/raid1/www/Hosts/bankrupt/TCRLA_Public/130207.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, February 7, 2013, Vol. 14, No. 27
Headlines
A R G E N T I N A
PVCRED SERIE XVI: Moody's Rates ARS13.32 Million Certs. 'Ca(sf)'
B R A Z I L
GOL LINHAS: Gets Waiver; Webjet Wind-up Has Non-Recurring Effect
GOL LINHAS: Fitch Assigns 'B' Rating to Proposed Unsecured Notes
C A Y M A N I S L A N D S
ALBEMARLE SPECIAL: Commences Liquidation Proceedings
CIL CLAIRVOYANCE: Placed Under Voluntary Wind-Up
CUAM GREATER: Commences Liquidation Proceedings
CUAM GREATER MASTER: Commences Liquidation Proceedings
FORTE INVESTMENT: Placed Under Voluntary Wind-Up
GARRISON CAPITAL: Commences Liquidation Proceedings
GREAT HOPE: Placed Under Voluntary Wind-Up
GRUPO ENERGIA: Commences Liquidation Proceedings
HANGER STRAIGHT: Commences Liquidation Proceedings
HARBOUR LITIGATION: Placed Under Voluntary Wind-Up
HIGHLAND BOWL: Placed Under Voluntary Wind-Up
HOT DESERT: Placed Under Voluntary Wind-Up
IMAGE STORE: Commences Liquidation Proceedings
KAISEN FORTUNE: Commences Liquidation Proceedings
KEYCORP OFFSHORE: Commences Liquidation Proceedings
MARCH 1 LTD: Commences Liquidation Proceedings
PUMA ABSOLUTE: Commences Liquidation Proceedings
RASMALA HEDGE: Commences Liquidation Proceedings
STRATEGIC OPPORTUNITIES: Placed Under Voluntary Wind-Up
C H I L E
* Moody's Sees More Growth for Chilean Banks; Outlook Stable
C O L O M B I A
BANCO DAVIVIENDA: Moody's Cuts Sub. Debt Ratings to 'Ba1'
BANCO GNB: Moody's Cuts FC Subordinated Debt Rating to B1
BANCOLOMBIA SA: Moody's Cuts FC Subordinated Debt Rating to Ba2
J A M A I C A
* JAMAICA: Meets With IDB to Advance Economic and Social Agenda
M E X I C O
AXTEL SAB: Majority of Creditors Accept Debt-Restructuring Offer
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
PVCRED SERIE XVI: Moody's Rates ARS13.32 Million Certs. 'Ca(sf)'
----------------------------------------------------------------
Moody's Latin America has rated the debt securities and
certificates of Fideicomiso Financiero Pvcred Serie XVI. This
transaction will be issued by Equity Trust Company (Argentina)
S.A.- acting solely in its capacity as issuer and trustee.
Moody's notes that the securities contemplated by this transaction
have not yet settled. If any assumptions or factors considered by
Moody's in assigning the ratings change before closing, Moody's
could change the ratings assigned to the notes.
ARS139,860,000 in Class A Floating Rate Debt Securities (VRDA
TV) of "Fideicomiso Financiero Pvcred Serie XVI", rated Aaa.ar
(sf) (Argentine National Scale) and Ba3 (sf) (Global Scale,
Local Currency)
ARS13,320,000 in Class B Debt Securities (VRDB) of "Fideicomiso
Financiero Pvcred Serie XVI", rated B3.ar (sf) (Argentine
National Scale) and Caa2 (sf) (Global Scale, Local Currency)
ARS13,320,000 in Certificates (CP) of "Fideicomiso Financiero
Pvcred Serie XVI", rated Ca.ar (sf) (Argentine National Scale)
and Ca (sf) (Global Scale, Local Currency).
Ratings Rationale
The rated securities are payable from the cashflow coming from the
assets of the trust, which is an amortizing pool of approximately
15,944 eligible personal loans denominated in Argentine pesos,
bearing fixed interest rate, originated by Pvcred, a financial
company owned by Comafi's Group in Argentina.
The VRDA TV will bear a floating interest rate (BADLAR plus
400bps). The VRDA TV's interest rate will never be higher than 23%
or lower than 15%. The VRDB will bear a fixed interest rate of
24%.
Overall credit enhancement is comprised of subordination, various
reserve funds and excess spread.
The transaction has initial subordination levels of 7.60% for the
VRDA TV, calculated over the pool's principal balance and accrued
interest as of the cut-off date. The subordination levels will
increase overtime due to the turbo sequential payment structure.
The transaction also benefits from an estimated 24.77% annual
excess spread, before considering losses, trust expenses, taxes or
prepayments and calculated at the cap of 23% for the VRDA TV.
Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of Pvcred
portfolio. In addition, Moody's considered factors common to
consumer loans securitizations such as delinquencies, prepayments
and losses; as well as specific factors related to the Argentine
market, such as the probability of an increase in losses if there
are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.
Moody's analyzed the historical performance data of previous
transactions and similar receivables originated by Pvcred, ranging
from January 2007 to June 2012. In assigning the rating to this
transaction, Moody's assumed a lognormal distribution of losses
for each one of the different securitized subpools: (a) for the
PVCred and the "Staff" loans, a mean of 14% and a coefficient of
variation of 70%; (b) for the "Cuota Ya" loans, a mean of 25% and
a coefficient of variation of 70%; (c) for "Refinanced" loans,
mean of 32% and a coefficient of variation of 70%; (d) for loans
with a discounted installment, mean of 13% and a coefficient of
variation of 70%; (e) for "Provenclick" loans originate through an
online platform, mean of 25% and a coefficient of variation of
70%. Also, Moody's assumed a lognormal distribution for
prepayments with a mean of 40% and a coefficient of variation of
70%;
Servicer default was modeled by simulating the default of Banco
Comafi as the servicer consistent with its current rating of
B2/A1.ar. In the scenarios where the servicer defaults, Moody's
assumed that the defaults on the pool would increase by 20
percentage points.
The model results showed 1.24% expected loss for Class A Floating
Rate Debt Securities, a 24.45% for the for Class B Fixed Rate Debt
Securities and 48.06% for the Certificates.
Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 5% from
the base case scenario, the ratings of the CP would be unchanged.
The ratings of the Class A Floating Rate, Class B would likely be
downgraded to B1(sf) and Caa3(sf) respectively.
Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. If Pvcred is removed as collection agent,
Banco Comafi will be appointed as the back-up collection agent.
The main source of uncertainty for this transaction is the default
level of the securitized pool. Although Moody's analyzed the
historical performance data of previous transactions and similar
receivables originated by Pvcred, the actual performance of the
securitized pool may be affected, among others, by the economic
activity, high inflation rates compared with nominal salaries
increases and the unemployment rate in Argentina.
===========
B R A Z I L
===========
GOL LINHAS: Gets Waiver; Webjet Wind-up Has Non-Recurring Effect
----------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. disclosed that on February 1,
2013, the Annual Debenture Holders' Meeting deliberated on the
waiver of debenture holders in relation to non-compliance with
restrictive contractual clauses, particularly financial indices
and limits, in relation to the 4th and 5th issue of debentures
issued by VRG Linhas Aereas S.A., a subsidiary of the Company.
In addition to the material fact of November 23, 2012, which dealt
with the initial winding up of its subsidiary Webjet, the Company
announces that there was a non-recurring impact of approximately
R$140 million of costs and provisions on 4Q12 results. The
estimated impacted, resulted from the winding up procedures,
mainly refer to personnel costs and provisions for the return and
maintenance of Webjet's Boeing 737-300 aircraft. These measures
should make the Company more efficient in terms of fuel
consumption and passenger comfort.
About GOL Linhas Aereas Inteligentes S.A.
GOL Linhas Aereas Inteligentes S.A., the largest low-cost and low-
fare airline in Latin America, offers around 900 daily flights to
65 destinations in 10 countries in South America, Caribbean and
the United States under the GOL and VARIG brands, using a young,
modern fleet of Boeing 737-700 and 737-800 Next Generation
aircraft, the safest, most efficient and most economical of their
type.
GOL LINHAS: Fitch Assigns 'B' Rating to Proposed Unsecured Notes
----------------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'B/RR5(exp)' to
Gol Linhas Aereas Inteligentes S.A.'s proposed unsecured notes.
These notes will be issued through GOL's wholly owned subsidiary,
VRG Linhas Aereas S.A. and will be unconditionally guaranteed by
GOL. The target amount of the proposed issuance is up to USD300
million with a tenor of up to 10 years; the final amount and tenor
of the issuance will depend on market conditions. Proceeds from
the proposed issuance will primarily be used to refinance existing
debt and for general corporate purposes. The final rating is
contingent upon the receipt of final documents conforming to
information already received.
Fitch Ratings currently rates Gol Linhas Aereas Inteligentes
S.A.'s (GOL) and its fully owned subsidiaries VRG Linhas Aereas
S.A. (VRG) and GOL Finance as follows:
Gol Linhas Aereas Inteligentes S.A.:
-- Foreign and local currency long-term Issuer Default Ratings
(IDRs) 'B+';
-- Long-term national rating 'BBB (bra)';
-- USD200 million perpetual bonds 'B/RR5';
VRG Linhas Aereas S.A. (VRG):
-- Foreign and local currency long-term IDRs 'B+';
-- Long-term national rating 'BBB(bra)';
-- BRL500 million of senior notes due 2017 'BBB-(bra)';
GOL Finance, a company incorporated with limited liability in the
Cayman Islands:
-- Foreign and local currency long-term IDRs 'B+';
-- USD200 million of senior notes due 2017 'B/RR5';
-- USD300 million of senior notes due 2020 'B/RR5';
The Rating Outlook for GOL, VRG, and GOL Finance is Negative. The
ratings of these companies have been linked through Fitch's parent
and subsidiaries rating criteria.
