/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130130.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, January 30, 2013, Vol. 14, No. 20 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: U.S. Judge's Order Prompts Clawback Discussions A R G E N T I N A GPAT COMPANIA: Moody's Corrects January 22 Rating Release * ARGENTINA: Faces Negative Outlook, Likely Downgrade, Fitch Says B E R M U D A ECONERGY BERMUDA: Creditors' Proofs of Debt Due Feb. 1 ECONERGY BERMUDA: Members' Final Meeting Set for Feb. 25 ECONERGY BOLIVIA: Creditors' Proofs of Debt Due Feb. 1 ECONERGY BOLIVIA: Members' Final Meeting Set for Feb. 22 ECONERGY BOLIVIA NO.2: Creditors' Proofs of Debt Due Feb. 1 ECONERGY BOLIVIA NO.2: Members' Final Meeting Set for Feb. 22 HOME RE 2005-2: Creditors' Proofs of Debt Due Feb. 1 HOME RE 2005-2: Member to Receive Wind-Up Report on Feb. 22 JACANA FUND: Creditors' Proofs of Debt Due Feb. 1 MAN MAC: Creditors' Proofs of Debt Due Feb. 1 MAN MAC: Member to Receive Wind-Up Report on Feb. 22 MAPELEY (2): Court Appoints Smith & Bowers as Liquidators MAPELEY (3): Court Appoints Smith & Bowers as Liquidators MAPELEY (4): Court Appoints Smith & Bowers as Liquidators MAPELEY (5): Court Appoints Smith & Bowers as Liquidators MAPELEY (6): Court Appoints Smith & Bowers as Liquidators MAPELEY (7): Court Appoints Smith & Bowers as Liquidators MAPELEY ACQUISITION: Court Appoints Smith & Bowers as Liquidators MOONDANCE HOLDINGS: Creditors' Proofs of Debt Due Feb. 1 MOONDANCE HOLDINGS: Members' Final Meeting Set for Feb. 22 B R A Z I L ESAL GMBH: Fitch Assigns 'BB-' Rating to Proposed Sr. Notes Offer ESAL GMBH: S&P Assigns 'BB' Rating on 10-Yr. Sr. Unsecured Notes C A Y M A N I S L A N D S ARISTARC ABSOLUTE: Shareholders Receive Wind-Up Report ARISTARC ABSOLUTE MASTER: Shareholders Receive Wind-Up Report BABSON CLO: Shareholders Receive Wind-Up Report BARCLAYS WEALTH: Shareholders Receive Wind-Up Report CC ASIA: Shareholders Receive Wind-Up Report CRIMSON: Shareholders Receive Wind-Up Report DESTINATION EME: Shareholders Receive Wind-Up Report FMIM LONG: Members Receive Wind-Up Report GCPF CAYMAN: Shareholders Receive Wind-Up Report LANGFOSS CAPITAL: Shareholder Receives Wind-Up Report MAXQ FIXED: Shareholders Receive Wind-Up Report MAXQ FIXED MASTER: Shareholders Receive Wind-Up Report NORTHERN WALLEYE: Shareholders Receive Wind-Up Report PACIFIC LEASING: Shareholder Receives Wind-Up Report QUILMES BANK: Members Receive Wind-Up Report RAMIUS OPPORTUNISTIC: Shareholders Receive Wind-Up Report SIRIUS INTERNATIONAL: Shareholders Receive Wind-Up Report VERDANT ASIA: Shareholders Receive Wind-Up Report VERDANT ASIA FUND: Shareholders Receive Wind-Up Report J A M A I C A DYOLL GROUP: To Receive Final Payout JAMAICA DIVERSIFIED: Fitch Affirms 'BB' Ratings on Two Notes RBC JAMAICA: Union Objects to Plans to Close Four Branches M E X I C O HIPOTECARIA SU CASITA: S&P Lowers Rating on 2 RMBS Classes to 'D' * MEXICO: Fitch Keeps Stable Outlook for Insurance Industry P U E R T O R I C O SEARS HOLDINGS: Terminates Registration of Kmart Plan TRANSCARIBE FREIGHT: Case Summary & 6 Largest Unsecured Creditors V E N E Z U E L A * VENEZUELA: Economic Downturn to Affect Growth, Fitch Says - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: U.S. Judge's Order Prompts Clawback Discussions --------------------------------------------------------------- According to Michael A. Hackard of Hackard Law, a Professional Law Corporation, U.S. District Judge David Godbey's 32-page Order allowing the Receiver in the R. Allen Stanford Receivership Estate to "clawback," or recover, all back interest payments paid to Stanford investors is a worthy read as a remedial lesson in the character of Ponzi-based clawback actions. Court-appointed receivers often file lawsuits or clawback actions against investors who were "Net Winners" in Ponzi schemes. Net Winners are those investors who received payments in excess of their principal investment. Judge Godbey's ultimate decision reinforced "the general rule that investors may keep principal payments but must return interest payments." The Court noted that the "investor has a claim for fraud or restitution for the principal he or she was fraudulently induced to lend." The Court acknowledged that "in at least some circumstances, the Receiver would like to recoup the Net Winners' principal as well. That argument is for another day . . ." At a time when adversary actions against duped Ponzi investors are being brought with great frequency by court-appointed receivers, it's beneficial to revisit the nature of many of these actions that dot the national legal landscape. Ordinary citizens, not schooled in the particularities of clawback litigation, often recite that all Ponzi investors who received less than promised have been defrauded. Cases like that decided by Judge Godbey note or allude to the more definitive fundamentals that separate Ponzi victims. Net Losers are Ponzi victims who did not receive all of their principal investment back. Judge Godbey acknowledged that the Stanford Receiver would "at least in some circumstances" like to recoup the Net Winners' principal as well. It's worthwhile to separate Net Winner cases from Net Loser cases. Net Winners, like those in the Stanford receivership, have received something in excess of their principal invested. Net Losers have received something less than their principal invested. Simple actions against Net Winners do not carry the same burdens as those against Net Losers. Net Winners have no legitimate claim to interest in Ponzi scheme cases while Net Losers do have legitimate claims to investment principal. This fundamental divide has resulted in emotionally charged and spirited defenses asserted by Net Losers against ambitious Receivers. Opinions like Judge Godbey's Order make possible a broader discussion into the nature of adversary actions against defrauded Ponzi investors. Hackard Law, a Professional Law Corporation, focuses on transactional and litigation matters. Michael A. Hackard is the principal attorney of Hackard Law, a Northern California law firm which represents families with extensive business interests as well as clients impoverished by the wrongdoing of others. For information about Hackard Law's work in representing adversary defendants in bankruptcy matters, please visit: http://www.ponziclawbacks.com/ About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On Feb. 