/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120926.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 Wednesdays, September 26, 2012, Vol. 13, No. 192 Headlines B E R M U D A ALLWEATHER PERFORMANCE: Creditors' Proofs of Debt Due Oct. 3 ALLWEATHER PERFORMANCE: Members' Final Meeting Set for Oct. 24 ASIAN MARINE: Court Appoints Calow and Tomb as Liquidators EASTERN MARINE: Court Appoints Calow and Tomb as Liquidators MOMENTUM PERFORMANCE: Creditors' Proofs of Debt Due Oct. 3 MOMENTUM PERFORMANCE: Members' Final Meeting Set for Oct. 24 SELCO INTERNATIONAL: Court Appoints Calow and Tomb as Liquidators TRIUMPH MANAGEMENT: Court Appoints Calow as Liquidator B R A Z I L AMERICA LATINA: Fitch Affirms 'BB-' Issuer Default Rating CELPA: Regulator Approves Plan for Acquisition ROSSI RESIDENCIAL: Moody's Affirms 'Ba2' CFR; Outlook Negative SANLUIS RASSINI: Fitch Rates Proposed $250-Mil. Sr. Notes 'B+' C A Y M A N I S L A N D S BOZARCHE LIMITED: Creditors' Proofs of Debt Due Oct. 2 DEL MAR GLOBAL: Creditors' Proofs of Debt Due Oct. 10 FFMER CAYMAN 2007-2: Creditors' Proofs of Debt Due Oct. 10 FFMER CAYMAN NIM 2007-3: Creditors' Proofs of Debt Due Oct. 10 FFMER CAYMAN NIM 2007-4: Creditors' Proofs of Debt Due Oct. 10 GALISTEO CAPITAL: Creditors' Proofs of Debt Due Oct. 10 RGF PRIVATE: Creditors' Proofs of Debt Due Oct. 2 SILKROAD CHINA: Creditors' Proofs of Debt Due Oct. 10 SOGEPA GLOBAL: Creditors' Proofs of Debt Due Oct. 10 SONG GROWTH: Creditors' Proofs of Debt Due Oct. 10 D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Current Situation Not Easy, IMF Says P E R U * PERU: IDB Approves US$30 Million Loan to Government - - - - - ============= B E R M U D A ============= ALLWEATHER PERFORMANCE: Creditors' Proofs of Debt Due Oct. 3 ------------------------------------------------------------ The creditors of Allweather Performance Strategies Limited are required to file their proofs of debt by Oct. 3, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 17, 2012. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda ALLWEATHER PERFORMANCE: Members' Final Meeting Set for Oct. 24 -------------------------------------------------------------- The members of Allweather Performance Strategies Limited will hold their final general meeting on Oct. 24, 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: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda ASIAN MARINE: Court Appoints Calow and Tomb as Liquidators ---------------------------------------------------------- On Aug. 24, 2012, the Supreme Court of Bermuda appointed Garth Calow and Alison Tomb as liquidators of Asian Marine Limited. The Liquidators can be reached at: Garth Calow Alison Tomb PricewaterhouseCoopers Dorchester House, 7 Church Street Hamilton HM 11 Bermuda EASTERN MARINE: Court Appoints Calow and Tomb as Liquidators ------------------------------------------------------------ On Aug. 24, 2012, the Supreme Court of Bermuda appointed Garth Calow and Alison Tomb as liquidators of Eastern Marine Limited. The Liquidators can be reached at: Garth Calow Alison Tomb PricewaterhouseCoopers Dorchester House, 7 Church Street Hamilton HM 11 Bermuda MOMENTUM PERFORMANCE: Creditors' Proofs of Debt Due Oct. 3 ---------------------------------------------------------- The creditors of Momentum Performance Strategies Series I Limited are required to file their proofs of debt by Oct. 3, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 17, 2012. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda MOMENTUM PERFORMANCE: Members' Final Meeting Set for Oct. 24 ------------------------------------------------------------ The members of Momentum Performance Strategies Series I Limited will hold their final general meeting on Oct. 24, 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: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda SELCO INTERNATIONAL: Court Appoints Calow and Tomb as Liquidators ----------------------------------------------------------------- On Aug. 24, 2012, the Supreme Court of Bermuda appointed Garth Calow and Alison Tomb as liquidators of Selco International Limited. The Liquidators can be reached at: Garth Calow Alison Tomb PricewaterhouseCoopers Dorchester House, 7 Church Street Hamilton HM 11 Bermuda TRIUMPH MANAGEMENT: Court Appoints Calow as Liquidator ------------------------------------------------------ On Sept. 5, 2012, the Supreme Court of Bermuda appointed Garth Calow as liquidator of Triumph Management International Limited. The Liquidators can be reached at: Garth Calow PricewaterhouseCoopers Dorchester House, 7 Church Street Hamilton HM 11 Bermuda =========== B R A Z I L =========== AMERICA LATINA: Fitch Affirms 'BB-' Issuer Default Rating --------------------------------------------------------- Fitch Ratings has affirmed the Foreign and Local Currency Issuer Default Ratings (IDR) of America Latina Logistica S.A. (ALL) at 'BB-'. Fitch has also affirmed the National Scale Long-term Ratings of the company, its subsidiaries and their respective unsecured debentures at 'A(bra)'. The Rating Outlook is Stable. In