The ratings reflect GOL's competitive business position in the
Brazilian domestic market with a market share of 38.7%, as
measured by RPK, at the end of 2012. The ratings are constrained
by the volatility of company's cash flow generation, and its high
leverage. Additional ratings limitations include the company's
reliance upon its domestic passenger market, which results in
limited product and geographic diversification and exposes the
company's cash flow to the behavior of its competitors in the
Brazilian market.
The Negative Outlook incorporates Fitch's concern regarding the
company's ability to reverse its negative FCF trend, which could
result in a significant deterioration of its liquidity during
2013. Also factored into the Negative Outlook is the high degree
of sensitivity of GOL's financial performance to several factors
not controlled by the company such as competition, strength of the
local currency versus the U.S. dollar, and high fuel prices, which
could offset actions taken by management in terms of reducing
capacity and ex-fuel costs.
The 'B/RR5' rating of the company's unsecured public debt reflects
below average recovery prospects in the event of a default due to
the subordination of the unsecured debt to secured debt related to
aircraft finance.
Security
The notes will be VRG's senior, unsecured, general obligations and
will rank pari passu in right of payment with all of its existing
and future senior, unsecured, general obligations. GOL, or the
guarantor, will unconditionally guarantee on a senior unsecured
basis all of VRG's obligations pursuant to the notes. The
guarantee will rank pari passu in right of payment with the other
unsecured unsubordinated indebtedness and guarantees of GOL. The
notes will be effectively junior to VRG's and GOL's secured debt
to the extent of the assets and properties securing such debts.
There are not financial covenants in the notes or the guarantee.
Credit Profile
GOL's cash generation, as measured by EBITDAR, was BRL541 million
during the LTM ended Sept. 30, 2012. This compares unfavorably
with the company's EBITDAR of BRL707 million during 2011 and
continues a declining trend, as EBITDAR was BRL1.5 billion in
2010. Key variables for the deterioration were increasing
competition, high fuel prices, and the devaluation of the
Brazilian real versus the U.S. dollar. Weakening macro-economic
conditions also contributed to the company's poor performance.
During the LTM ended Sept. 30, 2012, GOL's free cash flow (FCF)
was negative BRL1.6 billion. Fitch's FCF calculation for the LTM
considers negative cash flow from operations (CFFO) of BRL876
million less capital expenditures related to aircraft finance of
BRL761 million.
The company had approximately BRL9.7 billion of total adjusted
debt as of Sept. 30, 2012. This debt consists primarily of BRL5.3
billion of on-balance-sheet debt, 40% of which is secured aircraft
financing, and an estimated BRL4.4 billion of off-balance-sheet
debt associated with lease obligations. As of Sept. 30, 2012, the
company had BRL1.7 billion of cash and marketable securities,
which is equivalent to about 20% of the company's LTM revenues.
GOL faces debt amortizations of approximately BRL375 million in
2013 and BRL132 million in 2014. These figures exclude
approximately BRL1.1 billion of debt associated with the company's
4th and 5th debenture issuance, which will appear under short-term
debt in its Dec. 31, 2012 financial statements, due to covenant
violations. GOL obtained waivers for covenant violations on Feb.
1, 2013 that will results in this debt maturing as originally
scheduled between 2015 and 2017 if the company is in compliance
with restrictive leverage covenants as of Dec. 31, 2013.
The company's financial leverage is high for the rating category
and is expected to decline during 2013. GOL's gross and net
leverage, as measured by total adjusted debt/EBITDAR and total
adjusted net debt/EBITDAR ratios, were 17.9x and 14.8x,
respectively, during the LTM ended Sept. 30, 2012.
GOL's EBITDAR should increase during 2013 due to the company's
efforts to reduce capacity in the domestic market. The company's
management is considering reducing its fleet capacity in the
domestic market by 6% to 8% during the first half of 2013, which
should result in better revenues per available seat kilometers
(RASK). Brazil's economy is also expected to expand by about 3.7%
during 2013, which compares with an estimated 1% during 2012.
GOL is in the process of seeking approval for an initial public
offering (IPO) of its fully owned subsidiary, Smiles S.A. The
company's board of directors is expected to approve this
initiative in its next session scheduled for this February 8. The
ratings incorporate the expectation that the company will be able
to complete this process and use an important portion of the IPO
proceeds to reduce its total on-balance debt during 2013.
