/raid1/www/Hosts/bankrupt/TCRLA_Public/120727.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, July 27, 2012, Vol. 13, No. 149
Headlines
A R G E N T I N A
SEGUROS PROVIDA: Moody's Confirms 'Caa1' IFS Rating; Outlook Neg
B E R M U D A
LOM (HOLDINGS): Incurs $269,566 in Second Half, Cuts 7 Jobs
MUTUAL INDEMNITY: Creditors' Proofs of Debt Due Sept. 15
SEGRAVE TRUSTEE: Members' Final Meeting Set for Aug. 28
B R A Z I L
INTERCEMENT BRASIL: Moody's Cuts Corporate Family Rating to 'B1'
C A Y M A N I S L A N D S
AEOLUS HOLDINGS: Creditors' Proofs of Debt Due July 31
BIO/PHARMACCELERATOR: Creditors' Proofs of Debt Due Aug. 27
BUNYAN 2 FINANCE: Creditors' Proofs of Debt Due Aug. 16
ELLIS ISLAND: Creditors' Proofs of Debt Due July 31
GUGGENHEIM ADVISORS: Creditors' Proofs of Debt Due Sept. 3
INDIA DIVERSIFIED: Creditors' Proofs of Debt Due Aug. 20
PACIFIC STAR: Creditors' Proofs of Debt Due Aug. 16
UDON INVESTMENT: Creditors' Proofs of Debt Due Aug. 15
VALUE MASTER: Creditors' Proofs of Debt Due Aug. 15
YAMANA GOLD: Commences Liquidation Proceedings
G U Y A N A
DIGICEL GROUP: To Cut International Rates by 62% in Guyana
M E X I C O
VITRO SAB: Records US$55MM Q2 Loss on Spanish Unit's Bankruptcy
P E R U
* PERU: IDB Approves $15 Million Loan for Solid Waste Management
- - - - -
=================
A R G E N T I N A
=================
SEGUROS PROVIDA: Moody's Confirms 'Caa1' IFS Rating; Outlook Neg.
-----------------------------------------------------------------
Moody's Latin America confirmed Seguros Provida's Caa1 global
local currency (GLC) insurance financial strength (IFS) rating,
and its Baa3.bo IFS on Bolivia's national scale (NS). In the same
rating action, Moody's affirmed La Vitalicia Seguros y Reaseguros
de Vida S.A.'s (La Vitalicia) B2 GLC IFS rating and its Aa3.bo IFS
rating on Bolivia's national scale. The confirmation of Seguros
Provida's ratings concludes a review for possible downgrade
initiated on May 24, 2012. The outlook for Seguros Provida's
ratings is now negative, whereas La Vitalicia's outlook remains
negative.
Ratings Rationale
According to Moody's, the rating actions on Provida and La
Vitalicia follow a recent resolution issued by the Bolivian
insurance regulator ("APS") that freezes insurers' previsional
reserves at their May 2012 valuations until August 2012, and
restricts provisional insurers' ability to pay dividends to
shareholders. Moody's noted that the resolution is temporary and
cannot be extended beyond 30 November 2012; in the meantime, the
regulator has initiated a process to revise the actuarial
methodology for calculating insurers' provisional reserves.
The rating agency commented that APS is looking at relaxing the
reserve requirements for these previsional insurers in light of
the sustained low interest rate environment and their inability to
find assets with yields sufficient to meet their long-term
guarantees.
Moody's said that both La Vitalicia and Seguros Provida face
significant asset/liability mismatch (ALM) on their run-off
pension liabilities. The companies have experienced a sharp
decline in its profitability because of spread compression, given
low market yields, combined with inflation-adjusted guarantees on
its pension liabilities. Moody's analyst Diego Nemirovsky said,
"Although we do not assume that this trend of low interest rates
will continue over the long term, there are uncertainties about
the timing and pace of positive interest rate reversal".
In the case of Provida, Moody's noted that the resolution will
most likely prevent the company from failing to comply with
minimum regulatory capital requirements in the short term, thus
reducing -- in Moody's view -- the likelihood of potential
regulatory intervention. The rating agency noted that the review
of the company's ratings for possible downgrade had reflected
uncertainty about the insurer's ability to comply with minimum
regulatory requirements. Now that the regulator provided a
temporary waiver without endangering policyholders' interests,
Moody's believes that the near-term likelihood of adverse impact
on policyholders' has been reduced. Nevertheless, Moody's remains
concerned about the potential for a restructuring of the company's
liabilities over the intermediate term, should regulators deem
such an action necessary to ensure equitable treatment of
policyholders over the longer term.
