/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/121227.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 27, 2012, Vol. 13, No. 256 Headlines A R G E N T I N A CIMA RENTA: Moody's Assigns (P)B-bf Provisional Bond Fund Rating COMERCIAL FRIGORIFICO: Creditors' Proofs of Debt Due Dec. 14 CONSTRUCCIONES AL NORTE: Creditors' Proofs of Debt Due Dec. 21 GALYSUR SA: Creditors' Proofs of Debt Due Dec. 27 JACKO SRL: Creditors' Proofs of Debt Due Dec. 26 ZAIA SRL: Creditors' Proofs of Debt Due Dec. 21 B R A Z I L BANCO BONSUCESSO: Fitch Affirms 'B' IDR; Outlook Negative CYRELA BRAZIL: Fitch Affirms 'BB' IDR; Outlook Revised to Stable * BRAZIL: IDB Approves $125 Million for Sao Bernardo C A Y M A N I S L A N D S OLYMPIA STAR: Commences Liquidation Proceedings SAMTY CAPITAL III: Commences Liquidation Proceedings SEAVIEW (CAYMAN): Commences Liquidation Proceedings TRIPLEX INTERNATIONAL: Placed Under Voluntary Wind-Up C O L O M B I A BANCOLOMBIA SA: Moody's Affirms 'D+' BFSR; Outlook Stable M E X I C O VENETO BANCA: S&P Lowers Counterparty Credit Ratings to 'BB+/B' T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Former Exec Takes Airline to Court * TRINIDAD & TOBAGO: IDB OKs $246.5MM to Improve Environment X X X X X X X X Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= CIMA RENTA: Moody's Assigns (P)B-bf Provisional Bond Fund Rating ---------------------------------------------------------------- Moody's Investors Service has assigned a provisional bond fund ratings to Cima Renta Fija Argentina Plus fund, a newly launched fund that will be managed by a new local asset manatger CIMA. SGFCI S.A.. The provisional ratings include a global bond fund scale fund rating of (P)B-bf and a national scale rating of (P)A- bf.ar. Rating Rationale "The fund ratings are based on Moody's expectation that CIMA RF Argentina Plus, will maintain over 70% of invested assets in US Dollar linked corporate and sub-sovereign bonds and ABS securities with a minimum ratings of B-bf/A-b.ar-Baa-bf.ar. The remainder of the fund's asset allocation will be to liquid assets including Treasury bonds and bills issued by the Argentinean Central Bank which carry the highest ratings in local market. This portfolio will attempt to provide a return similar to the official exchange rate yield + 100bp with an average duration not exceeding 2 years" said Moody's lead analyst Carlos de Nevares. The fund's key shareholders are expected to be institutional investors such as local insurance companies and high net worth individuals which have been historical clients of affiliates of CIMA SGFI. CIMA SGFI SA. is a new Argentinean-domiciled asset manager being a new business unit of CIMA INVESTMENT S.A. , a local financial group which provided investment advisory and high qualified research for their institutional and high net-worth clients. COMERCIAL FRIGORIFICO: Creditors' Proofs of Debt Due Dec. 14 ------------------------------------------------------------ Silvia Jorgelina Zajkac, the court-appointed trustee for Comercial Frigor〕ico Puerto Plata SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 14, 2012. Ms. Zajkac will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 34, 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: Silvia Jorgelina Zajkac Panama 984 Argentina CONSTRUCCIONES AL NORTE: Creditors' Proofs of Debt Due Dec. 21 -------------------------------------------------------------- Silvia Monica Tauschek, the court-appointed trustee for Construcciones al Norte SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 21, 2012. Ms. Tauschek 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: Silvia Monica Tauschek Tucuman 1438 Argentina GALYSUR SA: Creditors' Proofs of Debt Due Dec. 27 ------------------------------------------------- Andres Caradonti, the court-appointed trustee for Galysur SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 27, 2012. Mr. Caradonti will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50, 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: Andres Caradonti Uruguay 485 JACKO SRL: Creditors' Proofs of Debt Due Dec. 26 ------------------------------------------------ Graciela Marta Lema de Muino, the court-appointed trustee for Jacko SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 26, 2012. Ms. de Muino 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: Graciela Marta Lema de Muino Basualdo 1064 Argentina ZAIA SRL: Creditors' Proofs of Debt Due Dec. 21 ----------------------------------------------- Jose Mario Nusyce, the court-appointed trustee for Zaia SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Dec. 21, 2012. Mr. Nusyce will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 4, 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: Jose Mario Nusyce Sanchez de Loria 1147 Argentina =========== B R A Z I L =========== BANCO BONSUCESSO: Fitch Affirms 'B' IDR; Outlook Negative --------------------------------------------------------- Fitch Ratings has affirmed all ratings for Banco Bonsucesso S.A. as follows: -- Long-term Foreign and Local Currency IDRs (Issuer Default Ratings) at 'B+'; Outlook Negative; -- Short-term Foreign and Local Currency IDRs at 'B'; -- Viability Rating at 'b+'; -- Support Rating at '5'; -- Support Rating Floor at 'No Floor'; -- Long-term National Rating at 'BBB+(bra)'; Outlook Negative; -- Short-term National Rating at 'F2(bra)'. The Rating Outlook for Bonsucesso's long-term IDRs (foreign and local currency) remains Negative. The Negative Outlook reflects Bonsucesso's weak albeit improving profitability and tight capital base. For 2013, Fitch expects Bonsucesso to face relevant challenges, among which are the need to continue to readjust to a new business environment, operating with a leaner structure and with lower results. The development of the funding structure, with costs more compatible with its operating profile, remains as the greatest challenge for the bank's growth. Fitch continues to monitor the advances of the bank towards the recovery of its profitability and preservation of its capital adequacy. If the bank is not able to continue the recovery of its profits and deliver an operational ROAA of at least 1.5% during 2013, while its Fitch core capital ratio decreases to below 9% and/or there is a sustained deterioration in delinquency indicators, the ratings could be downgraded in the next 12 months. However, if Bonsucesso is able to continue to improve its profitability ratios, as seen in the last two quarters, while preserving its Fitch Capital Ratio and asset quality, Fitch may revise the bank's Outlook to Stable. Bonsucesso's IDRs and National Ratings are driven by its Viability Rating. This reflects the institution's experience in the competitive payroll deductible loan segment. The ratings also portray the relatively modest size of the bank, the low Fitch core capital ratio and the fact of Bonsucesso being a niche bank with large concentrations and more susceptible to economic fluctuations. The bank has been able to reverse the loss in the first quarter of 2012 and presented ROE of acceptable 7.4% in the first nine months of 2012. This was due to increased credits in the balance sheet and lower funding costs and administrative expenses, even without any impacts from revenue anticipation. In September 2012, the auditor had a few qualifications in relation to expense deferrals, although such procedure follows Central Bank guidance. Without considering the deferral, the bank would have presented lower results in the first nine months of 2012. Payroll and deductible lending has continually faced intense competition from large banks. To by-pass this situation, Bonsucesso has limited its focus to its most profitable agreements and boosted its volume of payroll deductible loans via credit cards, where competition is lower because only a few banks offer the product. Furthermore, the bank is launching a series of new products and maintains its operation in the middle market. In 2013, Bonsucesso is expected to maintain the funding via loan sales to banks and/or receivables-backed investment funds (FIDCs), although in lower volumes than in the past. Fitch also believes that the bank may use its special guaranteed time deposit II (DPGE II) limit, which offers more attractive funding costs, although assets would need to pledged as collateral to the Creditor Guarantor Fund (FGC). That said, an intensive use of this secured funding source (DPGE II) may result in an undesired encumbrance of Bonsucesso's balance sheet, which may negatively affect the expected recovery of unsecured creditors in case of stress, which is a similar situation to the other banks that may use this secured funding facility in an extensive manner. At the moment, the bank plans to use this facility moderately, and this plan is neutral to its ratings. Bonsucesso continues to use nearly all of its limit with the long-term DPGE I, which favors its term matching and adequate liquidity, but the future growth of the DPGE I facility is limited, as it ends in 2016. Fitch core capital ratio remained low, around 9.5% in September 2012. The issuance of subordinated debt, considered as Tier 2 regulatory capital, is not included in this calculation, although Fitch recognizes the benefits from this additional funding source, with good maturity tenors. Given the growth expectations and the likelihood that the profits will be modest, Bonsusesso's capital adequacy ratios will need to be enhanced, so that