SENSITIVITY/RATINGS DRIVERS:
A rating downgrade could be triggered by any of the following
factors: an inability to reverse its free cash flow trends, the
projection of tight covenant levels for the debentures at the end
of 2013, a general weakening of industry conditions in the
Brazilian market, or the persistence of poor operating
performance. Delays in the company's asset sales process related
to the frequent flier unit would also be viewed negatively.
An upgrade is unlikely to occur during 2013. Improved operational
performance that would lower leverage to around 6.0x by the end of
2013 could lead to a revision of the Outlook to Stable.
==========================
C A Y M A N I S L A N D S
==========================
ALBEMARLE SPECIAL: Commences Liquidation Proceedings
----------------------------------------------------
On Nov. 22, 2012, the sole shareholder of Albemarle Special Assets
Fund Ltd. resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
CIL CLAIRVOYANCE: Placed Under Voluntary Wind-Up
------------------------------------------------
On Nov. 21, 2012, the sole shareholder of Cil Clairvoyance Limited
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 27, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Eagle Holdings Ltd.
c/o Barclays Private Bank & Trust (Cayman) Limited
FirstCaribbean House, 4th Floor
P.O. Box 487 Grand Cayman KY1-1106
Cayman Islands
Telephone: 345 949-7128
CUAM GREATER: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 21, 2012, the sole shareholder of Cuam Greater China
Opportunities Absolute Return Fund resolved to voluntarily
liquidate the company's business.
The company's liquidator is:
Qing Wan
2701 One IFC
1 Harbour View Street
Central
Hong Kong
CUAM GREATER MASTER: Commences Liquidation Proceedings
------------------------------------------------------
On Nov. 21, 2012, the sole shareholder of Cuam Greater China
Opportunities Absolute Return Master Fund resolved to voluntarily
liquidate the company's business.
The company's liquidator is:
Qing Wan
2701 One IFC
1 Harbour View Street
Central
Hong Kong
FORTE INVESTMENT: Placed Under Voluntary Wind-Up
------------------------------------------------
On Nov. 21, 2012, the sole shareholder of Forte Investment Ltd.
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 20, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
GARRISON CAPITAL: Commences Liquidation Proceedings
---------------------------------------------------
On Nov. 21, 2012, the sole shareholder of Garrison Capital CLO
Ltd. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 2, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
GREAT HOPE: Placed Under Voluntary Wind-Up
------------------------------------------
At an extraordinary general meeting held on Nov. 21, 2012, the
shareholders of Great Hope Investments Limited resolved to
voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Allison Kelly
Telephone: (345) 949-0355
Facsimile: (345)949-0360
P.O. Box 1170 George Town, Grand Cayman
Cayman Islands KY1-1102
GRUPO ENERGIA: Commences Liquidation Proceedings
------------------------------------------------
On Nov. 9, 2012, the sole shareholder of Grupo Energia Cayman LLC
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 2, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
HANGER STRAIGHT: Commences Liquidation Proceedings
--------------------------------------------------
On Nov. 22, 2012, the sole shareholder of Hanger Straight Limited
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
HARBOUR LITIGATION: Placed Under Voluntary Wind-Up
--------------------------------------------------
On Nov. 15, 2012, the sole shareholder of Harbour Litigation
Investments Ltd. resolved to voluntarily wind up the company's
operations.
The company's liquidator is:
Avalon Management Limited
Reference: GL
Telephone: (+1) 345 769 4422
Facsimile: (+1) 345 769 9351
Landmark Square, 1st Floor
64 Earth Close
West Bay Beach
PO Box 715, George Town
Grand Cayman KY1-1107
Cayman Islands
HIGHLAND BOWL: Placed Under Voluntary Wind-Up
---------------------------------------------
On Nov. 16, 2012, the sole shareholder of Highland Bowl Trading
Ltd. resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 17, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
HOT DESERT: Placed Under Voluntary Wind-Up
------------------------------------------
On Nov. 20, 2012, the shareholders of Hot Desert Limited resolved
to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 24, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Yuliya Sasina-Yates
c/o Andrea Aegerter
Telephone: +41 22 319 01 76
Facsimile: +41 22 319 01 02
13 Quai de L'lle, PO Box 5511, 1211
Geneva, Switzerland
IMAGE STORE: Commences Liquidation Proceedings
----------------------------------------------
On Nov. 21, 2012, the shareholders of The Image Store Limited
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 27, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Brynley Davies
Wardour Management Services Limited
Telephone: (345) 945-3301
Facsimile: (345) 945-3302
P.O. Box 10147 Grand Cayman KY1-1002
Cayman Islands
KAISEN FORTUNE: Commences Liquidation Proceedings
-------------------------------------------------
On Nov. 20, 2012, the shareholder of Kaisen Fortune Fund resolved
to voluntarily liquidate the company's business.
