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/raid1/www/Hosts/bankrupt/TCRLA_Public/121128.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, November 28, 2012, Vol. 13, No. 236 Headlines A R G E N T I N A EME & DE: Asks for Reorganization Proceedings ERIKA SA: Creditors' Proofs of Debt Due Dec. 5 FEDERAL POST: Creditors' Proofs of Debt Due Dec. 3 GOOD PING: Creditors' Proofs of Debt Due Dec. 11 MAPITA SA: Creditors' Proofs of Debt Due Dec. 12 PANIFICADORA LUGO: Creditors' Proofs of Debt Due Dec. 4 RELINCHO SA: Creditors' Proofs of Debt Due Dec. 6 TREJOPLAST SA: Creditors' Proofs of Debt Due Dec. 3 B R A Z I L BANCO DO ESTADO: Fitch Rates Subordinated Notes 'BB-' MINAS GERAIS: Moody's Assigns 'Ba1' Rating to Senior Debentures REDE ENERGIA: Files for Bankruptcy Protection REDE ENERGIA: Bankruptcy Filing Cues Fitch to Downgrade Ratings C H I L E CHILE MINING: Incurs $797,000 Net Loss in Sept. 30 Quarter T R I N I D A D & T O B A G O CARIBBEAN AIR: Racks up More Outstanding Aviation Fees in Jamaica CL FIN'L: Lascelles deMercado Shares Will be Suspended V I R G I N I S L A N D S FAIRFIELD SENTRY: Investor Wants Caribbean Bankruptcy Ended - - - - - ================= A R G E N T I N A ================= EME & DE: Asks for Reorganization Proceedings --------------------------------------------- EME & DE SA asked for reorganization proceedings. The company defaulted its payments last Sept. 25. ERIKA SA: Creditors' Proofs of Debt Due Dec. 5 ---------------------------------------------- Ignacio Alberto Bilon, the court-appointed trustee for Administracion y Servicios Erika SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 5, 2012. Mr. Bilon will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 39, 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: Ignacio Alberto Bilon Reconquista 715 Argentina FEDERAL POST: Creditors' Proofs of Debt Due Dec. 3 -------------------------------------------------- Gladys Beatriz Benito, the court-appointed trustee for Federal Post SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 3, 2012. Ms. Benito will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 41, 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: Gladys Beatriz Benito Uruguay 618 GOOD PING: Creditors' Proofs of Debt Due Dec. 11 ------------------------------------------------ Elsa Zunilda Rodriguez, the court-appointed trustee for Good Ping SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 11, 2012. Ms. Rodriguez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 35, 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: Elsa Zunilda Rodriguez Tucuman 1651 Argentina MAPITA SA: Creditors' Proofs of Debt Due Dec. 12 ------------------------------------------------ Susana Luisa Erusalimsky, the court-appointed trustee for Mapita SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 12, 2012. Ms. Erusalimsky will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 24, 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: Susana Luisa Erusalimsky Espinosa 2501 Argentina PANIFICADORA LUGO: Creditors' Proofs of Debt Due Dec. 4 ------------------------------------------------------- Juan Carlos de la Piedra, the court-appointed trustee for Panificadora Lugo SA's reorganization proceedings, will be verifying creditors' proofs of claim until Dec. 4, 2012. Mr. de la Piedra 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. Creditors will vote to ratify the completed settlement plan during the assembly on Oct. 4, 2013. The Trustee can be reached at: Juan Carlos de la Piedra Av. Juan B. Justo 5096 Argentina RELINCHO SA: Creditors' Proofs of Debt Due Dec. 6 ------------------------------------------------- Jorge Jose Kern, the court-appointed trustee for Relincho SA's reorganization proceedings, will be verifying creditors' proofs of claim until Dec. 6, 2012. Mr. Kern will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 3 in Buenos Aires, with the assistance of Clerk No. 6, 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 Nov. 15, 2013. The Trustee can be reached at: Jorge Jose Kern Benito Juarez 3276 Argentina TREJOPLAST SA: Creditors' Proofs of Debt Due Dec. 3 --------------------------------------------------- Mariana Nadales, the court-appointed trustee for Trejoplast SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 3, 2012. Ms. Nadales will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 9 in Buenos Aires, with the assistance of Clerk No. 17, 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: Mariana Nadales Hipolito Yrigoyen 1349 Argentina =========== B R A Z I L =========== BANCO DO ESTADO: Fitch Rates Subordinated Notes 'BB-' ----------------------------------------------------- Fitch Ratings assigns Banco do Estado do Rio Grande do Sul's (Banrisul) reopening subordinated notes a rating of 'BB-'. The reopening will be for an amount that will be set at the time of the issuance with