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. ================= A R G E N T I N A ================= GPAT COMPANIA: Moody's Corrects January 22 Rating Release --------------------------------------------------------- Moody's Investors Service issued a correction to the January 22, 2013 rating release of GPAT Compania Financiera Argentina S.A. Moody's assigned a B1 local currency corporate family rating (CFR) to GPAT. The rating was assigned with a negative outlook, in line with the negative outlook on its parent's ratings. The following rating was assigned to GPAT Compania Financiera Argentina S.A. (GPAT): Long term local currency corporate family rating of B1, negative outlook RATINGS RATIONALE The assignment of the corporate family rating follows the implementation of Moody's revised global rating methodology for finance companies, which establishes the key operational, financial and environmental factors Moody's considers when rating this type of company. The CFR incorporates the standalone credit profile of a finance company as well as any parental or affiliate support. Moody's has assigned a CFR of B1 to GPAT, which is equal to the company's B1 long term global local currency issuer rating. The B1 CFR is based on a b3 standalone credit assessment that receives two notches of uplift as a result of Moody's assumption of a high probability of support from its parent, Banco Patagonia (rated Ba3). The negative outlook reflects the negative outlook on the parent's ratings which in turn reflects the negative outlook on Moody's ratings for the Argentine sovereign. In contrast to a finance company's issuer ratings, which represent Moody's opinion of credit risk equivalent to the companies' senior unsecured debt obligations, the CFRs represent the rating agency's opinion of a company's consolidated credit risk, equivalent to the weighted average of all debt classes within the company's capital structure. Using the CFR as a reference point, the methodology codifies Moodys' framework for assigning ratings to the various classes of debt issued by non-investment grade finance companies on the basis of expected differences in loss given default. This framework considers the proportionality, seniority and level of asset protection associated with various debt classes, both nominally and in relation to each other. GPAT's CFR is equal to its issuer rating as it reflects the predominance of senior unsecured obligations in the company's debt structure. GPAT Compania Financiera Argentina S.A. is headquartered in Buenos Aires, Argentina, and reported total assets of Ar$1.483 million and equity of Ar$294 million as of September 30, 2012. * ARGENTINA: Faces Negative Outlook, Likely Downgrade, Fitch Says ----------------------------------------------------------------- The outlook for Southern Cone Banks is mixed in 2013, with a stable outlook for Chile and Uruguay, while Argentina faces a negative outlook and the potential for downgrades, according to a new Fitch Ratings report. "Fitch does not anticipate any rating changes for Chilean banks given low credit risk and adequate capitalization and liquidity ratios. No change is expected for banks in Uruguay unless the sovereign, Rating Outlook currently Positive, is upgraded," said Santiago Gallo, Director, in Fitch's Latin America group. "The ratings of many Argentine financial institutions were recently downgraded in line with the sovereign downgrade and any further downgrade of the latter will likely impact the ratings of many banks. In addition, the solid asset quality and profitability ratios of Argentine banks may deteriorate due to sluggish economic growth, higher inflation and greater macroeconomic volatility - creating the possibility of further downgrades in 2013," said Maria Fernanda Lopez, Senior Director, in Fitch's Latin America group. Chilean bank profitability will remain under pressure in 2013. While loan growth will continue to be strong, bank operating revenues will be undermined by stable interest and inflation rates and new regulations tending to limit some interest rates and fees and lower operating revenues. Additionally, the cost of funding is expected to increase due to greater competition among banks for structural deposits, particularly retail. Fitch expects Uruguayan banks' profitability to remain moderate in the medium term. Increased profitability depends on private sector credit growth, and expanded recurring operating revenues via higher commissions and service fees to reduce vulnerability to exchange rate volatility and inflation adjustments. The Argentine government has recently imposed a number of controls and new regulations that limit activities in the financial sector, which reduce banks' ability to adjust to changes in the operating environment. Profitability may come under pressure due to the slowdown in credit growth, lower yields on government securities, higher inflation-related expenses, greater loan loss provisions and a possible hike in the cost of funding as a result of increased macroeconomic volatility. Fitch will be hosting a conference call in English and Spanish to discuss the 2013 Latin America banking outlooks. ============= B E R M U D A ============= ECONERGY BERMUDA: Creditors' Proofs of Debt Due Feb. 1 ------------------------------------------------------ The creditors of Econergy Bermuda Holding Company Ltd. are required to file their proofs of debt by Feb. 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 16, 2013. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda ECONERGY BERMUDA: Members' Final Meeting Set for Feb. 25 -------------------------------------------------------- The members of Econergy Bermuda Holding Company Ltd. will hold their final meeting on Feb. 25, 2013, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda ECONERGY BOLIVIA: Creditors' Proofs of Debt Due Feb. 1 ------------------------------------------------------ The creditors of Econergy Bolivia Investments No. 1 Ltd. are required to file their proofs of debt by Feb. 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 16, 2013. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda ECONERGY BOLIVIA: Members' Final Meeting Set for Feb. 22 -------------------------------------------------------- The members of Econergy Bolivia Investments No. 1 Ltd. will hold their final meeting on Feb. 22, 2013, at 10:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda ECONERGY BOLIVIA NO.2: Creditors' Proofs of Debt Due Feb. 1 ----------------------------------------------------------- The creditors of Econergy Bolivia Investments No. 2 Ltd. are required to file their proofs of debt by Feb. 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 16, 2013. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda ECONERGY BOLIVIA NO.2: Members' Final Meeting Set for Feb. 22 ------------------------------------------------------------- The members of Econergy Bolivia Investments No. 2 Ltd. will hold their final meeting on Feb. 22, 2013, 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 2 Church Street, Hamilton HM 11 Bermuda HOME RE 2005-2: Creditors' Proofs of Debt Due Feb. 1 ---------------------------------------------------- The creditors of Home Re 2005-2 Limited are required to file their proofs of debt by Feb. 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 16, 2013. The company's liquidator is: John C. McKenna Finance & Risk Services Ltd. Suite 502, 26 Bermudiana Road Hamilton HM 11 Bermuda HOME RE 2005-2: Member to Receive Wind-Up Report on Feb. 22 ----------------------------------------------------------- The member of Home Re 2005-2 Limited will receive on Feb. 22, 2013, at 9:30 a.m., the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: John C. McKenna Finance & Risk Services Ltd. Suite 502, 26 Bermudiana Road Hamilton HM 11 Bermuda JACANA FUND: Creditors' Proofs of Debt Due Feb. 1 ------------------------------------------------- The creditors of Jacana Fund Management Ltd. are required to file their proofs of debt by Feb. 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 28, 2012. The company's liquidator is: Christopher C. Morris Century House, 16 Par-la-Ville Road Hamilton Bermuda MAN MAC: Creditors' Proofs of Debt Due Feb. 1 --------------------------------------------- The creditors of Man MAC Gemsstock 9B Limited are required to file their proofs of debt by Feb. 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 15, 2013. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9 Bermuda MAN MAC: Member to Receive Wind-Up Report on Feb. 22 ---------------------------------------------------- The member of Man MAC Gemsstock 9B Limited will receive on Feb. 22, 2013, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9 Bermuda MAPELEY (2): Court Appoints Smith & Bowers as Liquidators --------------------------------------------------------- On Jan. 11, 2013, the Supreme Court of Bermuda appointed Mark W R Smith of Deloitte & Touche Bermuda and Phil Bowers of Deloitte LLP (UK) as joint and several provisional liquidators of Mapeley Acquisition Co (2) Limited. MAPELEY (3): Court Appoints Smith & Bowers as Liquidators --------------------------------------------------------- On Jan. 11, 2013, the Supreme Court of Bermuda appointed Mark W R Smith of Deloitte & Touche Bermuda and Phil Bowers of Deloitte LLP (UK) as joint and several provisional liquidators of Mapeley Acquisition Co (3) Limited. MAPELEY (4): Court Appoints Smith & Bowers as Liquidators --------------------------------------------------------- On Jan. 11, 2013, the Supreme Court of Bermuda appointed Mark W R Smith of Deloitte & Touche Bermuda and Phil Bowers of Deloitte LLP (UK) as joint and several provisional liquidators of Mapeley Acquisition Co (4) Limited. MAPELEY (5): Court Appoints Smith & Bowers as Liquidators --------------------------------------------------------- On Jan. 11, 2013, the Supreme Court of Bermuda appointed Mark W R Smith of Deloitte & Touche Bermuda and Phil Bowers of Deloitte LLP (UK) as joint and several provisional liquidators of Mapeley Acquisition Co (5) Limited. MAPELEY (6): Court Appoints Smith & Bowers as Liquidators --------------------------------------------------------- On Jan. 11, 2013, the Supreme Court of Bermuda appointed Mark W R Smith of Deloitte & Touche Bermuda and Phil Bowers of Deloitte LLP (UK) as joint and several provisional liquidators of Mapeley Acquisition Co (6) Limited. MAPELEY (7): Court Appoints Smith & Bowers as Liquidators --------------------------------------------------------- On Jan. 11, 2013, the Supreme Court of Bermuda appointed Mark W R Smith of Deloitte & Touche Bermuda and Phil Bowers of Deloitte LLP (UK) as joint and several provisional liquidators of Mapeley Acquisition Co (7) Limited. MAPELEY ACQUISITION: Court Appoints Smith & Bowers as Liquidators ----------------------------------------------------------------- On Jan. 11, 2013, the Supreme Court of Bermuda appointed Mark W R Smith of Deloitte & Touche Bermuda and Phil Bowers of Deloitte LLP (UK) as joint and several provisional liquidators of Mapeley Acquisition Co (Hercules) Limited. MOONDANCE HOLDINGS: Creditors' Proofs of Debt Due Feb. 1 -------------------------------------------------------- The creditors of Moondance Holdings Limited are required to file their proofs of debt by Feb. 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 16, 2013. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda MOONDANCE HOLDINGS: Members' Final Meeting Set for Feb. 22 ---------------------------------------------------------- The members of Moondance Holdings Limited will hold their final meeting on Feb. 22, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robin J. Mayor Clarendon House 2 Church Street, Hamilton HM 11 Bermuda =========== B R A Z I L =========== ESAL GMBH: Fitch Assigns 'BB-' Rating to Proposed Sr. Notes Offer ----------------------------------------------------------------- Fitch Ratings has assigned an expected rating of 'BB-' to a proposed benchmark size senior unsecured notes offering of a JBS S.A. subsidiary. The notes, which will be due in 2023, are being issued by ESAL GmbH, a wholly owned subsidiary of JBS based in Austria. These notes will be unconditionally guaranteed by JBS and JBS Hungary Holdings Kft. The proceeds are expected to be used to refinance shorter maturity indebtedness and for general corporate purposes. A complete list of Fitch's ratings of JBS is provided at the end of this release. The 'BB-' rating takes into consideration JBS's strong business profile as the world's largest beef and leather producer and one of the largest producers of chicken and lamb. Further factored