/raid1/www/Hosts/bankrupt/TCRLA_Public/121109.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, November 9, 2012, Vol. 13, No. 224
Headlines
A R G E N T I N A
COMERCIALIZADORA DE CARNE: Asks for Reorganization Proceedings
GENNEIA: Moody's Assigns 'B3' Ratings to Class IX & Class X Notes
GOLD JUICE: Creditors' Proofs of Debt Due Nov. 27
N&GV SRL: Asks for Reorganization Proceedings
STYLE LAB: Creditors' Proofs of Debt Due Nov. 14
TRANSPORTADORA DE GAS: Fitch Lifts Issuer Default Rating From BB+
* ARGENTINA: To Receive $34 Million IDB Financing Local Program
B R A Z I L
* BRAZIL: Fitch Says Government's Offer Affects Companies
C A Y M A N I S L A N D S
ANTHRACITE BALANCED: Shareholders Receive Wind-Up Report
CAMBRIDGE NETWORK: Shareholders Receive Wind-Up Report
CRC CAPITAL: Shareholders Receive Wind-Up Report
FLORA PDP: Shareholders' Final Meeting Set for Nov. 9
JL FALCON: Shareholders' Final Meeting Set for Nov. 9
MMI INVESTMENTS: Shareholder Receives Wind-Up Report
NORTHBRIDGE DIVERSIFIED: Shareholder Receives Wind-Up Report
SP TARH: Shareholders' Final Meeting Set for Nov. 9
TAMISTA LIMITED: Sole Member to Hear Wind-Up Report on Nov. 15
WARRICK INTERNATIONAL: Shareholders' Final Meeting Set for Nov. 9
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Takes First Steps for an IMF Pact
M E X I C O
GRUPO FARIAS: S&P Withdraws 'CCC' Corp. Credit Rating at Request
TUSCANY INT'L: Fitch Assigns 'B+' Issuer Default Rating;
TUSCANY INT'L: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
- - - - -
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A R G E N T I N A
=================
COMERCIALIZADORA DE CARNE: Asks for Reorganization Proceedings
--------------------------------------------------------------
Comercializadora de Carne Porcina SRL asked for reorganization
proceedings. The company defaulted its payments last Aug. 31.
GENNEIA: Moody's Assigns 'B3' Ratings to Class IX & Class X Notes
-----------------------------------------------------------------
Moody's Latin America has assigned B3/A3.ar ratings to Genneia's
Class IX and Class X proposed notes for a combined amount of up to
ARS150 million (approximately USD30 million) and affirmed its
B3/A3.ar global local currency corporate family rating and its
B3/A3.ar senior unsecured rating on Genneia's outstanding Notes.
The outlook for all ratings is stable.
The notes are being jointly offered to complete up to ARS150
million, on the following conditions:
Class IX, for up to ARS25 million, variable interest and payable
in full at maturity -- 18 months from the issuance date.
Class X, for up to ARS25 million equivalent in pesos
(approximately USD5 million), fixed interest rate, amortizing,
with final maturity 24 months from the issuance date.
Genneia will use proceeds from the new notes to repay other short
term debt and to complete the financing of its 2012 investment
program.
Recent Events
On September 28, 2012 Moody's upgraded Genneia's NSR to A3.ar from
Baa1.ar and affirmed the B3 rating on the global scale while
changing the outlook to stable from positive.
The upgrade on Genneia's NSR was mainly prompted by Genneia's
successful completion and startup of its 80 MW wind farm project
in Rawson. In addition, the upgrade factored in Genneia's revenues
arising from its other business line, EnergĦa Distribuida (ED)
which gained greater predictability due to the extension of the
term of the contracts under the framework agreement reached in
April by the company and the Energy Secretariat.
Rating Rationale
The B3/A3.ar are supported by Moody's expectation of stable cash
flows arising from its wind and "energĦa distribuida" operations
and moderate leverage.
The wind generation that entered into commercial operations early
this year is producing energy in line with expectations and stable
revenues under a long term, fixed price contract. In addition, in
spite of reduced prices under the renewed ED contracts, the
company has extended its contractual horizon to 7 years from the
original 3 year contract. This agreement going forward should also
generate stable revenues of approximately USD 120 million per
year.