The rating agency said that the negative outlooks on the
companies' ratings still reflect its concern about their ability
to face a longer period of low market interest rates, given their
deteriorating trend and current low market interest rates and
exposure to fixed-rate guarantees on the insurers' run-off annuity
portfolios. "Even with the regulator providing a temporary waiver,
the companies fundamental credit profile is unchanged", added
Nemirovsky.
Moody's also cited the following factors constraining the
companies' overall credit profile: 1) their significant and
concentrated investment risk in Bolivian government bonds and
local bank deposits, common for all insurers in Bolivia 2) asset-
liability management challenges associated with its inflation-
adjusted annuities with spread compression, currency and interest
rate mismatch and reinvestment risk; and 3) the weak operating
environment in Bolivia, also common for every Bolivian insurer.
Factors that could lead to a downgrade of the companies' ratings
include the following: 1) continued impairment in capitalization
levels, (i.e. decrease in its capital base of 20% or more, or
failure to comply with minimum regulatory capital requirements);
and 2) sustained weak profitability for an extended period. On the
other hand, the insurers' outlooks could return to stable if they
are able to restore their capital adequacy and profitability, e.g.
as a result of higher and sustainable market interest rates, and
better ALM positions.
Seguros Provida is privately-owned and administers run-off annuity
funds in the pay-out phase for pensioners in Bolivia, holding
about 25% of the market's reserves in this segment. The company
also distributes other types of retail life insurance policies in
the country. Based in La Paz, Bolivia, Seguros Provida reported
net income of Bs$2.4 million and revenues of Bs$8.3 million for
the first five months of 2012. The company reported shareholders'
equity of Bs$124.3 million as of May 31, 2012.
La Vitalicia, which is 97%-owned by Banco BISA S.A. (GLC bank
deposit rating of Ba2), also administers run-off annuity funds in
the pay-out phase for pensioners in Bolivia, holding the remaining
75% of the market's provisional reserves. La Vitalicia is a
leading provider of other types of life insurance and annuities to
the general population in Bolivia. Based in La Paz, Bolivia, La
Vitalicia reported net income of Bs$8.7million for the first five
months of 2012 and shareholders' equity of Bs$401.0 million as of
May 31, 2012.
=============
B E R M U D A
=============
LOM (HOLDINGS): Incurs $269,566 in Second Half, Cuts 7 Jobs
-----------------------------------------------------------
The Royal Gazette reports that Investment firm LOM (Holdings) Ltd
made a net loss of $269,566 in the first six months of the year as
brokerage revenues dipped sharply on clients' reluctance to invest
in financial markets against a backdrop of elevated global
uncertainty.
The company also said it had cut its payroll by seven staff as
part of its efforts to reduce expenses, according to The Royal
Gazette. The report relates that this included four redundancies
and the loss of two further staff two through attrition in the
Bermuda office.
In the Bahamas, there was one further redundancy and staff working
hours have been reduced, The Royal Gazette notes.
"For LOM business continues to be very tough. Very high levels of
uncertainty as to whether the world is on the brink of sliding
back into a global recession with price deflation, or conversely,
about to resume growth with inflation risks have created an
environment where clients have a powerful incentive to 'wait and
see. . . . This rational and understandable hesitation to engage
in the market has led to a significant slowdown in broking
activity in all markets and that has negatively impacted our
revenues," the firm stated in its letter to shareholders.
The Royal Gazette notes that in the first six months of the year,
broking fees fell 27% to $1.28 million. The report relates that
management and advisory fee revenues rose 11 percent to $1.01
million, as the asset management division's revenues and profits
showed healthy growth.
The LOM board decided not to pay a dividend, given current
business conditions, The Royal Gazette notes.
The board has given approval for LOM to continue to buy back
shares for cancellation to a total outlay not exceeding 200,000
shares, the report adds.
LOM (Holdings) Ltd is an investment firm.
MUTUAL INDEMNITY: Creditors' Proofs of Debt Due Sept. 15
--------------------------------------------------------
The creditors of Mutual Indemnity (U.S.) Ltd. are required to file
their proofs of debt by Sept. 15, 2012, to be included in the
company's dividend distribution.