into JBS' ratings are the company's geographic and product diversity, which partially mitigates the risks of trade barriers and animal diseases. JBS has high leverage and its risk profile is above average due to cyclical risks associated with the meat business and the company's aggressive attitude toward growth through acquisitions. While its business profile benefits from the improved diversification through past acquisitions, the risk of additional acquisitions in the medium term remains above average. SENSITIVITY/RATING DRIVERS: The Rating Outlook for JBS and its rated subsidiaries is Negative. A revision of the Outlook to Stable could be triggered by a number of factors that include financial improvements above Fitch's expectations, given the current operating environment, and/or sufficient capital injections to meaningfully reduce debt. A downgrade could be precipitated by the additional weakening or a lack of an improvement in the company's financial performance and leverage metrics. Continued negative free cash flow (defined as cash flow from operations less capital expenditures and dividends) beyond current expectations could also result in negative rating actions. A downgrade of JBS's corporate rating would trigger the downgrade of the rating of the proposed bonds. High Leverage and Negative FCF Despite Recent Operating Improvement: Fitch considers net debt-to-operating EBITDA in the 3.0 times (x) range to be the normalized leverage ratio for the 'BB-' rating category for companies in the protein industry, which face volatile and cyclical operating earnings. For the last 12 months (LTM) ended Sept. 30, 2012, JBS' net leverage ratio stood at 3.7x, which is high for the rating category. Generating positive free cash flow (FCF) and meaningfully reducing leverage within the next 12-18 months remain the largest challenge for the company. Main concerns in 2013 are cattle availability and oversupply of pork in the U.S. Possible grain price shocks could also pressure costs and profitability, which would hurt the company's ability to deleverage. Positively, a competitor has recently closed a large beef processing facility in Texas, which should help improve cattle availability. JBS' operating profit and cash flow improved in the third quarter of 2012, in line with Fitch's expectations. Cash Flow from operations (CFFO) improved to BRL624 million for the LTM ending Sept. 30, 2012, as compared to BRL464 million in 2011. Negative FCF of BRL748 million during the LTM continued to reflect high capital expenditures of BRL1.4 billion. Net revenues have been on an upwards trend in the past five years, fueled by acquisitions and capital investments. EBITDA margins remain at the low level of 4% to 7%, which is typical for the industry. For the LTM ending Sept. 30, 2012, net revenues of BRL71 billion and EBITDA of BRL4.1 billion resulted in an EBITDA margin of 5.8%. Adequate Liquidity, Reliance on External Financing JBS has an adequate liquidity position and a manageable 2013 debt maturity schedule, both of which will be improved with the current offering. As of Sept. 30, 2012, cash and marketable securities of BRL5 billion covered 0.9x of short-term debt of BRL5.5 billion. As a mitigating factor, about 65% of short-term debt corresponds to trade finance lines that support export activity. The company also needs to maintain about 10% of EBITDA to support its working capital, which was about BRL400 million for the LTM ending Sept. 30, 2012. Considering these two adjustments, short-term maturities of long-term debt were covered more than 2.0x by available cash. In addition, the company's JBS USA division has about USD699 million available under its asset-based loan (ABL) facility and PPC has about USD573.6 million available under a separate facility. JBS's maturity schedule for 2014 is heavy with close to BRL4 billion of debt coming due. Fitch projects that JBS's FCF generation will be neutral to negative in 2013, which will continue to make the company dependent upon external financing to address its 2014 maturities. Solid Business Profile: JBS' credit ratings are supported by a strong business position in the world production of beef, lamb and chicken. The company benefits from geographic and product diversity, which mitigate risks related to disease, the imposition of sanitary restrictions by governments, market concentrations, as well as tariffs or quotas applied regionally by some importing blocs or countries. JBS has plants in 12 Brazilian states and is the most geographically diversified player within this industry in Brazil, as it has operations in the U.S., Mexico, Argentina, Paraguay, Uruguay, Italy, and Australia. The company is domiciled in Brazil and has a significant footprint in the U.S., with about 66% of its revenues coming from that region, per Fitch's estimates. Above-Average Industry Risk and Acquisition Profile: The protein industry is volatile and exposed to fluctuations in commodity prices by nature. The company's aggressive attitude toward growth through acquisitions amplifies that risk. While its business profile benefits from improved diversification through past acquisitions, the risk of additional acquisitions remains. Equity Financing: The credit benefits from the implicit support of the Brazilian development bank's investment arm (BNDESPar), which directly and indirectly holds 23% after it transferred 10.1% in January 2013. The founding family indirectly controls 44% of JBS's shares. The company's ability to finance part of its expansion with equity benefited its capital structure, avoiding peaks in leverage. Fitch currently rates JBS as follows: JBS S.A.: --Foreign and local currency Issuer Default Rating (IDR) at 'BB-'; --Notes due 2016 at 'BB-'; --National scale rating at 'A-(bra)'. JBS USA LLC: --Foreign and local currency IDR at 'BB-'; --Term loan B facility due in 2018 at 'BB'. JBS USA Finance, Inc: --Foreign and local currency IDR at 'BB-'. JBS USA jointly with JBS USA Finance: --Notes due 2014 at 'BB-'; --Bonds due 2020 at 'BB-'; --Notes due 2021 at 'BB-'. JBS Finance II Ltd: --Foreign and local currency IDR at 'BB-'; --Notes due 2018 at 'BB-'. The Rating Outlook for JBS S.A., JBS USA LLC, JBS USA Finance Inc. and JBS Finance II Ltd is Negative. ESAL GMBH: S&P Assigns 'BB' Rating on 10-Yr. Sr. Unsecured Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' rating