/raid1/www/Hosts/bankrupt/TCRLA_Public/120919.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
Wednesday, September 19, 2012, Vol. 13, No. 187
Headlines
A R G E N T I N A
BUENOS AIRES CARNES: Creditors' Proofs of Debt Due Oct. 15
ENTROIS SA: Creditors' Proofs of Debt Due Oct. 9
GENERAL TOMAS: Creditors' Proofs of Debt Due Nov. 7
GRUPO SUPERVIELLE: Moody's Assigns 'B3' Senior Debt Rating
TERACODE BA: Creditors' Proofs of Debt Due Oct. 3
* ARGENTINA: Moody's Changes Outlook on 'B3' Rating to Negative
* ARGENTINA: Domestic & Global Pressure Increases Against Country
B R A Z I L
OAS SA: S&P Assigns 'BB-' Global Scale Corporate Credit Rating
MINERVA SA: Moody's Affirms 'B2' Corp. Family Rating
C A Y M A N I S L A N D S
BONOHURST GP: Shareholders' Final Meeting Set for Sept. 28
CSERE ATP: Shareholders' Final Meeting Set for Sept. 28
CSERE AVIO: Shareholders' Final Meeting Set for Sept. 28
CSERE COVENTRY: Shareholders' Final Meeting Set for Sept. 28
JUNIOR ENERGY: Shareholders' Final Meeting Set for Dec. 7
MARK CAPITAL: Shareholders' Final Meeting Set for Sept. 28
MAX INNOVATION: Members' Final Meeting Set for Sept. 27
SONTERRA CAPITAL: Members' Final Meeting Set for Sept. 27
SONTERRA CAPITAL MASTER: Members' Final Meeting Set for Sept. 27
SURFER'S PARADISE: Shareholders' Final Meeting Set for Sept. 20
G U A T E M A L A
EMPRESA ELECTRICA: Moody's Affirms 'Ba3' Corp. Family Rating
J A M A I C A
DIGICEL GROUP: Cashes in US$400 Million From Firm
* JAMAICA: Inflation Rate Reaches 1.6%
M E X I C O
CEMEX: Fitch Says Restructuring Plan Has Positive Effect
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A R G E N T I N A
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BUENOS AIRES CARNES: Creditors' Proofs of Debt Due Oct. 15
----------------------------------------------------------
Norberto Makel, the court-appointed trustee for Buenos Aires
Carnes Rojas SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until Oct. 15, 2012.
Mr. Makel will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 13
in Buenos Aires, with the assistance of Clerk No. 26, 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:
Norberto Makel
Tucuman 1657
Argentina
ENTROIS SA: Creditors' Proofs of Debt Due Oct. 9
------------------------------------------------
Bernardino A. Margolis, the court-appointed trustee for Entrois
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Oct. 9, 2012.
Mr. Margolis will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 51, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Bernardino A. Margolis
Parana 426
Argentina
GENERAL TOMAS: Creditors' Proofs of Debt Due Nov. 7
---------------------------------------------------
Estudio Calvino-Queralto, the court-appointed trustee for General
Tomas Guido SACIA's reorganization proceedings, will be verifying
creditors' proofs of claim until Nov. 7, 2012.
The Trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 14, 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:
Estudio Calvino-Queralto
Viamonte 1355
Argentina
GRUPO SUPERVIELLE: Moody's Assigns 'B3' Senior Debt Rating
----------------------------------------------------------
Moody's Investors Service assigned a B3 global local currency
senior debt rating to Grupo Supervielle S.A.'s (GS) sixth expected
issuance for an amount up to AR$50 million, which will be due in
270 days; and to the seventh expected issuance for an amount up to
AR$65 million, which will be due in 18 months. Both expected
issuances together should not exceed AR$65 million. At the same
time, on the National Scale, Moody's assigned A2.ar local currency
debt rating to the sixth and seventh expected issuances.
The outlook in the rating is stable.
