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/raid1/www/Hosts/bankrupt/TCRLA_Public/120831.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, August 31, 2012, Vol. 13, No. 174 Headlines A R G E N T I N A COMPANIA FINANCIERA: Moody's Rates Debt Issuances 'B2' B E R M U D A KINGATE EURO: Court Appoints Mackellar as Joint Liquidator KINGATE GLOBAL: Court Appoints Mackellar as Joint Liquidator B R A Z I L GRUPO ACP: S&P Affirms 'BB+' Issuer Credit Rating; Outlook Pos * BRAZIL: Extends Tax Cuts on Cars to Revive Economic Growth C A Y M A N I S L A N D S 21 LIMITED: Sole Member Receives Wind-Up Report DRZ LTD: Shareholders' Final Meeting Set for Sept. 13 EIDESIS SYNTHETIC: Shareholder to Hear Wind-Up Report on Sept. 14 EXPO HEALTH: Shareholders' Final Meeting Set for Sept. 19 FCM CAT: Shareholders' Final Meeting Set for Sept. 14 FCM CAT MASTER: Shareholders' Final Meeting Set for Sept. 14 GLOBAL TRADING: Shareholders' Final Meeting Set for Sept. 14 PLAINFIELD SPECIAL: Shareholders' Final Meeting Set for Sept. 13 RW SERVICES: Shareholders' Final Meeting Set for Sept. 13 WALLACE AUSTRALIA: Shareholders' Final Meeting Set for Sept. 14 J A M A I C A WINDALCO: UC Rusal Reports Massive Drop in Profit P A R A G U A Y * PARAGUAY: S&P Affirms 'BB-/B' Sovereign Credit Ratings P U E R T O R I C O AES PUERTO: Fitch Cuts Rating on Senior Bonds to 'BB' T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Beefs Up With New Aircraft - - - - - ================= A R G E N T I N A ================= COMPANIA FINANCIERA: Moody's Rates Debt Issuances 'B2' ------------------------------------------------------ Moody's Investors Service has assigned a B2 global local currency senior debt rating to the seventh expected issuance of Compania Financiera Argentina S.A. (CFA) under its multi-currency US$ 250 million MTN program. The issuance is divided into two classes: Class 1, up to the amount of Ar$30 million which will be due in 270 days, and Class 2, up to the amount of Ar$70 million which will be due in 18 months. At the same time, Moody's Latin America assigned Aa3.ar national scale local currency debt ratings to both expected issuances. The following ratings were assigned to Compania Financiera Argentina S.A.'s debt issuances: Class 1: AR$30 million senior unsecured debt issuance: B2 Global Local Currency Debt Rating Aa3.ar Argentina National Scale Local Currency Debt Rating Class 2: AR$70 million senior unsecured debt issuance: B2 Global Local Currency Debt Rating Aa3.ar Argentina National Scale Local Currency Debt Rating Ratings Rationale Moody's noted that the local currency senior unsecured debt rating derives from CFA's B2 global local currency deposit rating and that seniority was taken into consideration in the assignment of the debt ratings. Compania Financiera Argentina S.A. is headquartered in Buenos Aires, Argentina, and reported AR$2.775 million of total assets and AR$847 million of shareholders' equity as of June 30, 2012. ============= B E R M U D A ============= KINGATE EURO: Court Appoints Mackellar as Joint Liquidator ---------------------------------------------------------- On July 25, 2012, the Supreme Court of Bermuda appointed Stuart Mackellar as joint liquidator of Kingate Euro Fund, Ltd. in place of Richard Fogerty, to act jointly with John McKenna and William Tacon. The Liquidator can be reached at: Stuart Mackellar Zolfo Cooper (BVI) Limited Palm Grove House, 2nd Floor Wickhams Cay 1, Road Town Tortola VG 1110 British Virgin Islands KINGATE GLOBAL: Court Appoints Mackellar as Joint Liquidator ------------------------------------------------------------ On July 25, 2012, the Supreme Court of Bermuda appointed Stuart Mackellar as joint liquidator of Kingate Global Fund, Ltd. in place of Richard Fogerty, to act jointly with John McKenna and William Tacon. The Liquidator can be reached at: Stuart Mackellar Zolfo Cooper (BVI) Limited Palm Grove House, 2nd Floor Wickhams Cay 1, Road Town Tortola VG 1110 British Virgin Islands =========== B R A Z I L =========== GRUPO ACP: S&P Affirms 'BB+' Issuer Credit Rating; Outlook Pos --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Grupo ACP Inversiones Y Desarrollo to positive from stable. "At the same time, we affirmed our 'BB+' rating on the company," S&P said. "The rating on Grupo ACP is based on its role as the nonoperating holding company of several financial and nonfinancial companies in Latin America, including Mibanco Banco de la Microempresa S.A. (BBB/Positive/A-2), its core subsidiary. The rating on Grupo ACP benefits from Mibanco's 'adequate' business position, 'strong' capital and earnings, 'adequate' risk position, 'average' funding, and 'adequate' liquidity. The gap between the 'BB+' rating on Grupo ACP and the 'BBB' rating on Mibanco is mainly because of structural subordination. Grupo ACP's debtholders are subordinate to Mibanco's senior debtholders," S&P said. * BRAZIL: Extends Tax Cuts on Cars to Revive Economic Growth ------------------------------------------------------------ David Biller and Arnaldo Galvao at Bloomberg News report that Brazil's government extended for two months a tax cut on vehicles that has helped revive sales and spur growth in the world's second-biggest emerging market. Finance Minister Guido Mantega said that tax cuts on new car purchases that were scheduled