The company's liquidator is:
Cheng Shu Yuen
Greenfield Tower Concordia Plaza
Room 2505-06
1 Science Museum Road
TST East, Kowloon
Hong Kong
KEYCORP OFFSHORE: Commences Liquidation Proceedings
---------------------------------------------------
On Nov. 19, 2012, the sole shareholder of Keycorp Offshore
Investments Company, Ltd. resolved to voluntarily liquidate the
company's business.
Only creditors who were able to file their proofs of debt by
Jan. 2, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
MARCH 1 LTD: Commences Liquidation Proceedings
----------------------------------------------
On Nov. 21, 2012, the sole shareholder of March 1 Ltd. resolved to
voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
Mourant Ozannes
Attorneys-at-Law for the Company
Reference: NDL
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647; or
Mourant Ozannes Cayman Liquidators Limited
Reference: Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
PUMA ABSOLUTE: Commences Liquidation Proceedings
------------------------------------------------
On Nov. 21, 2012, the sole shareholder of Puma Absolute Return
Fund Limited resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Jan. 2, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
RASMALA HEDGE: Commences Liquidation Proceedings
------------------------------------------------
On Nov. 23, 2012, the sole shareholder of Rasmala Hedge Fund
Strategies Ltd. resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Dec. 24, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
STRATEGIC OPPORTUNITIES: Placed Under Voluntary Wind-Up
-------------------------------------------------------
On Nov. 22, 2012, the sole shareholder of The Strategic
Opportunities Fund Ltd. resolved to voluntarily wind up the
company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 27, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Ogier
c/o Michael Lubin
Telephone: (345) 815-1793
Facsimile: (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
=========
C H I L E
=========
* Moody's Sees More Growth for Chilean Banks; Outlook Stable
------------------------------------------------------------
The outlook for the Chilean banking system is stable, as financial
fundamentals will remain resilient as the Chilean economy shows
dynamic investment-led growth and strong corporate performance and
employment conditions. The banks present healthy capital and
reserve buffers amid steady balance sheet and earnings growth ,
says Moody's Investors Service in its new "Banking System Outlook:
Chile."
Moody's banking system outlooks represent the rating agency's
forward-looking assessment of fundamental credit conditions that
will affect the creditworthiness of banks in a given system over
the next 12-18 months.
Moody's expects the Chilean economy to grow about 4.5% in 2013, as
private consumption and investment continue to drive economic
expansion and boost corporate performance and employment.
Relatively stable inflation and domestic policy interest rates
will support loan demand and expected loan growth of around 12%
for the 12 months, while also supporting banks' operating
efficiency and earnings.
"Still, these strengths are balanced by risks that may arise from
the Chilean banks' growing appetite for consumer credit, their
historically high single-borrower concentrations, and increasing
regulatory pressure to reduce fees and lending rates on consumer
products," said Jeanne Del Casino, a Moody's Vice President --
Senior Credit Officer and author of the report.
Growth in unsecured consumer credit will help bolster and
diversify overall bank profitability; however, as this type of
exposure increases, delinquency levels will likely rise. Moderate
exposures so far to this segment, together with still strong
employment and stable household debt levels help to limit this
asset quality risk.
Stepped up cross border debt issuance in recent years has allowed
large Chilean banks to diversify their funding at a low cost,
although it increases the share of wholesale funding as well as
the banks' vulnerability to refinancing risk in the event
international investors become risk averse to emerging market
investments. This risk is mitigated by the banks' stable liquidity
characteristics and diverse sources of core and institutional
funding in the local market, said Moody's.
===============
C O L O M B I A
===============
BANCO DAVIVIENDA: Moody's Cuts Sub. Debt Ratings to 'Ba1'
---------------------------------------------------------
Moody's Investors Service downgraded the long term foreign
currency subordinated debt ratings of Bancolombia S.A., Banco
Davivienda S.A. and Banco GNB Sudameris S.A. (GNB) concluding the
review for downgrade initiated on these ratings on 27 November
2012. Moody's has removed systemic support from the ratings of all
rated Colombian banks' subordinated debt instruments, placing them
one notch below their respective adjusted baseline credit
assessments of baa3, ba1 and ba3, respectively.
The following subordinated debt ratings were downgraded:
Bancolombia S.A.: Long term foreign currency subordinated debt
ratings to Ba1, from Baa3, with a stable outlook
Banco Davivienda S.A.: Long term foreign currency subordinated
debt rating to Ba2, from Ba1, with a negative outlook
Banco GNB Sudameris S.A.: Long term foreign currency subordinated
debt rating to B1, from Ba2, with a stable outlook
Ratings Rationale
In positioning the subordinated debt ratings of Colombian banks
one notch below their adjusted baseline credit assessments,
Moody's noted the global trends towards imposing losses on junior
creditors in the context of future bank resolutions, which reduces
the predictability of such support being provided to subordinated
debt holders. The removal of systemic support for subordinated
debt is consistent with recent actions Moody's has taken
elsewhere, including several European countries and Canada,
reflecting Moody's views that there is an increased likelihood
that subordinated debt holders would be subject to burden sharing
in the event support was required.