The following ratings were assigned to Grupo Supervielle S.A.:
Sixth issuance up to AR$50 million:
B3 Global Local Currency Senior Debt Rating
A2.ar Argentina National Scale Local Currency Senior Debt Rating
Seventh issuance up to AR$65 million:
B3 Global Local Currency Senior Debt Rating
A2.ar Argentina National Scale Local Currency Senior Debt Rating
Ratings Rationale
Moody's explained that the local currency senior unsecured debt
rating derives from Grupo Supervielle's B3 global local currency
issuer rating. Moody's also noted that seniority was taken into
consideration in the assignment of the debt ratings.
Grupo Supervielle S.A. is headquartered in Buenos Aires,
Argentina, and reported unconsolidated assets of AR$1.057 million,
equity of AR$793 million, and a net income of AR$140 million, as
of June 2012.
TERACODE BA: Creditors' Proofs of Debt Due Oct. 3
-------------------------------------------------
Estudio Ledesma y Asociados, the court-appointed trustee for
Teracode BA SA's reorganization proceedings, will be verifying
creditors' proofs of claim until Oct. 3, 2012.
The Trustee will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of Clerk
No. 20, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
Creditors will vote to ratify the completed settlement plan
during the assembly on Sept. 10, 2013.
The Trustee can be reached at:
Estudio Ledesma y Asociados
Tucuman 1335
Argentina
* ARGENTINA: Moody's Changes Outlook on 'B3' Rating to Negative
---------------------------------------------------------------
Moody's Investors Service has changed the rating outlook on
Argentina's B3 local- and foreign-currency government bond ratings
to negative from stable. The B3 ratings themselves as well as the
B2 foreign currency bond ceiling, Caa1 foreign currency deposit
ceiling, and the Ba3 local currency bond and deposit ceiling
remain unchanged.
Moody's decision to change the outlook to negative was driven by
the following factors:
1. Moody's expectation of a continued haphazard policy
environment, evidenced most recently in the nationalization
without compensation of YPF, Argentina's largest oil company, and
import controls that have stalled economic growth.
2. Ongoing and growing concerns about the quality and reliability
of Argentina's official data reporting, specifically about
inflation and GDP estimates that continue to be significantly at
odds with private sector estimates. Underreporting of inflation is
particularly credit negative given that over 20% of Argentina's
government debt remains indexed to inflation.
3. A lack of resolution to Argentina's debt arrears with Paris
Club creditors, which has been pending for several years and shows
no signs of an eventual resolution, raising fundamental questions
about the sovereign's willingness to pay.
Ratings Rationale
Argentina's haphazard economic policy decisions coupled with
increasing questions about the reliability of official statistics
make it extremely difficult to know with certainty Argentina's
real economic conditions, raising questions about the country's
ability to manage adverse shocks. And continued underreporting of
inflation leads to underpayment on the over 20% of Argentina's
government debt that remains indexed to inflation.
Moody's considers a consistent and predictable policy environment,
absent in the case of Argentina, a key credit support factor for
sovereign ratings, providing guidance on how a government would
react in times of stress. Argentina's abrupt decision earlier this
year to nationalize YPF - the country's largest oil company - with
no compensation is an example of the haphazard policy environment
and will negatively impact needed foreign investment.
In recent years, Moody's has looked for signs that Argentina would
pursue more coherent and sustainable macroeconomic policies,
including resolving its outstanding debt arrears. But lack of
payment of almost $9 billion in Paris Club debt due continues to
appear unlikely.
The combination of unreliable economic statistics, continued
underpayment of debt obligations, and lack of resolution of debt
arrears one decade after the original default represent conditions
that are unique among B-rated sovereigns and denote underlying
credit risks.
WHAT COULD CHANGE THE RATING UP/DOWN
Moody's would consider moving the rating outlook back to stable
upon evidence that Argentina's policy mix becomes more consistent
and predictable. In particular a resolution of either the Paris
Club debt arrears or material improvements in the quality of
official economic data would be considered credit positive for the
rating.
A move into the Caa category could result if policy decisions end
up negatively impacting the main economic and debt metrics.