The ratings are also supported by the various payment mechanisms
available for debt repayment. Most of Genneia's outstanding debt
is payable from direct transfers to a trustee arising from
collections under the Res. 220 ED contracts and by payments under
the off-take contract with Cammesa for the wind farm production,
which has a fixed price per MWh for a 15-year period.
Consequently, Genneia's improved operating performance after the
initial delays in the implementation of its ED project should
result in significant debt reduction over coming years.
Nevertheless, the ratings remain constrained by the concentration
of its operations in only the Argentinean electricity power
market, which has been highly unpredictable in recent years.
Furthermore, most of Genneia's cash flows arise from contracts
where the off-taker is Cammesa, a federal government agency that
administers the wholesale electricity market in Argentina. Cammesa
administers not only the operation of the wholesale power system
but also manages all of the collections and payments associated
with the system. Since the price paid for electricity by most
consumers is not enough to cover electricity production costs,
Cammesa faces an ongoing operating deficit that is currently
financed with federal government resources to facilitate payments
to the producers. Consequently, this represents a high degree of
exposure to the Argentine government credit risk (B3, Negative),
which adds a constraint to the ratings.
Additional constraining factors are Genneia's relatively tight
liquidity and limited financial flexibility. In particular,
Moody's sees Genneia's limited flexibility under its current bank
loan covenants as challenging over the short term. Longer term,
Moody's expects Genneia's operations to stabilize which should
cause leverage to decline and financial flexibility to improve.
The stable outlook reflects Moody's expectation that Genneia will
stabilize its cash flows and operations as it approaches the end
of the current fiscal year with leverage reducing over time.
Negative pressure on the ratings or outlook could occur if
Genneia's financial policy becomes more aggressive than expected.
Specifically, Moody's would become concerned should debt to EBITDA
exceed 4.5x times; interest coverage (CFO pre WC +
Interest/Interest) falls below 1.5x or RCF /Debt becomes lower
than 15%.
The ratings could also come under downward pressure if payments
from Cammesa begin to experience significant delays. In addition,
given Genneia's exposure to the Argentine government credit risk,
a negative rating action at the sovereign level could also add
further downward rating pressure.
Given the recent up-grade of the NSR and the current constraining
factors, limited prospects exist for a further upgrade over the
near term.
Longer term a rating up-grade would require Genneia to continue to
generate stable cash flows from its ED business and from its wind
generation farm for which Moody's would expect capacity
realizations of around 40%. Quantitatively, a rating upgrade would
require Genneia to generate CFO (pre WC) to debt of above 20%, and
positive levels of FCF on a sustainable basis.
Genneia S.A., headquartered in the province of Buenos Aires,
Argentina, initiated operations in 1991 in the gas distribution
and transportation business under its previous denomination
"Emgasud". However, since 2008 power generation has been its main
business, contributing more than 80% of its total revenues. For
the last 12 months ending June 2012, Genneia reported revenues of
approximately USD 150 million.
GOLD JUICE: Creditors' Proofs of Debt Due Nov. 27
-------------------------------------------------
Julio Cesar Capovilla, the court-appointed trustee for Gold Juice
SA's reorganization proceedings, will be verifying creditors'
proofs of claim until Nov. 27, 2012.
Mr. Capovilla will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk
No. 48, 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:
Julio Cesar Capotilla
Av. Corrientes 3859
Argentina
N&GV SRL: Asks for Reorganization Proceedings
---------------------------------------------
N&GV SRL asked for reorganization proceedings. The company
defaulted its payments last Oct. 27, 2011.
STYLE LAB: Creditors' Proofs of Debt Due Nov. 14
------------------------------------------------
Marta Cristina Lucena, the court-appointed trustee for Style Lab
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Nov. 14, 2012.
Ms. Lucena will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk
No. 21, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Marta Cristina Lucena
Lavalle 1718
Argentina
TRANSPORTADORA DE GAS: Fitch Lifts Issuer Default Rating From BB+
-----------------------------------------------------------------
Fitch Ratings has upgraded Transportadora de Gas Internacional
S.A. E.S.P.'s (TGI) foreign and local currency Issuer Default
Ratings (IDRs) to 'BBB-' from 'BB+'. These rating actions apply
to USD750 million of debt outstanding. The Rating Outlook for is
Stable.