Moody's notes that the Colombian banking regulators have the legal
ability to impose losses on any and all liabilities of an
intervened financial entity as per the Estatuto Organico del
Sistema Financiero.
The outlook on Bancolombia's and GNB's foreign currency
subordinated debt ratings is now stable. The outlook on
Davivienda's foreign currency subordinated debt rating is
negative, in line with the negative outlook on the bank's senior
and unsupported ratings. The negative outlook was assigned in
January 2012 following Davivienda's announcement of the
acquisition of HSBC subsidiaries in El Salvador, Costa Rica and
Honduras, to reflect Moody's concerns that such a large cross
border operation could affect the bank's asset quality and
profitability.
Baseline credit assessments
Baseline credit assessments incorporate the intrinsic financial
strength of banks, excluding any assessment of systemic or
parental support. Adjusted baseline credit assessments incorporate
Moody's assessment of the probability of parental support. In the
case of Bancolombia, Davivienda and GNB, the baseline credit
assessment equals the adjusted baseline credit assessment because
none of these banks benefit from parental support.
The following baseline credit assessments/adjusted baseline credit
assessments remain unchanged:
Bancolombia S.A.: baa3/baa3
Banco Davivienda S.A.: ba1/ba1
Banco GNB Sudameris S.A.: ba3/ba3
The date of the last Credit Rating Action on Bancolombia was on
December 20, 2012 when Moody's affirmed Bancolombia's ratings,
following the announcement of the acquisition of 40% of the shares
of the Panamanian holding company of Grupo Financiero
Agromercantil de Guatemala.
The date of the last Credit Rating Action on Davivienda was on
January 22, 2013 when Moody's assigned a Baa3 long term foreign
currency debt rating, with negative outlook, to Davivienda's
proposed five-year senior debt issuance of up to USD500 million.
The date of the last Credit Rating Action on GNB was on November
27, 2012 when Moody's placed the subordinated debt ratings of
Latin American banks on review for downgrade.
Bancolombia is headquartered in Medellin, Antioquia and is the
largest bank in Colombia. As of 30 September 2012, the bank had
COP93.19 trillion in assets and COP11.15 trillion in shareholders'
equity.
Davivienda is headquartered in Bogota, Distrito Capital and is the
third largest bank in Colombia. As of 30 September 2012, the bank
had COP38.55 trillion in assets and COP5.17 trillion in
shareholders' equity.
GNB is headquartered in Bogota, Distrito Capital and is the tenth
largest bank in Colombia. As of 30 September 2012, the bank had
COP11.01 trillion in assets and COP912.09 billion in shareholders'
equity.
BANCO GNB: Moody's Cuts FC Subordinated Debt Rating to B1
---------------------------------------------------------
Moody's Investors Service downgraded the long term foreign
currency subordinated debt ratings of Bancolombia S.A., Banco
Davivienda S.A. and Banco GNB Sudameris S.A. (GNB) concluding the
review for downgrade initiated on these ratings on 27 November
2012. Moody's has removed systemic support from the ratings of all
rated Colombian banks' subordinated debt instruments, placing them
one notch below their respective adjusted baseline credit
assessments of baa3, ba1 and ba3, respectively.
The following subordinated debt ratings were downgraded:
Bancolombia S.A.: Long term foreign currency subordinated debt
ratings to Ba1, from Baa3, with a stable outlook
Banco Davivienda S.A.: Long term foreign currency subordinated
debt rating to Ba2, from Ba1, with a negative outlook
Banco GNB Sudameris S.A.: Long term foreign currency subordinated
debt rating to B1, from Ba2, with a stable outlook
Ratings Rationale
In positioning the subordinated debt ratings of Colombian banks
one notch below their adjusted baseline credit assessments,
Moody's noted the global trends towards imposing losses on junior
creditors in the context of future bank resolutions, which reduces
the predictability of such support being provided to subordinated
debt holders. The removal of systemic support for subordinated
debt is consistent with recent actions Moody's has taken
elsewhere, including several European countries and Canada,
reflecting Moody's views that there is an increased likelihood
that subordinated debt holders would be subject to burden sharing
in the event support was required.
Moody's notes that the Colombian banking regulators have the legal
ability to impose losses on any and all liabilities of an
intervened financial entity as per the Estatuto Organico del
Sistema Financiero.
