/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120726.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 Thursday, July 26, 2012, Vol. 13, No. 148 Headlines A R G E N T I N A AERO PENINSULA: Applies for Bankruptcy Protection CONSTRUCTORA PROYECTOS: Creditors' Proofs of Debt Due Aug. 14 GAS NEA: Requests Opening of Bankruptcy Proceedings METROGAS SA: YPF SA Plans Takeover From BG Group PROVINAR SRL: Creditors' Proofs of Debt Due Oct. 5 TERACODE SA: Asks for Bankruptcy Proceedings * ARGENTINA: GDP to Shrink 1.7% This Year, Citigroup Says C A Y M A N I S L A N D S FERIADO INVESTMENT: Creditors' Proofs of Debt Due Aug. 14 FERIADO INVESTMENT: Shareholders' Final Meeting Set for Aug. 17 GEMINI CAYMAN: Creditors' Proofs of Debt Due Aug. 16 GREENLAKE INVESTMENT: Creditors' Proofs of Debt Due Aug. 16 INJET400 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16 INJET800 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16 K SERA SERA: Creditors' Proofs of Debt Due Aug. 31 PILOTROCK OFFSHORE: Creditors' Proofs of Debt Due Aug. 15 SONNEN ENERGIE: Members' Final Meeting Set for Aug. 7 SSO I LTD: Creditors' Proofs of Debt Due Aug. 16 TCP INVESTMENTS: Creditors' Proofs of Debt Due Aug. 27 C O S T A R I C A BANCO DE COSTA: Fitch Affirms 'BB+' IDR and Viability Rating BANCO NACIONAL: Fitch Affirms Rating on IDR and VR at Low-B E L S A L V A D O R * EL SALVADOR: Fitch Affirms Low-B Issuer Default Ratings P U E R T O R I C O ALCO CORP: Aug. 29 Hearing on Amended Disclosure Statement REITTER CORP: Plan Confirmation Hearing on Oct. 2 X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= AERO PENINSULA: Applies for Bankruptcy Protection ------------------------------------------------- Aero Peninsula SA applied for bankruptcy protection. The company defaulted its payments last May 9, 2009. CONSTRUCTORA PROYECTOS: Creditors' Proofs of Debt Due Aug. 14 ------------------------------------------------------------- Mauricio Leon Zafran, the court-appointed trustee for Constructora Proyectos SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Aug. 14, 2012. Mr. Zafran will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50, 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: Mauricio Leon Zafran Av. Callao 420 Argentina GAS NEA: Requests Opening of Bankruptcy Proceedings --------------------------------------------------- Gas NEA SA requested the opening of bankruptcy proceedings. The company defaulted its payments last April. METROGAS SA: YPF SA Plans Takeover From BG Group ------------------------------------------------ Pablo Gonzalez at Bloomberg News reports that YPF SA is replacing two board members at its Metrogas SA joint venture with BG Group Plc (BG/) as it prepares to take over the bankrupt natural-gas distributor, an executive with knowledge of the plan said. The replacement of the board members was approved in a shareholders meeting, the person said, declining to be named because the plan isn't public, according to Bloomberg News. Bloomberg News relays that the source said that the new board members will help prepare the company for a takeover as early as mid-August. Anses, the state-owned pension system, is replacing one board member, the source added, Bloomberg News relates. Bloomberg News notes that Argentina President Cristina Fernandez de Kirchner is tightening control over the South American country's energy industry after price caps discouraged investments and squeezed profit margins in past years. Bloomberg News recalls that in April, the government seized a 51% stake in YPF from Spain's Repsol SA. (REP) BG, of the U.K., has sought damage payments from the Argentine government since 2007 because of losses caused by the price caps, Bloomberg News relates. On Jan. 21, a federal judge in Washington upheld damage claims of US$185 million, Bloomberg News discloses. BG shut its Buenos Aires office in 2009. Bloomberg News notes that BG controls Metrogas through a 55% stake in parent holding company GASA, which defaulted on US$70 million of debt in 2002. YPF owns 45% of GASA. As reported in the Troubled Company Reporter-Latin America on June 22, 2012, Bloomberg News said that holders of the Metrogas SA's bonds approved a debt restructuring for the bankrupt gas distributor. Investors holding about US$139 million of debt unanimously approved the terms of the restructuring, the company said in statements to the Buenos Aires exchange obtained by Bloomberg News. The accord includes swapping bonds for new debt to mature in 2018, and will comprise haircuts of 53% for holders of class A bonds and 47% for holders of class B bonds, according