The rating action reflects Fitch's recent upgrade of Empresa de
Energia de Bogota's (EEB) to 'BBB-', which was a result of its
improving financial profile. TGI's upgrade reflects the company's
linkage with its primary shareholder, EEB, which supports the
company through intercompany loans. TGI's upgrade also reflects
the company's improved cash flow generation due to recent
investments, improving credit metrics and solid contracted
position.
Low Business Risk:
TGI's ratings reflect the company's low business risk profile,
which stems from its stable and predictable cash flow generation,
as well as its strong competitive position. TGI has favorable
long-term, take-or-pay contracts with approximately 80% of
revenues coming from regulated fixed tariffs. The high percentage
of fixed capacity payments from a diversified portfolio of off-
takers adds to cash flow stability. The company has low exposure
to volume risk as only approximately 20% of its revenues are
linked to volume throughput. TGI's pipeline location and the
importance of its service area, where 70% of the Colombian
population resides, represent great growth potential and help
support the company's investment grade rating.
Moderate Leverage:
TGI's leverage level is moderate with debt to EBITDA of
approximately 2.9 times (x) in dollar terms as of Sept. 30, 2012.
Including a USD370 million deeply subordinated intercompany loan
from EEB, leverage would be approximately 4.3x in dollar terms.
Going forward, TGI's leverage could decline in the future as a
result of cash flow growth due to recent investments and the
expectation of a favorable resolution of the company's current
tariff dispute. As of the LTM ended Sept. 30, 2012, TGI reported
an EBITDA of approximately USD263 million and total senior debt of
approximately USD857 million.
Parent Support and Moderate Regulatory Risk
TGI benefits from its parent company's explicit and implicit
support. EEB owns 68.1% of TGI, and, in turn, the District
Capital of Bogota (Bogota DC; foreign currency IDR 'BBB-') owns
76.3% of EEB. TGI's ratings also incorporate its exposure to
regulatory risk, as the bulk of its revenue comes from contract
tariffs, which are set by the regulator. TGI's revenue is
determined by the maximum allowable tariff set by the regulator
every five years and adjusted according to inflation every year.
The company is expected to benefits from its ongoing tariff
appeal, which initially granted the company a 17% revenue
increase; the company claims this increase would not compensate it
for all of the investments it had made.
Strong Liquidity and Low Refinancing Risk:
The company's adequate liquidity position is supported by its cash
on hand, strong internal cash flow generation and favorable
amortization schedule. The company has no significant amounts of
debt coming due before 2022. On Sept. 30, 2012, TGI's cash and
marketable securities were USD105 million, and consolidated cash
at EEB was USD286 million. TGI is not expected to pay dividends
in the short term, but this policy may change in the future. TGI's
regulated revenues are partially indexed to the U.S. dollar
(approximately 60% of revenue are indexed to USD), which mitigates
the risk from currency fluctuations as USD denominated revenues
satisfactorily cover interest expenses. Going forward, the
company's liquidity position will be supported by its internal
cash flow generation and easing capital investments needs as the
company completed a significant portion of its expansion plan
during 2012. Capital expenditures for 2013 to 2016 are estimated
at approximately USD390 million, a significant reduction from 2011
capital expenditures of USD733 million.
Rating Drivers:
A negative rating action or Outlook would be considered if
leverage reached 4.0x and stayed above that level for sustained
period of time.
A positive rating action or Outlook would be considered if the
company significantly reduces its leverage for a sustained period
of time.
* ARGENTINA: To Receive $34 Million IDB Financing Local Program
---------------------------------------------------------------
A Sustainable Tourism Development Program in the Province of
Salta, Argentina, financed by the Inter-American Development Bank
(IDB) will benefit 19,000 people, 50 indigenous communities and
350 families, and 575 micro, small, and medium-size enterprises in
21 of the country's poorest municipalities. IDB financing for the
program totals $34 million.
The program will support socio-economic development and poverty
reduction in the province of Salta, boosting tourism revenues and
employment by developing tourism products, promoting social
inclusion and local entrepreneurship, and strengthening tourism
management and environmental sustainability.
The IDB loan for $34 million has a term of 25 years, a five-and-a-
half-year grace period, and an interest rate based on Libor. Local
counterpart funding totals $22.7 million.