conjunction with these rating actions, Fitch expects to assign an 'A(bra)' to ALL's BRL750 million unsecured 10th debentures issuance's proposal, guaranteed by the operational subsidiaries and due in 2017. Fitch also expects to assign an 'A(bra)' to the BRL160 million unsecured 8th debentures issuance's proposal of ALL's subsidiary, America Latina Logistica Malha Norte (ALL Malha Norte), guaranteed by ALL and with final maturity in 2020. The proceeds of ALL's issuance proposal will be used for general corporate purposes whereas the proceeds of ALL Malha Norte's transaction will be used to finance its capex plan. The affirmation of the ratings with a Stable Outlook is based on ALL's consistent and strong volumes, as well as its improving operating cash flow, even under adverse economic and agricultural crop scenarios. The credit ratings of ALL continue to reflect its adequate business profile and competitive position as the sole railroad transportation operator in the South and Mid-Western regions of Brazil, which are areas with high growth potential due to firm global demand for grain. ALL's ratings are constrained by its leveraged credit profile and its aggressive capex program. In Fitch's opinion, the regulatory risk of the railroad concession sector has recently increased. This is a negative rating consideration. On Sept. 10, 2012, the Brazilian Federal Government announced measures that guide the railroad concession sector in Brazil negatively. The main measure was the cut in the base tariff ceiling, in an effort by the government to boost the competitiveness of industrial sector in the country. Fitch does not expect the cuts in the tariff ceilings to generate material deterioration in ALL's cash flow generation or significantly affect its potential growth in the short term. On average, ALL already operates with railroad tariffs below the new base tariffs set by the government and presents commercial flexibility, which should mitigate likely negative effects of the new governmental measure. Fitch's concern is related to the risks of further initiatives by the Brazilian government in this sector. The ratings of ALL's subsidiaries have been equalized with those of ALL due to the strong operational, financial and legal ties between the companies. This relationship relies on the majority ownership of ALL on its subsidiaries; the total influence of the parent in the management and the flow of dividends from the operational companies; the strong financial integration between the companies; the cross guarantees between ALL and its subsidiaries' debt; and the strategic importance of the railroad subsidiaries to ALL. Structural subordination risks due to ALL's status as a holding company are mitigated by the unrestricted cash distribution policy of its operating subsidiaries, and the guarantees that these Brazilian operational subsidiares provides to great part of ALL's debt. Ratings Supported by Resilient Business Model: ALL's business model has demonstrated resilience to adverse global economic conditions, as seen by the increasing volumes transported by the company in the last years. During the LTM ended June 30, 2012 ALL transported a total of 47.2 million tons per useful kilometer (RTK) as compared to 46.5 million and 43.1 million in 2011 and 2010. As a result, ALL has strengthened its competitive position as the sole railroad transportation provider in the Southern and Mid-Western regions of Brazil, which are the country's primary crop growing regions. For the LTM ended June 30, 2012, about 95% of ALL's consolidated EBITDA of BRL1.6 billion was generated by its Brazilian railroad activities, mainly through the transportation of agricultural commodities (75%) and industrial products (20%). ALL's operations in Argentina represent just 6% of consolidated revenues and 1% of consolidated EBITDA, while the new businesses of logistics of containers and highway transportation service together represented 4% of ALL's consolidated EBITDA. ALL continues to exhibit weak performance in its railroad businesses in Argentina, which is not expected to improve expressively over the medium term. This enhances the probability of these assets to be sold. Fitch does not expect that this transaction will materially impact ALL's cash generation capacity, if ALL decides to sell these assets. Adequate Liquidity & Well-Scheduled Debt Payments: ALL continues to maintain a strong liquidity position, supported by approximately BRL1.6 billion of cash and marketable securities as of June 30, 2012. ALL's total adjusted debt was BRL9.7 billion, adjusted to the lease and concession off balance obligation of BRL544 million, being BRL1.5 billion due over the short-term. The company's exposure to refinancing risk is manageable, as reflected by its satisfactory ratios of cash to short term debt of 1.1 times (x) and cash plus CFFO to short-term debt ratio of 1.4x. The company has a manageable debt amortization schedule, with no concentration. ALL's indebtedness is principally comprised of BRL2.7 billion of lease and concession obligations; BRL2.4 billion of