Additionally, a large and sustained deterioration of commodity
prices, a persistent decline in international reserves and failure
to make needed fiscal adjustments leading to a rise in the debt
ratios , could also result in a lower rating.
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.
* ARGENTINA: Domestic & Global Pressure Increases Against Country
-----------------------------------------------------------------
Paris Club and IMF Dismayed with Argentina, Canada and Italy Vote
Against New IADB Credits for Argentina, and Large Anti-Cristina
protests undermine Kirchner Administration's image.
On the heels of anti-Kirchner protests across Argentina, ATFA
commends leadership against Argentina at international financial
institutions and highlights mounting criticisms over President
Kirchner's policies, as indicated by recent events:
The International Monetary Fund is expected to issue a very
strong report against Argentina on Monday (La Nacion);
Canada and Italy have joined the US in voting against IADB
credits for Argentina (La Nacion);
The Paris Club is upset with Argentina and Nicola Stock, leader
of Task Force Argentina (Italy), calls for Argentina to be
ejected from the G-20 (Clarin); and
Massive anti-Cristina protests have mounted across Argentina as
she moves closer to changing constitution to run again (various
reports).
"The rising international condemnation of Argentina and the new
civil unrest are a wakeup call to the Kirchner Administration that
her economic mismanagement, distortions of national economic data
and disregard for the international rule of law have worn thin,"
explained ATFA co-chair Robert Shapiro. "ATFA and the United
States Government have reproached Argentina on its failure to
makes any in a variety of matters, including its refusal to pay
outstanding final World Bank ICSID awards and lack of engagement
with its creditors and international institutions. We urge
President Kirchner to honor her outstanding obligations and
normalize relations with her country's U.S. creditors and with the
international community."
Argentina defaulted on a record $80 billion of sovereign debt in
2001 and repudiated the debts owed to many foreign creditors, and
the world considers the country to still be in default. As
Argentina has persistently refused to pay both its outstanding
private creditors, including $5 billion owed to U.S. lenders, and
more than $9 billion owed to member nations of the Paris Club, it
has been effectively barred from raising new funds in
international capital markets.
In response to Argentina's unmet promises to repay its
international creditors, Nicola Stock, representative of Italian
bond holders, demanded at the Paris Club meeting this past week
that "Argentina should be kicked out the G-20."
This discontent with Kirchner's policies was echoed at the Inter-
American Development Bank by the governments of Canada, the U.S.,
Spain and Italy, which all opposed a new package of US $700
million in loans to Argentina this week. Since September 2011,
the U.S. has opposed all future lending to Argentina by the IDB
and World Bank, with the exception of loans for programs targeting
the very poor.
Argentina also faces very strong criticism at the IMF for its
failure to participate in the periodic economic reviews that every
other country does, or to correct false official statistics on
inflation and economic growth. The IMF will decide on Monday
whether to implement a "measure of censure," a tool that is rarely
used and which would open the door to more serious sanctions.
The international community realizes the Argentine people deserve
better. "Every day the Kirchner Administration refuses to abide
by international law and repay lenders adds more hardships to the
everyday life of Argentine citizens," ATFA Co-chair Nancy
Soderberg said. "President Kirchner is wrong to tell the people
of Argentina that 6 pesos, $1.30, is enough to buy a day's food.
The time is now to take bold steps to demand an end to this
Administration's unacceptable policies."
About the ATFA
The American Task Force Argentina (ATFA) is an alliance of
organizations united for a just and fair reconciliation of the
Argentine government's 2001 debt default and subsequent
restructuring.
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B R A Z I L
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OAS SA: S&P Assigns 'BB-' Global Scale Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB-' global
scale corporate credit rating to OAS S.A. "We also assigned our
'brA-' national scale corporate credit rating to the company. The
outlook is stable," S&P said.
The ratings on OAS reflect its "fair" business risk profile and
"aggressive" financial risk profile. "The ratings also reflect the
company's high indebtedness that resulted from its aggressive
growth strategy in previous years and some execution risks
associated with the ramp-up of its main investments," said
Standard & Poor's credit analyst Reginaldo Takara. "The positive
rating factors are OAS' favorable market position in Brazilian
engineering and construction (E&C) industry and the expectation
that growth appetite will moderate and financial leverage will
decrease in the next few years."