===========
B R A Z I L
===========
* BRAZIL: Fitch Says Government's Offer Affects Companies
---------------------------------------------------------
The Brazilian Government's offer through its Ministry of Mines and
Energy (MME) for an early renewal of some expiring electricity
concessions will have various impacts for different companies,
according to Fitch Ratings. Fitch considers the offer negative
for Centrais Eletricas Brasileiras S.A. (Eletrobras, IDR 'BBB')
and neutral to negative for other affected companies.
The Brazilian government is offering monetary compensation to
companies with concessions expiring between 2015 and 2017 to renew
these concessions early in 2013 at tariffs that will generate
breakeven EBITDA. The upfront payment might not be enough for
Eletrobras to adjust its capital structure to a level that will
still be in line with the company's credit quality. Other
companies could use the government payment to repay debt and
continue to have balanced capital structures, depending on what
they do with cash inflow.
The government's proposal for generation and transmission revenues
would significantly reduce Eletrobras' and Companhia de
Transmissao de Energia Eletrica Paulista S.A.'s (CTEEP; IDR
'AA+(bra)') cash flow generation. Companhia Paranaense de Energia
(COPEL; IDR 'AA+(bra)') could see its EBITDA decline by 10% to 15%
beginning in January 2013, if they accept the government's offer
given these expiring concessions represent only a small proportion
of their total cash generating assets. Companhia Energetica de
Minas Gerais (CEMIG; IDR 'AA(bra)') will also have a EBITDA
reduction of 10% to 15% beginning in January 2013 if they accept
the government's offer. This will increase to around 30% after
2015, as Cemig has three important hydroelectric plants with
concessions expiring during this period and will not be renewed
early under the government's scheme. In general, the government's
proposals will limit available funds to reinvest internal cash
flow generation back into the electricity sector and reduce their
ability to access debt capital markets and bank financing.
Eletrobras Most Exposed
The MME offer for renewing Eletrobras' electric concessions that
expire between 2015 and 2017 holds the potential to negatively
impact the company's credit quality. The MME offered
approximately BRL14 billion to Eletrobras to renew its concessions
for a period of 30 years beginning in January 2013. The new
concessions would be at significantly lower revenues, which will
result in zero to negative EBITDA for Eletrobras. The BRL14
billion renewal compensation compares unfavorably with the
company's net adjusted debt of approximately BRL32.1 billion,
particularly considering the ensuing EBITDA would be close to zero
or potentially negative should the company accept the offer.
Although the company is not expected to face immediate liquidity
constrains should it decide to accept the government's offer, its
leverage level, as measured by total debt to EBITDA will
significantly increase. The company would be able to service its
debt over the next five years, given its favorable debt maturity
schedule. Nevertheless, Eletrobras' liquidity could be pressured
as the company is significantly involved in the development of the
country's electricity infrastructure expansion efforts.
Significant direct government support in the form of capital
contribution and access to financing from the different government
development agencies would play an important role in mitigating
the aforementioned risk and for the company to maintain its
current ratings.
Eletrobras' consolidated EBITDA, as measured by operating income
plus depreciation, for the last 12 months (LTM) ended June 30,
2012 was BRL6.4 billion and would likely decline to a range of
zero to negative. The company would require significant financial
support from the Federal Government to meet its ambitious
investment plans and be able to service its debt obligations. The
company's reported and estimated capex for 2011 and 2012 are BRL10
billion and BRL13 billion, respectively. Fitch expects Eletrobras
to accept the government's proposal given the government's
ownership interest, which will pressure Eletrobras' credit quality
given its weak credit metrics for the assigned rating category on
a standalone basis. Under this scenario, the absence of direct
financial support from the Federal Government could result in a
negative rating action.
CTEEP and ISA Capital: Likely Neutral to Credit Quality
MME's offer for renewing electric concessions is neutral to
negative for CTEEP's credit quality, depending on how the company
uses the renewal proceeds. The MME offered CTEEP approximately
BRL2.9 billion to renew in 2013 its concession expiring in 2015
and reduce tariffs to a breakeven level for the next 30 years.