to documents posted in February on the company's Web site, according to Bloomberg News. About Metrogas SA Buenos Aires, Argentina-based MetroGAS S.A., a gas distribution company, was incorporated on Nov. 24, 1992, and began operations on Dec. 29, 1992, when the privatization of Gas del Estado S.E. ("GdE") (an Argentine Government-owned enterprise) was completed. Through Executive Decree No. 2,459/92 dated Dec. 21, 1992, the Argentine Government granted MetroGAS an exclusive license to provide the public service of natural gas distribution in the area of the Federal Capital and southern and eastern Greater Buenos Aires, by operating the assets allocated to the Company by GdE for a 35-year period from the Takeover Date (Dec. 28, 1992). This period can be extended for an additional 10 year period under certain conditions. MetroGAS' controlling shareholder is Gas Argentino S.A., who holds 70% of the Common Stock of the Company. The 20%, which was originally owned by the National Government, was offered in public offering and the remaining 10% is under the Employee Stock Ownership Plan ("Programa de Propiedad Participada" or "PPP"). The suspension of the original regime for tariff adjustments and the inability to generate sufficient cash flows to pay its financial debt obligations led the Company to file a petition for a voluntary reorganization proceeding (concurso preventivo) in an Argentine court on June 17, 2010. On July 12, 2011, the Company presented a Reorganization Proposal to all unsecured creditors with proved and admissible claims. The offer consists of the payment of the unsecured claims, either proved or admissible, by means of the delivery, in exchange for and payment of such credits, of negotiable obligations payable in 14 years, in American Dollars, for 45%, measured in American Dollars, of the unsecured claims verified or declared admissible -- Negotiable Obligations. The Negotiable Obligations will be amortized 1% per year from year 3 to, and including, year 13, and the remaining balance (89%) will be amortized at the maturity of the Negotiable Obligations, in year 14. The Negotiable Obligations will accrue interest at an annual fixed rate of 4% and will be issued in two series under substantially the same terms and conditions. Both will be offered in public bids. One of the series will be offered in exchange to those creditors with unsecured claims who hold existing negotiable obligations with public offer, and the other series will be offered to the other unsecured creditors who are not bondholders. On Oct. 3, 2011, commercial creditor consents to MetroGAS' offer were presented before the reorganization procedure court, in such a number that represents the absolute majority of the verified creditors. PROVINAR SRL: Creditors' Proofs of Debt Due Oct. 5 -------------------------------------------------- Maria Rosa Lopez, the court-appointed trustee for Provinar SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Oct. 5, 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 TERACODE SA: Asks for Bankruptcy Proceedings -------------------------------------------- Teracode SA asked for bankruptcy proceedings. The company defaulted its payments last March 23, 2012. * ARGENTINA: GDP to Shrink 1.7% This Year, Citigroup Says --------------------------------------------------------- Katia Porzecanski at Bloomberg News reports that Argentina's economy will post its first annual contraction in a decade as tighter capital and import controls contribute to a drop in output and confidence, Citigroup Inc. said. Gross domestic product will shrink 1.7% this year, worse than the bank's previous forecast for 1% growth, New York-based economist Joaquin Cottani wrote in a note to clients, according to Bloomberg News. Bloomberg News relates that with annual inflation Citigroup estimates at 25%, the country is experiencing so-called stagflation, Mr. Cottani said. Bloomberg News discloses that Argentina President Cristina Fernandez de Kirchner has stepped up restrictions on dollar purchases and forced some companies to repatriate export revenue since her October re-election in a bid to stem capital outflow. Bloomberg News relays that President Fernandez also restricted imports as she sought to widen a narrowing trade surplus, and seized the country's biggest oil company from its Spanish parent company. Fernandez's policies have worsened the outlook of Argentines and international investors, Cottani said. Consumer confidence fell 25% in July from a year earlier, according to a survey released by Buenos Aires-based Torcuato Di Tella University that was obtained