/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/121220.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 Thursday, December 20, 2012, Vol. 13, No. 253 Headlines B R A Z I L CENTRAIS ELETRICAS: Brazilian Plan Approved in U.S. ELETROPAULO METROPOLITANA: S&P Puts 'BB+' CCR on Watch Negative C A Y M A N I S L A N D S AURUM UNIVERSAL FUND: Members' Final Meeting Set for Dec. 14 DKR COMMODITY: Member to Receive Wind-Up Report on Dec. 21 DKR IBEX: Member to Receive Wind-Up Report on Dec. 21 DKR IBEX FUND: Member to Receive Wind-Up Report on Dec. 21 DKR SATURN: Members' Final Meeting Set for Dec. 20 DKR SATURN HOLDING: Member to Receive Wind-Up Report on Dec. 21 DKR STRATEGIC: Member to Receive Wind-Up Report on Dec. 21 DKR STRATEGIC HOLDING: Member to Get Wind-Up Report on Dec. 21 C O L O M B I A SINAPSIS TRADING: Superintendency of Finance Orders Liquidation J A M A I C A LIME JAMAICA: Investing $1BB on Customer-Service Improvement LIVESTOCK ASSOCIATION: JSE Delists Firm From Exchange M E X I C O EMPRESAS ICA: S&P Affirms 'BB-' Global Scale Corp. Credit Rating VITRO SAB: Court of Appeals Lets Bondholders Collect VITRO SAB: Initiates Settlement Trial Against Dissident Funds * NICOLAS ROMERO: Moody's Assigns 'Ba3' Rating to Enhanced Loan T R I N I D A D & T O B A G O CARIBBEAN AIR: To be Profitable in Another 2yos, Chairman Says X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== CENTRAIS ELETRICAS: Brazilian Plan Approved in U.S. --------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Centrais Eletricas do Para SA, an electric utility in Brazil's northern state of Para, won assistance from the U.S. Bankruptcy Court in New York in implementing the bankruptcy reorganization approved in September by a Brazilian court. According to the report, the reorganization approved in Brazil provided for the noteholders to receive 17.5% in cash in return for cancellation of the notes. The cash comes from Equatorial Energia SA, which purchased the company. The unsecured creditor class including noteholders approved the plan with 71.35% of claims in favor, according to a court filing. Centrais Eletricas said it nonetheless needed Chapter 15 relief because the U.S. indenture trustee for the noteholders was unable to carry out the terms of the plan without an order from a U.S. court. The New York bankruptcy judge, the report discloses, signed an order on Dec. 12 recognizing the Brazilian court as home to the so-called foreign main proceeding. The U.S. judge also declared that the Brazilian reorganization should be enforced in the U.S. The order from the U.S. court assures the indenture trustee of receiving reimbursement of $700,000 in expenses. In addition, an ad hoc bondholder group recovers as much as $1.2 million in professional fees and expenses. There were no objections. About Centrais Eletricas Centrais Eletricas do Para SA, a Brazilian utility know as Celpa that was acquired this month by Equatorial Energia SA, filed for Chapter 15 bankruptcy protection in New York (Bankr. S.D.N.Y. Case No. 12-14568). The company, based in Belem, Brazil, estimated both debt and assets of more than $1 billion. Celpa filed for bankruptcy protection in Brazil in February after a four-year freeze on rates pushed up debt to about 2.3 billion reais. Celpa asked the U.S. court to recognize the proceeding pending before the Thirteenth Civil Court of Belem, State of Para, as a "foreign main proceeding." Celpa distributes electricity to 7.4 million people in 143 municipalities in the northern Brazilian state of Para, the company said in the February filing. ELETROPAULO METROPOLITANA: S&P Puts 'BB+' CCR on Watch Negative --------------------------------------------------------------- Standard & Poor's Rating Services placed its 'BB+' corporate credit rating on Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. (Eletropaulo) on CreditWatch with negative implications following the court's unfavorable ruling. The fifth Civil Court of Rio de Janeiro decided that Eletropaulo is responsible for the monetary adjustments of a loan borrowed from Eletrobras-Centrais Eletricas Brasileiras S.A. in 1986. "The court ordered Eletropaulo to pay the debt obligation to the state-owned utility, Eletrobras, in a legal dispute. Eletropaulo estimates the amount at R$1.3 billion. This litigation has been under way since Eletropaulo was privatized in the late 1990s. Prior to its privatization, the spinoff of Eletropaulo resulted in creation of several new entities. This resulted in doubts and legal claims about which entity is responsible to liquidate the original loan from Eletrobras," S&P said. "Eletropaulo is confident that it can appeal the ruling in the Rio de Janeiro Court of Appeals because some technical procedures were not followed in the fifth Civil Court's proceedings, including