/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130218.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 Monday, February 18, 2013, Vol. 14, No. 34 Headlines A R G E N T I N A * ARGENTINA: DBRS Confirms Long-term Currency Ratings at 'B' B R A Z I L LACTEOS BRASIL: Files for Bankruptcy, Cites Huge Debts C A Y M A N I S L A N D S 3G SELECT: Shareholders Receive Wind-Up Report AUSTRALIA ACQUISITION: Shareholders Receive Wind-Up Report BLUEALPHA GLOBAL: Shareholders Receive Wind-Up Report CHAPTERHOUSE HOLDINGS: Shareholder Receives Wind-Up Report DECCAN VALUE: Members Receive Wind-Up Report EMERGING MARKETS: Members Receive Wind-Up Report EMERGING MARKETS MASTER: Members Receive Wind-Up Report FRUIT OF THE LOOM: Members Receive Wind-Up Report FTL CARIBE: Members Receive Wind-Up Report GI ASSET: Shareholders Receive Wind-Up Report GREENWICH INVESTABLE: Shareholder Receives Wind-Up Report HUTCHISON TELECOMMUNICATIONS: Shareholder Receives Wind-Up Report KAISEN CAPITAL: Shareholders Receive Wind-Up Report KAISEN FORTUNE: Shareholders Receive Wind-Up Report KAISEN FORTUNE MASTER: Shareholders Receive Wind-Up Report MELLON SL: Shareholders Receive Wind-Up Report PERENNIAL OFFSHORE: Shareholder Receives Wind-Up Report PRODIGAL EQUITY: Shareholders Receive Wind-Up Report ROSA TORRES: Shareholder Receives Wind-Up Report SENTIENT EXECUTIVE: Shareholders Receive Wind-Up Report SURANYA GLOBAL: Shareholder Receives Wind-Up Report C O L O M B I A ECOPETROL SA: Net Income Slides 18% to COP3.62 Trillion J A M A I C A PALMYRA RESORT: Delinquencies Among Owners Rise to $400,000++ * JAMAICA: Moody's Reviews B3-Rated Bonds for Possible Downgrade M E X I C O TENEDORA NEMAK: Fitch Assigns 'BB-' LT Issuer Default Rating TENEDORA NEMAK: S&P Assigns 'BB-' LT Corporate Credit Rating TENEDORA NEMAK: Moody's Assigns Ba2 Rating to USD300MM Sr. Notes P U E R T O R I C O P.AGUILERA & ASSOCIATES: Case Summary & Largest Unsec Creditors X X X X X X X X * BOND PRICING: For the Week Feb. 11 to Feb. 15, 2013 - - - - - ================= A R G E N T I N A ================= * ARGENTINA: DBRS Confirms Long-term Currency Ratings at 'B' ------------------------------------------------------------ DBRS Inc. (DBRS) has confirmed the Republic of Argentina's long- term foreign and local currency issuer ratings at 'B'. In addition, the short-term foreign and local currency issuer ratings have been confirmed at R-4. All long-term and short-term issuer ratings remain Under Review with Negative Implications (URN). The URN reflects the near-term risk that the U.S. Court of Appeals will affirm a New York District Court ruling that seeks to compel Argentina to repay in full its past due debts to holdout creditor NML Capital Limited (NML) the next time Argentina makes a payment on its restructured bonds. A hearing is scheduled for February 27, 2013 but the exact timing of a final ruling is uncertain. The U.S. Supreme Court could also decide to hear the case before the final ruling takes effect. However, if the ruling (as clarified by the District Court) is affirmed by the Court of Appeals, DBRS sees a very high risk that Argentina will selectively default on its restructured bonds rather than be forced to pay NML. In the event of an adverse court ruling, DBRS would consider any actions or statements by Argentina that appear to jeopardize the timely servicing of its performing debt to be sufficient reason for a downgrade of the foreign currency rating, likely to CCC or lower. In addition to the risks associated with New York litigation, DBRS believes that significant strains are emerging from Argentina's inconsistent mix of fiscal, monetary, trade, and exchange rate policies. Particularly since late 2011, the Argentine government's unpredictable policy actions have had a negative impact on economic activity and have weakened consumer and investor confidence. Fiscal performance is deteriorating, though a lack of available external financing may tighten constraints on expenditure growth going forward. Alternatively, greater reliance on domestic financing sources to cover a growing fiscal deficit could exacerbate inflationary pressures and increase the risks to macroeconomic stability. High inflation already appears to be entrenched and Argentina has been formally censured by the IMF for inaccuracies in its price and GDP statistics. In spite of these growing challenges, Argentina's relatively modest levels of public debt, adequate reserves, and robust terms of trade provide the government with sufficient flexibility to meet its obligations over the next several years. The government is meeting its financing needs through a number of domestic sources, including the Social Security Institute (ANSES) and the Central Bank. The central government