The company's liquidators are:
Mike Morrison
Charles Thresh
c/o KPMG Advisory Limited
Crown House, 4 Par-la-Ville Road
Hamilton HM 08
Bermuda
SEGRAVE TRUSTEE: Members' Final Meeting Set for Aug. 28
-------------------------------------------------------
The members of Segrave Trustee Company Limited will hold their
final meeting on Aug. 28, 2012, at 2:30 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
Garth Calow is the company's liquidator.
===========
B R A Z I L
===========
INTERCEMENT BRASIL: Moody's Cuts Corporate Family Rating to 'B1'
----------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Intercement Brasil S.A. and its senior unsecured debt ratings
to B1 from Ba3. At the same time the ratings of Loma Negra, the
company's subsidiary in Argentina, were downgraded to B1 from Ba3
and its Aa2.ar national scale rating was confirmed. The outlook is
stable. This concludes the review for possible downgrade initiated
on April 12, 2012.
The ratings downgraded are as follows:
Issuer: Intercement Brasil S.A.
- Corporate family rating: to B1 from Ba3
Issuer: Caue Finance Limited S.A.
- US$150 million Senior Unsecured Global Notes due 2015: to B1
from Ba3
Issuer: Loma Negra C.I.A. S.A.
- US$100 million Senior Unsecured Global Bonds due 2013: to B1
from Ba3
Confirmed: Aa2.ar National Scale Rating
Stable outlook
Ratings Rationale
The downgrade has been precipitated by the much higher leverage as
a result of Intercement's acquisition of 45.9% of the outstanding
common shares of Cimpor -- Cimentos de Portugal, SGPS, S.A.
(unrated) for EUR1.5 billion. Camargo Correa, the parent company
of Intercement already owns 32.9% of Cimpor's common shares,
acquired in January 2010 for EUR1.4 billion. The remaining 21.2%
is owned by Votorantim Participacoes S.A. ("Votorantim") and,
based on an agreement signed between Intercement and Votorantim,
this shareholding will be transferred to Intercement in exchange
for certain international assets of Cimpor. Upon the conclusion of
this swap, Intercement will control 94.1% share of Cimpor.
The acquisition of Cimpor is transformative, greatly increasing
scale and geographic diversification of the company though at the
expense of heightened geo-political risk. The consummation of the
transaction will add significant debt burden and a substantial
increase in leverage metrics, with total reported gross debt to
EBITDA of 4.1x in 2012. Although Moody's sees the acquisition as
potentially credit positive in the long run, supported by
favorable outlook for the cement industry in emerging markets (86%
of total revenues), especially in Brazil, the rating is
constrained in the short term as uncertainties exist regarding the
full integration of operations and heightened political risk, and
uncertainties regarding future capital expenditures and dividend
payout.
The stable outlook reflects Moody's belief that the asset swap
with Votorantim will be concluded as planned, and that refinancing
risk is low given that the company has put in place committed
credit facilities in case there is debt acceleration triggered by
the change of control provisions in existing Cimpor's debt. Also,
the stable outlook considers that Intercement will prudently
manage capex and dividends going forward.
Intercement's ratings or outlook could be positively affected if
free cash flow to total adjusted debt remains above 4% on a
consistent basis and liquidity remains adequate, with non-
restricted cash plus projected 12-month free cash flow comfortably
covering short term debt maturities. Material debt reduction and
improved and sustained operating margins and cash flow, would lead
to upward rating consideration. Total adjusted debt to EBITDA
trending below 4.5x would support positive rating pressure. An
upgrade in the ratings could also result from an improvement in
the macroeconomic environment in Europe and other countries with
higher political risk, such as Argentina, allowing for more
certainty with respect to future revenues and operating margins.
A downgrade could result from the inability to deliver at least
mid-single digit organic growth rates and maintain current EBITDA
margins. In addition, free cash flow to total adjusted debt below
1% on a sustained basis could trigger a downgrade. A deterioration
in its liquidity profile, operating credit metrics or elevated
refinancing risk due to deteriorated condition in Europe and/or
key markets for Intercement could also prompt a negative rating
action.