a tenor for approximately 10 years with a maturity date of January 2022; interest payments will be made semi-annually. The notes will carry a 7.375% fixed interest rate. The net proceeds will be used by Banrisul for general corporate purposes. The notes will rank at least equally with similar subordinated debt and carry a cumulative coupon deferral mechanism that can be exercised. This deferral would only occur if Banrisul is in noncompliance with its regulatory capital requirement. As per Fitch's new rating criteria, the rating of this Tier II subordinated debt should be two notches below Banrisul's Viability Rating (VR) of 'bb+', one notch reflecting loss severity features and its subordinated status and one notch due to the moderate risk of non-performance. Banrisul's VR considers its regional importance, with strong franchise in its home state of Rio Grande do Sul (RS), above- average profitability, adequate liquidity, and stable retail funding structure. The VR also reflects its moderate credit quality, modest nationwide market share, fierce competition in the domestic banking sector, a rather undiversified funding structure and risk concentration on RS, Brazil's fourth largest state, whose economy is largely focused on the agricultural sector. Controlled by the State of Rio Grande do Sul, Banrisul is the largest bank within the state with prevalent market share in credits and deposits. With 462 branches, Banrisul operates as a retail bank, focusing on companies and individuals. MINAS GERAIS: Moody's Assigns 'Ba1' Rating to Senior Debentures --------------------------------------------------------------- Moody's America Latina assigned definitive ratings of Ba1 (sf) (Global Scale, Local Currency) and Aa2.br (sf) (Brazilian National Scale) to the senior debentures issued by MGI - Minas Gerais Participacoes S.A., a securitization backed by a pool of re- performing ICMS taxes owed by obligors to the State of Minas Gerais. Issuer: MGI - Minas Gerais Participacoes S.A. Senior Debentures - Ba1 (sf) (Global Scale, Local Currency) & Aa2.br (sf) (Brazilian National Scale) Ratings Rationale The definitive ratings of Ba1 (sf) / Aa2.br (sf) are assigned to the 3rd Issuance of Senior Debentures Backed by Re-performing ICMS Taxes and issued by MGI - Minas Gerais Participacoes S.A. (MGI or the Issuer). The senior debentures are issued in a single series and are not convertible into stock. MGI is a public limited company controlled by the State of Minas Gerais (or State of MG) which holds a direct participation of 99.8% in MGI as of March 31, 2012. The issuer rating of Estado de MG is Ba1 in the global scale. MGI is not rated by Moody's. The ratings of Ba1 (sf) / Aa2.br (sf) assigned to the senior debentures are based mainly on the cash flows resulting from the credit rights that back the debentures. In addition, the ratings reflect the financial strength of the State of MG to make the indemnification payments. The senior debentures are guaranteed, via fiduciary assignment, by the right to receive 60% of collections resulting from payments of renegotiated taxes in the form of monthly installments (credit rights). The credit rights consist only of renegotiated ICMS taxes (Imposto sobre Operacoes Relativas … Circulacao de Mercadorias e Prestacao Servicos de Transporte Interestadual e Intermunicipal e de Comunicacao) owed by obligors to the State of MG and that have been renegotiated, with recognition of the ensuing debt by obligors. The transaction contemplates an amortizing, static portfolio, with a one-time sale of credit rights by the State of MG to the Issuer at their outstanding par value. Under the sale agreement (contrato de cessao onerosa) entered into between the State of MG and the Issuer, the State of MG is required to make the Issuer whole via indemnification payments for damages resulting from any future renegotiation of credit rights sold to MGI. The transaction does not contain eligibility criteria; instead, the entire outstanding amount of re-performing ICMS taxes of the State of MG owed by companies (net of Excluded Cash Flows, as defined below) is sold to MGI to back the debt issuance. For modeling assumptions, Moody's assumed (i) the total issuance of senior debentures capped at BRL316 million and (ii) a minimum of BRL1,772 million of credit rights, whereby BRL1,108 million of credit rights in respect to installments due prior to scheduled maturity of senior debentures on month 60. As of September 28, 2012, according to data available on the fiduciary agent's website (Oliveira Trust) submitted by the SEF/MG (Secretaria da Fazenda de Minas Gerais), the portfolio backing the debentures amounted to BRL1,713 million, whereby BRL1,080 million are in respect to installments due prior to month 60. The senior debentures amounted for approximately BRL318 million as of Sep 28. The total amount issued was BRL316 million. The senior