the bank can manage growth and generate further cushions to cover unexpected losses. As with other small- and medium-sized banks, Bonsucesso has registered deterioration in its credit quality ratios since 2011, mainly in the middle market portfolio. Until the third quarter of 2012, the indicators were slightly better, but still demand attention, despite the reduction in the corporate portfolio. Controlled by the family Pentagna Guimaraes, Bonsucesso originated in 1992 with the creation of Bonsucesso Financeira, transformed into a multiple bank in 1997. CYRELA BRAZIL: Fitch Affirms 'BB' IDR; Outlook Revised to Stable ---------------------------------------------------------------- Fitch Ratings has affirmed Cyrela Brazil Realty S.A. Empreendimentos e Participacoes' (Cyrela) foreign and local currency Issuer Default Ratings (IDR) at 'BB' and long-term national scale at 'AA-(bra)'. Fitch has also affirmed the 'AA- (bra)' national long-term rating to its fifth debenture issuance, in the amount of BRL400 million, due in 2015 (1st series of BRL120 million) and 2016 (2nd series of BRL280 million). The Rating Outlook for Cyrela's corporate ratings was revised to Stable from Negative. The revision of Cyrela's Outlook reflects the company's significant improvement in its free cash flow (FCF) generation, gradual recovery in operating margins, and reduction in its financial leverage. Since the second half of 2011, EBITDA margin started to improve as a result of several initiatives taken by the company. The company still has the challenge to continue to recover its EBITDA margins to levels above 18% in 2013, in line with its historical performance. During 2012, Cyrela has implemented a more conservative approach in terms of project management and cost controls. In the LTM ended in September 2012, the company's FCF was BRL639 million, which compares with negative FCF levels of BRL139 million and BRL1 billion during 2011 and 2010, respectively. Cash flow generation should continue to benefit from high volume of project deliveries and is expected to remain positive in 2013. Cyrela's ratings are supported by the company's position as one of the largest developers in Brazil's real estate industry, its conservative financial strategy sustained by a robust liquidity position to support its business growth and the well-distributed corporate debt maturity profile. The ratings also incorporate the strength of its franchise and its solid and diversified landbank. The expectation that Cyrela will continue to generate positive cash flow from operations in 2013 was also considered. The ratings are constrained by the company's moderate leverage and the exposure of its business to the cyclicality of the homebuilding industry, which is highly correlated to the local economy and strongly vulnerable to an economic slowdown and to restrictions of lines of credit. EBITDA Margin to Gradually Recover Cyrela has implemented several measures to improve profitability. However, positive impacts from these initiatives should be gradually reflected in the results, due to the long cycle of the projects in this sector. In the latest-12-month (LTM) ended September 2012, Cyrela reported adjusted EBITDA (including financial expenses allocated in costs) of BRL1.047 billion and adjusted EBITDA margin of 16.5%, compared to BRL956 million and 15.6%, respectively, in 2011. Cost overruns, project delays and weak site management resulted in a loss of profitability at the end of 2010 and during the first half of 2011. Adjusted EBITDA margin was 18.0% in the third quarter of 2012, compared to 11.8% in the last quarter of 2010. Net Leverage Expected to Slightly Improve Lower debt and improved EBITDA generation contributed to reduce leverage. In the LTM ended September 2012, total debt/adjusted EBITDA ratio was 4.3x and, in net debt basis, was 2.8x. These ratios compare favorably with 4.9x and 3.0x, respectively, at the end of 2011 and 5.8x and 3.6x in September 2011. Net leverage should further reduce to more conservative levels, of 2.5x by the end of 2013, as EBITDA continues to increase. Conservative Financial Strategy Cyrela's robust liquidity combined with its lengthened corporate debt maturity profile, strengthens the company's credit measures. As of Sept. 30, 2012, Cyrela reported cash and marketable securities of BRL1.7 billion and total debt of BRL4.5 billion, with BRL1.3 billion due in the short-term and BRL1.1 billion from October 2013 to September 2014. Out of debt maturities in the short-term, BRL247 million are related to corporate debt. Great part of Cyrela's cash position is related to restricted cash, to finance construction costs. Cyrela's liquidity resulted in cash/short-term debt ratio of 1.2x. Cyrela