The MME's upfront payment is greater than the company's stand-
alone debt of approximately BRL2.1 billion, which should be enough
for CTEEP to repay all its outstanding debt, excluding project
finance debt. The company could also upstream enough dividends to
its controlling shareholder, ISA Capital do Brasil S.A. (ISA
Capital), for this entity to repay its financial debt outstanding,
excluding preferred equity, of approximately BRL64 million.
Should the company decide to accept the government's offer and use
the proceeds to invest in projects and not repay debt, its credit
quality would deteriorate significantly.
Fitch believes it is unlikely that CTEEP will accept the
government's proposal. Under the government's proposal, CTEEP's
pro-forma EBITDA for the LTM ended June 30, 2012 would be negative
and the company will depend on its current ongoing investments to
generate positive cash flow in the future. MME's proposal will
lower the company's revenues by approximately BRL1.6 billion to
approximately BRL1.3 billion from BRL2.9 billion, which would wipe
out the company's EBTIDA of BRL1.5 billion as of the LTM ended
June 30, 2012. This offer would also significantly hindered
CTEEP's investment ability going forward as it would limit the
company's ability to raise debt at the holding company level and
it would affect its cash flow generation to support investments.
If CTEEP declines the government's offer and waits until 2015 when
its main concession expires, the company will benefit from the
permitted annual revenue (PAR) generated by this concession
between 2013 and 2015. The company will also likely receive
compensation for the remaining value of this asset, net of
depreciation, when the concession expires in 2015, which will
likely be disputed. Under this scenario, the company would also
have the possibility of participating on a bidding process to
retain the asset or returning this asset to the government if it
deems its ensuing PAR is unattractive. Of CTEEP's BRL2.9 billion
of consolidated revenues reported for the LTM ended June 30, 2012,
BRL2.0 billion came from its concession expiring in 2015. The
government offered CTEEP BRL2.9 billion of an upfront payment to
lower this revenue to approximately BRL500 million.
The current government's proposal could also have other negatives
implications for CTEEP as significant capital investment
requirements as well as asset impairments that could hurt net
income and the company's ability to distribute dividends. If the
government payment for CTEEP's concession expiring 2015 is lower
than the book value of this asset, it will immediately result in
an impairment of the asset that will lower net income and impact
the company's ability to pay dividends to its shareholders. Also,
the current government proposal for extending the concession has
some mandatory capital investments that will be difficult for
CTEEP to accomplish given its resulting limitation to its capital
structure and cash flow generation ability.
Copel: Impact Marginal
The concession renew process is not expected to materially
pressure Copel's credit profile. Under the government's offer for
Copel, the company would receive approximately BRL894 million to
renew its concessions expiring between 2015 and 2017 and accept
the lower generation and transmission revenues. As a result,
EBITDA would decline by approximately 10% to 15%. As of the LTM
ended June 30, 2012, Copel reported an EBITDA of approximately
BRL1.8 billion. Fitch expects Copel's credit metrics to continue
to be in line with its assigned ratings even if it accepts the
government offer. As of June 2012, the company's consolidated net
leverage of approximately 0.8 times was considered strong for the
rating category. The company can use this proceeds to pay a
portion of its BRL2.7 billion of debt outstanding, pay dividends
or reinvest in new projects without significantly impacting its
ratings.
Cemig: Negative Impact Partially Offset by New Investment
A majority of Cemig's concessions expire between 2013 and 2017.
Cemig has informed the government it was not interested in an
offer to renew three of its largest concessions early at
significantly lower tariffs for an upfront government payment.
The company was interested in receiving an offer for other certain
concessions.
The government offered BRL285 million and lower revenues to the
company to renew the other eligible concessions, which compares
unfavorable with the company's total net debt of approximately
BRL15.2 billion. If Cemig accepts MME's proposal, the company's
cash flow generation and credit quality would be marginally
affected as its EBITDA could decline by approximately 10% to 15%
beginning in 2013.
After 2015, Cemig is exposed to losing another 15% of its EBITDA
due to the expiration of three concessions. The company has
already indicated to the government that it would not participate
in any early renewal offer of approximately 2,542 MW of installed
capacity coming from three hydroelectric plants. Cemig will let
these concessions expire and is likely going to litigate the
renewal of these concessions at similar terms with the government
in court.