debentures; and BRL2.1 billion of loans with the development bank, Banco Nacional de Desenvolvimento Economico e Social (BNDES). High Capex Should Pressure FCF Until 2013: ALL has been presenting consistent CFFO levels, boosted by its ability to capture additional volumes of cargo; its operating margins are high and stable. During the LTM ended June 30, 2012, the company's CFFO was BRL520 million. This compares with CFFO levels of BRL698 million during 2011 and BRL475 million during 2010. The most recent figures have been hurt by a lower harvest. The positive trend in the company's CFFO has not been enough to generate positive FCF due to large investments over the past three years. During the LTM ended June 30, 2012, the company's FCF was negative BRL540 million, pressured by BRL1 billion of capital expenses. FCF generation is expected to remain negative during the next two years. Fitch's projections indicate investments of about BRL1.8 billion over the next two years, which may continue to pressure the company's FCF until 2013. Fitch believes that FCF will become positive by 2014, due to an increase in the company's transportation capacity coming from the new capacity added by the conclusion of the Rondonopolis project. This project, which has been underway since 2009, extends the company's presence from Alto Araguaia to Rondonopolis, an important grain producing region in the state of Mato Grosso. The group's investments planned for the next two years are expected to be financed by a combination of operational cash flow and debt issuances. ALL's leverage remains above average for the rating category but is mitigated by its capacity to generate increasing EBITDAR in a business environment that has below-average risk. For the LTM ended June 30, 2012, ALL's consolidated net adjusted debt/EBITDAR ratio as calculated by Fitch was 4.8x. Fitch expects this ratio to remain relatively steady until the end of 2012 due to the scheduled capital expenditures. The company's leverage should then begin to gradually decline, reaching approximately 4.0 times by the end of 2013 and about 3.5x at the end of 2014. The key driver of increased EBITDAR will be the new railway line from Alto-Araguaia to Rondonopolis. Key Rating Drivers: The ratings may be upgraded as a result of an improvement in the company's credit profile with a focus on an ongoing reduction in leverage, along with consistently high levels of liquidity. Positive actions could also result from a decreased presence of the government in the regulation of the industry. The ratings could be downgraded if there is deterioration in the company's operational performance, or if leverage increases materially. Negative ratings actions could also result from acquisitions and/or investments that are not considered core to operations by Fitch, or if the company distributes an unexpected amount of dividends. Fitch has affirmed the following ratings: ALL: -- Long-term Foreign and Local Currency IDRs at 'BB-'; -- Long-term National Rating at 'A(bra)'; -- Long-term National Rating of the 5th Debenture Issue at 'A(bra)'; -- Long-term National Rating of the 6th Debenture Issue at 'A(bra)'; -- Long-term National Rating of the 8th Debenture Issue at 'A(bra)'; -- Long-term National Rating of the 9th Debenture Issue at 'A(bra)'. ALL Malha Sul: -- Long-term National Scale Rating at 'A(bra)'; -- Long-term National Rating of the 3rd Debenture Issue at 'A(bra)'. ALL Malha Norte: -- Long-term National Scale Rating at 'A-(bra); -- Long-term National Rating of the 6th Debenture Issue at 'A(bra)'. ALL Malha Paulista: -- Long-term National Scale Rating at 'A(bra)'; -- Long-term National Rating of the 1st Debenture Issue at 'A(bra)'. The Outlook for the corporate ratings is Stable. Fitch expects to assign the following ratings: -- Long-term National Rating at 'A(bra)' to ALL's proposal of 10th Debenture Issuance, totaling BRL750 milhoes, due in 2017; -- Long-term National Rating at 'A(bra)' to ALL Malha Norte's proposal of 8th Debenture Issuance, totaling BRL160 milhoes, due in 2020. CELPA: Regulator Approves Plan for Acquisition ---------------------------------------------- Mario Sergio Lima at Bloomberg News reports that Nelson Hubner, general director of Brazil's electric regulatory agency, Agencia Nacional de Energia Eletrica or ANEEL, approved a transitional plan for the acquisition of Centrais Eletricas do Para SA. Mr. Hubner said that ANEEL refused a request to ease the utility's quality standards and accepted a proposal allowing the utility's buyer to invest in it rather than pay off its previously accrued fines, according to Bloomberg News. Bloomberg News relates that the plan was presented by Equatorial Energia SA. Mr. Hubner, Bloomberg News notes, said that its terms are valid for every company interested in acquiring control of the utility that filed for bankruptcy. As reported in the Troubled Company Reporter - Latin America on Aug. 23, 2012, Bloomberg News said ANEEL will consider requests by Equatorial Energia SA regarding a bid to take over Celpa following a judge's request to accelerate