/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130301.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 Friday, March 1, 2013, Vol. 14, No. 43 Headlines B R A Z I L * BRAZIL: Fitch Sees Negative Outlook for Protein Producer * BRAZIL: Drought Pressures Electricity Distributors, Fitch Says C A Y M A N I S L A N D S ANALYTIC TOTAL: Shareholders Receive Wind-Up Report ASPET INVESTMENTS: Shareholder Receives Wind-Up Report BARCLAYS MOSELLE NO 2: Shareholder Receives Wind-Up Report BARCLAYS MOSELLE NO 3: Shareholder Receives Wind-Up Report CARLYLE LOAN: Shareholders Receive Wind-Up Report CLEVER LIMITED: Members Receive Wind-Up Report COLDSTREAM ALTERNATIVE: Shareholder Receives Wind-Up Report COLOMBIERE INVESTMENTS: Shareholder Receives Wind-Up Report EMERALD LIMITED: Members Receive Wind-Up Report FPP (GENERAL PARTNER): Shareholder Receives Wind-Up Report FPP JAPAN: Shareholder Receives Wind-Up Report HUTCHISON HARBOUR: Shareholder Receives Wind-Up Report JESSICA CONSULTING: Members Receive Wind-Up Report KALLISTA CREDIT: Shareholder Receives Wind-Up Report MARIAH RE: Shareholder Receives Wind-Up Report OTIS HOLDINGS: Members Receive Wind-Up Report PALISADE MICROCAP: Shareholders Receive Wind-Up Report PUYDEDOME INVESTMENTS: Shareholders Receive Wind-Up Report VENTOUX INVESTMENTS: Shareholder Receives Wind-Up Report YAMANA GOLD: Members Receive Wind-Up Report J A M A I C A DIGICEL GROUP: To Restructure Debt Again UC RUSAL: Offices Raided Amid Tax Evasion Allegations H O N D U R A S * HONDURAS: S&P Revises Outlook to Negative & Affirms 'B+' Rating M E X I C O HIPOTECARIA SU CASITA: S&P Raises Rating on Notes to 'mxCC' T R I N I D A D & T O B A G O CL FINANCIAL: CLICO Interest Rate Did Not Make Sense - - - - - =========== B R A Z I L =========== * BRAZIL: Fitch Sees Negative Outlook for Protein Producer ---------------------------------------------------------- Challenges to profitability, free cash flow (FCF) generation, and business fundamentals result in a negative outlook for Brazilian protein producers in 2013, according to a new Fitch Ratings report. 'To varying degrees, all Brazilian protein producers are exposed to risks including volatile commodity prices, unfavorable currency fluctuation, potential disease outbreak, and regional export bans,' said Viktoria Krane, Director at Fitch. 'Competition for market share among branded meat processors will intensify in 2013.' Feed costs remain relatively high for large pork and chicken producers. Beef processors will benefit from a positive cattle cycle in Brazil, combined with relatively high beef prices domestically and internationally. Continuing a multiyear trend, 2013 will be FCF negative to neutral due to factors including lower profitability, elevated working capital and capital expenditure requirements to support growth. The pursuit of scale and diversification is a long-term strategic positive balanced against an elevated risk of short- to medium- term operational inefficiencies and, in some cases, weaker balance sheets. Close to USD2 billion of long-term debt was raised collectively by Brazilian protein producers in January 2013, which, when combined with equity offerings completed at end of 2012, will help address 2013 maturities and improve debt maturity schedules. Generally, liquidity was not a pressing concern for Brazilian protein companies during 2012. Most issuers will continue to rely on external sources of financing in 2014 and beyond. * BRAZIL: Drought Pressures Electricity Distributors, Fitch Says ---------------------------------------------------------------- Fitch Ratings expects the temporary increase in electricity prices in the spot market and larger dispatches of thermal plants to negatively impact Brazilian electricity distribution companies' (DisCos) financial profile. Electricity prices in Brazil have spiked during recent months as a result of lower rain levels affecting the country's hydroelectric generation. The DisCos' credit metrics are under pressure due to: lower EBITDA generation resulting from the substantial cost increases and/or higher net debt to finance increasing working capital needs. Fitch is currently assessing the credit implications for the different distribution companies, and negative credit actions might follow for some DisCos. The DisCos' exposure to higher spot market price has also significantly intensified in recent months