to expire this month will be remain in place until the end of October, while ones on washing machines, stoves and other home appliances will now last until the end of the year, according to Bloomberg News. The report notes that President Dilma Rousseff's government reduced the so-called IPI tax for automobiles in May, helping to spur vehicle sales from a second-quarter low of 257,887 in April to 364,196 in July, according to figures from the national carmakers association known as Anfavea. The cuts boosted furniture and appliance sales 15.8% in June from last year, and were the second-highest contributor to a 12.3% increase in the broad retail sales index, the national statistics agency said earlier this month, Bloomberg News says. Sales of cars, motorcycles and auto parts jumped 19.8 percent in June from last year, the report relates. Bloomberg News discloses that the central bank's economic activity index rose 0.75% in June, the fastest pace in 15 months, adding to evidence that the 500 basis points in interest rate cuts over the past year and other efforts to boost growth are starting to take hold. Brazil's gross domestic product likely expanded 0.5% in the second quarter, after growing 0.2% in the January- March period, according to the median estimate of 50 analysts surveyed by Bloomberg ahead of an Aug. 31 report. =========================== C A Y M A N I S L A N D S =========================== 21 LIMITED: Sole Member Receives Wind-Up Report ----------------------------------------------- On Aug. 20, 2012, the sole member of 21 Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jacqueline Loh Level 13 1 Queen's Road Central Hong Kong DRZ LTD: Shareholders' Final Meeting Set for Sept. 13 ----------------------------------------------------- The shareholders of DRZ Ltd. will hold their final meeting on Sept. 13, 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: Stuart Sybersma c/o Brad Kirby Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue George Town KY1-1109 Cayman Islands Telephone: +1(345) 814 3471 EIDESIS SYNTHETIC: Shareholder to Hear Wind-Up Report on Sept. 14 ----------------------------------------------------------------- The shareholder of Eidesis Synthetic Opportunities Fund, Ltd. will receive on Sept. 14, 2012, at 9:00 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 EXPO HEALTH: Shareholders' Final Meeting Set for Sept. 19 --------------------------------------------------------- The shareholders of Expo Health Sciences Fund, Ltd. will hold their final meeting on Sept. 19, 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: Richard Finlay c/o Tania Dons Telephone: (345) 814 7766 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands FCM CAT: Shareholders' Final Meeting Set for Sept. 14 ----------------------------------------------------- The shareholders of FCM Cat Fund, Ltd. will hold their final meeting on Sept. 14, 2012, at 9:15 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 FCM CAT MASTER: Shareholders' Final Meeting Set for Sept. 14 ------------------------------------------------------------ The shareholders of FCM Cat Master Fund, Ltd. will hold their final meeting on Sept. 14, 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 GLOBAL TRADING: Shareholders' Final Meeting Set for Sept. 14 ------------------------------------------------------------ The shareholders of Global Trading Strategies (Cayman) Fund will hold their final meeting on Sept. 14, 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: 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 PLAINFIELD SPECIAL: Shareholders' Final Meeting Set for Sept. 13 ---------------------------------------------------------------- The shareholders of Plainfield Special Situations Offshore Feeder Fund II Limited will hold their final meeting on Sept. 13, 2012, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands RW SERVICES: Shareholders' Final Meeting Set for Sept. 13 --------------------------------------------------------- The shareholders of RW Services Ltd. will hold their final meeting on Sept. 13, 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: Stuart Sybersma c/o Brad Kirby Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue George Town KY1-1109 Cayman Islands Telephone: +1(345) 814 3471 WALLACE AUSTRALIA: Shareholders' Final Meeting Set for Sept. 14 --------------------------------------------------------------- The shareholders of Wallace Australia Opportunities Fund will hold their final meeting on Sept. 14, 2012, at 9:45 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 ============= J A M A I C A ============= WINDALCO: UC Rusal Reports Massive Drop in Profit ------------------------------------------------- RJR News reports that Russian aluminum giant UC Rusal which has a major stake in Jamaica's mining industry has suffered a massive drop in profit. UC Rusal is the parent firm of Windalco. UC Rusal posted a net profit of US$143 million in the three months ended June, according to RJR News. The report relates that the figure was well down from 502 million US dollars a year earlier. RJR News notes that the company which has a stake in Windalco and Alpart said lower costs and the depreciation of the trouble against the US dollar had positively affected the results compared with the previous quarter. The