by the news agency. Bloomberg News notes that Mr. Cottani said his forecast for an economic contraction this year is different than what he expects the government will report. Mr. Cottani predicts the government will say growth was 1.5 percent this year, Bloomberg News says. =========================== C A Y M A N I S L A N D S =========================== FERIADO INVESTMENT: Creditors' Proofs of Debt Due Aug. 14 --------------------------------------------------------- The creditors of Feriado Investment Company Limited are required to file their proofs of debt by Aug. 14, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 19, 2012. The company's liquidator is: Dr. Peter C. Klemm Telephone: +41 44 715 43 18 Facsimile: +41 44 715 43 71 Alte Landstrasse 155 CH-8802 Kilchberg Switzerland FERIADO INVESTMENT: Shareholders' Final Meeting Set for Aug. 17 --------------------------------------------------------------- The shareholders of Feriado Investment Company Limited will hold their final general meeting on Aug. 17, 2012, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Dr. Peter C. Klemm Telephone: +41 44 715 43 18 Facsimile: +41 44 715 43 71 Alte Landstrasse 155 CH-8802 Kilchberg Switzerland GEMINI CAYMAN: Creditors' Proofs of Debt Due Aug. 16 ---------------------------------------------------- The creditors of Gemini Cayman Limited are required to file their proofs of debt by Aug. 16, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 29, 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 GREENLAKE INVESTMENT: Creditors' Proofs of Debt Due Aug. 16 ----------------------------------------------------------- The creditors of Greenlake Investment Management Ltd are required to file their proofs of debt by Aug. 16, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 2, 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 INJET400 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16 -------------------------------------------------------- The creditors of Injet400 Aircraft Leasing Co Limited are required to file their proofs of debt by Aug. 16, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 13, 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 INJET800 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16 -------------------------------------------------------- The creditors of Injet800 Aircraft Leasing Co Limited are required to file their proofs of debt by Aug. 16, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 3, 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 K SERA SERA: Creditors' Proofs of Debt Due Aug. 31 -------------------------------------------------- The creditors of K Sera Sera Investments Limited are required to file their proofs of debt by Aug. 31, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 3, 2012. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town Tortola VG 1110 British Virgin Islands c/o Mr. Philip C Pedro HSBC International Trustee Limited Compass Point, 9 Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 PILOTROCK OFFSHORE: Creditors' Proofs of Debt Due Aug. 15 --------------------------------------------------------- The creditors of Pilotrock Offshore Fund, Ltd. are required to file their proofs of debt by Aug. 15, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 29, 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 SONNEN ENERGIE: Members' Final Meeting Set for Aug. 7 ----------------------------------------------------- The members of Sonnen Energie Limited will hold their final meeting on Aug. 7, 2012, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170 George Town Grand Cayman KY1-1102 Cayman Islands SSO I LTD: Creditors' Proofs of Debt Due Aug. 16 ------------------------------------------------ The creditors of SSO I Ltd are required to file their proofs of debt by Aug. 16, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 3, 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 TCP INVESTMENTS: Creditors' Proofs of Debt Due Aug. 27 ------------------------------------------------------ The creditors of TCP Investments, SPC are required to file their proofs of debt by Aug. 27, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 26, 2012. The company's liquidator is: Jonathan Culshaw Telephone : + 852 3195 7200 Facsimile : +852 3195 7210 Harney Westwood & Riegels 7502 International Commerce Centre One Austin Road West Kowloon, Hong Kong =================== C O S T A R I C A =================== BANCO DE COSTA: Fitch Affirms 'BB+' IDR and Viability Rating ------------------------------------------------------------ Fitch Ratings has affirmed Banco