to ESAL GmbH's planned 10-year senior unsecured notes. The rating on the issue reflects the credit quality of ESAL's parent company, JBS S.A. (JBS; BB/Stable/--), as JBS and its wholly-owned subsidiary, JBS Hungary Holdings Kft (the holding company of JBS USA, LLC) unconditionally guarantee the notes. "We expect JBS to use the proceeds primarily to refinance part of its sizable short-term debt (R$5.3 billion as of Sept. 30, 2012) as it matures. The majority of its short-term debt consists of export finance operations. JBS has consistently negotiated favorable interest rates upon refinancing its short-term debt. The successful notes issuance will help to smooth debt amortization and extend maturities. RATINGS LIST JBS S.A. Corporate Credit Rating BB/Stable/-- Rating Assigned ESAL GMBH 10-year Sr. Unsec. Notes BB ========================== C A Y M A N I S L A N D S ========================== ARISTARC ABSOLUTE: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Aristarc Absolute Return Fund Ltd. received on Dec. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alric Lindsay Telephone: 345-926-1688 PO Box 11371, George Town Grand Cayman KY1-1008 Cayman Islands ARISTARC ABSOLUTE MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------------- The shareholders of Aristarc Absolute Return Master Fund Ltd. received on Dec. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alric Lindsay Telephone: 345-926-1688 PO Box 11371, George Town Grand Cayman KY1-1008 Cayman Islands BABSON CLO: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Babson CLO Ltd. 2003-I received on Dec. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 BARCLAYS WEALTH: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Barclays Wealth Advisor Series-International Core Equity Ltd. received on Dec. 10, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 CC ASIA: Shareholders Receive Wind-Up Report -------------------------------------------- The shareholders of CC Asia Advantage Fund Limited received on Dec. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Gene DaCosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 PO Box 2681 Grand Cayman KY1-1111 Cayman Islands CRIMSON: Shareholders Receive Wind-Up Report -------------------------------------------- The shareholders of Crimson received on Nov. 19, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Brendan Lowell Bibro Apt 2, 333 Lehigh Avenue Pittsburg PA 15232, USA DESTINATION EME: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Destination EME Fund received on Dec. 12, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 FMIM LONG: Members Receive Wind-Up Report ----------------------------------------- The members of FMIM Long Short Equity Relative Value Fund Limited received on Dec. 12, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Krys Global VL Services Limited Governor's Square, Building 6, 2nd Floor 23 Lime Tree Bay Avenue P.O. Box 21237 Grand Cayman KY1-1205 Cayman Islands Telephone: +1 345 947 4700 Facsimile: +1 345 946 6728 GCPF CAYMAN: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of GCPF Cayman Holding 6 Corp. received on Dec. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Russell Smith c/o BDO CRI (Cayman) Ltd Building 3, Governor's Square, 2nd Floor 23 Lime Tree Bay Avenue PO Box 31229 Grand Cayman KY1-1205 Cayman Islands LANGFOSS CAPITAL: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of Langfoss Capital Management Limited received on Dec. 20, 2012, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Edel Andersen Alexander Bullmore c/o Genesis Trust & Corporate Services Ltd. Midtown Plaza, 2nd Floor Elgin Avenue, George Town Grand Cayman Cayman Islands KY1-1106 Telephone: (345) 945 3466 Facsimile: (345) 945 3470 MAXQ FIXED: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of MAXQ Fixed Income Fund Limited received on Dec. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Russell Smith c/o BDO CRI (Cayman) Ltd Building 3, Governor's Square, 2nd Floor 23 Lime Tree Bay Avenue PO Box 31229 Grand Cayman KY1-1205 Cayman Islands MAXQ FIXED MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of MAXQ Fixed Income Master Fund Limited received on Dec. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Russell Smith c/o BDO CRI (Cayman) Ltd Building 3, Governor's Square, 2nd Floor 23 Lime Tree Bay Avenue PO Box 31229 Grand Cayman KY1-1205 Cayman Islands NORTHERN WALLEYE: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Northern Walleye Ltd received on Dec. 21, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman PACIFIC LEASING: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Pacific Leasing Limited received on Dec. 20, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Alexander Bullmore Edel Andersen c/o Genesis Trust & Corporate Services Ltd. Midtown Plaza, 2nd Floor Elgin Avenue, George Town Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 945 3466 Facsimile: (345) 945 3470 QUILMES BANK: Members Receive Wind-Up Report -------------------------------------------- The members of Quilmes Bank and Trust (Cayman) Limited received on Dec. 11, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Russell Smith c/o BDO CRI (Cayman) Ltd Building 3, 2nd Floor, Governor's Square 23 Lime Tree Bay Avenue PO Box 31229 Grand Cayman KY1-1205 Cayman Islands RAMIUS OPPORTUNISTIC: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Ramius Opportunistic Equity FOF Ltd. received on Dec. 14, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ramius Alternative Solutions LLC c/o Sharon Gnessin 599 Lexington Avenue, 19th Floor New York New York 10022 United States of America Telephone: + 1 646 562 1702 SIRIUS INTERNATIONAL: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Sirius International Limited received on Dec. 14, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Simon Conway c/o Aaron Gardner Telephone: (345) 914 8655 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands VERDANT ASIA: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Verdant Asia Fund Management (Cayman) Limited received on Dec. 14, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Felix Law York House, 21st Floor The Landmark 15 Queen's Road Central Hong Kong Telephone: + 852 2878 9115 Facsimile: + 852 2878 9000 VERDANT ASIA FUND: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Verdant Asia Fund received on Dec. 14, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Felix Law York House, 21st Floor The Landmark 15 Queen's Road Central Hong Kong Telephone: + 852 2878 9115 Facsimile: + 852 2878 9000 ============= J A M A I C A ============= DYOLL GROUP: To Receive Final Payout ------------------------------------ RJR News reports that shareholders in the collapsed Dyoll Group are to receive a final dividend payment. The joint liquidators have advised that a payout of $0.40 per share will be disbursed on February 17, according to RJR News. The report relates that NCB Nominees Limited will handle the process. RJR News recalls that Dyoll encountered financial difficulties after its insurance subsidiary collapsed in 2005 due to its inability to honor billions of dollars in claims following Hurricane Ivan. JAMAICA DIVERSIFIED: Fitch Affirms 'BB' Ratings on Two Notes ------------------------------------------------------------ Fitch Ratings has taken these rating actions on the notes issued by Jamaica Diversified Payment Rights Company (National Commercial Bank Jamaica Ltd.): --Series 2006-1 notes due 2013 affirmed at 'BB'; --Series 2007-1 notes due 2015 affirmed at 'BB'. The Rating Outlook is Stable. The transaction is a securitization of existing and future U.S. dollar-denominated diversified payment rights (DPRs) originated by National Commercial Bank Jamaica Ltd. (NCBJ). DPRs refer to electronic payment orders intended for payment to third party beneficiaries via NCBJ, related to trade payments, workers remittances, and foreign direct investment. Upon generation of the payment orders, the trust will have rights to the DPRs through accounts maintained with designated depositary banks (DDBs). SENSITIVITY/RATING DRIVERS The bank's DPR flows increased slightly (3%) in 2012 when compared to 2011 and are above pre-crisis levels. DDB flows have also increased (5%) over 2011. On average, over 97% of all collections currently come via DDB transactions. Coupled with a deleveraging of the program the increased DDB flows have led to higher coverage levels. Quarterly coverage levels for the program during 2012 averaged approximately 76 times (x) maximum quarterly debt service. As of December 2012, current monthly debt service coverage ratio (DSCR) is 145.7x and quarterly DSCR is 95.8x. The current outstanding balance of the debt is approximately $22 million. Series 2006-1 is expected to pay in full in March 2013. Series 2007-1 is expected to mature in June 2015. NCBJ is the largest bank in Jamaica in terms of assets with more than 40% market share of the commercial banking system in recent years. Based on its important position in the Jamaican banking system and its corresponding role in the local economy, the bank has a going concern assessment (GCA) score of 'GC1'. On Jan. 25, 2013 Fitch affirmed NCBJ's foreign currency and local currency Issuer Default Ratings (IDRs) at 'B-' and revised the Outlook to Negative from Stable. The Outlook revisions on NCBJ's IDRs are in line with a similar action that Fitch took on Jamaica's sovereign ratings on Jan. 18, 2013, given the bank's exposure to the government of Jamaica and the potential for a more challenging operating environment. While NCBJ's Outlook was revised to Negative, the DPR program's Outlook remains Stable due to the stable performance of the transaction, high level of coverage, and low level of outstanding future flow debt. According to Fitch's Future Flow Securitization Rating Criteria, NCBJ's GCA of 'GC1' allows for a rating differential of up to six notches. Fitch will continue to monitor the sovereign and bank environments and review the transaction accordingly. RBC JAMAICA: Union Objects to Plans to Close Four Branches ---------------------------------------------------------- RJR News reports that the union representing workers at RBC Jamaica is objecting to a plan to close some of the bank's branches and to make several positions redundant. The Bustamante Industrial Trade Union (BITU) has expressed alarm at news that four branches are to cease operations, despite proposals it put forward to prevent jobs losses, according to RJR News. The report relates that senator Kavan Gayle, BITU president- general, speaking with RJR's Financial Report, disclosed that the union had met with the management of the bank and "expressed our concerns in relation to the impact of the closure, the impact of the staff who may be losing their jobs; the impact as it relates to the staff that remains to carry out the mandate of these branches." Mr. Gayle said the union also expressed concerns about the inconvenience that would be experienced by the customers and clients served by the branches scheduled for closure and made certain recommendations "on how to mitigate against any possible job losses," RJR News discloses. Senator Gayle, the report notes, is questioning the rationale behind the branch closures and RBC's commitment to continue to serve in Jamaica, "because within two or three years, this would have been the second series of closure of branches and these closures of branches has not, as any practice, provided any suitable solution to the problem that the bank might be facing." Senator Gayle said the union will continue to meet with RBC's management in a bid to save the jobs, the report relays. As reported in the Troubled Company Reporter-Latin America on Jan. 29, 2013, Jamaica Observer said that RBC Royal Bank Jamaica (RBCJ) plans to close four branches and lay off 10% of its staff. Over the next three to four months, the bank will close Cross Roads, Linstead, Santa Cruz, and Spanish Town, leaving 13 branches open, according to Jamaica Observer. The report related that after the reorganization, which is part of a two-year plan to return the bank to profitability, RBCJ will have 70 less employees than the approximately 700 currently on its payroll. =========== M E X I C O =========== HIPOTECARIA SU CASITA: S&P Lowers Rating on 2 RMBS Classes to 'D' ----------------------------------------------------------------- Standard & Poor's Rating Services lowered 'D (sf)' from 'CC (sf)' its Standard & Poor's underlying ratings (SPURs) on the senior classes BRHCCB 07U and BRHCCB 07-2U from one Mexican residential mortgage-backed securities (RMBS) transaction issued by Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. (Su Casita) and serviced by Patrimonio S.A. de