company's earnings are highly sensitive to aluminum prices, the report says. RJR News says that a 10% increase in aluminum prices could nearly double the company's 2013 earnings. In the meantime, the report notes that UC Rusal, which is the world's largest aluminum producer, has announced that it will cut capacity three per cent by year end. It said it was taking a charge on its investment in Africa, as it grapples with weak prices and rising power costs, RJR News says. UC Rusal has been hurt by persistently weak prices for the metal used in drink cans, car parts, aircraft and iPads, the report notes RJR News relays that slack demand and overproduction have pushed prices close to two-year lows. RUSAL said it had net debt of US$10.9 billion at the end of June but no short term obligations until the end of this year and it repaid US$635 million in the first quarter, the report adds. About WINDALCO West Indies Alumina Company is situated on the island of Jamaica in the Caribbean. The company comprises two alumina refineries (Ewarton Works and Kirkvine Works), a shipping port (Port Esquivel) and also bauxite mines in Schwallenburgh (Ewarton) and Russell Place (Kirkvine) and farms in Manchester and St. Ann. * * * As reported in the Troubled Company Reporter-Latin America on March 8, 2010, Jamaica Gleaner said that West Indies Alumina Company will end its bauxite production in Jamaica and make 762 permanent jobs redundant. The report related that the redundancy exercise comes a year after the company suspended production at its Kirkvine, Manchester, and Ewarton, St. Catherine, refineries because of reduced demand for aluminium on the world market. The company is 93% owned by Russian entity, UC Rusal. =============== P A R A G U A Y =============== * PARAGUAY: S&P Affirms 'BB-/B' Sovereign Credit Ratings -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign and local currency sovereign credit ratings on the Republic of Paraguay. "At the same time, we removed the ratings from CreditWatch, where we placed them with negative implications on June 25, 2012. The outlook is stable," S&P said. "We removed the ratings from CreditWatch because, in our view, the rapid impeachment of former president Fernando Lugo on June 22 and the subsequent suspension of Paraguay from South American political and free trade associations UNASUR and MERCOSUR have had--and will likely continue to have--a limited impact on the Paraguayan economy," said Standard & Poor's credit analyst Richard Francis. "We expect that Paraguay will be reinstated to these organizations after the April 2013 presidential election. Also, economic sanctions were not imposed on Paraguay by the Organization of American States in an Aug. 22, 2012, vote. In addition, we expect the economy to rebound strongly in 2013 with a bumper soya crop, driven by the end of the local drought and record-high soya prices." "We believe that the government has room to meet its projected 2012 and 2013 financing requirements of 2.1% of GDP and 1% of GDP, respectively, through a combination of local debt issuance and the use of general government deposits that total more than 10% of GDP. The government also has the ability to reduce government expenditures, if needed, if financing constraints become an issue. Although we expect external financing to decline, the projected current account deficits of $529 million in 2012 and $209 million in 2013 can be partially financed through the use of the country's international reserves, which total $4.8 billion, if needed," S&P said. "The stable outlook balances the country's narrow economy and substantial infrastructure needs against the government's improving fiscal underpinnings and low debt," said Mr. Francis. "We could raise the ratings if important investment projects are undertaken, which would further boost growth prospects and external indicators. Additional reform measures in the areas of debt management, financial supervision, and the recapitalization of the central bank, a precursor to inflation targeting, would also improve rating prospects." "On the other hand, rapid credit growth that impairs external and fiscal flexibility or leads to financial sector problems could lead to a downgrade. We could also consider lowering the ratings if the political and economic isolation of Paraguay is more severe or lasts longer than we currently expect," S&P said. ===================== P U E R T O R I C O ===================== AES PUERTO: Fitch Cuts Rating on Senior Bonds to 'BB' ----------------------------------------------------- Fitch Ratings has downgraded AES Puerto Rico L.P.'s (AES-PR) $161.87 million tax-exempt senior cogeneration facility revenue bonds due 2026, and $33.1 million taxable senior cogeneration facility revenue bonds due 2022 to 'BB' from 'BB+'. The Rating Outlook is revised to Stable from Negative. The downgrade to 'BB' reflects sustained performance issues despite management's efforts, increased operating costs related to corrective maintenance and repairs to address forced outages, and an inability to establish long-term, contracted ash management arrangements. The Stable Outlook reflects Fitch's expectation that the project will be able to continue performing at levels consistent with the revised rating. Key Rating Drivers -- Revenue Stability: The 25-year tolling-style