the hearing of an expert about the calculation of loan's interest and adjustments. The estimated amount is R$1.3 billion, which is higher than our projections of the company's annual operating profit in 2013. Eletropaulo's legal advisors consider this payment a possible loss, and the company hasn't made provisions for it. We view there is an uncertainty since Eletropaulo will rely on the Court of Appeals ruling to revert the fifth Civil Court's decision," S&P said. "Depending on the final amount or if the Court of Appeals won't revert the ruling, we could lower the ratings on the company. Despite Eletropaulo's current strong liquidity, moderate debt amortization schedule, and access to capital markets, we believe that the company's payment of this amount could weaken its credit metrics to a level not sustainable for the current rating category. Assuming R$1.3 billion in additional debt, Eletropaulo's funds from operations to total debt would be 15% in 2013, compared to our previous expectations of around 30%, and total debt to EBITDA could be around 5.5x in 2013, compared with around 4.0x," S&P said. "We could assign a stable outlook if the Court of Appeals reverts the fifth Civil Court's decision. We expect to resolve the CrediWatch listing in the next 90 days or when there is more clarity on the appeal process," S&P said. ========================== C A Y M A N I S L A N D S ========================== AURUM UNIVERSAL FUND: Members' Final Meeting Set for Dec. 14 ------------------------------------------------------------ The members of Aurum Universal Fund Ltd. will hold their final general meeting on Dec. 14, 2012, at 9:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Christopher C. Morris Century House 16 Par-la-Ville Road, Hamilton Bermuda DKR COMMODITY: Member to Receive Wind-Up Report on Dec. 21 ---------------------------------------------------------- The member of DKR Commodity Arbitrage Fund Ltd. will receive on Dec. 21, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR IBEX: Member to Receive Wind-Up Report on Dec. 21 ----------------------------------------------------- The member of DKR Ibex Holding Fund Ltd. will receive on Dec. 21, 2012, at 9:30 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR IBEX FUND: Member to Receive Wind-Up Report on Dec. 21 ---------------------------------------------------------- The member of DKR Ibex Fund Ltd. will receive on Dec. 21, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR SATURN: Members' Final Meeting Set for Dec. 20 -------------------------------------------------- The members of DKR Saturn Event Driven Fund Ltd. will hold their final general meeting on Dec. 20, 2012, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR SATURN HOLDING: Member to Receive Wind-Up Report on Dec. 21 --------------------------------------------------------------- The member of DKR Saturn Event Driven Holding Fund Ltd. will receive on Dec. 21, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR STRATEGIC: Member to Receive Wind-Up Report on Dec. 21 ---------------------------------------------------------- The member of DKR Strategic Currency Fund Ltd. will receive on Dec. 21, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR STRATEGIC HOLDING: Member to Get Wind-Up Report on Dec. 21 -------------------------------------------------------------- The member of DKR Strategic Currency Holding Fund Ltd. will receive on Dec. 21, 2012, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda =============== C O L O M B I A =============== SINAPSIS TRADING: Superintendency of Finance Orders Liquidation --------------------------------------------------------------- Carlos Umana and Lucas Fajardo Gutierrez at Brigard & Urrutia said that the Superintendency of Finance ordered Sinapsis Trading Colombia S.A.S. and Compania de Creditos y Afianzamiento Crediafianzar S.A.S. to immediately suspend the activities related to insurance contracts for which they did not have prior authorization from such Superintendency. Brigard & Urrutia said Sinapsis Trading offered wrap of luggage and compensation in case of damage or loss; Compania de Creditos offered issuance of surety insurance policies (seguros de cumplimiento) and tort liability insurance policies under the heading of "Unique guarantee surety contract for State entities and damages to third parties". In both cases, the Superintendency analyzed the nature of the services provided and concluded that they were insurance operations for which they were not authorized to perform. Under this argument, the Superintendency ordered the progressive and rapid liquidation of the operations illegally performed by both companies. ============= J A M A I C A ============= LIME JAMAICA: Investing $1BB on Customer-Service Improvement ------------------------------------------------------------ Jamaica Gleaner reports that LIME Jamaica Limited (formerly Cable & Wireless Jamaica Limited) will invest US$12 million (J$1 billion) to improve its customer service across the Caribbean region over three years, in a move aimed at lowering customer attrition or churn. Regional vice-president for customer service assurance at LIME, Joan Whitehead, will oversee the investment, according to Jamaica Gleaner. "It's US$12 million capital expenditure to be spent over three years . . . . It's not the operational budget, this is the capex (capital expenditure) to bring improvement. Our actual operating costs will remain the same," the report quoted Ms. Whitehead as saying. The money will be spent on help centers, a new automated voice platform, workforce management tools and social media support, Ms. Whitehead said, the report notes. Jamaica Gleaner adds that Canadian telecommunications firm TELUS will assist LIME in the improvement project by providing contact centre support based in Jamaica, Barbados and St Lucia. About LIME Jamaica Headquartered in Kingston, Jamaica, LIME Jamaica Limited (formerly Cable & Wireless Jamaica Limited) is a subsidiary of Cable & Wireless plc. The company is involved in providing domestic and international telecommunications services to both individual and businesses enterprise customers. * * * As reported in the Troubled Company Reporter on Feb. 6, 2012, the Board of Directors of LIME released the unaudited consolidated results of the company, Jamaica Digiport International Limited (101), and other subsidiaries, for the quarter ended Sept. 30, 2009. The report related that revenue for the quarter declined 10% to JM$5,104 million from JMS5,567 million for the same period in 2008. Jamaica Gleaner noted that LIME's accumulated deficit has climbed to more than JM$17 billion. Concurrently, its equity base has diminished to JM$2 billion on its December 2011 unaudited balance sheet, reflecting book value of two cents per share, the report added. LIVESTOCK ASSOCIATION: JSE Delists Firm From Exchange ----------------------------------------------------- Jamaica Gleaner reports that the Jamaica Livestock Association Limited (JLA) was delisted from the Jamaica Stock Exchange on Dec. 14, 2012, because its shares have been suspended from trading for more than six months. The Association was initially suspended from trading for non- submission of audited financial statements for 2011, according to information from the Jamaica Stock Exchange (JSE), according to Jamaica Gleaner. The report notes that in a notice the JSE said the company was being delisted under rule 411, section D of the stock exchange rule book, which states that any company with shares which have been suspended from trading for more than 180 days shall be automatically delisted. The report discloses that in its last available financial results for the nine-month period ended August 2012, JLA recorded a net loss of $113 million, an increase of more than 200% over the same period last year when it posted net losses of $35.5 million. At the same time, its working capital moved from positive $7.9 million in 2011 to a negative position at $86 million, as at August 2012. Total assets stood at $328.6 million as at August 2012, compared with $543.67 million at August 2011, the report relates. However, the report notes that the company has also been offloading some of its assets in an effort to pump cash into the company. In 2010, the report recalls JLA sold its Kingston-based animal- feed factory and wharf. The following year, it sold land and buildings at Fustic Road, Montego Bay as well as land in Savanna- la-Mar, Westmoreland, the report says. JLA said then that it would use the cash to pay down debt and inject fresh working capital into the loss-making entity, the report adds. JLA, established since 1942 as the main provider of agricultural support and services to farmers in Jamaica, offers a wide range of products, including animal feed, animal health care, day-old chicks, agricultural chemicals, herbicides, pesticides, hardware items and farm and garden supplies. =========== M E X I C O =========== EMPRESAS ICA: S&P Affirms 'BB-' Global Scale Corp. Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' global scale and 'mxBBB+' national scale corporate credit rating on Empresas ICA S.A.B. de C.V. (ICA). "At the same time, we affirmed the 'B+' issue-level rating and the recovery rating of '5', indicating expectation of moderate (10% to 30%) recovery in the event of a payment default, to the company's senior unsecured notes due 2017 and 2021. The outlook is stable," S&P said. The 'BB-' rating on ICA reflects S&P's assessment of the company's "fair" business risk profile, "aggressive" financial risk profile, and "adequate" liquidity. "Our assessment of ICA's business risk profile as 'fair' reflects the inherent cyclicality of the construction industry, and the geographic concentration of its markets. These factors are counterbalanced by the company's status as the largest engineering, procurement, and construction firm in Mexico, with a long and positive track record throughout its different business divisions. It also reflects the company's diversified portfolio mix with investments in large projects with complex designs and heavy construction, as well as participation in road and water concessions, and airports," S&P said. VITRO SAB: Court of Appeals Lets Bondholders Collect ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Vitro SAB sustained another defeat on Dec. 14 when the U.S. Court of Appeals in New Orleans terminated an injunction by allowing bondholders to begin collecting judgments on $1.2 billion in defaulted bonds. According to the report, the appeals court acted quickly, before Vitro even had a chance to respond to a request by bondholders. The Dec. 14 ruling was Vitro's third major defeat in less than a month, and potentially the most disruptive for Vitro's business. Following oral argument in October, a three-judge panel from the U.S. Appeals Court in New Orleans wrote a 60-page opinion at the end of November concluding that Vitro was properly barred from enforcing a bankruptcy reorganization plan in the U.S. The plan had been approved by a court in Mexico early this year. While the appeal was pending, the circuit court barred creditors from taking action to collect judgments against Vitro subsidiaries obtained in state court on account of guarantees on the bonds. The report relates that Vitro filed papers on Dec. 12 asking all active judges on the appeals court to rehear the case and enforce the Mexican plan in the U.S. On Dec. 14 bondholders filed papers asking the appeals court to dissolve a stay pending appeal and allow them to attempt collecting judgments they obtained in New York State court finding Vitro subsidiaries liable on their guarantees of the bonds. Although the Vitro parent was in bankruptcy in Mexico, the subsidiaries weren't in bankruptcy in Mexico or anywhere else. The same day, Dec. 14, the appeals court handed down an order saying the bondholders are free to proceed with collection actions. According to the report, by Dec. 16, Vitro had filed papers asking the appeals court to reinstate the bar prohibiting enforcement of the judgments. The company argues that allowing bondholders to collect judgments will "have devastating and irreparable consequences." In response to permission from the federal appeals court for bondholders to attempt collecting judgments, Vitro issued a statement saying the company finds itself in a "unique situation since it has two conflicting orders" from courts in two countries. Vitro refers to how Mexican courts are enforcing the reorganization plan reducing subsidiaries' debt while courts in the U.S. aren't. Vitro also said it has "started the process to recover damages" from bondholders who attempted to put the parent company and 17 subsidiaries into involuntary bankruptcy. The involuntary bankruptcies in Mexico were dismissed on appeal, giving the company the right to seek damages, Vitro said. Damage award against bondholders could be as much as $1.59 billion, Vitro said. The appeals court, upholding a ruling by the bankruptcy court in Dallas, concluded that Vitro's Mexican reorganization plan shouldn't be enforced in the U.S. because it reduced the liability of subsidiaries on the bonds, although the subsidiaries weren't in bankruptcy in any country. The appeal in the circuit court is Vitro SAB de CV v. Ad Hoc Group of Vitro Noteholders (In re Vitro SAB de CV), 12-10689, 5th U.S. Circuit Court of Appeals (New Orleans). The suit in bankruptcy court where the judge decided not to enforce the Mexican reorganization in the U.S. is Vitro SAB de CV v. ACP Master Ltd. (In re Vitro SAB de CV), 12-03027, U.S. Bankruptcy Court, Northern District of Texas (Dallas). The bondholders previous appeal previous appeal in the circuit court is Ad Hoc Group of Vitro Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV), 11-11239, 5th U.S. Circuit Court of Appeals (New Orleans). The bondholders' appeal of the Chapter 15 recognition in district court is Ad Hoc Group of Vitro Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV), 11-02888, U.S. District Court, Northern District of Texas (Dallas). About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. But an appellate court in Mexico reinstated the reorganization in April 2011. Following the reinstatement, Vitro SAB on April 14, 2011, re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). The Vitro parent received sufficient acceptances of its reorganization by using