holds significant sway over the economy, including through wages, subsidies, prices, import licensing, and foreign exchange controls. It remains unclear how the government will respond to growing economic pressures. Controls may continue to expand, even while the implementation of existing controls may be adjusted to reduce their negative impact on the economy. In this environment, a commodity price shock or a sustained deterioration in the growth outlook could result in downward pressure on Argentina's credit ratings. Conversely, continued high agricultural commodity prices, a stronger recovery in Brazil, steps to improve relations with creditors, or a shift in policies toward a more open and market-driven economy could substantially improve Argentina's outlook. =========== B R A Z I L =========== LACTEOS BRASIL: Files for Bankruptcy, Cites Huge Debts ------------------------------------------------------ Rogerio Jelmayer at Dow Jones' DBR Small Cap reports that LBR Lacteos Brasil SA filed for judicial recovery, citing huge debts. Silvio Cascione at Reuters, citing securities filing, writes that Lacteos Brasil filed under Brazilian law. Hamilton, Bermuda-based Laep Investments Ltd. has an indirect stake in Lacteos Brasil through investment holding company Monticiano SA. Lucia Kassai at Bloomberg News relates that Laep Investments said it is selling shares because it needs an "urgent capital injection" to pay creditors and suppliers. Bloomberg News notes that Laep said it plans to raise US$10.2 million by issuing 40.1 million new class A shares at 25 cents apiece in the Luxembourg stock exchange. Laep also trades Brazilian depositary receipts, or BDRs, in Sao Paulo. The share sale will "raise capital in the face of the financial situation of the company, which needs an urgent capital injection," Laep said in a statement obtained by Bloomberg News. Proceeds will be used to pay creditors and suppliers, the company said, according to Bloomberg News. Lacteos Brasil SA LBR is a dairy producer in Brazil. ========================== C A Y M A N I S L A N D S ========================== 3G SELECT: Shareholders Receive Wind-Up Report ---------------------------------------------- On Dec. 26, 2012, the shareholders of 3G Select Onshore Fund Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: 3G Capital Partners Ltd c/o 3G Capital, Inc. 600 Third Avenue New York, NY 10016 USA Telephone: (212) 893-6727 AUSTRALIA ACQUISITION: Shareholders Receive Wind-Up Report ---------------------------------------------------------- On Dec. 27, 2012, the shareholders of Australia Acquisition Corp. received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Peter Ziegler Ian Zimmer Peter O'Brien Marion Igarashi Level 9 Podium, 530 Collins Street Melbourne, Victoria 3000 Australia BLUEALPHA GLOBAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Dec. 27, 2012, the shareholders of Bluealpha Global Absolute Return Fund Limited received 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 CHAPTERHOUSE HOLDINGS: Shareholder Receives Wind-Up Report ---------------------------------------------------------- On Dec. 24, 2012, the sole shareholder of Chapterhouse Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K.D. Blake c/o Corinne Bateman P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands Telephone: 345-815-2606/ 345-949-4800 Facsimile: 345-949-7164 DECCAN VALUE: Members Receive Wind-Up Report -------------------------------------------- On Dec. 31, 2012, the members of Deccan Value Advisors Fund, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma Grant Hiley, Deloitte & Touche P.O. Box 1787 Grand Cayman KY1-1109 Cayman Islands Telephone: +1(345) 814-2353 Facsimile: +1(345) 949-8258 EMERGING MARKETS: Members Receive Wind-Up Report ------------------------------------------------ On Dec. 31, 2012, the members of Emerging Markets Futures Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michael Penner Marcin Czarnocki, Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Cayman Islands Telephone: +1(345) 814 2228 EMERGING MARKETS MASTER: Members Receive Wind-Up Report ------------------------------------------------------- On Dec. 31, 2012, the members of Emerging Markets Futures Master Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michael Penner Marcin Czarnocki, Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Cayman Islands Telephone: +1(345) 814 2228 FRUIT OF THE LOOM: Members Receive Wind-Up Report ------------------------------------------------- On Jan. 28, 2013, the members of Fruit Of The Loom Operating Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: H&J Corporate Services (Cayman) Ltd Anderson Square, Shedden Rd PO Box 866, George Town Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949 7555 FTL CARIBE: Members Receive Wind-Up Report ------------------------------------------ On Jan. 29, 2013, the members of FTL Caribe, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: H&J Corporate Services (Cayman) Ltd Anderson Square, Shedden Rd PO Box 866, George Town Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949 7555 GI ASSET: Shareholders Receive Wind-Up Report --------------------------------------------- On Jan. 11, 2013, the shareholders of GI Asset Management Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Van Zoost Tovel Suite, PO Box 4643 Road Town VG1110, Tortola USA GREENWICH INVESTABLE: Shareholder Receives Wind-Up Report --------------------------------------------------------- On Dec. 27, 2012, the sole shareholder of Greenwich Investable Index Groups Fund SPC, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815 1759 Facsimile: (345) 949-9877 HUTCHISON TELECOMMUNICATIONS: Shareholder Receives Wind-Up Report ----------------------------------------------------------------- On Dec. 31, 2012, the sole shareholder of Hutchison Telecommunications (TH) Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ying Hing Chiu Three Pacific Place, Level 28 1 Queen's Road East Hong Kong Telephone: 852 2980 1988 Facsimile: 852 2882 6700 KAISEN CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------- On Dec. 27, 2012, the shareholders of Kaisen Capital Management Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cheng Shu Yuen Room 2505-06 Greenfield Tower Concordia Plaza 1 Science Museum Road TST East, Kowloon Hong Kong KAISEN FORTUNE: Shareholders Receive Wind-Up Report --------------------------------------------------- On Dec. 27, 2012, the shareholders of Kaisen Fortune Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cheng Shu Yuen Room 2505-06 Greenfield Tower Concordia Plaza 1 Science Museum Road TST East, Kowloon Hong Kong KAISEN FORTUNE MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------------------- On Dec. 27, 2012, the shareholders of Kaisen Fortune Master Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cheng Shu Yuen Room 2505-06 Greenfield Tower Concordia Plaza 1 Science Museum Road TST East, Kowloon Hong Kong MELLON SL: Shareholders Receive Wind-Up Report ---------------------------------------------- On Dec. 27, 2012, the shareholders of Mellon SL Cayman Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. Clifton House, 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands PERENNIAL OFFSHORE: Shareholder Receives Wind-Up Report ------------------------------------------------------- On Dec. 31, 2012, the sole shareholder of Perennial Offshore Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815-1759 Facsimile: (345) 949-9877 PRODIGAL EQUITY: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Jan. 4, 2013, the shareholders of Prodigal Equity Relative Value Fund received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited c/o Jennifer Chailler 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands Telephone: (345) 814 6847 ROSA TORRES: Shareholder Receives Wind-Up Report ------------------------------------------------ On Jan. 10, 2013, the sole shareholder of Rosa Torres received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited PO Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 SENTIENT EXECUTIVE: Shareholders Receive Wind-Up Report ------------------------------------------------------- On Dec. 28, 2012, the shareholders of Sentient Executive MLP1, Limited received 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 SURANYA GLOBAL: Shareholder Receives Wind-Up Report --------------------------------------------------- On Dec. 28, 2012, the shareholder of Suranya Global Opportunities Master Fund, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier, Attorneys 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands =============== C O L O M B I A =============== ECOPETROL SA: Net Income Slides 18% to COP3.62 Trillion ------------------------------------------------------- Andrea Jaramillo & Oscar Medina at Bloomberg News report that Ecopetrol SA said profit dropped for a third straight quarter on a year-on-year basis on lower sales volumes and a rise in costs. The company said that net income slid 18% to COP3.62 trillion ($2 billion), from COP4.4 trillion a year earlier, according to Bloomberg News. Bloomberg News relates that production climbed 3% from a year earlier to 762,000 barrels a day. Proven reserves rose to 1.88 billion barrels in 2012, from 1.86 billion barrels a year earlier, Bloomberg News discloses. Colombia isn't considering selling any of its 88.5 percent stake in the company this year, Finance Minister Mauricio Cardenas said in an interview last month, Bloomberg News adds. Ecopetrol S.A. -- http://www.ecopetrol.com.co/-- is the largest company in Colombia as measured by revenue, profit, assets and shareholders' equity. The company is Colombia's only vertically integrated crude oil and natural gas Company with operations in Colombia and overseas. Ecopetrol is one of the 40 largest petroleum companies in the world and one of the four principal petroleum companies in Latin America. It is majority owned by the Republic of Colombia and its shares trade on the Bolsa de Valores de Colombia S.A. under the symbol ECOPETROL. Colombia owns 90% of Ecopetrol. The company divides its operations into four business segments that include exploration and production; transportation; refining; and marketing of crude oil, natural gas and refined products. ============= J A M A I C A ============= PALMYRA RESORT: Delinquencies Among Owners Rise to $400,000++ ------------------------------------------------------------- Janet Silvera at Jamaica Gleaner reports that delinquencies among condo owners at Palmyra Resort & Spa, which is in receivership, have climbed to more than $400,000, creating a shortfall in funds needed to operate the property. "Delinquency is one of the challenges the property faces, forcing both banks that own the property, the National Commercial and RBC Royal Bank Jamaica, to fork out US$6 million in 2012 to maintain the property," Jamaica Gleaner quoted receiver Ken Tomlinson -- kentom@cwjamaica.com -- of Business Recovery Services Limited, as saying. The report relates that Mr. Tomlinson indicated that the initially reported US$450,000 cost per month to fund the property in receivership was understated. Jamaica Gleaner notes that sources said about 55% of the unit owners reportedly owe some fees. Collections last year were said to amount to US$500,000 from US$900,000 owed, the sources said, the report relays. The report recalls that Palmyra was placed in receivership in July 2011 by National Commercial Bank and RBC Royal Bank Jamaica, who accused the developers of defaulting on their loans. The report relates that the developers, led by Robert Trotta, have denied breaching their loan agreements and sued the banks and Mr. Tomlinson. The banks and the receiver are preparing to fight the lawsuit, which was filed in January 2013. Jamaica Gleaner says that a number of the condo owners are refusing to pay maintenance fees, claiming that not all the facilities promised when they acquired their units have been delivered; some have claimed that the receivership is hurting their chances at earning rental income from their investment. The report notes that the development was unfinished at its takeover by the banks which arranged loans amounting to US$110 million for Palmyra, and the receiver is attempting the sell the property to new investors to complete the project. Some 82 units were reportedly already sold at the takeover, the report discloses. NCB and RBC Jamaica have been covering some of the costs to manage the property. Jamaica Gleaner says that the receiver forks out more than US$180,000 per month to maintain an independent power plant that services the development. When the banks took over, the electricity bill was approximately US$300,000 per month, while the upkeep for the property, including the power plant and hotel, was costing US$1 million per month, the report adds. About Palmyra Resort The Palmyra, which is located at Rose Hall in Montego Bay, is a 288-room hotel/condominium complex encompassing three towers, two of which were completed. It has 103 owners of individual condos, with 97 units remaining for sale on the completed blocks, the Sabal Tower and Silver Tower. The shell of a high-rise hotel designed for 88 studio suites, called Sentry Tower, and 11 three- bedroom villas are at varying stages of completion. * * * Jamaica Observer said that local banks placed the Palmyra Resort and Spa into receivership on July 22, 2011. Jamaica Gleaner, citing information filed with the Companies Office of Jamaica, reports that businessman Robert Trotta has at least a US$22 million loan with RBC Royal Bank Jamaica (fka RBTT), and a US$88 million loan with National Commercial Bank secured by debenture dated 2007 amounting to US$110 million. The size of the outstanding debts was not ascertained. Mr. Trotta headed the U.S.-based Resort Properties Group, which is one of the developers of the resort. The second developer is Michelle Rollins' Rose Hall Developments. Plan to Sell Through Auction Fails Jamaica Gleaner, citing sources, said plans to sell the Palmyra Resort & Spa at auction have failed despite two extensions on the original sealed-bid deadline. The Financial Gleaner has learned that Palmyra receiver Ken Tomlinson has switched to Plan B and is now hoping to sell the 16-acre beachfront property via private treaty. * JAMAICA: Moody's Reviews B3-Rated Bonds for Possible Downgrade ---------------------------------------------------------------- Moody's Investors Service placed Jamaica's B3 government bond ratings on review for a possible downgrade as a result of the authorities' announcement that the government will pursue a debt restructuring involving a debt exchange that will affect US$9.1 million in domestic debt or approximately 46% of the total stock of government debt, which Moody's estimates exceeded 130% of GDP at year-end 2012. Eligible investors will include Jamaican residents in possession of government notes issued prior to the launch of the offering. The government's offer, which does not incorporate haircuts to principal, involves both lower coupon rates as well as maturity extension of 3-5 years for most domestic instruments. In Moody's opinion, the debt exchange is likely to constitute a distressed exchange and, consequently, considered a default event by Moody's definition. The debt restructuring is viewed as a precursor to an IMF program that will provide the government with short-term liquidity relief and boost foreign exchange reserves that declined sharply last year, raising the specter of a balance of payments crisis. Moody's review will focus on an assessment of anticipated investor losses. Additionally, since the terms announced by the government closely mirror Jamaica's debt exchange in 2010, which ultimately proved insufficient to materially improve the sovereign's credit profile, the review will also examine the extent to which post- restructuring conditions are likely to support medium-term debt sustainability. The principal methodology used in this rating was "Sovereign Bond Ratings Methodology" published in September 2008. =========== M E X I C O =========== TENEDORA NEMAK: Fitch Assigns 'BB-' LT Issuer Default Rating ------------------------------------------------------------ Fitch Ratings has assigned these ratings to Tenedora Nemak, S.A. de C.V.: -- Foreign Currency Long-Term Issuer Default Rating (IDR) 'BB-'; -- Local Currency Long-Term IDR 'BB-'; -- Proposed USD300 million senior notes due up to 2023 'BB-(exp)'. Additionally, Fitch currently rates Nemak as follows: -- Long-Term National Scale 'A-(mex)'; -- Certificados Bursatiles NEMAK 07 issuance 'A+(mex)'. The Rating Outlook is Stable. Nemak's ratings reflect the strengthening of the company's operative and financial position after the integration of JL French Automotive Castings, Inc., recent acquisition, improved product portfolio diversification by entering into the aluminum transmission components, suspension and structural parts' markets, reduction of the Detroit Three's concentration by strengthening other OEM relationships, continued favorable consistency of revenues and EBITDA, and lower leverage due to higher EBITDA generation. Fitch expects that Nemak will continue to show a positive trend in EBITDA generation that will allow it to generate neutral to positive free cash flow and maintain debt levels relatively stable in the coming years. In Fitch's view, the main challenges the company faces are associated mainly with Capex requirements related to continuing to update installed capacity and addressing new growth opportunities, as well as continue strengthening of its credit profile through lower leverage levels. The rating assigned to the Certificados Bursatiles issuance takes into account the partial guarantee granted by Bancomext equivalent to 29% of the principal amount and 100% of the first interest payment in case of anticipated or scheduled maturity. Fitch believes that a Partial Credit Guarantee (PCG) can reduce loss severity given default and uplifts the guaranteed issuance's rating by some notches above the issuer's stand-alone rating. The overall recovery estimate considering the execution of the guarantee and the proceeds from company liquidation determine the number of the notches for the uplift. Strong Global Business Position Nemak's ratings reflect the company's strong position in high-tech aluminum components for the automotive industry in North American, South American and European markets. The company also has presence in high-growth regions, such as Asia; it has limited exposure to unstable European economies as most of its operations in the region are located in Northern Europe and a high percentage of installed capacity is in low-costs countries. The ratings also reflect the long-term relationship that Nemak has with its customers; the company is considered an essential supplier for Detroit Three OEMs. Also considered in the ratings are the geographic diversification of cash flows and good liquidity position. The ratings are tempered by cyclicality of the automotive industry, and North American operations and customers' concentration. Geographical Diversification of Cash Flows Strengthens Nemak's Business Profile. The company's expansion in Europe, South America and Asia through the acquisitions made in 2007 allowed it to grow its geographical diversification, which was a positive during the fiscal crisis in North America. This expansion strategy also reduced customer concentration, especially with the Detroit Three OEMs, which currently represent 48% of the company's total volume compared to 80% before the acquisitions. Nemak is considered an essential provider for these OEMs. The company has presence in China and India, markets that provide attractive growth opportunities and diversification, as in the coming years these countries are expected to have important developments. Currently, the European market's tough economic situation has resulted in pressures on car sales volume in the region; however, most of Nemak's operations are dedicated to serve both local and export markets, mainly North America and Asia, which has translated to stable production volumes. Higher Volumes and Favorable Pricing Trends Support Results During the past three years, the company has been reporting a continued favorable consistency in sales volume, revenues and EBITDA generation as a result of new programs with OEMs in America, Europe and Asia, along with additional demand due to increased market share with American OEMs. Nemak's results are also supported by higher consumer confidence, in conjunction with better sales mix, improved productivity and higher fixed costs absorption in a greater volume, as well as the incorporation of the recently acquired JL French operations. For 2012 on a pro- forma forma basis (considering 12 months of JL French operations), Nemak's revenues and EBITDA were close to USD4 billion and USD530 million, respectively, compared to USD2.9 billion and USD300 million reached during 2007, before the global crisis. Nemak reported a pro-forma EBITDA per equivalent cylinder head of USD12 dollars for the full year 2012 compared to USD10.5 dollars per cylinder head in 2011 and US11 in 2010, mainly reflecting a better sales mix of higher value added products. Improved Leverage Nemak has been reducing its leverage in the past three years, mainly, through higher EBITDA generation. At the end of 2012 on a pro-forma basis, the company's gross leverage was 2.7x, and 3.1x considering loans from the parent company. These loans are subordinated by contract from the rest of Nemak's senior debt. In Fitch's opinion, these subordinated credits provide flexibility to its service and amortization, given the parent company's current position. Fitch estimates that Nemak's gross debt to EBITDA will remain below 2.8x in the next two years. At the end of December 2012, Nemak reported a manageable debt structure. The company had cash balances of USD51 million, generated USD73 million of free cash flow (LTM) and had annual average debt maturities of approximately USD150 million for the next two years. The company's liquidity is further supported by available committed revolving credit lines of approximately USD160 million which mature in 2014. Fitch believes that Nemak has enough flexibility to meet its financial commitments. The proceeds of the proposed senior notes issuance will be used mainly to refinance existing bank debt. SENSITIVITY/RATINGS DRIVERS: Nemak's ratings could be affected by a decrease in sales volume and/or an increase in costs and expenses that would negatively impact EBITDA generation, as well as financial and operative ratios. Factors that may be considered positive for the credit profile of the company include a continuing favorable trend in EBITDA generation and constant positive free cash flow generation, allowing it to maintain constant gross leverage levels near 2.5x. TENEDORA NEMAK: S&P Assigns 'BB-' LT Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to Tenedora Nemak S.A. de C.V. (Nemak). S&P also assigned its 'BB-' long-term issue rating to the company's proposed approximately $300 million senior unsecured notes with a recovery rating of '3', indicating S&P's expectation of meaningful (50% to 70%) recovery in the event of a payment default. At the same time, S&P affirmed its 'mxA-' national scale long-term corporate credit rating on the company. The company will use the proceeds of the proposed issuance to refinance a portion of its outstanding debt. The outlook is stable. The ratings on Nemak reflect S&P's assessment of the company's "weak" business risk profile and "aggressive" financial risk profile, as per S&P's rating criteria and in line with most of Nemak's rated peers. S&P's assessment of the company's "weak" business risk profile reflects the concentration of more than 60% of its sales volume in the three major U.S.-based automakers-- Ford Motor Co. (Ford), General Motors Co. (GM), and Chrysler Group LLC (Chrysler)--its concentration in manufacturing cylinder heads and engine blocks (about 85% of revenues), and the cyclical nature of the automotive industry. The company's worldwide leading position in the casting sector of aluminum components for the automotive industry, geographic diversification, close and long-term relationship with key customers, and high-technology processes partly offset these factors. S&P's assessment of its "aggressive" financial risk profile reflects the company's growth strategy through debt-financed acquisitions and a relatively leveraged capital structure. Positive factors of its financial risk profile include the company's improved key financial metrics and "adequate" liquidity. TENEDORA NEMAK: Moody's Assigns Ba2 Rating to USD300MM Sr. Notes ---------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Tenedora Nemak, S.A. de C.V.'s senior unsecured global notes for an amount of approximately USD300 million and a tenor up to 10 years. At the same time, Moody's assigned a Ba2 corporate family rating to Nemak. The outlook is stable. This is the first time Moody's has rated Nemak. Issuance proceeds will be used to refinance existing bank debt. Ratings Rationale "Nemak's Ba2 rating reflects the company's strong market position; its importance as a key supplier of cylinder heads to several automakers; its adequate liquidity; and its geographic diversification that mitigates earnings volatility," said Alonso Sanchez, an Assistant Vice President at Moody's. The rating also incorporates certain level of execution risk in integrating acquisitions, partly offset by the good track record in M&A of Nemak and Alfa (Nemak's parent company). "Partially mitigating these positives are the highly competitive environment in the automotive supplier industry; Nemak's limited business diversification evidenced by a narrow product focus on aluminum cylinder heads, engine blocks and transmission components which have the same demand drivers; its relative small size when compared to industry peers; and a still large exposure to the Big 3 U.S. OEMs," added Alonso Sanchez. Despite Nemak's relatively small scale when compared to other auto part manufacturers it has a strong market position globally being only surpassed by the OEMs internal foundries. Moody's positively views Nemak's geographic diversification as the different market dynamics in its regions of operation helps to mitigate revenue volatility. In 2012 the company's revenues came mainly from North America (59%) and Europe (33%). Nemak's broad customer base also provides some revenue diversification; however the company has a high exposure to the US Big-3 OEMs (Ford, General Motors and Chrysler) which in 2012 accounted for 57% of its total sales volumes. The company has a competitive cost base and benefits from aluminum cost pass-through arrangements with its customers that mitigates the risk of high commodity price volatility (aluminum represents around 45% of cost of goods sold). Nemak's profitability as measured by EBITDA per equivalent unit has remained stable at an average of USD10.6 over the 2008-2011 period despite lower sales volumes during the economic crisis. In 2012 Nemak's profitability increased to a USD12 EBITDA per equivalent unit. Nemak's credit metrics are weaker as compared to other Ba-rated industry peers. Moody's estimates adjusted debt/EBITDA of 2.7 times as of December 31, 2012 and adjusted EBIT/Interest expense of 3.2 times in 2012. The stable rating outlook reflects Moody's expectation that the company will be able to achieve its projected growth while maintaining adequate liquidity and stronger credit metrics with positive free cash flow generation. It also incorporates Moody's expectation that the company will manage its leverage at or below 2.5 times. The stable outlook assumes that the company will not engage in any major acquisitions that could materially weaken its liquidity or credit profile. A ratings upgrade is unlikely over the near to medium term because of the company's limited scale and product diversification. Longer term, upward rating pressure could occur if the company were to materially increase its size, maintain positive free cash flow, and improve its credit metrics with Debt/EBITDA approaching to around 2.0 times and EBIT/Interest higher than 3.0 times on a sustained basis. The rating could be downgraded if the company's margins are affected for example due to a change in the pass-through aluminum price agreements with OEMs or if there is an adverse change in the company's market position. A deterioration in the company's credit metrics such that debt/EBITDA increases close to 4.0 times with EBIT/interest expense declining below 2.5 times or if the company's free cash flow becomes negative could also pressure the rating. The principal methodology used in this rating was the Global Automotive Supplier Industry Methodology published in January 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Tenedora Nemak, S.A. de C.V. is a subsidiary of Alfa, a publicly traded Mexican company with four main businesses: petrochemicals (Alpek), high-tech aluminum auto components (Nemak), refrigerated food (Sigma), and telecommunications (Alestra). Nemak produces cylinder heads, engine blocks and transmissions for light vehicles manufactured by OEMs. Nemak products are sold mainly in North America, South America, and Europe. Nemak's revenues and EBITDA are estimated at USD3.9 billion and over USD500 million, respectively for 2012. ===================== P U E R T O R I C O ===================== P.AGUILERA & ASSOCIATES: Case Summary & Largest Unsec Creditors --------------------------------------------------------------- Debtor: P.Aguilera & Associates, Inc. P.O. Box 366263 San Juan, PR 00936-6263 Bankruptcy Case No.: 13-01048 Chapter 11 Petition Date: February 13, 2013 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Teresa M Lube Capo, Esq. LUBE & SOTO LAW OFFICES PSC 1130 Ave FD Roosevelt San Juan, PR 00920-2906 Tel: (787) 722-0909 Fax: (787) 977-1709 E-mail: lubeysoto@gmail.com Estimated Assets: US$100,001 to US$500,000 Estimated Debts: US$1,000,001 to US$10,000,000 A list of the Company's 20 largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/prb13-01048.pdf The petition was signed by Pascual Aguilera Aldamuy, president. =============== X X X X X X X X =============== * BOND PRICING: For the Week Feb. 11 to Feb. 15, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-USDDIS 8.28 12/31/2033 USD 59.65 ARGENT-USDDIS 8.28 12/31/2033 USD 60.75 ARGENT-USDDIS 8.28 12/31/2033 USD 61.63 ARGENT-USDDIS 8.28 12/31/2033 USD 61.63 ARGENT-USDDIS 8.28 12/31/2033 USD 63.25 ARGENT-PAR 1.18 12/31/2038 ARS 42.04 ARGENT-EURDIS 7.82 12/31/2033 EUR 45 ARGENT-EURDIS 7.82 12/31/2033 EUR 60 ARGENT-EURDIS 7.82 12/31/2033 EUR 60.5 ARGENT-JPYDIS 4.33 12/31/2033 JPY 35.5 ARGENT-JPYDIS 4.33 12/31/2033 JPY 36 ARGENT-JPYPAR&GDP 0.45 12/31/2038 JPY 8 ARGNT-BOCON PRE9 2 3/15/2014 ARS 50 BANCO MACRO SA 9.75 12/18/2036 USD 72.5 BANCO MACRO SA 9.75 12/18/2036 USD 71.88 BANCO MACRO SA 9.75 12/18/2036 USD 71.88 CAPEX SA 10 3/10/2018 USD 75 CAPEX SA 10 3/10/2018 USD 73.25 CIA LATINO AMER 9.5 12/15/2016 USD 70 EMP DISTRIB NORT 9.75 10/25/2022 USD 46.05 EMP DISTRIB NORT 10.5 10/9/2017 USD 36.85 EMP DISTRIB NORT 9.75 10/25/2022 USD 44.5 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 67 METROGAS SA 8.875 12/31/2018 USD 69.13 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.87 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.88 PROV BUENOS AIRE 9.375 9/14/2018 USD 70.91 PROV BUENOS AIRE 9.375 9/14/2018 USD 70.7 PROV BUENOS AIRE 10.875 1/26/2021 USD 72.7 PROV BUENOS AIRE 10.875 1/26/2021 USD 72.31 PROV DE FORMOSA 5 2/27/2022 USD 62.63 PROV DE MENDOZA 5.5 9/4/2018 USD 73.78 PROV DEL CHACO 4 12/4/2026 USD 27.75 PROV DEL CHACO 4 11/4/2023 USD 55.13 TRANSENER 9.75 8/15/2021 USD 39 TRANSENER 9.75 8/15/2021 USD 38.75 TRANSENER 8.875 12/15/2016 USD 41.01 BRAZIL ------ CESP 9.75 1/15/2015 BRL 74.7 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 59.5 BANCO BPI (CI) 4.15 11/14/2035 EUR 65.13 BCP FINANCE CO 4.239 EUR 42 BCP FINANCE CO 5.543 EUR 43 BES FINANCE LTD 4.5 EUR 64.83 BES FINANCE LTD 5.58 EUR 67.5 CAM GLOBAL FIN 6.08 12/22/2030 EUR 61 CHINA FORESTRY 10.25 11/17/2015 USD 53 CHINA FORESTRY 10.25 11/17/2015 USD 53.13 CHINA SUNERGY 4.75 6/15/2013 USD 57.87 ERB HELLAS CAYMA 9 3/8/2019 EUR 50.75 ESFG INTERNATION 5.753 EUR 53.19 GOL FINANCE 8.75 USD 77.25 GOL FINANCE 8.75 USD 74.88 JINKOSOLAR HOLD 4 5/15/2016 USD 60 LUPATECH FINANCE 9.875 USD 45 LUPATECH FINANCE 9.875 USD 43.5 PUBMASTER FIN 6.962 6/30/2028 GBP 62.76 PUBMASTER FIN 8.44 6/30/2025 GBP 64 SUNTECH POWER 3 3/15/2013 USD 49.5 SUNTECH POWER 3 3/15/2013 USD 50.4 BRAZIL ------ CESP 9.75 1/15/2015 BRL 74.7 CHILE ----- ALMENDRAL TEL 3.5 12/15/2014 CLP 42.34 CHILE 3 1/1/2042 CLP 65.9 CHILE 3 1/1/2042 CLP 65.9 CHILE 3 1/1/2040 CLP 67.41 CHILE 3 1/1/2040 CLP 67.41 COLBUN SA 3.2 5/1/2013 CLP 24.86 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 58.5 PUERTO RICO CONS 6.5 4/1/2016 USD 69.48 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 69 PETROLEOS DE VEN 5.375 4/12/2027 USD 72.25 *********** 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, Julie Anne L. Toledo, 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 * * *