Cemig's credit quality will be subject to the company's ability to
quickly increase revenues and EBITDA from new projects and
maintain adequate liquidity from the potential sale of assets.
The company is currently in the processes of selling some assets
to Transmissora Alianca de Energia Eletrica S.A. (Taesa) for
approximately BRL1.8 billion and the company could receive
approximately BRL2.0 billion from the Minas Gerais Government in
relation to CRC debt.
Fitch rates the various companies as follows:
Eletrobras
-- Foreign Currency IDR 'BBB';
-- Local Currency IDR 'BBB';
-- National Scale rating 'AAA(bra)';
-- USD1 billion senior unsecured notes due 2019 'BBB';
-- USD1.75 billion senior unsecured notes due 2021 'BBB'.
Furnas Centrais Eletricas S.A.
-- Foreign Currency IDR 'BBB';
-- Local Currency IDR 'BBB';
- -National Scale rating 'AAA(bra)'.
Cemig
-- National Scale rating 'AA(bra)'.
Cemig Distribuicao S.A.
-- National Scale rating 'AA(bra)';
-- BRL250.5 million 1st debenture issuance due 2014 'AA(bra)';
-- BRL400 million 2nd debenture issuance due 2017 'AA(bra)'.
Cemig Geracao e Transmissao S.A.
-- National Scale rating 'AA(bra)';
-- BRL1.35 billion 3rd debenture issuance due 2022 'AA(bra)'.
Copel
-- National Scale rating 'AA+(bra)'.
CTEEP
-- National Scale rating 'AA+(bra)' ;
-- BRL548 million 1st debenture issuance due 2017 'AA+(bra)'.
ISA Capital
-- Foreign Currency IDR 'BB+';
-- Local Currency IDR 'BB+';
-- National Scale rating 'AA-(bra)';
-- USD31.6 million outstanding senior secured notes due 2017
'BBB-'.
==========================
C A Y M A N I S L A N D S
==========================
ANTHRACITE BALANCED: Shareholders Receive Wind-Up Report
--------------------------------------------------------
The shareholders of Anthracite Balanced Company (48) Limited
received on, Nov. 3, 2012, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Simon Conway
c/o Aaron Gardner
Telephone: (345) 914 8655
Facsimile: (345) 945 4237
PO Box 258 Grand Cayman KY1-1104
Cayman Islands
CAMBRIDGE NETWORK: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Cambridge Network Systems Corporation Ltd.
received on Oct. 30, 2012, the liquidator's report on the
company's wind-up proceedings and property disposal.
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
CRC CAPITAL: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of CRC Capital Release Investments (Cayman) SPC
received on, Oct. 15, 2012, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Matthew Ronald Cavanagh
28 Queen Anne's Gate
London UK
SW1H 9AB
FLORA PDP: Shareholders' Final Meeting Set for Nov. 9
-----------------------------------------------------
The shareholders of Flora PDP Limited will hold their final
meeting on Nov. 9, 2012, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
JL FALCON: Shareholders' Final Meeting Set for Nov. 9
-----------------------------------------------------
The shareholders of JL Falcon Global Limited will hold their final
meeting on Nov. 9, 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:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
MMI INVESTMENTS: Shareholder Receives Wind-Up Report
----------------------------------------------------
The shareholder of MMI Investments Offshore, Ltd. received on,
Oct. 31, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ogier
c/o Susan Taber
Telephone: (345) 949 9876
Facsimile: (345) 949-9877
NORTHBRIDGE DIVERSIFIED: Shareholder Receives Wind-Up Report
------------------------------------------------------------
The shareholder of The Northbridge Diversified Fund received on,
Nov. 5, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Ogier Fiduciary Services (Cayman) Limited
c/o Jennifer Collins
Telephone: (345) 815-1446
Facsimile: (345) 945-6265
SP TARH: Shareholders' Final Meeting Set for Nov. 9
---------------------------------------------------
The shareholders of SP TARH, Ltd. will hold their final meeting on
Nov. 9, 2012, at 8:30 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
TAMISTA LIMITED: Sole Member to Hear Wind-Up Report on Nov. 15
--------------------------------------------------------------
The sole member of Tamista Limited will receive on Nov. 15, 2012,
at 10:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
First Corporate Director Inc.