the process. Equatorial Energia has requested an easing of service targets and fines during a transitional period as part of its offer to take over Celpa, according to Bloomberg News. * * * As reported in the Troubled Company Reporter on March 5, 2012, Moody's downgraded the Issuer ratings of Centrais Eletricas do Para (CELPA) to Ca from B3 on the global scale and to Ca.br from B1.br on the Brazilian national scale. At the same time, Moody's downgraded to Ca from B3 the rating of the senior unsecured 5- year US$250 million bonds issued by CELPA. Following this rating action, Moody's will withdraw both ratings given that CELPA filed for court protection under the Brazilian bankruptcy and reorganization law (Judicial Recovery). ROSSI RESIDENCIAL: Moody's Affirms 'Ba2' CFR; Outlook Negative -------------------------------------------------------------- Moody's America Latina affirmed Rossi's corporate family ratings at Ba2 on the global scale and A1.br on the Brazilian national scale, but changed the outlook to negative from stable. Ratings: Rossi Residencial S.A. (Rossi) - Corporate Family Ratings: Ba2 (global scale); A1.br (national scale) - Outlook: negative Ratings Rationale The change in outlook to negative from stable was triggered by the company's weaker than expected operating performance over the last twelve months that caused significant deterioration in the company's credit metrics, particularly leverage ratios and interest coverage. Despite the BRL500 million equity capitalization plan announced last August and the other ongoing initiatives to restructure and downsize the business, Moody's believes that Rossi's credit metrics and margins may not recover before 2014. The ratings affirmation takes into consideration that Rossi will eventually obtain financial resources from its shareholders under the proposed capitalization plan to maintain adequate liquidity for the execution of its current projects and growth plans. It also considers that Rossi will significantly reduce leverage as the company streamline its operations and improve profitability with the implementation of its strategic plan. Rossi's Ba2 rating reflects its solid position among Brazil's largest vertically integrated homebuilders with a nationwide footprint and moderate product diversity covering low, middle and high income segments. The rating also incorporates the company's strong management and its long track record in the real estate development business. On the other hand, Rossi's rating is constrained by its increasing leverage and still weak internal cash flow generation, which has been hampered by high working capital requirements as a consequence of rapid growth. Rossi experienced an accelerated growth pace during the last five years with an average revenue growth rate of 37% from 2007 to the 2Q12 (LTM) and more than 49,000 delivered units. With some BRL3.2 billion in net revenues in the last twelve months ending in June 2012, Rossi currently ranks among the six largest Brazilian homebuilding companies due to its strong presence in the low income segment and large geographic diversification. Such scale provides the company adequate bargaining power for land acquisition and raw material procurement, but managing a large number of projects in various locations also increases execution risk. Like most Brazilian homebuilders, Rossi is challenged by cost overruns, as well as delays in construction and mortgage transfers to the banks. As a result, adjusted gross margins have shrunk due to cancelled contracts and budget revisions to 33.8% LTM June 2012 (unaudited) from 36.6% in 2011 and 38.1% in 2010; while total debt capitalization increased to approximately 59.9% in the end of June 2012 from 53.6% in December 2011 and 45.1% in December 2010. The sharp debt increase is also associated with a more conservative accounting approach during the 2Q12 that kept securitized receivables of constructed units of approximately BRL460 million on its balance sheet until the effective mortgage transfer, otherwise debt capitalization would have been around 57%. As a result, Rossi has recently revised its strategic guidelines to focus on fewer metropolitan areas, such as Porto Alegre (RS), Aracaju (SE), Manaus (AM), Brasilia--DF, Sao Paulo (SP), Rio de Janeiro (RJ) and Belo Horizonte (BH), where they have strong market share and a well established position. As part of this process, the company is cancelling certain development projects that have underperforming margins and sales. During 2012, Rossi cancelled 11 projects with a Potential Sales Value (PSV) of BRL376 million due to a low return, which is in line with the company's strategy to reposition in more profitable cities. It is yet unclear whether the company will implement further adjustments to its project backlog and how these new cancelations will impair earnings recognized as percentage of completion (POC). The company replaced auditors in January 2012 and the financial reports reviewed by the auditors for the second quarter have yet to be filed, which creates more uncertainty regarding additional