InterCement Brasil S.A., former Camargo Correa Cimentos is
Brazil's second largest cement manufacturer by volume of cement
sold, operating seven plants with total capacity of 8.3 million
tons per year, in addition to producing some 1.3 million cubic
meters per year of ready-mix concrete in nineteen facilities in
Brazil. Intercement's operations are largely concentrated in the
country's southeastern and mid-western regions. Intercement
controls Loma Negra C.I.A.S.A., the leading cement manufacturer in
Argentina with an estimated 46% local market share and 8 million
tons of cement capacity in nine plants. CIMPOR, headquartered in
Lisbon - Portugal, is the leading cement producer in Portugal with
operations in Spain and several emerging markets including Brazil,
Egypt, China, India, Turkey, South Africa, Mozambique and Morocco.
In 2011, Cimpor reported EUR 616 million EBITDA on EUR 2,275
million consolidated net revenues. Brazilian operations
represented 30% of CIMPOR's consolidated revenues and 34% of
EBITDA, respectively.
===========================
C A Y M A N I S L A N D S
===========================
AEOLUS HOLDINGS: Creditors' Proofs of Debt Due July 31
------------------------------------------------------
The creditors of Aeolus Holdings (Cayman) Limited are required to
file their proofs of debt by July 31, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on June 29, 2012.
The company's liquidators are:
Timothy Le Cornu
Kenneth Krys
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
Cayman Islands
BIO/PHARMACCELERATOR: Creditors' Proofs of Debt Due Aug. 27
-----------------------------------------------------------
The creditors of Bio/Pharmaccelerator Partners Ltd. 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 June 1, 2012.
The company's liquidator is:
Jonathan Nicholson
PO Box 1976 Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 516-0210
BUNYAN 2 FINANCE: Creditors' Proofs of Debt Due Aug. 16
-------------------------------------------------------
The creditors of Bunyan 2 Finance Co. 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 28, 2012.
The company's liquidator is:
Shaikh Abdul Rahiman
Gulf Investment House K.S.C.
Dar Al-Awadi Towers, 27th to 30th Floors
Ahmad Al-Jaber Street, Sharq
PO Box 28808 Safat 13149
Kuwait
Telephone: (+965) 1844488 Ext-1402
ELLIS ISLAND: Creditors' Proofs of Debt Due July 31
---------------------------------------------------
The creditors of Ellis Island Holdings Inc are required to file
their proofs of debt by July 31, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on June 29, 2012.
The company's liquidators are:
Timothy Le Cornu
Kenneth Krys
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
PO Box 31237 Grand Cayman KY1-1205
Cayman Islands
GUGGENHEIM ADVISORS: Creditors' Proofs of Debt Due Sept. 3
----------------------------------------------------------
The creditors of Guggenheim Advisors Select Fund II (Cayman) Ltd.
are required to file their proofs of debt by Sept. 3, 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:
Lisa Clarke
c/o Jane Fleming or Lisa Clarke
Telephone: (345) 945-2187
Facsimile: (345) 945-2197
PO Box 30464 Grand Cayman KY1-1202
Cayman Islands
INDIA DIVERSIFIED: Creditors' Proofs of Debt Due Aug. 20
--------------------------------------------------------
The creditors of India Diversified Fund SPC are required to file
their proofs of debt by Aug. 20, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on June 27, 2012.
The company's liquidator is:
Gray Smith
c/o Clifton House, 75 Fort Street
PO Box 1350, Grand Cayman, KY1-1108
Cayman Islands
PACIFIC STAR: Creditors' Proofs of Debt Due Aug. 16
---------------------------------------------------
The creditors of Pacific Star Institutional Fund, 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 6, 2012.
The company's liquidator is:
Warren Keens
Intertrust (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034 Grand Cayman KY1-1102
Facsimile: (345) 949 8499
Telephone: (345) 949 8455
UDON INVESTMENT: Creditors' Proofs of Debt Due Aug. 15
------------------------------------------------------
The creditors of Udon Investment 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 SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
VALUE MASTER: Creditors' Proofs of Debt Due Aug. 15
---------------------------------------------------
The creditors of Value Master 2008-1 Limited 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 27, 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
YAMANA GOLD: Commences Liquidation Proceedings
----------------------------------------------
On June 28, 2012, the sole shareholder of Yamana Gold Holdings
(Cayman) Limited passed a resolution that voluntarily liquidates
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:
Roberto Alarcon
c/o Maples and Calder, Attorneys-at-law
PO Box 309, Ugland House
Grand Cayman KY1-1104
Cayman Islands
===========
G U Y A N A
===========
DIGICEL GROUP: To Cut International Rates by 62% in Guyana
----------------------------------------------------------
RJR News reports that Digicel Group Limited is planning to slash
international call rates in Guyana.