S&P assumes that OAS will maintain its 'fair' business profile due
to these factors:
-- Its positive track record and expertise in large
infrastructure projects;
-- Expected expansion of operations internationally;
-- A reversal of current losses into profits at its homebuilding
business, as it adopts a more conservative growth strategy;
and
-- New growth opportunities in infrastructure will come through
its 25% ownership of Investimentos e Participacoes em
Infraestrutura S.A. - Invepar (not rated), which will reduce
capital requirements at OAS.
"Our base-case scenario assumes that infrastructure investments in
Brazil and other Latin American countries will remain strong in
the next few years, thanks to government incentives and
availability of long-term credit, despite weakening global credit
markets. As a result, we believe OAS' technical and financial
expertise in developing and participating in sophisticated
engineering projects, as well as its ability to assist clients in
structuring funding solutions, will allow it maintain a strong,
diversified backlog in the next few years, which was R$15.2
billion as of June 30, 2012," S&P said.
"We view OAS' stake in Invepar, which has recently been awarded
the concession to operate the Guarulhos International Airport in
Sao Paulo and to construct and operate the Transolímpica toll
expressway in Rio de Janeiro, as positive for OAS' backlog. We
expect Invepar will directly participate in these new investments
without requiring equity contributions from OAS but still generate
opportunities for OAS' E&C business to participate in the
construction contracts of the new projects. We also assume that
OAS' growth will moderate, as the company remains committed to
debt reduction in the next several years, while benefiting from
investments made in previous years. In particular, we assume that
OAS' participation in oil and gas projects, either directly or
through its stake in shipyard Estaleiro Enseada do Paraguacu (not
rated) will be structured under nonrecourse debt and that
potential equity contributions will not jeopardize OAS' debt
reduction," S&P said.
"We project OAS will complete the construction of the three sports
arenas (two of them for the upcoming World Cup tournament) in
Brazil and manage them with technical help from Amsterdam ArenA.
We also assume that OAS' operations outside of Brazil will improve
the consolidated EBITDA margins in the next few quarters as losses
from ramping up these operations will turn into profits as its
expanding backlog starts accruing. We assume international
projects will account for about 25% of OAS' backlog in the next
years, which is currently at a similar level. We project EBITDA to
be 9%-10% over the next several years, up from 5% in previous
years, when OAS was building up its international E&C operation
and its homebuilding operation incurred in cost overruns. These
margins are comparable with those of its national peers," S&P
said.
"The stable outlook assumes that OAS will consistently improve
credit metrics over the next few years through not only stronger
cash flows but also with some marginal adjusted debt reduction,"
Mr. Takara continued. "The outlook reflects our expectations that
OAS will maintain sufficient cash reserves at its E&C operation to
handle seasonal working-capital swings and that its equity
contributions to projects will be modest. We expect adjusted total
debt to EBITDA of less than 6.0x by 2013 and lower afterwards. A
downgrade could result from OAS' failure to improve credit metrics
throughout 2013 due to slower improvement in cash flow (which
could come from weaker performance at the E&C company or larger
cost overruns at its homebuilding operation) or from financial
support for its projects (which could result from the sports
arenas facing cost overruns to be concluded). An upgrade would
depend on adjusted total to EBITDA dropping below 4.0x, which we
believe is possible when the new projects start contributing
dividend streams to OAS by 2014."
MINERVA SA: Moody's Affirms 'B2' Corp. Family Rating
----------------------------------------------------
Moody's Investors Service changed the outlook for Minerva S.A. to
positive from stable, and affirmed Minerva's B2 Corporate Family
Rating.
The following ratings have been affirmed:
Minerva S.A.
- Corporate Family Rating: B2
Issuer: Minerva Overseas Ltd.
- $35 million 9.500% guaranteed senior unsecured bonds due 2017:
B2
Issuer: Minerva Overseas II Ltd.