accounting adjustments. At the same time, the company is downsizing new launches in 2012 to approximately BRL3.0 billion, compared to BRL4.2 billion in 2011, along with office closures and reductions in headcount in order to bring operating margins back to the historical levels. Additionally, Rossi announced the creation of two new businesses: Rossi Commercial Properties that will operate in the strip malls segment and Rossi Urbanizadora that will focus on less cash intensive single-family and multi-family land developments. The objective is to maximize the return of its land bank with an estimated potential sales value of BRL20.5 billion as of June 30, 2012. Lots unsuitable for development and construction of residential units according to the new strategic guidelines will be transferred to or swapped with these newly created subsidiaries and new investments may be leveraged with new strategic partners that will eventually dilute Rossi's final participation in those subsidiaries. Rossi still has adequate liquidity despite its high consolidated leverage. At the end of June, 2012, according to the unaudited earnings release, the company had BRL1,259 million in cash and marketable securities on its balance sheet and BRL792 million in receivables from finished units that should become available with the effective transfer of mortgages to lending banks, a process that takes on average six months. Short term debt maturities of BRL1,589 million comprised primarily of construction and land financing loans will be self liquidated with the delivery of the finished units to the respective homebuyers. From 2009 through 2011, working capital needs ranged from BRL700 million to BRL1.1 billion per year. Over the last six months ended in June 2012, Moody's estimates working capital needs to have reached BRL400 million as a result of the significant pipeline of construction projects launched in 2010 and 2011 and lower sales speed, a trend that should prevail towards year end. In 2013, free cash flow could turn positive provided that Rossi's successfully implements its restructuring plans and turnover the land bank to generate cash while the sale/supply ratio stabilizes. The limited internal cash flow generation has been supported by adequate availability of project loans under the Sistema Financeiro de Habitacao (SFH). The company has about BRL1.2 billion undrawn committed facilities under the SFH that puts the company in a comfortable position to meet its ongoing project commitments. Since 78% of the units in Rossi's land bank are priced below BRL 500 thousand, the company will continue to benefit from relatively cheaper and government-sponsored funds during construction under the Sistema Financeiro de Habitacao (SFH) and Fundo de Garantia do Tempo de Servi‡o (FGTS) funded mortgages for homebuyers. Moody's believes that the fundamentals for this industry remain strong. Companies in the sector in general should continue to benefit from solid demand as a result of Brazil's significant housing deficit and expansion of the middle class. The government also remains supportive of the industry through programs that promote home ownership. In view of the slower economic activity during the first half of 2012, the central bank has lowered basic interest rates and at the same time the government has stepped up competition with commercial banks through Caixa Economica Federal (CEF) and Banco do Brasil (BB) with the objective of reducing the wide spreads charged on consumer loans. Once these measures begin to affect, they should help ease mortgage rates and aid the homebuilding industry, which might also benefit through increased affordability. On September 5, 2012, Rossi announced it is negotiating a capital increase of BRL500 million. Rossi expects to get all the approvals necessary over the next three months to cash in the resources before the end of this year. Moody's considers this a crucial development for the company to maintain adequate liquidity to execute current projects. The negative outlook considers that Rossi should experience significant challenges in the near term to preserve liquidity and improve profitability, as a result of more selective demand, higher costs and slower approval process. Rossi's outlook could be stabilized if the company is able to materially reduce leverage and increase interest coverage for example by maintaining total debt to capitalization below the mid 40% range, and EBIT interest coverage above 3.5 times on a sustainable basis. Rossi's ratings could be downgraded if the company is not successful in streamlining operations in a timely fashion in order to generate positive cash and reduce leverage to an appropriate level for its rating category. Quantitatively the ratings could be downgraded if total debt to capitalization stays consistently above 50% or if the EBIT interest coverage stays below 1.5 times. Further negative rating pressure would arise if the company's cash balance decreases to a level that is insufficient to meet short term financial obligations and minimum working capital requirements or if there is a significant downturn in the homebuilding industry. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".br" for Brazil. The principal methodology used in this rating was Global Homebuilding Industry published in March 2009. Founded in 1980 and headquartered in Sao Paulo, Rossi Residencial S.A. (Rossi) is one of Brazil's largest homebuilders with operations in 95 cities from 20 states and the Federal District. Rossi currently offers homebuilding products to the conventional and low income segments as well as commercial buildings. The company currently has 272 projects under development to be delivered between 2012 and 2014. Total revenues and consolidated net income for the last twelve months ending June 30, 2012 were approximately BRL3.2 billion (US$1.8 billion) and BRL212 million (US$119 million), respectively. SANLUIS RASSINI: Fitch Rates Proposed $250-Mil. Sr. Notes 'B+' -------------------------------------------------------------- Fitch Ratings has assigned the following initial ratings to SANLUIS Rassini, S.A. de C.V. (SLR): -- Foreign currency Issuer Default Rating (IDR) 'B'; -- Local currency IDR 'B'; -- Proposed USD250 million senior notes 'B+/RR3'. The Rating Outlook is Stable. SLR's ratings reflect its solid business position in the auto industry as an essential supplier of suspension and break parts, especially in North America (NA). The ratings further reflect the geographic diversification of the company's operations, its flexible cost structure, long-term contracts and lower leverage after the debt restructuring process completed in 2011. SLR's ratings are limited by the cyclicality of the industry and its high customer concentration level. The company's history of debt restructurings and its corporate structure further limit the ratings. The Stable Outlook reflects the positive momentum in the North American market and the stabilization in the Brazilian heavy trucks segment. These factors should benefit the company's cash flow in the near term and should further strengthen its financial profile. The volumes of light vehicles in North America are expected to be in the range of 14-15 million units in the next years, while in Brazil, commercial vehicles volumes are expected to stabilize in the second half of 2012. Sales in Brazil were high in 2011 due to high demand ahead of change in environmental regulations. Solid Business Position Supports the Ratings SLR, a subsidiary of SANLUIS Corporacion, S.A.B. de C.V. (SLC), manufactures suspension and brake system components for light and heavy vehicles, with a leading position in North America and an important presence in Brazil. The company's main product line, leaf springs which accounted for more than 70% of total sales in 2011, has historically had market shares of over 90% in North American and an estimated share in Brazil of 65%. This strong position results from the group's technology development over the years, close and long relationships with customers through product design and development, geographic location and integrated operations. These factors had allowed the company to deliver high service levels and renew or gain new contracts with customers in the region. During the downturn cycle during 2008 through 2010, where major OEM's in North America entered reorganization processes, SLR was designated as an essential supplier for GM and Chrysler, which allowed it to keep collecting accounts receivables. However, SLR's customer base is concentrated. Detroit's three OEM's represent approximately 60% of total revenues. In 2011, North America represented 62% of total SLC Revenues and 59% of its consolidated EBITDA. Fitch expects these values to remain relatively stable in the next years. Low Cost Structure Provides Flexibility During the latest industry downturn, SLR reorganization process was similar to other auto parts suppliers' initiatives. The company rationalized its installed capacity and headcount, allowing it to reduce the breakeven point of operations from historical levels; currently management believes the company has a lean structure and has available capacity to absorb additional volumes. SLR's contracts usually are granted for the life of the platform, with an average of six years. Suspension customers' contracts provide raw material pass-through to prices (in either direction) and management has implemented strict cost and expenses controls in order to maintain plants efficiency and productivity. These actions, in conjunction with volume recovery from industry dynamics, have resulted in EBITDA margins between 12-14% during 2010 and the first half of 2012. However, the company's business nature is closely dependant on volumes and industry cyclicality. Moderate Leverage after Debt Restructuring During 2010, the group completed its debt restructuring. This process included the rescheduling of the maturity until 2014 of USD142 million of Secured Bank Loans at the NA Suspension Group level. In 2011, the group also exchanged USD237 million of the old SANLUIS Co-Inter (SISA) senior notes and mandatory convertible debentures