Digicel Guyana Chief Executive Officer Gregory Dean said his
company is going ahead with the 62% cut in overseas rates in
keeping with a High Court ruling.
Mr. Dean made the disclosure even as the Guyana Telephone and
Telegraph Company (GT&T) said it had filed an appeal, the report
notes.
RJR News says that Digicel Group has slashed its rates by 62
percent to the Caribbean, United States, and Canada.
The company said the cost of calls to China and Brazil will also
be reduced by more than 80%, the report notes.
About Digicel Group
Digicel Group Limited -- http://www.digicelgroup.com/-- is
renowned for competitive rates, unbeatable coverage, superior
customer care, a wide variety of products and services and state-
of-the-art handsets. By offering innovative wireless services
and community support, Digicel Group has become a leading brand
across its 31 markets worldwide. Digicel is based in Jamaica.
It has operations in 31 markets worldwide. Its Caribbean and
Central American markets comprise Anguilla, Antigua & Barbuda,
Aruba Barbados, Bermuda, Bonaire, the British Virgin Islands, the
Cayman Islands, Curacao, Dominica, El Salvador, French Guiana,
Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica,
Martinique, Panama, St. Kitts Nevis, St. Lucia, St. Vincent & the
Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The
Caribbean company also has coverage in St. Martin and St. Barts.
Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga
and Vanuatu.
* * *
As of June 25, 2012, the company continues to carry Moody's
"Caa1" senior unsecured debt rating.
===========
M E X I C O
===========
VITRO SAB: Records US$55MM Q2 Loss on Spanish Unit's Bankruptcy
---------------------------------------------------------------
Jonathan Roeder at Bloomberg News reports that Vitro, S.A.B. de
C.V. recorded a one-time loss of $55 million in the second quarter
because of expenses incurred by the start of bankruptcy
proceedings for its Spanish unit.
Vitro SAB, which posted a net loss of MZN963 million in the
quarter on sales of MXN6 billion, announced the results in a
filing today to the Mexican stock exchange, according to Bloomberg
News.
Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.
Vitro is the largest manufacturer of glass containers and flat
glass in Mexico, with consolidated net sales in 2009 of MXN23,991
million (US$1.837 billion).
Vitro defaulted on its debt in 2009, and sought to restructure
around US$1.5 billion in debt, including US$1.2 billion in notes.
Vitro launched an offer to buy back or swap US$1.2 billion in
debt from bondholders. The tender offer would be consummated
with a bankruptcy filing in Mexico and Chapter 15 filing in the
United States. Vitro said noteholders would recover as much as
73% by exchanging existing debt for cash, new debt or convertible
bonds.
Concurso Mercantil & Chapter 15 Proceedings
Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a
pre-packaged Concurso Plan in the Federal District Court for
Civil and Labor Matters for the State of Nuevo Leon, commencing
its voluntary concurso mercantil proceedings -- the Mexican
equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB
also commenced parallel proceedings under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan
on Dec. 13, 2010, to seek U.S. recognition and deference to its
bankruptcy proceedings in Mexico.
Early in January 2011, the Mexican Court dismissed the Concurso
Mercantil proceedings. But an appellate court in Mexico
reinstated the reorganization in April 2011. Following the
reinstatement, Vitro SAB on April 14, 2011, re-filed a petition
for recognition of its Mexican reorganization in U.S. Bankruptcy
Court in Manhattan (Bankr. S.D.N.Y. Case No. 11- 11754).
The Vitro parent received sufficient acceptances of its
reorganization by using the US$1.9 billion in debt owing to
subsidiaries to vote down opposition by bondholders. The holders
of US$1.2 billion in defaulted bonds opposed the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full.
Vitro announced in March 2012 that it has implemented the
reorganization plan approved by a judge in Monterrey, Mexico.
In the present Chapter 15 case, the Debtor seeks to block any
creditor suits in the U.S. pending the reorganization in Mexico.