as the companies are buying energy in the spot market to meet consumption demand. The current scenario is leading distribution companies to have cash disbursements with the Power System Service Charges (ESS) and with the purchase of energy at levels significantly higher than those currently passed through to end users. Fitch understands that such higher costs are beyond the control of DisCos, which are part of the so-called 'Portion A' of the costs, and should be ultimately passed-through to end users and gradually compensated in 12 months after each company's annual tariff readjustments. As it stands, the company's ability to service short-term financial obligations will remain under pressure while they wait for tariffs to catch up with their costs. DisCos with upcoming tariff readjustment, as well as those with a lower level of under contracted energy, are less exposed to the current unfavorable scenario. These DisCos would be less affected and recover faster, provided that the currently high prices are reflected in the new tariffs. Fitch will continue to closely monitor DisCos' financials, and some rating downgrades may occur over the short term if measures to effectively alleviate the current situation are not promptly implemented. In Fitch's opinion, it is important to have a decision from the Federal Government of Brazil in order to preserve the DisCos' liquidity during the current stress period, as well as to lower the negative impacts on their debt financial covenants and reduce the reliance on third party sources to finance their working capital needs. A bridge financing from BNDES or a cash contribution from the government could be two possibilities. It is unlikely an immediate extraordinary industry- wide tariff adjustment, as it would come just after the government implemented a 20% reduction on average on electricity prices for end users. Instead, Fitch expects that cost pass-through will be implemented during each individual DisCo's appointed tariff adjustment. The spot market price volatility has increased during recent months, adding to DisCos' risks. During the fourth quarter of 2012, the average spot market price in the Southeastern Region submarket, for example, was BRL305.17/MWh, up from BRL42.39/MWh in the same period the year before. During January 2013, electricity prices in the same region increased to BRL413.95/MWh from an average of BRL 259.57/MWh during December 2012 and up from BRL23.14/MWh in January 2012. The average energy spot price in February 2013 was lower in the first three weeks, close to BRL183.40/MWh, in average, yet again exceeded BRL300/MWh during the week of Feb. 23. Fitch currently analyzes several distribution companies in order to assign individual ratings or to rate a holding company. The complete list of distribution companies with the scheduled next tariff adjustment/review is: Cemig Distribuicao S.A. - April 2013 Centrais Eletricas Matogrossenses S.A. - April 2013 Companhia Paulista de Forca e Luz -April 2013 Empresa Energetica de Mato Grosso do Sul - April 2013 Energisa Sergipe - Distribuidora de Energia S.A. - April 2013 Caiua Distribuicao de Energia S.A. - May 2013 Cia Nacional de Energia Eletrica - May 2013 Empresa de Distribuicao de Energia Vale Paranapanema S.A - May 2013 Empresa Eletrica Bragantina S.A. - May 2013 Cia Forca e Luz do Oeste - June 2013 Copel Distribuicao S.A. - June 2013 Energisa Minas Gerais - Distribuidora de Energia S.A. - June 2013 Energisa Nova Friburgo - Distribuidora de Energia S.A. - June 2013 Rio Grande Energia S.A. - June 2013 Cia de Energia Eletrica do Estado de Tocantins - July 2013 Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. - July 2013 Centrais Eletricas do Para - August 2013 Companhia Energetica do Maranhao - August 2013 Energisa Paraiba - Distribuidora de Energia S.A. - August 2013 Companhia Piratininga de Forca e Luz - October 2013 Light Servicos de Eletricidade S.A. - November 2013 Companhia Jaguari de Forca e Luz - February 2014 Companhia Leste Paulista de Forca e Luz - February 2014 Companhia Mococa de Forca e Luz - February 2014 Companhia Santa Cruz de Forca e Luz - February 2014 Companhia Sul Paulista de Forca e Luz - February 2014 Energisa Borborema - Distribuidora de Energia S.A. - February 2014 ========================== C A Y M A N I S L A N D S ========================== ANALYTIC TOTAL: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 