de Costa Rica's (BCR) Issuer Default Ratings (IDRs) at 'BB+' and Viability Rating (VR) at 'bb+'. BCR's IDRs are driven by the explicit sovereign guarantees for all its liabilities. As stated in the Banking Law (Ley Organica del Sistema Bancario Nacional), all public banks have the guarantee and full collaboration of the state, which allows the bank's IDRs to be aligned with Costa Rica's sovereign ratings. In turn, BCR's VR considers the bank's established track record of self-sustained profitability, strong franchise, good asset quality, as well as the bank's challenged efficiency ratios. The long-term rating's Outlook remains Stable. Changes in the bank's IDRs are contingent on sovereign rating actions for Costa Rica. Given BCR's current financial profile, the potential for an upgrade of the bank's VR over the medium term is limited. Though not Fitch's base case scenario, a material deterioration in efficiency or asset quality that compromise the bank's profitability or capital position could trigger a downgrade in BCR's VR. Similar to other state-owned institutions, BCR's operating expenses are high and present limited flexibility, given the bank's extensive branch network and high personnel expenses. The current administration has included efficiency among its key strategic objectives, although material advances in this regard could only be expected over the medium to long term. However, profits have been able to sustain asset growth and maintain adequate capital ratios. In addition, in the event of an increase in expenses or compulsory contributions, Fitch would expect asset growth to slow down or capital ratios to decrease slightly. BCR's growth toward a more balanced portfolio has improved loan diversification while keeping asset quality ratios under control. After the impact of the financial crisis on credit quality, delinquency ratios have been controlled and the bank's reserves coverage has recovered, though it is still bellow pre-crisis levels. Fitch expects BCR's non-performing loans ratios to remain stable, given the bank's increased participation in retail segments. BCR has a very strong local franchise. The customer's perception of the sovereign guarantee, combined with BCR's extensive branch network and solid deposit base, place it as one of the strongest competitors in the Costa Rican banking system. BCR is the second largest bank, with a market share of 28.8% of total assets. BCR has grown toward a universal bank by increasing its participation in consumer financing along with its traditional corporate orientation. The bank complements its services with five subsidiaries: four wholly owned subsidiaries in regulated non- credit activities in Costa Rica and a 51% participation in the Panamanian general licensed bank Banco Internacional de Costa Rica (BICSA; rated 'BB+' with Stable Outlook by Fitch). Fitch has affirmed BCR's ratings as follows: International ratings -- Long-term IDR at 'BB+'; Outlook Stable; -- Short-term IDR at 'B'; -- Long-term local currency IDR at 'BB+'; Outlook Stable; -- Short-term local currency IDR at 'B'; -- Viability Rating at 'bb+'; -- Support Rating at '3'; -- Support Rating Floor at 'BB+'. National ratings -- Long-term national rating at 'AA+(cri)'; Outlook Stable; -- Short-term national rating at 'F1+(cri)'; -- Long-term senior unsecured bonds at 'AA+(cri)'; -- Commercial paper at 'F1+(cri)'. Fitch has assigned the following new ratings: -- Programa De Emisiones De Bonos Estandarizados Del Banco De Costa Rica 2012: long-term senior unsecured debt programo for USD150 million at 'AA+(cri)'; -- Programa De Emisiones De Papel Comercial Del Banco De Costa Rica 2012: Commercial paper issuance program for CRC15.000 million at 'F1+(cri)'. BANCO NACIONAL: Fitch Affirms Rating on IDR and VR at Low-B ----------------------------------------------------------- Fitch Ratings has affirmed Banco Nacional de Costa Rica's (BNCR) Issuer Default Rating (IDR) at 'BB+' and Viability Rating (VR) at 'bb+'. BNCR's IDRs are driven by the explicit sovereign guarantees for all its liabilities. This benefit, conferred on it by the Ley Organica del Sistema Bancario Nacional (National Banking System Law), allows BNCR's IDRs to be aligned to Costa Rica's sovereign ratings. In turn, BNCR's VR reflects the bank's strong franchise, ample funding, sound liquidity, and adequate capital ratios, while also factoring in weak loan portfolio quality, low loan loss reserves, and below average efficiency relative to international peers, though in line with the Costa Rican banking system. The Outlook on the long-term rating remains Stable. As