Woodbourne Hall
P.O. Box 916 Road Town, Tortola
British Virgin Islands
WARRICK INTERNATIONAL: Shareholders' Final Meeting Set for Nov. 9
-----------------------------------------------------------------
The shareholders of Warrick International Ltd will hold their
final meeting on Nov. 9, 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:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
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: Takes First Steps for an IMF Pact
-------------------------------------------------------
Dominican Today reports that the Dominican Central banker Hector
Valdez Albizu on Nov. 6 headed the first meeting with the
International Monetary Fund delegation, leading to the
implementation of Article IV of the IMF Consultation and to
evaluate the post-program monitoring (PPM).
They discussed issues of the 2012 and 2013 macroeconomic
performance, the implementation of fiscal and monetary policies in
the short and medium terms, the behavior of the electricity sector
and the implementation of macro-prudential policies to continue
strengthening the finance sector, among others, according to
Dominican Today.
The report relates that the IMF delegation headed by Przemek
Gajdeczka, accompanied by representative in Dominican Republic,
Mario Dehesa, and Dominican official Ana Beatriz Rodriguez, will
be in the country for two weeks for meetings with various public
and private entities.
Dominican Today relays that Finance minister Temistocles Montas
said President Danilo Medina will head a second meeting with
several economic area officials and representatives of power
companies today, in which he expects a response to his proposal to
avert "financial blackouts" for the rest of the year.
===========
M E X I C O
===========
GRUPO FARIAS: S&P Withdraws 'CCC' Corp. Credit Rating at Request
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its global-scale 'CCC'
and Brazilian national-scale 'brCCC' corporate credit ratings on
Brazil-based sugar and ethanol producer Administradora Baia
Formosa S/A. (Grupo Farias) at its request. "The company was not
able to issue global bonds at the beginning of the year due to
adverse market conditions. At the time of the withdrawal, the
outlook on the ratings was negative, reflecting Grupo Farias's
high refinancing risk and challenges to improve cash flow
generation," S&P said.
TUSCANY INT'L: Fitch Assigns 'B+' Issuer Default Rating;
--------------------------------------------------------
Fitch Ratings has assigned foreign and local currency Issuer
Default Ratings (IDRs) of 'B+' to Tuscany International Drilling
Inc. (Tuscany).
The Rating Outlook is Stable.
Tuscany's ratings reflect the company's moderate leverage,
experienced management team, and a technologically advanced asset
fleet, which is either new or has been recently refurbished, and
gives the company a competitive advantage. The ratings also
incorporate a degree of counterparty credit risk in its
diversified customer base, a relatively small rig fleet, and
exposure to the cyclical and competitive onshore drilling
industry. Tuscany faces the operational challenge of
consolidating its business following a period of historically
aggressive growth.
Moderate Leverage
Leverage is low for the rating category. Fitch expects the
company's consolidated total debt to EBITDA ratio to decline to
approximately 3.0 times (x) by the end of 2012 and below
thereafter from 4.2x as reported as of the last twelve months
(LTM) ended June 2012. Interest coverage is expected to be
approximately 3.0x by year-end 2012 and approximately 3.5x by
2013. The company could choose to use its accumulated cash to
expand its rig fleet, while maintaining the same leverage and a
break-even to positive free cash flow. As of June 2012, Tuscany's
consolidated nominal debt was approximately USD219 million, of
which approximately USD200 million corresponded to a term loan
used to finance acquisitions during 2011, and the balance was debt
drawn down from an existing revolving credit facility. Pro forma
debt is expected to be around USD240 million in 2012, with
possible pay downs of drawn revolver.
Smaller Fleet Size and Customer Base
The company's rig fleet is relatively small with 41 onshore
drilling rigs, which limits operational diversification as well as
the ability to serve larger, financially stronger oil companies
and their demand for rigs. Tuscany's small fleet size exposes the
company to weather or operational issues surrounding a particular
rig, specifically those that are more technologically advanced and
receive higher day rates. Tuscany has exposure to customers that
tend to have a lower credit quality, which adds to counter party
risk. The majority of Tuscany's revenues during 2011 were
generated from small to medium sized independent oil and gas
companies, which in general are more sensitive to oil price
volatility when compared with larger, integrated oil and gas
companies.