- $374.24 million 10.875% guaranteed senior unsecured bonds due
2019: B2
Issuer: Minerva Luxembourg S.A.
- $450 million 12.25% guaranteed senior unsecured bonds due 2022:
to B2
The ratings outlook is positive.
Ratings Rationale
The change in Minerva's outlook to positive reflects Moody's view
that the company's credit metrics will steadily improve thanks to
the favorable fundamentals for the beef segment in Brazil, mainly
related to the cattle herd expansion that translates into lower
cattle prices in the country. "In this sense, we expect that the
company will continue its deleveraging process and improve free
cash flow generation over the next several quarters," said Moody's
analyst Marianna Waltz. The outlook change also considers
Minerva´s very comfortable liquidity profile, following the
issuance of US$450 million in bonds in the first quarter of 2012.
As of June, the cash position of BRL 818.5 million was enough to
cover short term debt until 2018.
The B2 rating reflects the company's track record of stable
operating margins, despite the inherent volatility of the protein
industry. Moody's has also incorporated in Moody's assumptions
that Minerva will (i) focus on deleveraging; (ii) make only modest
acquisitions and lower its capex over the near term; (iii)
continue to successfully execute the strategies of its beef
trading operations that has delivered above average margins; and
(iv) turn free cash flow positive in 2012 and beyond.
Offsetting some of these positive attributes is Minerva's
relatively small size compared to local and global peers based on
consolidated net revenues, its still high leverage, as well as the
sales concentration in live cattle, beef and beef related products
and the volatile nature of the protein business.
The positive outlook reflects Moody's view that the company will
be able to sustain its operating margins, make further progress in
reducing its financial leverage and maintain liquidity at near
current levels.
Minerva's ratings could be upgraded if Minerva makes additional
progress in deleveraging its balance sheet and generating cash
flow. Upwards pressure would depend on the company's ability to
reduce adjusted total debt to EBITDA ratio to below 4.5x and
increase EBITA to Interest Expense to above 1.5x and CFO to Net
Debt to above 15%. The continued buildup of its large cash balance
from positive free cash generation and maintenance of a healthy
liquidity profile are an important ratings consideration, since
absolute debt reduction opportunities will be limited over the
near term.
The ratings could suffer a downgrade if Minerva's liquidity
deteriorated, if market conditions causes operating margins to
decline sharply or if total adjusted debt to EBITDA is sustained
above 5.0x. The company's inability to keep CFO/Net Debt above 10%
or deliver positive free cash flow in 2012 could add to negative
ratings pressure.
Minerva, headquartered in Barretos, Sao Paulo, is one of Brazil's
leaders in the production and sale of fresh beef and live cattle.
With net revenues of BRL4.2 billion (approximately US$2.1 billion)
at LTM June, 2012 and installed slaughtering capacity of 10.480
heads of cattle per day, Minerva is the second largest Brazilian
exporter of beef and beef byproducts and has ten own beef
production facilities in Brazil as well as presence in Paraguay
and Uruguay.
The principal methodology used in rating Minerva was the Global
Food - Protein and Agriculture Industry Methodology published on
September 2009.
==========================
C A Y M A N I S L A N D S
==========================
BONOHURST GP: Shareholders' Final Meeting Set for Sept. 28
----------------------------------------------------------
The shareholders of Bonohurst GP Limited will hold their final
general meeting on Sept. 28, 2012, at 11:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
CSERE ATP: Shareholders' Final Meeting Set for Sept. 28
-------------------------------------------------------
The shareholders of CSERE ATP No.1 Limited will hold their final
general meeting on Sept. 28, 2012, at 10:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
CSERE AVIO: Shareholders' Final Meeting Set for Sept. 28
--------------------------------------------------------
The shareholders of Csere Avio No. 1 Limited will hold their final
general meeting on Sept. 28, 2012, at 11:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
CSERE COVENTRY: Shareholders' Final Meeting Set for Sept. 28
------------------------------------------------------------
The shareholders of CSERE Coventry (Freehold) Limited will hold
their final general meeting on Sept. 28, 2012, at 11:15 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Walkers SPV Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
JUNIOR ENERGY: Shareholders' Final Meeting Set for Dec. 7
---------------------------------------------------------
The shareholders of Junior Energy Fund will hold their final
general meeting on Dec. 7, 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:
Victor Murray
MG Management Ltd.