has efficiently managed an adequate debt profile supported by an amortization schedule compatible with its activities, and in great part by credit lines from SFH (Housing Financial System). The company also benefits from the potential liquidity supported by approximately BRL1.0 billion of receivables from completed and sold units not linked to debt and about BRL3.0 billion of receivables that will mature in the next 12 months, net of costs to be incurred. Project Launches Growth Expected to Resume In 2013 Cyrela faced delays to approve projects in Sao Paulo, which resulted in lower than expected project launches during 2012. In 2011, the company launched a potential sales value (PSV) of BRL6.3 billion and in the nine months ended September 2012 launched only BRL2.5 billion. The company plans to launch BRL5.0 billion in 2012, with high concentration in the last quarter of the year. For 2013, project launches are expected to growth, as a few projects that were expected for 2012 were postponed. Cyrela has the challenge to reduce its high inventory of concluded units. As of Sept. 30, 2012, total inventory had estimated market value of BRL6.2 million, of which about 15.4% consisted of concluded units and 21.9% will be delivered up to the end of 2013. Potential Rating or Outlook Drivers Cyrela's ratings could be upgraded should there be a consistent improvement in the operational cash flow generation capacity for a consecutive period, coupled with the maintenance of a strong liquidity position and lower leverage. A significant reduction in the company's operating margins, lower liquidity position; a more concentrated corporate debt maturity profile or a more unstable macroeconomic environment could also impact the company and the homebuilding sector's fundamentals and result in a downgrade. * BRAZIL: IDB Approves $125 Million for Sao Bernardo ---------------------------------------------------- The Inter-American Development Bank (IDB) has approved a $125 million loan to improve sustainable urban mobility in Sao Bernardo do Campo, a municipality of 800,000-plus inhabitants in the southern outskirts of Sao Paulo, Brazil. The loan, the second for the program, will finance infrastructure works, promote the use of public transportation, boost traffic safety and support moves to reduce transport-related greenhouse gas emissions. Under the five-year program, it will be adopted a new operating model, with the construction of 45 km of dedicated lanes for buses as well as bus terminals and stations and a bicycle path and bicycle route. Urban elements such as sidewalks for pedestrians, universal accessibility, lighting and landscaping will also be incorporated. Regarding to road safety, horizontal en vertical traffic lights will be adopted. In order to strengthen the execution of the project 40 Department of Environmental Management officials will be trained in supervision, licensing, and environmental education. With better management and greater fluidity in traffic, it's anticipated that vehicular source greenhouse gas emission will be reduced. According to IDB project team leader, Dalve Soria, "the program will bring incalculable benefits to both the population using public transport, by improving the service and management of urban transportation; and mainly, to the entire population of the city of Sao Bernardo Field from the urban regeneration of areas of direct intervention Program. " These and other improvements are expected to reduce the annual accident rate from 208 per 10,000 vehicles to 193 per 10,000; The travel time for public transportation users should decrease by 25 percent; with an increase in the average speed for the system by about the same rate during peak hours. As a result, a 3.5% surge in the number of passengers on working days is expected. The loan is for a 25-year term, with a 5-1/2 year grace period, and carries a variable interest rate based on LIBOR. The Sao Bernardo do Campo municipality will provide an additional $125 million in local counterpart funds. ========================== C A Y M A N I S L A N D S ========================== OLYMPIA STAR: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 18, 2012, the shareholders of Olympia Star I Enhanced Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 6, 2012, will be included in the company's dividend distribution. The company's liquidator is: Newington Ltd. J. Andrew Murray Telephone: 345 949 9710 P.O. Box 2075, 31 The Strand Grand Cayman KY1-1105 Cayman Islands SAMTY CAPITAL III: Commences Liquidation Proceedings ---------------------------------------------------- On Oct. 22, 2012, the sole shareholder of Samty Capital III resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 5, 2012, will be