debentures have a maturity of 60 months (August 30, 2017). Interest payments are made during first 6 months followed by a monthly scheduled payment of interest and principal starting on March 30, 2013. The interest, accrued daily, is equivalent to the Brazilian interbank deposit rate (DI) plus a fixed coupon of 3.25% per annum defined in a book building process subject to a cap of 5.0% p.a.. The debentures were offered via public distribution (CVM Instruction 400). The subordinated debentures were fully retained by the State of MG. The transaction contains triggers, that when breached, give rise to an early evaluation event. Upon the occurrence of an early evaluation event, investors may vote to place the transaction in early liquidation and use all cash collected to pay down the senior debentures with no cash released to the sponsor before full amortization of senior debentures. The 2 performance triggers are: * Asset Coverage Ratio (ACR) of at least 200%, defined as the ratio of performing ICMS Taxes over outstanding debt; to be calculated by the fiduciary agent on a monthly basis. A trigger of the Asset Coverage Ratio (ACR) will be considered an evaluation event on any verification date. * Debt Service Coverage Ratio (DSCR) of at least 1.8, defined as the ratio of monthly collections over the monthly principal and interest payments on the senior debentures, to be calculated by the fiduciary agent on a monthly basis. The trigger is considered to be breached if it is not complied with for 2 consecutive verification dates or 3 alternate verification dates in a 12-month period. As of September 28, 2012, as reported by the fiduciary agent, the Asset Coverage Ratio ("Indice de Garantia Real") was at 353.3% (or 70.5% overcollateralization) and the Debt Service Coverage Ratio ("Indice de Cobertura") was at 17.38. To rate the transaction, Moody's has analyzed origination and performance data of the renegotiated ICMS tax programs of overdue taxes owed to the State of Minas Gerais. The data was reviewed and compiled by KPMG Auditores Independentes (KPMG).The analysis covers the period starting in October 2004 and ending in January 2012. The analysis is separated in static quarterly vintages of origination. Performance data of each vintage is provided on a monthly basis. Interest rate risk and asset/liability mismatches: According to information received from the arrangers, the credit rights are referenced to SELIC whereas the senior debentures have their interest rate referenced to the CDI (interbank deposit) rate. As the CDI closely tracks the SELIC, interest rate risk in the transaction is minimal. Commingling risk is limited as: * The obligors make installment payments in one of the financial institutions responsible for receipt of payments. * The cash flows received from the credit rights are deposited in a linked master account, in the name of Secretaria de Estado de Fazenda de Minas Gerais, whereby movements of cash are exclusively made by Itau Unibanco S.A. in its role as Master Servicer (Banco Centralizador) in the transaction. * The Master Servicer (Itau Unibanco) monitors and segregates cash flows belonging to the Municipalities of the State of MG, to FUNDEB, including legal expenses, whereby such segregated cash flows represent 40% of the cash flows received from the credit rights (Excluded Cash Flows), and which also have been deposited in the Master Account, to be subsequently remitted to an account of the State of Minas Gerais. The cash flows resulting from the credit rights, net of Excluded Cash Flows, are automatically transferred by the Master Servicer to the Receipt Account, in the name of the Issuer; the Master Servicer with authorization of the Fiduciary Agent is the only party able to transfer funds in this account. Such cash flows should be automatically transferred the following business day from the Receipt Account to the Master Account. Among the main transaction risks and concerns are: * Transaction is dependent on the State of Minas Gerais to provide transaction parties (Fiduciary Agent, Master Servicer) with timely and precise asset information such as (i) the occurrence of any tax renegotiations with borrowers, (ii) data necessary for the calculation of indemnification payments following the actual tax renegotiation with borrowers, (iii) information allowing transaction parties for correct calculation of transaction triggers, including the ACR and DSCR triggers. As a mitigant Moody's notes that Itau Unibanco as master servicer will be continuously reviewing the cash flows of the transactions partially mitigating the reliance on the State of MG as sole information provider on the performance of underlying assets. Moody's also notes that the final transaction rating is no higher than the rating of the State of MG. * Potential creation of new tax renegotiation programs: Moody's review of KPMG data suggests that in the immediate months following the past two tax renegotiation programs, the bulk of obligors in previous programs opted to further renegotiate the loans one more time. For example, 6 months subsequent to the renegotiation program launched in Dec/07, a 80% fall in outstanding loan balance was observed. Similar statistic was found for the program launched in May/10. As a mitigant Moody's notes that any potential new tax renegotiation program leading to actual renegotiations would trigger mandatory indemnification payment from the State of MG to compensate MGI and/or debenture investors for damages. In assigning the Ba1 (sf) / Aa2.br (sf) ratings to the senior debentures of the transaction, Moody's considered the principal source of credit enhancement -- initial overcollateralization of 71% and minimum ongoing overcollateralization of 50% (or 200% Asset Coverage Ratio) -- in a stressed scenario with view of historical performance of the assets. Moody's considered a stressed cash flow derived from the: * Scheduled future cash flows of target portfolio (contractual scheduled amortization assuming zero losses) as presented in underlying KPMG report; * Stressed mortality curve, which reflects expected worst case portfolio losses of the target portfolio and incorporating the effect of seasoning. Moody's assumes that any arrears of installments of renegotiated and re-performing ICMS taxes above 3 months trigger exclusion from the program (contract mortality) hence producing a loss of the cash flows derived from the contract. The resulting cash flows were applied to a cash flow model to determine probability of loss and expected loss to the senior debentures. The cash flow model also assumed a worst case scenario of deal triggers not triggering an early liquidation scenario following investor's inability to reach a majority vote in a investor's meeting. Separately, Moody's evaluated the potential effect of new tax renegotiation programs on mortality. That is, Moody's evaluated to what extent a new renegotiation program would additionally drive portfolio mortality as obligors renegotiate and adhere to new programs. Moody's assumes that the entire pool will renegotiate under such a scenario. To determine the effect of loss to inventors, Moody's reviewed the definition of the make whole provisions and repurchase option from the State of MG, as well as the global scale rating of the State of MG to determine its capacity to fulfill its contractual obligations. Sensitivity and Break-Even Analysis In order to calculate a break-even analysis, Moody's has further stressed the conservative base case assumptions, applying a stress factor in the form of a haircut on projected base case cash flows. The stress factor was increased up to the point where the senior debenture would start to suffer a loss. Given the significant credit enhancement derived from the transaction entering into early liquidation, whereby all stressed asset cash flows are used to service the senior debenture first, this break-even analysis was repeated for the various months in which the early liquidation event would come into effect. For example, if the transaction never enters into early liquidation, cash flows could withstand an additional 28% decline over Moody's base case cash flows. Similarly, the base case cash flows could decline by 54%, without losses to investors, assuming that the transaction enters into early liquidation the month after closing. Moody's notes that the stressed base case cash flows are conservatively sized as these have been derived by observing performance of the worst case historical vintages. Concentration risk The concentration risk in the transaction is mitigated by the coverage levels. Should largest 30 obligors that together represent circa 35% of total assets default simultaneously the month after closing, break-even analysis indicates that the transaction could continue to pay its scheduled payments if investors place the transaction into early liquidation in any month prior to month 40. REDE ENERGIA: Files for Bankruptcy Protection --------------------------------------------- Reuters reports that Rede Energia SA filed for bankruptcy protection with a court in Sao Paulo, the company. Rede Energia said in a statement its financial situation had deteriorated and restructuring under Brazilian bankruptcy laws was the best way to protect creditors' rights, according to Reuters. The report relates that most of its utility investments were put under government administration in August. "The request for court-sponsored bankruptcy protection became inevitable in the face of a worsening economic and financial crisis at the company," the statement said, Reuters notes. Reuters says that the filing comes as Brazil's electric utility industry faces one of its most serious downturns in more than a decade. The report relates that small distributors, such