PO Box 2745
Landmark Square, 2nd Floor
64 Earth Close, Seven Mile Beach
Grand Cayman KY1-1111
Cayman Islands
Telephone: 1 345 749 8181
MARK CAPITAL: Shareholders' Final Meeting Set for Sept. 28
----------------------------------------------------------
The shareholders of Mark Capital China Investment Company Ltd.
will hold their final general meeting on Sept. 28, 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:
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
MAX INNOVATION: Members' Final Meeting Set for Sept. 27
-------------------------------------------------------
The members of Max Innovation Holdings Ltd. will hold their final
general meeting on Sept. 27, 2012, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Huang, Yun-Cheng
Michelle R. Bodden-Moxam
Telephone: 946-6145
Facsimile: 946-6146
Portcullis TrustNet (Cayman) Ltd.
The Grand Pavilion Commercial Centre
Oleander Way, 802 West Bay Road
P.O. Box 32052, Grand Cayman, KY1-1203,
Cayman Islands
SONTERRA CAPITAL: Members' Final Meeting Set for Sept. 27
---------------------------------------------------------
The members of Sonterra Capital Offshore Fund, Ltd. will hold
their final general meeting on Sept. 27, 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.
c/o Bernadette Bailey-Lewis
Telephone: (345) 946 7665
Facsimile: (345) 946 7666
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
SONTERRA CAPITAL MASTER: Members' Final Meeting Set for Sept. 27
----------------------------------------------------------------
The members of Sonterra Capital Master Fund, Ltd. will hold their
final general meeting on Sept. 27, 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.
c/o Bernadette Bailey-Lewis
Telephone: (345) 946 7665
Facsimile: (345) 946 7666
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
SURFER'S PARADISE: Shareholders' Final Meeting Set for Sept. 20
---------------------------------------------------------------
The shareholders of Surfer's Paradise Acquisition Corporation will
hold their final general meeting on Sept. 20, 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:
Mike Penner
c/o Rachel Williams
Deloitte & Touche
Citrus Grove Building, 4th Floor
Goring Avenue, George Town KY1-1109
Cayman Islands
Telephone: +1 (345) 814 3302
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G U A T E M A L A
=================
EMPRESA ELECTRICA: Moody's Affirms 'Ba3' Corp. Family Rating
------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 Corporate Family Rating
(CFR) and senior unsecured rating of Empresa Electrica de
Guatemala S.A. (EEGSA) and changed the rating outlook to positive
from stable.
Ratings Rationale
The rating action is underpinned by EEGSA's ability to generate
robust cash flows and record solid credit metrics despite the
reduction of the Value Added Distribution-tariffs (VAD) in August
2008 and the substantial increase in financial leverage of around
US$125 million earlier this year. The additional indebtedness has
weakened EEGSA's credit metrics modestly such that its CFO pre-W/C
to debt and interest coverage dropped to approximately 23.2% and
4.3x, respectively, for the twelve months ended June 30, 2012
compared to average 2009-2011 CFO pre-W/C to debt and interest
coverage of around 30% and 4.9x, respectively.
That said, these lower metrics are still robust for EEGSA's
current rating, and somewhat offset Moody's concerns about the
credit supportiveness of the Guatemalan regulatory environment,
particularly considering the litigious relationship that developed
between EEGSA's previous owners and the Guatemalan regulator,
Comision Nacional de Electricidad ("CNEE") following the 2008 VAD
tariff reduction. Moody's believes that EEGSA's relationship with
the CNEE has improved following the utility's change in ownership
in December 2010, and the appointment of the new members of the
CNEE's Board, including the President, following the installment
of the newly elected government early this year. However,
uncertainty remains as the next VAD-tariff for the 2013-2017
period is scheduled to become effective on August 1, 2013.