included in the company's dividend distribution. The company's liquidator is: Intertrust SPV (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 SEAVIEW (CAYMAN): Commences Liquidation Proceedings --------------------------------------------------- On Oct. 12, 2012, the sole shareholder of Seaview (Cayman) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Nov. 26, 2012, will be included in the company's dividend distribution. The company's liquidator is: Machiko Yanagiha c/o Wardour Management Services Limited Telephone: (345) 945-3301 Facsimile: (345) 945-3302 P.O. Box 10147 Grand Cayman KY1-1002 Cayman Islands TRIPLEX INTERNATIONAL: Placed Under Voluntary Wind-Up ----------------------------------------------------- On Oct. 24, 2012, the sole member of Triplex International Biosciences Holdings Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 27, 2012, will be included in the company's dividend distribution. 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 =============== C O L O M B I A =============== BANCOLOMBIA SA: Moody's Affirms 'D+' BFSR; Outlook Stable --------------------------------------------------------- Moody's Investors Service affirmed all of Bancolombia S.A.'s ratings with stable outlook, following the announcement on December 18, 2012 of the acquisition of 40% of the shares of the Panamanian holding company of Grupo Financiero Agromercantil de Guatemala (GFAM, unrated), through its subsidiary Bancolombia Panam� S.A. The following ratings on Bancolombia were affirmed with a stable outlook: D+ standalone bank financial strength rating, Baa2/P-3 and Baa3/P-3 long- and short-term global local and foreign currency deposit ratings, respectively, as well as the bank's Baa2 long-term global local currency senior unsecured debt rating. Bancolombia's standalone D+ bank financial strength rating maps to a baa3 standalone credit assessment. Bancolombia's Baa3 long term foreign currency subordinated debt rating remains on review for downgrade. LIST OF AFFECTED RATINGS The following ratings were affirmed with stable outlook: - Bank financial strength rating of D+ - Long-term global local currency deposits of Baa2 - Short-term global local currency deposits of P-3 - Long-term foreign currency deposits of Baa3 - Short-term foreign currency deposits of P-3 - Long-term global local currency senior unsecured debt rating of Baa2 The following rating remains on review for downgrade: - Long-term foreign currency subordinated debt rating of Baa3 Ratings Rationale In affirming Bancolombia's ratings Moody's mentioned that the announced acquisition of a minority 40% shareholding in Grupo Financiero Agromercantil de Guatemala, has a limited effect on the bank's capitalization levels, although it enhances its business franchise in Central America. GFAM is the holding company of Banco Agromercantil de Guatemala, S.A., the fourth largest bank in that country, and of Mercom, a Barbados-based offshore bank. Through its agreement with GFAM, Bancolombia will be able to gradually increase its shareholdings to 75% over a seven year period, which will consolidate the bank's franchise in Central America's largest economy. Bancolombia is expected to pay US$216 million in cash for the 40% stake, which is small relative to the bank's consolidated cash and cash equivalent position of US$3.5 billion, as of September 2012. GFAM is also small relative to Bancolombia's size, representing a modest 4% of loans and 5% of deposits as of September 2012. Moody's noted that Bancolombia already has an important presence in Central America and in the so- called "northern triangle" formed by Guatemala, El Salvador and Honduras as a result of its 2007 acquisition of El Salvador's largest bank, Banco Agricola de El Salvador, S.A. (BanAgricola, unrated). It operates in the Guatemalan credit markets through BanAgricola and a representative office. The bank is nevertheless challenged by strong competition by local powerhouses such as Banco Industrial, S.A. (Baa3, stable) and Banco G&T Continental, S. A. (unrated), which as of September 30, 2012 represented 43% and 45% of loans and deposits in Guatemala, respectively. Moody's will continue to monitor Bancolombia's expansion strategy in the region, and its effects on capitalization, asset quality, and controls, while the rating agency acknowledges management's success in integrating BanAgricola. The principal methodology used in this bank's ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. The date of the last Credit Rating Action on Bancolombia's was on November 27, 2012, when Moody's reviewed the subordinated debt ratings of certain Latin American bank issuers for downgrade. Bancolombia is headquartered in Medellin, Antioquia and is the