the US$1.9 billion in debt owing to subsidiaries to vote down opposition by bondholders. The holders of US$1.2 billion in defaulted bonds opposed the Mexican reorganization plan because shareholders could retain ownership while bondholders aren't being paid in full. Vitro announced in March 2012 that it has implemented the reorganization plan approved by a judge in Monterrey, Mexico. In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC, is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. Blackstone Advisory Partners L.P. serves as financial advisor to the Committee. The U.S. Vitro companies sold their assets to American Glass Enterprises LLC, an affiliate of Sun Capital Partners Inc., for US$55 million. U.S. subsidiaries of Vitro SAB are having their cases converted to liquidations in Chapter 7, court records in January 2012 show. In December, the U.S. Trustee in Dallas filed a motion to convert the subsidiaries' cases to liquidations in Chapter 7. The Justice Department's bankruptcy watchdog said US$5.1 million in bills were run up in bankruptcy and hadn't been paid. On June 13, 2012, U.S. Bankruptcy Judge Harlin "Cooter" Hale in Dallas entered a ruling that precluded Vitro from enforcing its Mexican reorganization plan in the U.S. Vitro's appeal is pending. In November, the U.S. Court of Appeals Judge Carolyn King ruled that Vitro SAB won't be permitted to enforce its bankruptcy reorganization plan in the U.S. She said that Vitro "has not shown that there exist truly unusual circumstances necessitating the release" preventing bondholders from suing subsidiaries. VITRO SAB: Initiates Settlement Trial Against Dissident Funds ------------------------------------------------------------- Vitro S.A.B. de C.V. said Monday it has started the process to recover damages caused by the lawsuits filed by the dissident funds to put Vitro and 17 subsidiaries into involuntary bankruptcy in Mexico, which were dismissed on appeal. Under the applicable legal framework in Nuevo Leon, Mexico, the amount claimed could reach US$1.59 billion, which corresponds to 20% of the total amount claimed at the time by the so-called vulture funds from each of the companies in those proceedings. According to Vitro, it should be noted that under the approved restructuring plan, the new bonds issued and payments made by Vitro to bondholders who opposed the restructuring were placed in a trust which stipulates that Vitro may collect from this trust the amounts that these creditors are liable for due to these actions. The funds that are exposed to these damages are Moneda, Brookville Horizons Fund, Davidson Kempner Distressed Opportunities Fund and Knighthead Master Fund. The Company has sought information from these funds to determine whether they have agreements to share the costs of actions certain funds took on behalf of the whole group. "If they do have such agreements, we will pursue such recoveries from all relevant parties, including Aurelius and Elliott," said Claudio del Valle, Chief Restructuring Officer of Vitro. Vitro also said the Court of Appeals of the United States Fifth Circuit in New Orleans lifted the Temporary Restraining Orders that prevented the collection actions against Vitro and its subsidiaries by the dissident funds. In view of this decision the Company could be facing a unique situation, since it has two conflicting orders and therefore two markedly different obligations in both countries. The debt that could form the basis for the dissident funds' collection actions in the United States has been restructured and replaced with new debt in Mexico. Consequently the Company is evaluating the financial implications of this particular situation. Vitro, S.A.B. de C.V. (BMV: VITROA) -- http://www.vitro.com/-- is a glass manufacturer in Mexico and one of the world's major glass companies, backed by more than 100 years of experience in the industry. Founded in 1909 in Monterrey, Mexico, the company currently has subsidiaries in the Americas, which offer quality products and reliable services to meet the needs of two different types of business: glass containers and flat glass. * NICOLAS ROMERO: Moody's Assigns 'Ba3' Rating to Enhanced Loan --------------------------------------------------------------- Moody's de Mexico assigned debt ratings of Baa1.mx (Mexico National Scale) and Ba3 (Global Scale, local currency) to a MXN150 million enhanced loan from Banco Interacciones to the Municipality of Nicolas Romero. The MXN150 million loan from Interacciones was granted in December 2010. The credit is payable through a trust (Monex F/201), to which the municipality has pledged the flows and rights of 20% of its federal participation transfers. The loan is denominated in Mexican pesos and has a maturity of 15 years at an interest rate composed of the 28-day Mexican Interbank Interest Rate (TIIE) plus a spread. Rating Rationale The Baa1.mx/Ba3 ratings assigned to the loan reflect the underlying creditworthiness of the Municipality of Nicolas Romero (Baa2.mx/B1, stable), supported by the following legal and credit enhancements embedded in the loan: 1. Strong trust structure where the Municipality of Nicolas Romero has ceded the rights to 20% of its participation revenues . 