C.V. S.F.O.L. (Patrimonio). S&P's 'B (sf)' global-scale and 'mxBB+ (sf)' Mexican national-scale ratings on the senior classes BRHCCB 07U and BRHCCB 07-2U, as well as its 'D (sf)' rating on the subordinated class BRHCCB 07-3U, are unchanged. The senior BRHCCB 07U and BRHCCB 07-2U classes were able to pay in full their scheduled debt service on the Jan. 25, 2013, payment date with proceeds from a full financial guarantee insurance policy provided by MBIA Mexico S.A. de C.V. (mxBB+/Negative/--- Mexican national-scale rating and B/Negative/-- insurer financial strength rating), which covered the interest shortfalls on both classes. S&P lowered the SPURs to 'D (sf)' because the interest collections alone would have been insufficient to fully cover these classes' interest payments. Under S&P's criteria, the issue rating on an insured bond reflects the higher of the rating on the bond insurer (monoline) or the SPUR on the security. S&P's SPUR ratings on deals with full bond insurance reflect the stand-alone capacity of an issue to pay debt service without giving effect to the external enhancement, in this case, the bond insurance provided by MBIA Mexico. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LOWERED Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Class Rating Outs. amount Tranche type To From (Mil. UDI) BRHCCB 07U SPUR D (sf) CC(sf) 21.74 BRHCCB 07-2U SPUR D (sf) CC(sf) 425.20 RATINGS UNCHANGED Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Class Outs. amount Tranche type Rating (mil. UDI) BRHCCB 07U Senior B (sf) 21.74 BRHCCB 07U Senior mxBB+ (sf) 21.74 BRHCCB 07-2U Senior B (sf) 425.20 BRHCCB 07-2U Senior mxBB+ (sf) 425.20 BRHCCB 07-3U Sub. D (sf) 64 * MEXICO: Fitch Keeps Stable Outlook for Insurance Industry ----------------------------------------------------------- Fitch Ratings has published a special report on the Mexican insurance industry. Fitch maintains a stable rating outlook for the Mexican insurance industry, which indicates the agency believes most insurer ratings will be affirmed as they are reviewed over the next 12 to 24 months. The Mexican insurance sector experienced recovery in its combined ratio to 101% in September 2012 (an average of 105% in last three years). This was due to solid annual premiums growth (11% in real terms), and a net loss ratio reduction to 69.5% in September 2012 from 72% in September 2011. The net loss ratio reduction was due to tariff increase actions, stabilization of total cost of claims, and the improvement in the claims environment, while catastrophic related losses were mitigated by adequate catastrophic reinsurance and reserves. Industry technical and mathematical reserve coverage reaches historic high levels, as Total Reserves to Net Retained Premium's ratio stood just below 200% in third-quarter 2012 after having exceeded that level for the first time in 2011, reflecting the solid growth of life and catastrophic lines that require large reserve accumulation. An ample amount of accumulated reserves provides the sector a broad base of resources available for investment, which translates into an important financial income contribution (an average of 16% of net earned premiums over the last four years). The significant investment income, allows the industry to offset recurring operating losses and large reserve constitution expenses, and achieve significant levels of profitability (ROE: 20% in September 2012). The industry's solvency is largely explained by the existing measures used by Mexican insurance regulators to evaluate solvency margins, which are based on stringent rules and requirements regarding adequate technical reserve levels, reinsurance protection, and diversified high-quality investments. However, in the Mexican insurance industry, directly held equities make up a large portion of total capital (59% in Sept. 30, 2012), which impacts the sector's liquidity position. Further deterioration of liquidity ratios could negatively impact the industry's outlook. The new insurance law, which was intended to introduce a risk- based capital approach into the sector and has been under review for many years was recently approved by the senate and is now being submitted to the chamber of deputies to be tentatively implemented in 2014. Fitch expects the new regulatory regime to lead to greater capital resources and risk management, and also improve industry's transparency and supervision. However, a return to aggressive pricing policies would have a negative effect on the sector's profitability and could prompt a revision of the outlook to negative. ===================== P U E R T O R I C O ===================== SEARS HOLDINGS: Terminates Registration of Kmart Plan ----------------------------------------------------- The Plan Administrator for Sears Holdings Corporation Administrative Committee has filed a Form 15 with the U.S. Securities and Exchange Commission relating to the termination of registration or suspension of duty to file reports with respect to the Kmart Retirement Savings Plan for Puerto Rico Employees. Effective March 31, 2012, the Kmart Retirement Savings Plan for Puerto Rico Employees merged with and into the Sears Puerto Rico Savings Plan, with the Sears Puerto Rico Savings Plan as the surviving plan. The surviving plan was renamed, on the same date, the Sears Holdings Puerto Rico Savings Plan. As a result of the merger, the Kmart Plan and the interests therein ceased to exist. On July 6, 2007, Sears Holdings filed a registration statement on Form S-8 to register 15,000 shares of common stock of the Company and an indeterminate amount of interests in the Kmart Retirement Savings Plan for Manteno Distribution Center Union Employees and the Kmart Retirement Savings Plan for Puerto Rico Employees. The Company filed a post-effective amendment no. 1 to the Form S-8 prospectus to deregister any remaining Plan Interests and 12,603 shares of Common Stock that remain available for issuance under the Registration Statement. About Sears Hoffman Estates, Illinois-based Sears Holdings Corporation (Nasdaq: SHLD) -- http://www.searsholdings.com/-- operates full- line and specialty retail stores in the United States and Canada. Sears Holdings operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. Sears Holdings also owns a 94% stake in Sears Canada and an 80.1% stake in Orchard Supply Hardware. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has the Country Living collection, which is offered by Sears and Kmart. Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, represented the retailer in its restructuring efforts. The Company's balance sheet showed $16,287,000,000 in assets and $10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for $11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate $55 billion in annual revenues. Kmart completed its merger with Sears on March 24, 2005. The Company's balance sheet at Oct. 27, 2012, showed $21.80 billion in total assets, $17.90 billion in total liabilities and $3.90 billion in total equity. Negative Outlook Standard & Poor's Ratings Services in January 2012 lowered its corporate credit rating on Hoffman Estates, Ill.-based Sears Holdings Corp. to 'CCC+' from 'B'. "We removed the rating from CreditWatch, where we had placed it with negative implications on Dec. 28, 2011. We are also lowering the short-term and commercial paper rating to 'C' from 'B-2'. The rating outlook is negative," S&P said. "The corporate credit rating reflects our projection that Sears' EBITDA will be negative in 2012, given our expectations for continued sales and margin pressure," said Standard & Poor's credit analyst Ana Lai. She added, "We further expect that liquidity could be constrained in 2013 absent a turnaround or substantial asset sales to fund operating losses." Moody's Investors Service in January 2012 lowered Sears Holdings Family and Probability of Default Ratings to B3 from B1. The outlook remains negative. At the same time, Moody's affirmed Sears' Speculative Grade Liquidity Rating at SGL-2. The rating action reflects Moody's expectations that Sears will report a significant operating loss in fiscal 2011. Moody's added that the rating action also reflects the company's persistent negative trends in sales, which continue to significantly underperform peers. As reported by the Troubled Company Reporter on Dec. 7, 2012, Fitch Ratings has affirmed its long-term Issuer Default Ratings (IDR) on Sears Holdings Corporation (Holdings) and its various subsidiary entities (collectively, Sears) at 'CCC' citing that The magnitude of Sears' decline in profitability and lack of visibility to turn operations around remains a major concern. TRANSCARIBE FREIGHT: Case Summary & 6 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Transcaribe Freight Corp. P.O. Box 3679 Carolina, PR 00984-3679 Bankruptcy Case No.: 13-00464 Chapter 11 Petition Date: January 23, 2013 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Gloria M. Justiniano Irizarry, Esq. JUSTINIANO'S LAW OFFICE Ensanche Martinez 8 Dr. A Ramirez Silva Mayaguez, PR 00680-4714 Tel: (787) 831-2577 Fax: (787) 805-7350 E-mail: gloriae55amg@yahoo.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its six largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/prb13-00464.pdf The petition was signed by Ramon A. Negron, vice-president & treasurer. ================= V E N E Z U E L A ================= * VENEZUELA: Economic Downturn to Affect Growth, Fitch Says ----------------------------------------------------------- Fitch Ratings publishes the 2013 Outlook for the Insurance Andean Region. The insurance industry in the Andean region has a stable outlook for 2013, with adequate profitability despite pressure from a highly competitive environment, soft market conditions, and regulatory changes. Strong economies in Colombia and Peru will spur growth, while an economic downturn expected for Venezuela will pose challenges to the industry's growth and profitability. The property & casualty insurance profitability is threatened. The region's P&C insurance companies continue to be highly dependent on the performance of their investment portfolios, and record combined ratios near or over 100%. The companies' technical profitability will be pressured in 2013 by a competitive environment and low prices, especially in automotive and property insurance. Liability, surety bonds, property, and health insurance will be the main drivers of growth in non-life insurance. It is anticipated that the downward trend in financial results will continue. In both Colombia and Peru, where retirement insurance and annuities have higher penetration, asset/liability matching and reinvestment are major challenges. Risk is heightened in Colombia due to additional aspects such as minimum wage adjustments, technical interest rates to guarantee minimum profitability (CPI+4%), and regulatory changes in these lines. There are Opportunities to improve the quality of the equity in the region. The Andean region insurance industry's equity is weak despite its adequate leverage ratios. In Peru and Venezuela, a large percentage of equity is held in non-liquid assets such as fixed assets, real estate, and investments in subsidiaries; while in Colombia equity is highly exposed to investments in equity instruments. Leverage ratios are adequate and in line with international standards. Colombian and Peruvian regulations are more advanced and are moving toward international standards, while Venezuelan regulations are still lagging behind. In recent years, improvements in the regulatory framework in all three countries have begun to bridge the gap that exists with international practices, but there is still a long way to go and aspects to fine-tune, especially in terms of capital requirements, reserves, and asset and liability matching. Some Colombian insurers' and Venezuelan reinsurers' ratings could be downgraded due to a continued slump in technical and net profitability, elevated leverage ratios, and high exposure to non- liquid assets. No rating changes are expected for Peru over the short term. Profitability in Andean region non-life insurance companies overall will continue under pressure and could decline, resulting in combined ratios of over 100%. Business results for life insurance companies and, especially, long-term insurance lines, will continue under pressure from mismatch risk on profitability and asset & liability terms. *********** 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., Washington, D.C., 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 2013. 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$775 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 A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *