67.8
SUNTECH POWER 3 3/15/2013 USD 69
CHILE
-----
CGE DISTRIBUCION 3.25 12/1/2012 CLP 9.97
COLBUN SA 3.2 5/1/2013 CLP 49.3
ESVAL S.A. 3.8 7/15/2012 CLP 12.7
MASISA 4.25 10/15/2012 CLP 10
QUINENCO SA 3.5 7/21/2013 CLP 25.7
PUERTO RICO
-----------
PUERTO RICO CONS 6.2 5/1/2017 USD 63
PUERTO RICO CONS 6.5 4/1/2016 USD 65.6
VENEZUELA
---------
ELEC DE CARACAS 8.5 4/10/2018 USD 72
PETROLEOS DE VEN 5.5 4/12/2037 USD 57
PETROLEOS DE VEN 5.375 4/12/2027 USD 56.2
PETROLEOS DE VEN 9.75 5/17/2035 USD 70
PETROLEOS DE VEN 5.25 4/12/2017 USD 71
PETROLEOS DE VEN 5.125 10/28/2016 USD 73.2
PETROLEOS DE VEN 9 11/17/2021 USD 74.4
VENEZUELA 7 3/31/2038 USD 63.8
VENEZUELA 7 3/31/2038 USD 66.5
VENEZUELA 6 12/9/2020 USD 69.3
VENEZUELA 7.65 4/21/2025 USD 70.8
VENEZUELA 8.25 10/13/2024 USD 74.5
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-LA constitutes an offer or
solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine
T. Fernandez, Valerie U. Pascual, 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 * * *