2. Moderate reserve levels: minimum debt service coverage of 1.5x 3. Moderate minimum debt service coverage under base case scenario: 1.6x 4. Moderate minimum debt service coverage under stress case scenario: 1.4x The rating rationale also recognizes the following challenges: * Commingling risk at the level of the State of Mexico (Ba2) as the state sends funds to the trust; however, this is offset by 1) the state's strong governance and management practices, including a strong credit culture, and 2) legal barriers that prohibit the state for intervening with municipal transfers. WHAT COULD CHANGE THE RATINGS UP/DOWN An upgrade of the Municipality of Nicolas Romero's issuer ratings would likely result in an upgrade of the ratings on the loan. Debt service coverage significantly exceeding Moody's forecasts could also exert upward pressure on the rating. Conversely, the debt ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations. Given the links between the loan and the credit quality of the obligor, a downgrade of the Municipality of Nicolas Romero could also exert downward pressure on debt ratings for this loan. The principal methodologies used in this rating were "Regional and Local Governments Outside the US" published in May 2008, The Application of Joint Default Analysis to Regional and Local Governments," published in December 2008, "Enhanced Municipal and State Loans in Mexico" published in January 2011 and "Mapping Moody's National Scale Ratings to Global Scale Ratings" published in October 2012. The date of the last issuer Credit Rating Action was on August 1, 2011, when debt ratings of a MXN 68 million enhanced loan were downgraded. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIR: To be Profitable in Another 2yos, Chairman Says -------------------------------------------------------------- RJR News reports that Caribbean Airlines Limited Chairman Rabindra Moonan it could be another two years before the airline realizes a profit. In an interview with Trinidad's Express newspaper, Mr. Moonan said even though the airline had embarked on initiatives to rationalize assets and return to a more efficient operation, it will be a while before CAL can become a profitable enterprise, according to RJR News. The report relates that Mr. Moonan said that funding for the airline's fleet and wet leases have been impacting the bottom line. RJR News notes that despite Caribbean Airline's less-than- spectacular performance, Mr. Moonan said the entity is meeting its financial obligations with regard to fees to airports, its fuel bill, and had not defaulted on any obligations. Mr. Moonan insisted the airline will one day turn a profit and the signs are for a better 2013, the report says. In the meantime, CAL said it is not yet making any profit from its Air Jamaica investment, RJR News discloses. Mr. Moonan said on that side of the business, stiff competition from several low-fares airlines out of the US has caused CAL to revisit its strategies and cost structure in an effort to level the playing field, RJR News notes. Since the acquisition in 2010, the Trinidad Express said the actual performance for the Air Jamaica operation, from May to December 2010 was a loss of US$21 million US$38 million 2011, RJR News relays. Mr. Moonan said the airline is also in the process of reviewing its routes and run more during peak periods, RJR News adds. Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News notes that Trinidad Express reported that the arrears were built up over the last six weeks as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January 2007. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Jan. 24-25, 2013 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Four Seasons Hotel Denver, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 7-9, 2013 AMERICAN BANKRUPTCY INSTITUTE Caribbean Involvency Symposium Eden Roc Renaissance, Miami Beach, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 17-19, 2013 AMERICAN BANKRUPTCY INSTITUTE Advanced Consumer Bankruptcy Practice Institute Charles Evans Whittaker Courthouse, Kansas City, Mo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 20-22, 2013 AMERICAN BANKRUPTCY INSTITUTE VALCON Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ Apr. 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. *********** 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 * * *