the bank's main shareholder is the Costa Rican government, changes in the IDRs are contingent on sovereign rating actions. While upgrades in the bank's VR are unlikely in the foreseeable future, a material deviation of the bank's asset quality from Fitch's base case scenario could trigger a downgrade in BNCR's VR. BNCR's loan growth decelerated in 2012 and is below the market average. Asset quality indicators are weaker than those of international peers (emerging market commercial banks with a Viability Rating in the 'bb' category) and compare unfavorably with those of the Costa Rican banking system. As of 1H'12, past due loans accounted for 3.17% of total loans and reserves coverage declined a historic low of 53%, despite the high loan loss provision expense and the significant amount of charge-offs and foreclosed assets observed over the past few years after the crisis, especially in the real estate and tourism sectors. In Fitch's base case scenario loan loss provisions will continue curbing the bank's profits but credit quality indicators should stabilize. However, deterioration of specific credits in high risk segments is not ruled out, as the performance of some credits in these sectors is still uncertain. Although the bank's operating profit to average total assets ratio improved, it is still below the market average due to high operating expenses and provisions. At the same time, the ROAA and ROAE ratios at 1Q'12 compared favorably with peers and have exceeded those reported at YE2008, reflecting a tax provision reversal registered during the first semester. Fitch expects these ratios to decline as YE12 net profits will be sensitive to the amount of foreclosures and loan loss provisions expenses registered during the year. BNCR maintains adequate and stable capital ratios. In Fitch's opinion, capital levels are crucial for the bank's strategy and target capital adequacy, especially considering the bank's low reserves coverage. In the event of an increase in expenses or compulsory contributions, Fitch would expect asset growth to slow down or capital ratios to decrease slightly. BNCR's dominant market position reflects both its broad geographic penetration and its solid deposit base. At 1Q'12, the bank held a market share of 30.5% of total deposits and 26.5% of loans, and was the largest bank in the country and the largest state-owned bank in Central America. Fitch has affirmed BNCR's ratings as follows: -- Long-term IDR at 'BB+'; Outlook Stable; -- Short-term IDR at 'B'; -- Long-term local currency IDR at 'BB+'; Outlook Stable; -- Short-term local currency IDR at 'B'; -- Viability Rating at 'bb+'; -- Support Rating at '3'; -- Support Rating Floor at 'BB+'; -- Long-term national rating at 'AA+(cri)'; Outlook Stable; -- Short-term national rating at 'F1+(cri)'; -- Long-term senior unsecured bonds at 'AA+(cri)'; -- Commercial Paper at 'F1+(cri)'. ===================== E L S A L V A D O R ===================== * EL SALVADOR: Fitch Affirms Low-B Issuer Default Ratings --------------------------------------------------------- Fitch Ratings affirms El Salvador's ratings as follows: -- Foreign and local currency Issuer Default Ratings (IDRs) at 'BB'; -- Short-term IDR at 'B'; -- Country Ceiling at 'BBB-'. The Rating Outlook is revised to Negative from Stable. The Outlook revision reflects El Salvador's sustained economic growth underperformance relative to peers, which is expected to continue during the forecast period due to structural impediments faced by the economy. High fiscal deficits and difficulty in consolidating fiscal accounts faster have resulted in a debt burden persistently above 50% of GDP, well above the 'BB' median. This restricts the government's policy room to respond to external and domestic shocks. In Fitch's view, global economic uncertainty poses additional downside risks to the agency's economic and fiscal projections for El Salvador. El Salvador's economic growth prospects are weaker than those of most peers in light of the country's low competitiveness and investment levels, and high crime rates. Government initiatives to accelerate growth and to improve the business climate have been slow to materialize. Despite the sluggish economy, tax collection continues to grow supported by tax reforms and administrative measures. However, the tax burden remains below the median in the 'BB' category. Spending-overruns have undermined consolidation efforts. The NFPS deficit reached -3.9% of GDP in 2011, and Fitch expects only a slow consolidation process in the coming two years due to continued spending pressures and in the absence of a significant revenue-enhancing tax reform. El Salvador's debt burden increased further in 2011 and reached 52% of GDP (compared to 39% for the 'BB' median). Fitch expects it to remain elevated and above the 'BB' median during the forecast period. El Salvador's debt profile deteriorated due to a build up in short-term debt (LETES), exposing the sovereign to higher roll-over risks. Market access remains good, although yields in the local market have increased since 2011. El Salvador has lost access to funds under the IMF's Stand-By Agreement (SBA) due to non-compliance with fiscal targets. While the authorities treated this as a strictly precautionary agreement, it did provide an anchor for the fiscal consolidation strategy. Fitch notes that negotiations continue with the Fund and are expected to result in some sort of agreement. The government intends to maintain a SBA until the end of this presidential period in June 2014. Fitch does not expect to see a political gridlock between 2012 and 2014 related to the passage of the 2013 budget and additional long-term borrowing. However, Fitch notes that that downside risks are present as no single party has legislative majority and political polarization remains high ahead of the 2014 Presidential elections. El Salvador's ratings are supported by its macroeconomic stability underpinned by dollarization, its adequately capitalized financial system, and solid repayment record. At the same time, the government has a strong track record in implementing various tax reforms despite the low economic growth environment. Continued economic underperformance relative to peers, inability to decisively cut debt burden over the forecast period, and evidence of financing constraints could undermine creditworthiness. On the other hand, ratings could stabilize if growth performance improves and government debt burden is reduced. ==================== P U E R T O R I C O ==================== ALCO CORP: Aug. 29 Hearing on Amended Disclosure Statement ---------------------------------------------------------- U.S. Bankruptcy Judge Mildred Caban Flores will convene a hearing Aug. 29, 2012 at 9:00 a.m. to consider the adequacy of the disclosure statement in explaining the terms of Alco Corporation's Chapter 11 plan. Objections, if any, are due 14 days prior to the hearing. A June 20 hearing was previously scheduled with respect to the original version of the Disclosure Statement. According to the First Amended Disclosure Statement dated June 26, 2012, the Plan considers the full payment of all administrative, secured creditors and priority claims and a 50% dividend to the general unsecured creditors on monthly installments within 5 years from the effective date. The liquidation analysis shows that in a liquidation scenario, the estimated dividend for the unsecured creditors is 21% considering full liability to Mapfre. In the event Mapfre's claim is not owed, the 21% dividend will increase to 34%. In contrast, the Plan proposes that holders of general unsecured claims estimated to aggregate $5.81 million will receive 50% of their claims on monthly installments during a five-year term. Mapfre claims to have a security interest over some of the Debtor's assets as a consequence of an indemnity agreement. The Disclosure Statement says that the any liability to Mapfre is "contingent and undetermined." Any amounts owed to Mapfre will be paid in full under the Plan with interest at the prime rate existing on confirmation date or upon the sale of any collateral that may guarantee the claim. The Debtor listed Banco Popular de Puerto Rico as a secured creditor owed $874,000. The Debtor has paid BPPR $295,000 from the proceeds of the sale of the asphalt plant located at Toa Alta, Puerto Rico. The parties are currently reconciling the amounts owed by the Debtor. The allowed claim, which is impaired under the Plan, will be paid under an amortization table of 15 years at the prime rate existing at confirmation date, with payments not less than $4,734 per month. The owner -- LRG Investment Corp. -- will retain its equity interest in the Debtor. A copy of the Disclosure Statement dated June 26, 2012, is available at http://bankrupt.com/misc/Alco_Corp_Amended_DS.pdf About Alco Corp. Alco Corporation in Dorado, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 12-00139) on Jan. 12, 2012. Carmen D. Conde Torres, Esq., and C. Conde & Associates represent the Debtor in its restructuring effort. Alco tapped Jimenez Vasquez & Associates, PSC, as accountants. The Debtor scheduled $11.2 million in assets and $7.76 million in debts. The petition was