17, 2013, the shareholders of Analytic Total Return Volatility Fund, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Analytic Investors, LLC c/o Dennis Roy 555 West Fifth Street Los Angeles, 50th Floor California 90013 United States of America Telephone: +1 (213) 787-9761 E-mail: droy@aninvestor.com ASPET INVESTMENTS: Shareholder Receives Wind-Up Report ------------------------------------------------------ On Jan. 18, 2013, the shareholder of Aspet Investments Limited 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 87 Mary Street, George Town Grand Cayman, KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 BARCLAYS MOSELLE NO 2: Shareholder Receives Wind-Up Report ---------------------------------------------------------- On Jan. 18, 2013, the shareholder of Barclays Moselle No 2 Investments Limited 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 87 Mary Street, George Town Grand Cayman, KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 BARCLAYS MOSELLE NO 3: Shareholder Receives Wind-Up Report ---------------------------------------------------------- On Jan. 18, 2013, the shareholder of Barclays Moselle No 3 Investments Limited 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 87 Mary Street, George Town Grand Cayman, KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 CARLYLE LOAN: Shareholders Receive Wind-Up Report ------------------------------------------------- On Jan. 18, 2013, the shareholders of Carlyle Loan Investment Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 CLEVER LIMITED: Members Receive Wind-Up Report ---------------------------------------------- On Jan. 16, 2013, the members of Clever Limited received the liquidator's report on the company's wind-up proceedings and property disposal. 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 COLDSTREAM ALTERNATIVE: Shareholder Receives Wind-Up Report ----------------------------------------------------------- On Jan. 18, 2013, the shareholder of Coldstream Alternative Strategies Fund, Ltd. 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 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814-6847/ (345) 914-3115 COLOMBIERE INVESTMENTS: Shareholder Receives Wind-Up Report ----------------------------------------------------------- On Jan. 18, 2013, the shareholder of Colombiere Investments Limited 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 87 Mary Street, George Town Grand Cayman, KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 EMERALD LIMITED: Members Receive Wind-Up Report ----------------------------------------------- On Jan. 22, 2013, the members of Emerald Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Roberto Alarcon c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands FPP (GENERAL PARTNER): Shareholder Receives Wind-Up Report ---------------------------------------------------------- On Jan. 18, 2013, the shareholder of FPP (General Partner) Inc. 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 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814-6847 FPP JAPAN: Shareholder Receives Wind-Up Report ---------------------------------------------- On Jan. 18, 2013, the shareholder of FPP Japan Fund Inc. 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 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814-6847 HUTCHISON HARBOUR: Shareholder Receives Wind-Up Report ------------------------------------------------------ On Jan. 8, 2013, the sole shareholder of Hutchison Harbour Ring Holdings 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 JESSICA CONSULTING: Members Receive Wind-Up Report -------------------------------------------------- On Dec. 28, 2012, the members of Jessica Consulting Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. 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 KALLISTA CREDIT: Shareholder Receives Wind-Up Report ---------------------------------------------------- On Jan. 7, 2012, the shareholder of Kallista Credit Opportunities Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hugh Dickson c/o Phillip Tyrrell 10 Market Street, Box 765 Camana Bay Grand Cayman KY1-9006 Cayman Islands Telephone: (345) 769-7204 Facsimile: (345) 949-7120 MARIAH RE: Shareholder Receives Wind-Up Report ---------------------------------------------- On Jan. 7, 2013, the shareholder of Mariah Re Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Carl Gosselin c/o Wilmington Trust (Cayman), Ltd. P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 640-6712 OTIS HOLDINGS: Members Receive Wind-Up Report --------------------------------------------- On Jan. 16, 2013, the members of Otis Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. 