power purchase agreement (PPA) with an investment-grade counterparty effectively mitigates energy and fuel price risk through the debt term. AES-PR has recently executed an additional sales agreement with the off-taker for up to 14 megawatts. Management believes that this will result in approximately $4 million in additional revenue annually. However, failure to consistently meet PPA availability requirements has reduced fixed capacity payments. -- Operational Challenges: AES-PR has been susceptible to forced outages that have reduced availability and capacity payments. Management has taken a proactive approach to limiting future forced outages by planning for and making corrective repairs and establishing on-going monitoring and testing. However, outages have persisted and it remains unclear whether completed and scheduled repairs will be sufficient to achieve targeted availability levels on a consistent basis. -- Higher Operating Cost Profile: The project's operating costs continue to exceed original projections due to corrective and preventative maintenance and repairs, as well as increased coal prices beginning in 2013. Fitch notes that the project's heat rate has consistently exceeded the PPA contracted heat rate for fuel recovery, but the planned use of an alternative type of coal under a new supply arrangement is expected to improve the fuel cost recovery gap. -- Partial Ash Management Solution: AES-PR continues to actively manage its ash inventory via the sale of its AGREMAX product and raw, dry ash for the construction of rural roads, landfill covers, and waste water stabilization. Currently, the majority of sales are on a project-by-project basis, but management indicated that there has been strong interest from waste management companies for long-term dry ash supply contracts. Fitch believes that AES-PR's efforts have helped to offset near-term concerns, but cash flow uncertainty is increased without a permanent solution. What Could Trigger A Rating Action: -- Operational Performance: Demonstrated ability or inability to improve and sustain equivalent availability factors above 90% or heat rate excursions for fuel cost recovery; -- Operating Costs: Consistently higher or lower cost profile from incremental maintenance, ash management, and fuel expenses/savings resulting in a material change in the financial cushion forecasted in the Fitch rating case. SECURITY: All project revenues, controlled bank accounts, and security interest in the contract rights of AES-PR. CREDIT SUMMARY: The 12-month rolling average equivalent availability factor (EAF) has generally been slightly below or at the 90% PPA requirement for full capacity payments over the past year. Fitch believes that management's emphasis on forward-looking initiatives to reduce forced outages should help improve the project's time offline, but the long-term improvement and stabilization of the EAF above the PPA requirements remains uncertain. Favorably, the project is expected to remain the lowest cost and largest generator in Puerto Rico, maintaining its important role serving a dedicated island system. The Fitch rating case forecasts average debt service coverage ratios (DSCRs) of over 1.2x during the next five years, consistent with the assigned rating category, based on stressed levels of availability, costs, heat rates, and interest rates. However, the DSCR profile becomes considerably weaker after 2020 when the contractual capacity payment is reduced, resulting in coverage of approximately 1.10x. Fitch notes that this coincides with the principal amortization period of the senior bonds and exposes bondholders to longer term operational risks. AES-PR is a special purpose entity that is an indirect wholly owned facility of AES Corporation (rated 'BB-', Stable Outlook by Fitch). The project was formed in 1994 to own and operate a net 454.3 megawatt coal-fired circulating fluidized bed combustion power plant in Guayama, Puerto Rico. The project's main revenue sources are capacity and energy sales to Puerto Rico Electric Power Authority (rated 'BBB+', Negative Outlook) under the terms of a 25-year PPA, which is a modified tolling agreement that reimburses fuel (subject to heat rate requirements) and certain other operating costs. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Beefs Up With New Aircraft ---------------------------------------------- RJR News reports that Caribbean Airlines Limited said it will be looking to meet competitors head on with the deployment of two new aircraft. The airline accepted delivery of one of the aircraft and said the other, should be received soon, according to RJR News. The report notes that Caribbean Airlines said with the new aircraft, it will look to grow market share on its London, New York and Toronto routes. Caribbean Airlines had been wet leasing aircraft on the routes at considerable cost, though it did not disclose how much the leasing arrangements cost the airline, RJR News says. It however said it expects to save on the cost, RJR News adds. Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News notes that Trinidad Express reported that the arrears were built up over the last six weeks as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January 2007. *********** 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 * * *