largest bank in Colombia with total consolidated assets of US$51.8 billion as of September 30, 2012. GFAM is headquartered in Guatemala City, Guatemala with total consolidated assets of US$2.3 billion, as of September 30, 2012. =========== M E X I C O =========== VENETO BANCA: S&P Lowers Counterparty Credit Ratings to 'BB+/B' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long- and short- term counterparty ratings on Italy-based Veneto Banca to 'BB+/B' from 'BBB-/A-3'. "We also lowered our issue rating on Veneto Banca's non-deferrable subordinated debt to 'BB-' from 'BB+' and on its Tier 1 preference securities to 'B' from 'BB-'. We removed all ratings from CreditWatch where they were placed with negative implications on Aug. 5, 2012. The outlook on the long-term rating on Veneto Banca is negative," S&P said. "The downgrade reflects our view that Veneto Banca's capital strengthening actions will likely not be sufficient to fully absorb the negative impact of the increased economic risk we see in Italy on Veneto Banca's future earnings and asset quality. We no longer anticipate that Veneto Banca's risk-adjusted capital (RAC) ratio, Standard & Poor's measure of capital, would strengthen to a level comfortably above 7% over 2013-2014, from the 5.3% we calculated at year-end 2011 (pro forma for increased economic risk in Italy). As a result, we have revised our assessment of Veneto Banca's capital and earning position to 'moderate' from 'adequate.' We have consequently revised down our assessment of Veneto Banca's stand-alone credit profile (SACP) to 'bb+' from 'bbb-', which in turn lead us to lower our ratings on Veneto Banca to 'BB+/B' from 'BBB-/A-3'," S&P said. "Our forecast of Veneto Banca's RAC ratio incorporates our view that shareholder contributions will continue and that Veneto Banca's risk weighted assets, calculated under Standard & Poor's methodology, will likely decrease in 2013. Veneto Banca has recently issued EUR350 million worth of convertible bonds. According to the published terms, Veneto Banca has the option of converting them into Veneto Banca shares from March 2014. In accordance with Standard & Poor's bank capital criteria, we do not give credit to convertible bonds whose conversion is not mandatory within a given period of time in our total adjusted capital (the numerator of the RAC)," S&P said. "In our opinion, Veneto Banca's core earnings capacity will remain modest in the current economic environment, as a result of low interest rates, weak volume growth, a still high cost base, and potentially rising credit losses. In addition, we consider the quality of Veneto Banca's capital as modest, taking into account the high share of deferred tax assets related to goodwill and provisions, and hybrids we incorporate in our forecast total adjusted capital," S&P said. "The negative outlook on the long-term rating on Veneto Banca reflects the possibility that we could lower the ratings if we were to lower our ratings on the Republic of Italy (unsolicited BBB+/Negative/A-2), and we anticipated that deteriorating economic and banking industry conditions in Italy could affect Veneto Banca's asset quality, capital, and earnings more than we currently factor into the rating," S&P said. "A deterioration of the SACP while the sovereign long-term ratings on Italy remained at 'BBB+' would not necessarily trigger a downgrade because such a deterioration might be cushioned by government support according to our criteria," S&P said. "Under our baseline expectations, we still expect the RAC ratio for Veneto Banca to remain comfortably above 5% over the next two years, including shareholder contributions. We expect Veneto Banca's asset quality will continue to deteriorate in 2013, in line with its main peers, although less than in 2012. We expect Veneto Banca's credit losses to remain close to our forecast Italian domestic average, at 95-100 basis points (bps) in 2012 and 2013, while maintaining relatively stable loan loss coverage. In addition, our rating factors in our view that Veneto Banca will maintain an average funding position and adequate liquidity, including a reduction on central bank and other short-term funding sources in the medium term. We think that Veneto Banca will benefit from its deep retail customer base and continue to further reduce its 129% loan-to-retail funding ratio over the next two years, as occurred in 2011 and 2012," S&P said. "We could lower the ratings if we anticipate that Veneto Banca's RAC ratio will not remain sustainably above 5% over the next 24 months, namely if the capital strengthening actions don't materialize or as a result of worsening economic risk we see in Italy. We could also lower the ratings if we anticipate that Veneto Banca's net inflows of NPAs and credit losses will exceed our current expectations," S&P said. "We could revise the outlook to stable if we anticipated an improvement in economic and operating conditions for the Italian banking system, a strengthening of Veneto Banca's capital and earning position, and a pronounced easing of asset quality deterioration," S&P said. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Former Exec Takes Airline to Court ------------------------------------------------------ Jamaica Observer reports that Caribbean Airlines is now being prosecuted in the Corporate Area Resident Magistrate's Court for failure to comply with an Industrial Disputes Tribunal (IDT) ruling to reinstate a former vice-president. The action has been brought against the regional airline by Nerine Small, former vice-president of legal affairs and corporate secretary, in the Corporate Area Resident Magistrate's Court where the parties are expected to reappear on Feb. 7, 2013, according to Jamaica Observer. The report relates that Caribbean Airlines faces a fine of $500,000 should a ruling be made against it and a further $20,000 for each day that the breach of the IDT's ruling has occurred. Jamaica Observer, citing court documents, notes that Caribbean Airlines "has failed to carry out an order of the Industrial Disputes Tribunal on July 31, 2012... that Nerine Small be reinstated in her job effective July 1, 2011 with payment of full normal wages". Ms. Small started working with Air Jamaica from 2002 as associate general counsel. She was made general counsel in 2006. In April 2010, Caribbean Airlines took over Air Jamaica and in May of that year she was made vice-president of legal affairs and corporate secretary. Ms. Small, the report notes, was let go the following year, according to her statement filed in the magistrate's court. Small, who is represented by Georgia Gibson-Henlin of the law firm Henlin Gibson Henlin, took the matter to the IDT, which made its reinstatement order in July 2012. Mr. Small, the report relays, said that her attorney wrote to Caribbean Airlines on August 10 about the ruling. The airline, Ms. Small said, responded three days later, saying that it would comply with the order, the report says. However, Ms. Small said on August 15 she was informed via letter from Caribbean Airlines that her position had been made redundant. Regarding this development, Ms. Small is contending that Caribbean Airlines did not follow the proper procedures, the report 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. * TRINIDAD & TOBAGO: IDB OKs $246.5MM to Improve Environment ------------------------------------------------------------ The Inter-American Development Bank (IDB) has approved a $246.5 million loan to finance the first phase of a $546.5 million, three-phase program aimed at improving Trinidad and Tobago's environmental conditions by reducing uncontrolled discharge of untreated wastewater. Phase I will focus on the construction of two wastewater treatment plants (WWTPs), in San Fernando and Malabar catchments respectively, and their attendant trunk sewers, as well as on the institutional strengthening of the Water and Sewage Authority (WASA) through personnel training and implementation of key actions to improve commercial management services and corporate governance. Planned works during this five-year-stage will include construction of 26 km of sewerage network. Through these activities, the Malabar and San Fernando population currently served in the two catchments will be covered by the new WWTP systems. Additionally, 90 percent of the wastewater treated by the WWTPs will be meeting water pollution norms and have a zero or positive net impact on downstream water quality. "The institutional and policy reforms will allow WASA to modernize its institutional and corporate governance and operate under a more sustainable financial arrangement, as well as to adjust from operating many small and medium size wastewater treatment plants to running a smaller number of significantly larger units," Project Team Leader Evan Cayetano said. Phase II - to be supported by a $100 million IDB loan - will continue institutional strengthening efforts and integrate the sewerage network for connection to the new WWTPs. Phase III - ith $200 million in lending - will expand the wastewater collection system to cover the population in catchment areas that are currently using septic tanks and other individual sanitation solutions to treat wastewater. The $246.5 million IDB loan is for a 25-year term, including a 5- 1/2 year grace period, with a variable interest rate base based on LIBOR. =============== 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 * * *