for usd61.5 million of guaranteed notes due 2017 and USD14.5 million of new SISA Notes due 2020 plus 30.4 million of SLC shares (approximately 9.5% of shares in circulation). This resulted in a debt reduction to USD260 million from USD420 million. Debt at the Brazilian and Brake divisions was unaffected. As of June 30, 2012, SLC's total consolidated debt was USD253 million, distributed as follows: USD124.9 million of bank loans at the NA suspension group, USD21.8 million at the Brake Division, USD19 million at the Brazilian operations; USD7.7 million of outstanding balances of Euro Commercial Paper and Eurobonds at the SLC level that were not tendered in the 2001-2003 debt restructuring, USD65.8 million of SLC notes due 2017, and USD14.3 million of SISA notes due 2020. On a consolidated basis, SLC's total debt to EBITDA ratio as of June 30, 2012 was 2.7x and its net debt to EBITDA ratio was 2.3x. The company intends to issue USD250 million in 10 year senior ntes and use the proceeds to simplify the consolidated debt structure and refinance approximately USD200 million of bank loans and SLC notes due 2017. If successful, on a pro forma basis, the group's total debt to EBITDA ratio would increase to approximately 3.1x and its net debt to EBITDA ratio would remain stable at 2.3x. The company plans to maintain cash balances of approximately USD50 million in order to have enough flexibility and cushion in case of external shocks and fund future growth. Corporate and Debt Structure According to Fitch's criteria and methodology, debt at holding or sub-holding companies is structurally subordinated to debt at operating subsidiaries. SLR owns 100% of North America Suspension and Brake operations, and 51% of the Brazilian Suspension Group which funds its operations individually; the company only receives dividends from the Brazilian joint venture. On a pro forma basis, taking into account the proposed USD250 million senior notes and adjusting the consolidated debt to EBITDA ratio by considering only 51% of the dividends received from Brazil and excluding the debt of the Brazilian joint venture, the total debt to EBITDA ratio would be about 3.8x. In addition, current and/or future debt held at SLC or SISA (SISA notes due 2020) is subordinated to SLR's obligations, which would likely be translated in lower ratings for those instruments. The 'RR3' Recovery Rating reflects above average recovery prospects in the case of default. Fitch used a discount for distressed EBITDA of 35% and an enterprise value multiple of 5.2x, based upon the agency's experience in the North American Auto sector. Key Rating Drivers Negative rating actions could result from a combination of lower volume sales and profitability as a result of a sharp U.S. recession and/or the loss of customers which in turn translates to increased leverage above expected levels. Conversely, positive rating actions could be taken if the company consistently maintains leverage levels below 2.5x in conjunction with a strong liquidity profile and positive free cash flow generation. ========================== C A Y M A N I S L A N D S ========================== BOZARCHE LIMITED: Creditors' Proofs of Debt Due Oct. 2 ------------------------------------------------------ The creditors of Bozarche Limited are required to file their proofs of debt by Oct. 2, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 8, 2012. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815-1759 Facsimile: (345) 949-9877 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands DEL MAR GLOBAL: Creditors' Proofs of Debt Due Oct. 10 ----------------------------------------------------- The creditors of Del Mar Global Volatility Offshore Fund Ltd. are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 20, 2012. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 FFMER CAYMAN 2007-2: Creditors' Proofs of Debt Due Oct. 10 ---------------------------------------------------------- The creditors of FFMER Cayman NIM 2007-2, Ltd. are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 21, 2012. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 FFMER CAYMAN NIM 2007-3: Creditors' Proofs of Debt Due Oct. 10 -------------------------------------------------------------- The creditors of FFMER Cayman NIM 2007-3, Ltd. are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 21, 2012. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 FFMER CAYMAN NIM 2007-4: Creditors' Proofs of Debt Due Oct. 10 -------------------------------------------------------------- The creditors of FFMER Cayman NIM 2007-4, Ltd. are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 21, 2012. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 GALISTEO CAPITAL: Creditors' Proofs of Debt Due Oct. 10 ------------------------------------------------------- The creditors of Galisteo Capital Master Fund, Ltd. are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 21, 2012. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 RGF PRIVATE: Creditors' Proofs of Debt Due Oct. 2 ------------------------------------------------- The creditors of RGF Private Trust Company Limited are required to file their proofs of debt by Oct. 2, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 22, 2012. The company's liquidator is: Richard Finlay c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SILKROAD CHINA: Creditors' Proofs of Debt Due Oct. 10 ----------------------------------------------------- The creditors of Silkroad China Master Fund are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 21, 2012. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited c/o Mourant Ozannes Reference: JFL Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647; or Mourant Ozannes Cayman Liquidators Limited c/o Peter Goulden Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands SOGEPA GLOBAL: Creditors' Proofs of Debt Due Oct. 10 ---------------------------------------------------- The creditors of Sogepa Global Equity Ltd are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 16, 2012. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 SONG GROWTH: Creditors' Proofs of Debt Due Oct. 10 -------------------------------------------------- The creditors of Song Growth Company are required to file their proofs of debt by Oct. 10, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 21, 2012. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 ================================== D O M I N I C A N R E P U B L I C ================================== * DOMINICAN REPUBLIC: Current Situation Not Easy, IMF Says ---------------------------------------------------------- Dominican Today reports that the International Monetary Fund (IMF) Mission Leader Przemek Gajdeczka said that Dominican Republic's most important challenges are the fiscal imbalance and the plight of its electricity sector. Mr. Gajdeczka said the mission's conclusion stems from the information gathered during 10 days of meetings with government and Central Bank officials, and civil society representatives, who held discussions and provided cooperation, according to Dominican Today. The report notes that the credit agency representative spoke in a press conference in the National Palace after members of the IMF delegation met for an hour with President Danilo Medina, and a commission of the government's economic team to share some observations and findings on the country's economic situation. The report discloses that Mr. Gajdeczka stressed that the country's situation "isn't easy" and will take to Washington the information gathered during their visit, to "prepare its recommendations and findings to improve the understanding of the current situation and work together with the Dominican authorities in the redesign of macroeconomic policies. " The report relays that when asked whether the fiscal situation found would merit an urgent agreement between the government and the IMF, Mr. Gajdeczka noted that they first have to analyze the situation and discuss the findings with the authorities, for which the delegation will return in November and the IMF Board will discuss what's agreed between both parties in January 2013, so that "it will take a little longer." ======= P E R U ======= * PERU: IDB Approves US$30 Million Loan to Government ----------------------------------------------------- The Inter-American Development Bank (IDB) has approved a US$30 million loan to the government of Peru to support social sector reform. It is the third of three loans to foster human capital development and increase employment opportunities. The goal of this third phase is to support government efforts to consolidate policy instruments used in its anti-poverty and social inclusion strategy. In particular, it intends to consolidate the National Program of Direct Support for the Very Poor (Juntos), which aims to interrupt the transmission of poverty from one generation to another. The operation also supports the government's Comprehensive Health Insurance Program, which provides health services for people not covered by Social Security; improves participants' employability through job-training programs, such as Trabaja Peru, Jovenes a la Obra, and the One-Stop Employment Promotion Window. In addition, it will strengthen the Household Targeting System (SISFOH). The first two phases of the loan program were approved in 2009 for US$50 million and in 2010 for US$100 million. During these early phases, the government sought to raise program efficiency and extend coverage by improving operating processes, information systems, monitoring, and evaluation. "This operation is designed to help the government to consolidate the efforts to improve the effectiveness, efficiency, and targeting of key labor and social programs," said Maria Fernanda Merino, IDB project team leader. Loans to support policy reform provide the recipient government withresources that can be used flexibly to meet priority fiscal needs. For a loan of this type, governments commit to specific policy reforms in a particular sector. The IDB loan has a 12.75-year term with interest based on LIBOR. *********** 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 * * *