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 PALISADE MICROCAP: Shareholders Receive Wind-Up Report ------------------------------------------------------ On Jan. 18, 2013, the shareholders of Palisade Microcap Partners (Cayman) Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Dennison Veru c/o Palisade Capital Management, L.L.C. One Bridge Plaza Suite 695, Fort Lee New Jersey 07024 United States of America Telephone: +1 (201) 585-5433 E-mail: dveru@palcap.com PUYDEDOME INVESTMENTS: Shareholders Receive Wind-Up Report ---------------------------------------------------------- On Jan. 18, 2013, the shareholders of Puydedome Investments Limited 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 87 Mary Street, George Town Grand Cayman, KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914-3115 VENTOUX INVESTMENTS: Shareholder Receives Wind-Up Report -------------------------------------------------------- On Jan. 18, 2013, the shareholder of Ventoux Investments Limited 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 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814-6847/ (345) 914-3115 YAMANA GOLD: Members Receive Wind-Up Report ------------------------------------------- On Jan. 8, 2013, the members of Yamana Gold Holdings (Cayman) II Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Roberto Alarcon c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands ============= J A M A I C A ============= DIGICEL GROUP: To Restructure Debt Again ---------------------------------------- Jamaica Gleaner reports that Digicel Group Limited will use the US$1 billion it plans to raise via private placement to buy up its 12% bonds and finance other projects. The bonds were due to mature next year, but Digicel is taking the opportunity to restructure the profile of its debt, according to Jamaica Gleaner. Jamaica Gleaner notes that the 2014 bonds are being redeemed at a cost of US$510 million, or US$1,068 per US$1,000 of bonds held, inclusive of a US$30 consent fee for bondholders who agree to lift certain covenants on the debt. The offer closes March 18. The new notes, via private placement, will have a coupon of 6.0% and mature in 2021, the report relates. Jamaica Gleaner discloses that Digicel said the rest of the proceeds, net of expenses, will be used "for general corporate purposes, which could include capital expenditures, acquisitions, debt repayment or dividends to Digicel Group Limited (subject to the limitations in our debt instruments)." Digicel last refinanced its debt in September 2012. Digicel Group Limited's total debt at December 2012 was approximately US$4.9 billion while cash balances amounted to US$353 million, according to Fitch, the report adds. Digicel Group, with regional headquarters in Jamaica, entered the Panama market in 2008. * * * As reported in the Troubled Company Reporter on Sept. 7, 2012, Moody's Investors Service assigned a Caa1 rating to Digicel Group Limited's proposed US$700 million senior unsecured notes due 2020. Net proceeds will be used to repurchase the entire tranche of the DGL 9.125%/9.875% senior PIK toggle notes due 2015 (US$415 million outstanding) and a portion of the 8.875% senior notes due 2015 (US$1 billion outstanding) via tender offers. UC RUSAL: Offices Raided Amid Tax Evasion Allegations ----------------------------------------------------- RJR News reports that Russian officials have raided the offices of UC Rusal amid an investigation into alleged tax evasion. The Moscow branch of Russia's Investigative Committee is looking into claims a Rusal subsidiary dodged more than US$6 million in taxes, according to RJR News. The report notes that UC Rusal dismissed the allegations as groundless. An official at Rusal's subsidiary, Folga, is at the center of claims of doctoring accounts from 2008 to 2009 to include services rendered by a non-existent company, the report relates. RJR News discloses that UC Rusal said it plans to appeal against the tax claim, which was issued by a Moscow court but has not yet come into effect. Rusal has a major stake in the Kirkvine and Alpart alumina operations in Jamaica. As reported in the Troubled Company Reporter-Latin America on Sept. 28, 2012, RJR News said that Russian aluminum giant UC Rusal, which has a major stake in Jamaica's bauxite/alumina industry, expects to reach a deal with its lenders within six months to refinance part of an US$11 billion debt burden. It will agree to new loan conditions by the end this year before its covenant holiday expires, according to RJR News. =============== H O N D U R A S =============== * HONDURAS: S&P Revises Outlook to Negative & Affirms 'B+' Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on the long-term ratings on the Republic of Honduras to negative from stable. At the same time, S&P affirmed its 'B+/B' sovereign credit ratings on Honduras. "Our negative outlook reflects the risk of a continued deterioration in macroeconomic stability. On the fiscal side, Honduras' central government fiscal deficit may exceed the government's target of 4.5% of GDP this year," said Standard & Poor's credit analyst Kelli Bissett. "We expect budgetary pressures to come from election spending this year and transfers and subsidies to public utilities, including the Empresa Nacional de Energ�a Electrica. We project that the 2013 central government deficit could reach 6.0% of GDP (and the general government deficit, which includes the central bank financial position, to 6.3% of GDP), pushing net general government debt to more than 30% of GDP." In recent years following the debt relief Honduras received beginning in 2005, the general government has mostly financed its deficits internally and with concessional loans from official lenders. Large deficits during 2009-2010 contributed to the increase in the central government's domestic debt to 14.9% of GDP in 2012 from 8.4% in 2009. Current government financing needs have increased domestic long-term interest rates upwards of 14% because of the shallow domestic capital markets. The outlook is negative. S&P could lower its ratings on Honduras if the government fails to staunch these negative trends, which external shocks or negative political developments in the country could exacerbate. Steps to stabilize the government's debt trajectory, as well as to increase gradually the central bank's monetary policy and exchange rate flexibility could stem the recent deterioration in macroeconomic stability. That, along with an orderly transition to a new administration in 2014 following national elections late this year, could revive investor confidence and lead to an outlook revision to stable. =========== M E X I C O =========== HIPOTECARIA SU CASITA: S&P Raises Rating on Notes to 'mxCC' ----------------------------------------------------------- Standard & Poor's Rating Services raised its long-term national scale rating CaVal to 'mxCC (sf)' from 'D (sf)' on the subordinated class B residential mortgage-backed notes due 2035, a cross-border RMBS transaction issued by Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. (Su Casita) and serviced by Patrimonio, S.A. de C.V. S.F.O.L. (Patrimonio). At the same time, S&P raised its Standard & Poor's underlying rating (SPUR) on the senior class A notes to 'CC (sf)' from 'D (sf)'. S&P also raised the SPURs of senior series BRHCCB 07U and BRHCCB 07-2U from another RMBS transaction issued by Su Casita and serviced by Patrimonio. S&P raised the senior class A notes SPUR to 'CC (sf)' to reflect the fact that interest collections were sufficient to cover this payment date and past-due amounts to the swap provider, Credit Suisse AG (Credit Suisse). At the same time, interest collections were also sufficient to cover this month's interest payment plus past-due interest from previous payment dates on subordinated class B notes. As a result, S&P raised the rating on class B to 'mxCC (sf)'. On the other hand, the upgrade of the SPURs on the BRHCCB 07U and BRHCCB 07-2U certificates follows the payment of past-due amounts to MBIA Mexico S.A. de C.V. (MBIA Mexico), as the full financial guarantee insurance policy provider, from the previous payment date. However, interest collections have not been sufficient to cover past due and this month's due interest payment for subordinated series BRHCCB 07-3U, as a consequence, the rating remains at 'D (sf)' Ratings on the subordinated tranche and the SPURs are limited by the deal's default history, the weak financial position of the trusts, and its decreasing excess spread. "We are maintaining our 'B (sf)' rating on senior class A due to the swap guarantee and the full financial guarantee provided by MBIA Insurance Corp. (B/Negative/--). We also are maintaining the global scale rating of 'B (sf)' and national scale rating of 'mxBB+ (sf)' for senior series BRHCCB 07U and BRHCCB 07-2U due to the full financial guarantee provided by MBIA Mexico. Under our criteria, the issue rating on an insured bond reflects the higher of the rating on the bond insurer or the SPUR on the security. Our SPUR ratings on classes with full bond insurance reflect the stand-alone capacity of an issue to pay debt service without giving effect to the external enhancement, in this case, without the protection given by the bond insurance provided by MBIA," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS RAISED Hipotecaria Su Casita-Residential Mortgage Backed Notes Class Rating Outs. amount Class type To From (mil.) B Sub. mxCC (sf) D (sf) MXN184.97 A SPUR CC (sf) D (sf) USD105.27 Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Class Rating Outs. amount Class type To From (mil.) BRHCCB 07U SPUR CC (sf) D (sf) 13.97 UDIs BRHCCB 07-2U SPUR CC (sf) D (sf) 425.20 UDIs OTHER OUTSTANDING RATINGS Hipotecaria Su Casita-Residential Mortgage Backed Notes Class Rating Outs. amount Class type (mil.) A Senior B (sf) USD105.27 Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Class Rating Outs. amount Class type (mil.) BRHCCB 07U Senior B (sf) 13.97 UDIs BRHCCB 07U Senior mxBB+ (sf) 13.97 UDIs BRHCCB 07-2U Senior B (sf) 425.20 UDIs BRHCCB 07-2U Senior mxBB+ (sf) 425.20 UDIs BRHCCB 07-3U Sub. D (sf) 64.85 UDIs =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: CLICO Interest Rate Did Not Make Sense ---------------------------------------------------- Joel Julien at Trinidad Express reports that despite being involved at varying levels in the audit of failed insurance company Colonial Life Insurance Company (Trinidad) Limited (CLICO) for over a decade, PricewaterhouseCoopers Director Dwayne Rodriguez-Seijas could not say if he would have invested in the insurance giant when questioned. CLICO is a subsidiary of CL Financial Limited. Trinidad Express relates that Mr. Rodriguez-Seijas took the witness stand at the Commission of Enquiry into the failure of CL Financial and four of its subsidiaries. The enquiry, which is being held at the Winsure Building at Richmond Street in Port of Spain, is currently in its 11th evidence hearing, according to Trinidad Express. The report notes that during cross-examination by junior counsel to the commission, British barrister Marion Smith, Mr. Rodriguez- Seijas was told that he was talking "nonsense" when questioned about the "mismatch" between the interest paid on deposits and the interest received from investments made by CLICO. Mr. Rodriguez-Seijas's first audit of CLICO was in 2001. Mr. Rodriguez-Seijas, the report relays, held the post of team manager during the 2007 audit of the CLICO's financial statements. Mr. Rodriguez-Seijas said CLICO's 2007 financial statement showed the insurance company in one of the strongest positions it had been in during his tenure auditing it, the report notes. In that financial statement, CLICO's assets grew by almost 20% to $22 billion, the excess of its assets over liabilities grew by almost 30% and premium generated by 60%, the report says. The report relates that Neal Bisnath, the legal representative for CLICO, said the insurance company had mechanisms in place to fix its books. Meanwhile, Mr. Smith, the report notes, highlighted a PwC internal e-mail correspondence where former CL chairman Lawrence Duprey was described as a "single dominant voice". Mr. Duprey's ability to set CLICO's budgetary targets without any oversight was also labelled as a "fraud risk," the report says. Mr. Smith alleged that the PwC audit of CLICO's 2007 financial statement "overstated" the strength of the insurance company, the report notes. Mr. Rodriguez-Seijas said "with the benefit of hindsight a lot of information that is available now could have been useful", to the PwC audit performed on the 2007 financial statements, the report adds. Nigel Panchoo of PwC is expected to testify. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. *********** 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 * * *