The outlook on Bancolombia's and GNB's foreign currency
subordinated debt ratings is now stable. The outlook on
Davivienda's foreign currency subordinated debt rating is
negative, in line with the negative outlook on the bank's senior
and unsupported ratings. The negative outlook was assigned in
January 2012 following Davivienda's announcement of the
acquisition of HSBC subsidiaries in El Salvador, Costa Rica and
Honduras, to reflect Moody's concerns that such a large cross
border operation could affect the bank's asset quality and
profitability.
Baseline credit assessments
Baseline credit assessments incorporate the intrinsic financial
strength of banks, excluding any assessment of systemic or
parental support. Adjusted baseline credit assessments incorporate
Moody's assessment of the probability of parental support. In the
case of Bancolombia, Davivienda and GNB, the baseline credit
assessment equals the adjusted baseline credit assessment because
none of these banks benefit from parental support.
The following baseline credit assessments/adjusted baseline credit
assessments remain unchanged:
Bancolombia S.A.: baa3/baa3
Banco Davivienda S.A.: ba1/ba1
Banco GNB Sudameris S.A.: ba3/ba3
The date of the last Credit Rating Action on Bancolombia was on
December 20, 2012 when Moody's affirmed Bancolombia's ratings,
following the announcement of the acquisition of 40% of the shares
of the Panamanian holding company of Grupo Financiero
Agromercantil de Guatemala.
The date of the last Credit Rating Action on Davivienda was on
January 22, 2013 when Moody's assigned a Baa3 long term foreign
currency debt rating, with negative outlook, to Davivienda's
proposed five-year senior debt issuance of up to USD500 million.
The date of the last Credit Rating Action on GNB was on November
27, 2012 when Moody's placed the subordinated debt ratings of
Latin American banks on review for downgrade.
Bancolombia is headquartered in Medellin, Antioquia and is the
largest bank in Colombia. As of 30 September 2012, the bank had
COP93.19 trillion in assets and COP11.15 trillion in shareholders'
equity.
Davivienda is headquartered in Bogota, Distrito Capital and is the
third largest bank in Colombia. As of 30 September 2012, the bank
had COP38.55 trillion in assets and COP5.17 trillion in
shareholders' equity.
GNB is headquartered in Bogota, Distrito Capital and is the tenth
largest bank in Colombia. As of 30 September 2012, the bank had
COP11.01 trillion in assets and COP912.09 billion in shareholders'
equity.
BANCOLOMBIA SA: Moody's Cuts FC Subordinated Debt Rating to Ba2
---------------------------------------------------------------
Moody's Investors Service downgraded the long term foreign
currency subordinated debt ratings of Bancolombia S.A., Banco
Davivienda S.A. and Banco GNB Sudameris S.A. (GNB) concluding the
review for downgrade initiated on these ratings on 27 November
2012. Moody's has removed systemic support from the ratings of all
rated Colombian banks' subordinated debt instruments, placing them
one notch below their respective adjusted baseline credit
assessments of baa3, ba1 and ba3, respectively.
The following subordinated debt ratings were downgraded:
Bancolombia S.A.: Long term foreign currency subordinated debt
ratings to Ba1, from Baa3, with a stable outlook
Banco Davivienda S.A.: Long term foreign currency subordinated
debt rating to Ba2, from Ba1, with a negative outlook
Banco GNB Sudameris S.A.: Long term foreign currency subordinated
debt rating to B1, from Ba2, with a stable outlook
Ratings Rationale
In positioning the subordinated debt ratings of Colombian banks
one notch below their adjusted baseline credit assessments,
Moody's noted the global trends towards imposing losses on junior
creditors in the context of future bank resolutions, which reduces
the predictability of such support being provided to subordinated
debt holders. The removal of systemic support for subordinated
debt is consistent with recent actions Moody's has taken
elsewhere, including several European countries and Canada,
reflecting Moody's views that there is an increased likelihood
that subordinated debt holders would be subject to burden sharing
in the event support was required.
Moody's notes that the Colombian banking regulators have the legal
ability to impose losses on any and all liabilities of an
intervened financial entity as per the Estatuto Organico del
Sistema Financiero.
The outlook on Bancolombia's and GNB's foreign currency
subordinated debt ratings is now stable. The outlook on
Davivienda's foreign currency subordinated debt rating is
negative, in line with the negative outlook on the bank's senior
and unsupported ratings. The negative outlook was assigned in
January 2012 following Davivienda's announcement of the
acquisition of HSBC subsidiaries in El Salvador, Costa Rica and
Honduras, to reflect Moody's concerns that such a large cross
border operation could affect the bank's asset quality and
profitability.
Baseline credit assessments
Baseline credit assessments incorporate the intrinsic financial
strength of banks, excluding any assessment of systemic or
parental support. Adjusted baseline credit assessments incorporate
Moody's assessment of the probability of parental support. In the
case of Bancolombia, Davivienda and GNB, the baseline credit
assessment equals the adjusted baseline credit assessment because
none of these banks benefit from parental support.
The following baseline credit assessments/adjusted baseline credit
assessments remain unchanged:
Bancolombia S.A.: baa3/baa3
Banco Davivienda S.A.: ba1/ba1
Banco GNB Sudameris S.A.: ba3/ba3
The date of the last Credit Rating Action on Bancolombia was on
December 20, 2012 when Moody's affirmed Bancolombia's ratings,
following the announcement of the acquisition of 40% of the shares
of the Panamanian holding company of Grupo Financiero
Agromercantil de Guatemala.
The date of the last Credit Rating Action on Davivienda was on
January 22, 2013 when Moody's assigned a Baa3 long term foreign
currency debt rating, with negative outlook, to Davivienda's
proposed five-year senior debt issuance of up to USD500 million.
The date of the last Credit Rating Action on GNB was on November
27, 2012 when Moody's placed the subordinated debt ratings of
Latin American banks on review for downgrade.
Bancolombia is headquartered in Medellin, Antioquia and is the
largest bank in Colombia. As of 30 September 2012, the bank had
COP93.19 trillion in assets and COP11.15 trillion in shareholders'
equity.
Davivienda is headquartered in Bogota, Distrito Capital and is the
third largest bank in Colombia. As of 30 September 2012, the bank
had COP38.55 trillion in assets and COP5.17 trillion in
shareholders' equity.
GNB is headquartered in Bogota, Distrito Capital and is the tenth
largest bank in Colombia. As of 30 September 2012, the bank had
COP11.01 trillion in assets and COP912.09 billion in shareholders'
equity.
=============
J A M A I C A
=============
* JAMAICA: Meets With IDB to Advance Economic and Social Agenda
---------------------------------------------------------------
During the Second Annual Meeting of the Caribbean Governors of the
Inter-American Development Bank, IDB President Luis Alberto Moreno
met in Kingston with the Rt. Hon. Prime Minister of Jamaica Portia
Simpson Miller and Finance Minister Dr. Peter Phillips to discuss
strategies to advance Jamaica's economic and social agenda.
As a member of the IDB since 1962, Jamaica has long valued the
Bank's contributions in the form of loans, grants, and technical
assistance to address major development challenges. Jamaica is
fully committed to serving as an active and engaged member of the
IDB. Jamaica's membership in the Bank has also provided access to
valuable programs and unique perspectives.
Since the onset of the international financial and economic
downturn in 2008, the IDB has provided US$1.6 billion in loans and
US$24.5 million in grants to Jamaica as part of a coordinated,
multilateral support program for macroeconomic stabilization. The
IDB's operational strategy with Jamaica seeks to support
Government's efforts to maintain a stable macroeconomic context,
protect vulnerable groups and spur private sector led growth. The
current portfolio includes projects in the areas of protection of
vulnerable groups, fiscal consolidation, energy conservation,
private sector development, citizen security, water and
sanitation, and transportation. The Bank also has provided
Jamaica with technical assistance grants for disaster risk
management.
The IDB and the Government of Jamaica are committed to working
together, in concert with other development partners, to restore
economic growth and advance efforts to achieve Jamaica's national
development goals.
===========
M E X I C O
===========
AXTEL SAB: Majority of Creditors Accept Debt-Restructuring Offer
----------------------------------------------------------------
Christine Jenkins and Ben Bain at Bloomberg News report that
Axtel S.A.B. de C.V. said a majority of creditors accepted its
debt-restructuring offer.
The company's bondholders accepted a combination of senior secured
debt, peso-denominated convertible bonds and cash to replace
securities due in 2017 and 2019, Axtel said in a statement,
according to Bloomberg News
The report relates that the company is in the process of selling
tower assets to American Tower Corp. for $250 million in a
transaction contingent upon the success of the debt
"This is very positive for Axtel, without a doubt. . . . This also
makes the sale of the towers possible, and that's significant,"
the report quoted Andres Medina-Mora, a Sao Paulo-based analyst
with Corporativo GBM SAB, as saying.
Bloomberg News notes that Axtel unveiled a new swap on Jan. 14
that improved the terms of its $765 million debt restructuring
after 40% of creditors rejected the initial offer.
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2013, Standard & Poor's Ratings Services raised its long-
term corporate credit rating on Axtel S.A.B. de C.V. (Axtel) to
'B-' from 'SD'. At the same time, S&P assigned a 'B' issue-level
ratings and recovery ratings of '2' to the company's $249 million
senior secured bonds due 2020 and $22 million peso-denominated
senior secured convertible dollar-indexed bonds due 2020.
===============
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., 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 * * *