Chapter 11 Proceedings
A group of noteholders opposed the exchange -- namely Knighthead
Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc.,
Davidson Kempner Distressed Opportunities Fund LP, and Brookville
Horizons Fund, L.P. Together, they held US$75 million, or
approximately 6% of the outstanding bond debt. The Noteholder
group commenced involuntary bankruptcy cases under Chapter 11 of
the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D.
Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010.
Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation
counsel to analyze the potential rights that Vitro may exercise
in the United States against the ad hoc group of dissident
bondholders and its advisors.
A larger group of noteholders, known as the Ad Hoc Group of Vitro
Noteholders -- comprised of holders, or investment advisors to
holders, which represent approximately US$650 million of the
Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not
among the Chapter 11 petitioners, although the group has
expressed concerns over the exchange offer. The group says the
exchange offer exposes Noteholders who consent to potential
adverse consequences that have not been disclosed by Vitro. The
group is represented by John Cunningham, Esq., and Richard
Kebrdle, Esq. at White & Case LLP.
A bankruptcy judge in Fort Worth, Texas, denied involuntary
Chapter 11 petitions filed against four U.S. subsidiaries. On
April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro
America LLC and three other U.S. subsidiaries -- that were
subject to the involuntary petitions into voluntary Chapter 11.
The Texas Court on April 21 denied involuntary petitions against
the eight U.S. subsidiaries that didn't consent to being in
Chapter 11.
Kurtzman Carson Consultants is the claims and notice agent to
Vitro America, et al. Alvarez & Marsal North America LLC, is the
Debtors' operations and financial advisor.
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Vitro America, et al., has selected Sarah
Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq.,
and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York, as counsel. Blackstone Advisory Partners L.P.
serves as financial advisor to the Committee.
The U.S. Vitro companies sold their assets to American Glass
Enterprises LLC, an affiliate of Sun Capital Partners Inc., for
US$55 million.
U.S. subsidiaries of Vitro SAB are having their cases converted
to liquidations in Chapter 7, court records in January 2012 show.
In December, the U.S. Trustee in Dallas filed a motion to convert
the subsidiaries' cases to liquidations in Chapter 7. The
Justice Department's bankruptcy watchdog said US$5.1 million in
bills were run up in bankruptcy and hadn't been paid.
On June 13, 2012, U.S. Bankruptcy Judge Harlin "Cooter" Hale in
Dallas entered a ruling that precluded Vitro from enforcing
its Mexican reorganization plan in the U.S. The judge ruled that
the Mexican reorganization was "manifestly contrary" to U.S.
public policy because it bars the bondholders from holding Vitro
operating subsidiaries liable to pay on their guarantees of the
bonds. The Mexican plan reduced the debt of subsidiaries on $1.2
billion in defaulted bonds even though they weren't in bankruptcy
in any country.
=======
P E R U
=======
* PERU: IDB Approves $15 Million Loan for Solid Waste Management
----------------------------------------------------------------
The Inter-American Development Bank approved a loan for US$15
million to support the development of a sustainable and efficient
system for managing solid waste in priority areas in Peru.
The project will benefit the regions and municipalities of
Amazonas (Bagua), Apurimac (Andahuaylas), Ayacucho (Huamanga),
Lima (Chancay), Pasco (Oxapampa and Pozuzo), Junin (Yauyos), and
Loreto (San Juan Bautista).
"This project will help municipalities promote eco-efficiency in
priority areas of recycling and safe disposal," said Carmi¤a
Moreno, the IDB project team leader. "This, in addition to the
treatment and recycling of domestic wastewater, will help Peru to
move forward on a path of sustainable development."
The project also supports development initiatives, sanitation, and
water resources management. It deals with solid waste disposal
through the construction of infrastructure for the collection and
disposal of municipal solid waste and institutional strengthening
of the national and subnational government units in legal,
regulatory, and technical issues. Support will also be provided
to formalize waste pickers.
The project will result in the processing of 23,000 tons per day
of municipal solid waste, which will reduce its environmental
impact and increase the efficiency of waste disposal.
By 2021, Peru's government expects that 100 percent the country's
municipal waste will be safely disposed and recycled. Completion
of this project will result in the reduction of at least 432 tons
per day of municipal solid waste in the eight project areas and
increase public waste storage capacity from 22 percent to 90
percent.
The IDB loan has an expiration date of Sept. 15, 2024, with a
single payment, and a variable interest rate based on LIBOR. Peru
will provide $3.5 million in local counterpart funds.
***********
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.
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