It is Moody's understanding that the short-term indebtedness was
incurred for tax optimization reasons to fund a substantial
dividend distribution of around US$132 million during the second
quarter of 2012 in anticipation of certain amendments in the
Guatemalan tax code. While this material change in EEGSA's capital
structure is a credit negative, the rating action incorporates the
commitment of EEGSA's management and its majority indirect
shareholder, EPM, not to increase financial leverage further over
the foreseeable future, and to manage the company in a prudent
fashion, such that it records a maximum EBITDA to debt and a
minimum EBITDA to financial costs of at least of 3.5x and 4.5x,
respectively.
The change of the rating outlook to positive also incorporates
Moody's expectation that EEGSA will successfully refinance around
US$85 million of the short-term debt incurred this year with long-
term bank loans. EEGSA borrowed the balance (approximately US$30
million) under its new five year US$50 million committed credit
facility that expires in February 2017, which Moody's understands
EEGSA will repay. The rating action also considers the successful
execution of this credit facility because it enhances EEGSA's
liquidity profile, and its ability to bridge its working capital
requirements that result mainly from some delays in recovering
power procurement costs. Furthermore, it somewhat eases Moody's
concerns about the refinancing risk associated with the maturity
of the 8.5% US$68 million senior unsecured 144-A debt obligations
that will become due in December 2014.
An upgrade of EEGSA's ratings could be triggered by a reasonable
outcome of the 2013 VAD-review that maintains EEGSA's ability to
generate robust cash flows, which in the absence of any
significant change in its capital structure in connection with new
additional indebtedness, allows the utility to report credit
metrics that are strong for the Ba-rating category.
Given the positive outlook, limited prospects exist for a
downgrade of EEGSA's ratings over the near term. That said,
downward rating pressure could surface in the event there is a
credit negative outcome in the 2013 VAD-review that raises
questions about the predictability and transparency of the tariff
review process and/or signals a substantial deterioration in the
Guatemalan regulatory framework that negatively affects EEGSA's
ability to recover costs on a timely basis. Furthermore, a rating
downgrade is likely if EEGSA does not manage its internal
liquidity in a prudent fashion and/or chooses to further increase
financial leverage to fund significant dividend distributions that
results in a deterioration in EEGSA's credit metrics.
Specifically, a rating downgrade could be triggered if EEGSA's RCF
to debt and interest coverage falls below 13% and 3.5x,
respectively, for an extended period.
The principal methodology used in this rating was Moody's Global
Regulated Electric Utilities published in August 2009.
Headquartered in Guatemala City, EEGSA is the largest electric
utility in the country in terms of GWh distributed. EEGSA owns
100% of the distribution assets within its service area and
operates under an Authorization Agreement expiring in 2048, to
provide electric distribution services to the Departments of
Guatemala, Escuintla and Sacatepequez. EEGSA is indirectly 80.9%
owned by EPM October 22, 2010. The balance is held by the
Guatemalan government (14.2%), by individual shareholders (3%),
and by EEGSA employees (2%).
=============
J A M A I C A
=============
DIGICEL GROUP: Cashes in US$400 Million From Firm
-------------------------------------------------
RJR News reports that Digicel Group Limited's owner, Denis O'Brien
is estimated to have cashed in on just under US$400 million from
the company.
The payment comes by way of dividends Digicel Group paid to owners
with the information contained in the recent document accompanying
the company's $1.5 billion bond offering, according to RJR News.
The report relates that the document shows Digicel Group paid
dividend totaling US$115 million in the 12 months which ended
March 2012 and another US$310 million at the end of June.
Mr. O'Brien, who owns 94% of Digicel Group, received about 399
million of the total in the last 15 months.
However, RJR News notes, the company is facing several challenges
across the globe which could threaten the amount Mr. O'Brien
receives each year. Those include declining revenues per
customer, which fell 9.6% in the three months to the end of June,
the report cites.