signed by Alfonso Rodriguez, president. REITTER CORP: Plan Confirmation Hearing on Oct. 2 ------------------------------------------------- Judge Enrique S. Lamoutte Inclan will convene a hearing on Oct. 2 at 10:00 a.m. in Old San Juan, Puerto Rico, to consider confirmation of the Chapter 11 Plan of Reitter Corp. The judge entered an order approving the explanatory disclosure statement on July 12 and said confirmation objections are due 21 days prior to the hearing. As reported by the Troubled Company Reporter, the Debtor on March 27 filed an Amended Plan that will prevent the loss of over 300 direct and indirect jobs, and will result in the creation of additional direct and indirect jobs while it will enable the Debtor to continue providing healthcare services as successfully as in the past. The Plan's projected growth includes an increase in jobs as well as beds. Under the Second Amended Plan, the Debtor intends to make these payments to creditors: 1. Payment of all administrative expenses on the later of the Effective Date and the date the Administrative Claims become allowed. 2. Secured Creditor Banco Popular Puerto Rico (BPPR) will be paid by Debtor and its claim treated pursuant to a Plan Settlement. 3. Priority Secured Creditor will be paid by Debtor in full within 37 months from the Effective Date, plus the statutory interest rate. 4. Payment of 100% of all allowed priority tax claims in monthly payments to be made within the sixth year of the date of assessment of each particular claim. 5. Payment of 100% of all claims from holders of Executory contracts that are being assumed by Debtor within 36 months from the Effective Date. 6. Payment of approximately 1% of allowed unsecured claims in 36 monthly payments, without interest, to begin on the Effective Date or 30 days after the claim is allowed by a final order. The Plan will be funded from the Operating Margin being generated by the ongoing operation which, since the bankruptcy filing, has improved to the point where all payroll taxes are being paid on time, and the operating budget submitted to the bank is running ahead of projections. Furthermore, capital contributions from Debtor's shareholders of at least $250,000 annually will be made during the three years of the plan of reorganization in order to fund the plan. The classes and treatment of claims under the plan are: A. Class I consists of administrative expense claims amounting to approximately $113,254, will be paid in cash and in full on the later of the Effective Date or as soon as feasible after the claim becomes allowed. B. Class II consists of priority claims totaling $4,756,950 will receive 100% of the allowed amount of the claim in in monthly payments within the sixth year of the date of assessment of each claim. C. Class III consists of The BPPR Allowed Secured Claim in the total amount of $9,955,887.67, and secured by substantially all of Debtor's assets, will be paid pursuant to a settlement agreement. D. Class IV consists of priority secured claim of the IRS in the total estimated amount of $959,292 and secured by Debtor's accounts receivable and equipment, will be paid in full as per the IRS Plan Settlement. E. Class V consists of unsecured creditors holders of executory contracts, which as of the Effective Date will only include Infomedika with claims totaling approximately $80,389.96. The Infomedika contract is being assumed by the Debtor. The claim will be paid arrears in 36 monthly payments concurrently with their monthly payment. F. Class VI consists of unsecured creditors with no executory contracts and claims totaling approximately $16,818,996. Unsecured claims will be paid approximately 1% of their claim in 36 monthly payments beginning on the Effective Date of the Plan. G. Class VII consists of interests of common shareholders, who will retain their interest. A full text copy of the Second Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/REITTER_CORPORATION_ds_2ndamended.pdf About Reitter Corporation San Juan, Puerto Rico-based Reitter Corporation dba Hospital San Gerardo filed for Chapter 11 protection (Bankr. D. P.R. Case No. 10-07152) on Aug. 6, 2010. In its schedules, the Debtor disclosed US$20,440,765 in total assets and US$17,250,033 in total debts. Alexis Fuentes-Hernandez, Esq., at Fuentes Law Offices, in San Juan, P.R., represents the Debtor as counsel. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800 http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800 http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ *********** 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 * * *