Cyclical and Competitive Industry
Tuscany's cash flow generation ability is exposed to oil price
volatility as a substantial decrease in oil prices could reduce
the exploration activity of its counterparties and lower demand
for rigs. A sustained downturn in day rates and utilization
levels could affect Tuscany's ability to generate cash flow from
operations and pressure its ratings. The drilling market is
highly competitive and is characterized by short term contracts.
Companies in the sector tend to have short-term contract backlogs
of one to two years, but have built long term relationships with
their client base. Tuscany's contract backlog is small given the
company's short history. The company is expected to concentrate
on building long-term commercial relationships in the short to
medium term. A possible deterioration in customer credit quality
remains a concern, although this risk is somewhat mitigated by
reasonable customer diversification.
Growing Cash Flow Generation in 2012
The company's cash flow generation is expected to increase in 2012
due to the consolidation of recently incorporated assets in
Brazil, Colombia and Africa. Fitch expects Tuscany's EBITDA to be
approximately USD70 million in 2012, significantly higher than the
USD32 million reported in 2011 as a result of the incorporation of
the newly acquired assets. During the first half of 2012, EBITDA
increased to USD35 million, reflecting the new business platform.
The company's EBITDA would likely remain at this level over the
next four years with only modest increases due to improving
efficiencies and modest fee increases. Over the same period,
Fitch expects annual interest for Tuscany to range between USD20
million and USD23 million and its annual maintenance capital
expenditures to average approximately USD20 million. The company
expects total debt to remain stable at USD240 million and to
marginally decrease if it pays down a portion of its revolver debt
overtime.
Improved Liquidity Position
Tuscany was able to improve its tight liquidity as it extended its
loan due during September 2012 to September 2013 and modestly
improving its debt profile. The company's liquidity is bolstered
by access to a new committed revolving facility for USD45 million
over the next five years, if needed. Fitch expects Tuscany to
maintain a more robust minimum cash position going forward.
Before the company extended its loan, its liquidity profile was
weak with approximately USD16 million of cash on hand compared to
short term debt of USD37 million.
Rating Drivers
Catalysts for a negative rating action include a significant
deterioration of the company's rig fleet utilization levels,
coupled with lower than expected day rates, which could lower
EBITDA and deteriorate the company's credit quality. The
company's ratings could also be downgraded if the company's debt
and coverage ratios do not improve in line with Fitch
expectations. A positive rating action could result from the
satisfactory consolidation of the company current business, higher
level of medium term contracts with solid counterparts.
Company Profile
Tuscany is an oil and gas service company incorporated in Canada
that operates, for the most part, in Latin America. The company
offers drilling services and to a lesser extent work-over
services. Approximately 80% of the company's rigs are less than
five years old or have been recently refurbished. As a result of
this, day rates for approximately 60% of rigs are at or above
USD25,000. Tuscany operates predominantly in Latin America and
approximately 60% of the fleet is concentrated in Colombia and
Brazil, reflecting a modest geographic diversification. The
company was created in 2008 and was initially focused in the
construction of 19 state of the art onshore drilling rigs. In
2011, following the acquisitions of companies in Brazil, Colombia
and Africa, Tuscany's rig fleet increased to 41. In May 2011, the
company acquired Drillfor Perfuracoes do Brazil Ltd, which added 7
rigs. In September 2011, the company added 15 rigs to its fleet
when it acquired Caroil for an all in cost of USD204 million.
TUSCANY INT'L: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
------------------------------------------------------------------
"The ratings on Tuscany reflect our assessment of its 'vulnerable'
business risk profile and 'aggressive' financial risk profile.
Such assessment is based on the company's participation in an
industry that is subject to cyclical demand and price volatility,
especially for drilling services. It also reflects Tuscany's
relatively small scale in a highly competitive industry with
relatively low barriers of entry. Mitigating these factors are the
company's technologically advanced and relatively young fleet of
drilling rigs designed to operate in Latin American exploration
and production (E&P) markets with outdated infrastructure,
experienced management team, and low annual maintenance capital
spending requirements given its relatively new fleet," S&P said.
***********
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
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of the same firm for the term of the initial subscription or
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contact Peter Chapman at 240/629-3300.
* * * End of Transmission * * *