* * *
As reported in the Troubled Company Reporter on Sept. 7, 2012,
Moody's Investors Service has assigned a Caa1 rating to Digicel
Group Limited's proposed US$700 million senior unsecured notes due
2020. Net proceeds will be used to repurchase the entire tranche
of the DGL 9.125%/9.875% senior PIK toggle notes due 2015 (US$415
million outstanding) and a portion of the 8.875% senior notes due
2015 (US$1 billion outstanding) via tender offers.
* JAMAICA: Inflation Rate Reaches 1.6%
--------------------------------------
RJR News reports that consumer prices rose 0.5% in August to bring
inflation for the fiscal year to date to 1.6%.
The Statiscial Institute of Jamaica, Statin, said higher food
prices and the special tax on telephone calls which took effect on
July 15, were the chief drivers of inflation last month, according
to RJR News. However, the report relates that August's decline in
electricity costs helped to moderate the effect of those
increases.
The inflation recorded in August means that for the quarter,
prices rose on average 0.2%, the report notes.
RJR News notes that it means inflation for the July to September
quarter could fall below the 1 to 2% forecast by the Bank of
Jamaica.
The report discloses that so far since the start of the year,
inflation is running at 3.3% and 5.4% in the last 12 months, the
report adds.
===========
M E X I C O
===========
CEMEX: Fitch Says Restructuring Plan Has Positive Effect
--------------------------------------------------------
Mexican cement producer CEMEX said it had completed its
$7.2 billion debt restructuring plan. Fitch Ratings believes this
is positive overall to the company's credit quality, but
challenges remain that are outside of the company's control.
Fitch says, "We anticipated the successful conclusion of the
restructuring in early August, when we affirmed the company's
ratings. We maintain a rating of 'B' for CEMEX and several of its
subsidiaries and 'B+'/RR3 for the securities issued through CEMEX
and its subsidiaries."
"The ratings of CEMEX and its subsidiaries continue to reflect the
company's high leverage and limited free cash flow prospects
through 2014. As of June 30, 2012, CEMEX had $17.629 billion of
total debt and $611 million of cash and marketable securities as
of June 30, 2012. For the last 12 months, CEMEX generated $2.418
billion of EBITDA.
"The refinancing proposal reduces CEMEX's refinancing risk by
pushing back the maturity of $7.2 billion of debt that fell due
during 2013 and 2014. In exchange for rescheduling the maturity
of $500 million of this debt until 2016 and $5.2 billion to 2017,
holders of the debt received guarantees from six additional debt
guarantors; 100 basis points of fee payments; prepayment
incentives that will likely result in additional equity or assets
sales, and about 75 basis points of additional spread on the
interest payment.
"Taking into consideration a relatively weak outlook for the U.S.
economy and a declining outlook for the company's operations in
Europe, we expect the company's leverage to remain high through
the end of 2014. We also expect the company to continue to spend
considerable efforts on liability management. We project CEMEX
will generate about $2.45 billion of EBITDA in 2012, $2.55 billion
in 2013 and $2.90 billion in 2014. Free cash flow (FCF) after
capex and the payment of coupons on the company's perpetual notes
is projected to be negative $150 million in 2012, before turning
slightly positive during 2013. At these levels, absent asset
sales, CEMEX's leverage will continue to be elevated. For 2014,
we project the company's FCF will be about $500 million. The
projections incorporate the assumption that the company's South,
Central America and Caribbean division will continue to increase
cash flow, while the U.S. operations will benefit from a gradual
recovery in sales volumes. Offsetting these positives is an
expected deterioration in CEMEX's Northern European operations
between 2012 and 2014, and a weak performance of its Mediterranean
division during 2012 and 2013.
"We believe a positive rating action is unlikely as long as the
U.S. economic recovery remains sluggish. Factors that could
contribute to consideration of an upgrade or Positive Rating
Outlook include significant debt reduction through asset sales,
free cash flow or additional equity and a resolution of the
Eurozone crisis. With that said, a number of factors could lead
to a negative rating action, including a downturn in the company's
businesses in Mexico and Central/South America that have been
crucial to offset weakening of the company's Northern European and
Mediterranean divisions," notes Fitch.
***********
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 * * *