as those owned by Rede Energia, have found it hard to collect enough revenue in poor and often remote regions to pay for government-set expansion and improvement of service targets. Meanwhile, electricity generators' share prices have plunged in the face of government plans to offer early renewal of expiring hydroelectric dam concessions in exchange for power tariff cuts of 20 percent or more, the report notes. Many expect the tariff cuts to slash utilities' revenues, profits and investments, Reuters adds. About Rede Energia Rede, headquartered in Sao Paulo, Brazil, is a holding company with interests mostly in electricity distribution. Through majority-owned subsidiaries Companhia de Energia Eletrica do Estado do Tocantins - Celtins, Centrais Eletricas Matogrossenses S.A. - Cemat, Centrais Eletricas do Para S.A. - Celpa, and Empresa Energ. do Mato Grosso Sul -- Enersul, the group operates concessions to distribute electricity in the states of Tocantins, Mato Grosso, Para and Mato Grosso do Sul, respectively. In the last twelve months ended June 30, 2012, Rede reported consolidated net revenues of BRL6.5 billion (US$3.6 billion) and distributed 21.4 TWh of electricity, which is equivalent to approximately 4.5% of the electricity consumed in the country's national integrated system during this period. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 4, 2012, Moody's Investors Service has downgraded to Ca from Caa3 the senior unsecured rating on the US$497 million perpetual bonds issued by Rede Energia S.A. Moody's also downgraded Rede's local currency corporate family rating to Ca/Ca.br from Caa3/Caa3.br. In addition, Moody's downgraded the issuer ratings of Centrais Eletricas Matogrossenses (CEMAT) to Ca/Ca.br from Caa1/Caa1.br and Centrais Elitricas do Estado de Tocantins S.A. (CELTINS) to Caa3/Caa3.br from Caa1/Caa1.br. The outlooks remain negative for all ratings. REDE ENERGIA: Bankruptcy Filing Cues Fitch to Downgrade Ratings --------------------------------------------------------------- Fitch Ratings has taken the following rating actions on Rede Energia S.A.: -- Local and Foreign Currency IDRs downgraded to 'D' from 'RD'; -- Long Term National Scale Rating downgraded to 'D(bra)' from 'RD(bra)'; -- USD575 million perpetual notes long-term rating affirmed at 'C/RR4'; -- BRL370 million debenture issuance due in 2016 affirmed at 'C(bra)'. The rating actions follow the announcement by Rede Energia that a request for bankruptcy protection was filed in Brazil on Nov. 23, 2012. This announcement will likely result in a payment default for some or all of Rede Energia's debt and result in a protracted debt renegotiation. ========= C H I L E ========= CHILE MINING: Incurs $797,000 Net Loss in Sept. 30 Quarter ---------------------------------------------------------- Chile Mining Technologies Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of US$979,000 on US$0 of sales for the three months ended Sept. 30, 2012, compared with a net loss of US$349,858 on US$70,729 of sales for the same period a year ago. For the six months ended Sept. 30, 2012, the Company reported a net loss of US$2.21 million on $34,829 of sales, compared with a net loss of US$676,464 on US$133,938 of sales for the same period during the prior year. The Company's balance sheet at Sept. 30, 2012, showed US$8.72 million in total assets, US$11.24 and a US$2.51 million stockholders' deficiency. A copy of the Form 10-Q is available for free at: http://is.gd/9UK6ml About Chile Mining Chile Mining Technologies Inc. is a mineral extraction company based in the Republic of Chile, with copper as its principal "pay metal." Its founders, Messrs. Jorge Osvaldo Orellana Orellana and Jorge Fernando Pizarro Arriagada, have refined the electrowin process in a way that permits the electrowin process to be used at a relatively small mine and/or tailings sites. Electrowinning is a process in which positive and negative electrodes are placed in an acidic solution containing copper ions, and an electric current passed through the solution causes the copper to be deposited on the negative electrodes so that it can be collected. Schwartz Levitsky Feldman LLP, in Toronto, Ontario, Canada, expressed substantial doubt about Chile Mining's ability to continue as a going concern following the fiscal year ended March 31, 2012, annual report. The independent auditors noted that the continuance of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the production of copper. The Company reported a net loss of US$3.95 million on US$433,554 of sales in fiscal 2012, compared with a net loss of US$7.25 million on US$188,227 of sales in fiscal 2011. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIR: Racks up More Outstanding Aviation Fees in Jamaica ----------------------------------------------------------------- RJR News reports that it has been revealed that Caribbean Airlines Limited has fallen further behind in respect of aviation fees owed in Jamaica. This is in addition to the $500 million in arrears that it has been trying to pay off, according to RJR News. The report notes that Dr. Omar Davies, Jamaica's transport minister, has disclosed that, following talks with officials in Trinidad in July, a commitment was given that Caribbean Airlines would begin clearing off the amounts it had built up. However, the report relates that Dr. Davies said while some payments were made the Trinidad based airline has slipped further into arrears with a significant balance. "There's money owed to the airport authority, to customs; there's money owed to the aviation authority. It is more than that" the report quoted Dr. Davies as saying. He said further instructions had been issued to Trinidadian officials for additional steps to be taken to address Caribbean Airlines' ballooning arrears, the report notes. "I've asked Minister Bharat (his Trinidadian counterpart) that not only do we clear all the arrears but we put in place a complete arrangement so that the arrears don't go further. I am also seeking to collaborate with the customs department. There is money owed which should be collected from the airline and certainly coming onto the Christmas season I wouldn't want to disrupt the travel arrangements of the traveling public either domestic or tourist," Dr. Davies said, the report discloses. Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News notes that Trinidad Express reported that the arrears were built up over the last six weeks as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January 2007. CL FIN'L: Lascelles deMercado Shares Will be Suspended ------------------------------------------------------ RJR News reports that trading in Lascelles deMercado shares will be suspended as of Monday, Nov. 26, 2012. This is to finalize its takeover by Italy's Gruppo Campari, according to RJR News. As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2012, RJR News said that Lascelles deMercado has applied for a suspension of trading in its shares, ahead of the finalization of its takeover by Italy's Gruppo Campari. Lascelles deMercado asked the stock exchange to suspend trading in its shares for all of next week or until the takeover deal is closed, according to RJR News. RJR News related that the request is in line with Gruppo Campari's expectation to complete its US$415 million takeover of Lascelles by December. RJR News said that in addition to requesting the suspension of trading, Lascelles said the US$42 dollars 66 cents per share dividend it declared last week, will be paid earlier than announced. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. ========================== V I R G I N I S L A N D S ========================== FAIRFIELD SENTRY: Investor Wants Caribbean Bankruptcy Ended ----------------------------------------------------------- Richard Vanderford at Bankruptcy Law360 reports that an investor in Bernard Madoff feeder fund Fairfield Sentry Ltd. urged the Second Circuit on Monday to overturn U.S. courts' recognition of the fund's Caribbean bankruptcy and greenlight a lawsuit, arguing the overseas proceedings have been below U.S. standards. Fairfield's British Virgin Islands bankruptcy has, unlike a normal U.S. bankruptcy, been conducted entirely in secret, a lawyer for investor Morning Mist Holdings Ltd. said at oral arguments in Manhattan, according to Bankruptcy Law360. About Fairfield Sentry Fairfield Sentry is being liquidated under the supervision of the Commercial Division of the High Court of Justice in the British Virgin Islands. It is one of the funds owned by the Fairfield Greenwich Group, an investment firm founded in 1983 in New York City. Fairfield Sentry and other Greenwich funds had among the largest exposures to the Bernard L. Madoff fraud. Fairfield Sentry Limited filed for Chapter 15 protection (Bankr. S.D.N.Y. Case No. 10-13164) on June 14, 2010. Greenwich Sentry, L.P., and an affiliate filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-16229) on Nov. 19, 2010, hoping to settle lawsuits filed against it in connection with its investments with Bernard L. Madoff. On May 18, 2009, Irving H. Picard, the trustee liquidating the estate of Mr. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC, filed a lawsuit against Fairfield Sentry and Greenwich, seeking the return of US$3.55 billion that Fairfield withdrew from Madoff during the period from 2002 to Mr. Madoff's arrest in December 2008. Since 1995, the Fairfield funds invested about US$4.5 billion with BLMIS. Mr. Picard claims that Fairfield knew or should have known about the fraud give that it received from BLMIS unrealistically high and consistent annual returns of between 10% and 21% in contrast to the vastly larger fluctuations in the S&P 100 Index. *********** 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 * * *