/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130315.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 15, 2013, Vol. 14, No. 53 Headlines C A Y M A N I S L A N D S AGLLEON STRATEGIC: Commences Liquidation Proceedings CAFFEBENE CHINA: Placed Under Voluntary Wind-Up CAFFEBENE GLOBAL: Placed Under Voluntary Wind-Up GALLEON EXPLORERS: Commences Liquidation Proceedings GENPOWER CARBON: Placed Under Voluntary Wind-Up GMFF CERES: Placed Under Voluntary Wind-Up GMFF GYES: Placed Under Voluntary Wind-Up GMFF PEGASUS: Placed Under Voluntary Wind-Up GMFF VULCAN: Placed Under Voluntary Wind-Up IRONSIDES LIMITED: Placed Under Voluntary Wind-Up M & D INC: Placed Under Voluntary Wind-Up NASH PROPERTIES: Placed Under Voluntary Wind-Up PRS GLOBAL: Placed Under Voluntary Wind-Up PSAM WORLDARB: Placed Under Voluntary Wind-Up RAMIUS ALTERNATIVE: Commences Liquidation Proceedings REAL ESTATE: Commences Liquidation Proceedings RP ASSET: Placed Under Voluntary Wind-Up RP CA HOLDINGS: Placed Under Voluntary Wind-Up ZLP INVESTMENTS: Commences Liquidation Proceedings ZLP INVESTMENTS MASTER: Commences Liquidation Proceedings M A R S H A L I S L A N D S DEEP WATER: S&P Affirms 'B' Corp. Credit Rating; Outlook Negative H O N D U R A S * HONDURAS: Moody's Assigns B2 Rating to US$500-Mil. Bond Issue M E X I C O FINANCIERA INDEPENDENCIA: Fitch Affirms Long-Term IDRs at 'BB-' BANCO MERCANTIL: Moody's Affirms Ba1 Rating on Junior Debt BANCO MERCANTIL: Moody's Outlook on Ba1-Rated Debt is Negative P U E R T O R I C O ADVANCED COMPUTER: Plan Filing Deadline Extended to April 30 T R I N I D A D & T O B A G O PETROTRIN: Over 2,000 Employees on Strike U R U G U A Y * URUGUAY: Gets US$550MM IDB Loan to Increase Investment X X X X X X X X * Fitch Reports Net Negative Sovereign Rating Actions in 2012 * Wilk Auslander Among Latin Lawyer Deal of the Year Nominees - - - - - ========================== C A Y M A N I S L A N D S ========================== AGLLEON STRATEGIC: Commences Liquidation Proceedings ---------------------------------------------------- On Dec. 20, 2012, the sole shareholder of Aglleon Strategic Fund, Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Delta FS Limited c/o Jyoti Choi Telephone: +1 (345) 743 6627 P.O. Box 11820 Grand Cayman Cayman Islands CAFFEBENE CHINA: Placed Under Voluntary Wind-Up ----------------------------------------------- On Dec. 3, 2012, the shareholders of Caffebene China Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 22, 2013, will be included in the company's dividend distribution. The company's liquidator is: Jae-Hee Lim Trade Center ASEM Tower 704 Samseong l-dong Gangnam-gu, Seoul Korea Telephone: +8 (223) 438 6858 Facsimile: +8 (226) 001 1057 CAFFEBENE GLOBAL: Placed Under Voluntary Wind-Up ------------------------------------------------ On Dec. 3, 2012, the shareholders of Caffebene Global Holdings resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 22, 2013, will be included in the company's dividend distribution. The company's liquidator is: Jae-Hee Lim Trade Center ASEM Tower 704 Samseong l-dong Gangnam-gu, Seoul Korea Telephone: +8 (223) 438 6858 Facsimile: +8 (226) 001 1057 GALLEON EXPLORERS: Commences Liquidation Proceedings ---------------------------------------------------- On Dec. 20, 2012, the shareholders of Galleon Explorers Offshore, Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Delta FS Limited c/o Jyoti Choi Telephone: +1 (345) 743 6627 P.O. Box 11820 Grand Cayman Cayman Islands GENPOWER CARBON: Placed Under Voluntary Wind-Up ----------------------------------------------- On Dec. 20, 2012, the sole member of Genpower Carbon Solutions GP, Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 23, 2013, will be included in the company's dividend distribution. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands GMFF CERES: Placed Under Voluntary Wind-Up ------------------------------------------ On Dec. 21, 2012, the sole shareholder of GMFF Ceres Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815 1762 Facsimile: (345) 949 9877 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands GMFF GYES: Placed Under Voluntary Wind-Up ----------------------------------------- On Dec. 21, 2012, the sole shareholder of GMFF GYES Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815 1762 Facsimile: (345) 949 9877 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands GMFF PEGASUS: Placed Under Voluntary Wind-Up -------------------------------------------- On Dec. 21, 2012, the sole shareholder of GMFF Pegasus Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815 1762 Facsimile: (345) 949 9877 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands GMFF VULCAN: Placed Under Voluntary Wind-Up ------------------------------------------- On Dec. 21, 2012, the sole shareholder of GMFF Vulcan Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815 1762 Facsimile: (345) 949 9877 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands IRONSIDES LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------- On Dec. 21, 2012, the sole member of Ironsides Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 23, 2013, will be included in the company's dividend distribution. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands M & D INC: Placed Under Voluntary Wind-Up ----------------------------------------- On Oct. 10, 2012, the sole shareholder of M & D Inc. Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 22, 2013, will be included in the company's dividend distribution. The company's liquidator is: Wendy Cutri 280 Soledad Place Coronado, CA 92118 USA Telephone: +1 (619) 4358 2602 NASH PROPERTIES: Placed Under Voluntary Wind-Up ----------------------------------------------- On Nov. 26, 2012, the sole shareholder of Nash Properties Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Collin Walwyn Jirehouse Management Nevis Limited No. 9 Springates, Government Rd. P.O. Box 156 Charlestown, Nevis, WI Telephone: +1 (869) 469 4462 Facsimile: +1 (869) 469 4463 PRS GLOBAL: Placed Under Voluntary Wind-Up ------------------------------------------ On Dec. 20, 2012, the sole shareholder of The PRS Global Investments Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, 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 PSAM WORLDARB: Placed Under Voluntary Wind-Up --------------------------------------------- On Dec. 20, 2012, the sole shareholder of PSAM Worldarb SRI Fund Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Appleby Trust (Cayman) Ltd. Clifton House, 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands RAMIUS ALTERNATIVE: Commences Liquidation Proceedings ----------------------------------------------------- On Dec. 20, 2012, the sole shareholder of Ramius Alternative Replication Fund Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Ramius Alternative Solutions LLC c/o Sharon Gnessin 599 Lexington Avenue, 19th Floor New York New York 10022 United States of America Telephone: +1 (646) 562 1702 REAL ESTATE: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 21, 2012, the sole shareholder of Real Estate Property Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 4, 2013, will be included in the company's dividend distribution. The company's liquidator is: Kiyohiko Ide Kamiyacho Central Place, 6th Floor 4-3-13 Toranomon, Minato-ku Tokyo 105-0001 Japan RP ASSET: Placed Under Voluntary Wind-Up ---------------------------------------- On Dec. 19, 2012, the sole member of RP Asset Manager Holding Co. Cayman Islands Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Gavin Lowe Turners Management Ltd. Strathvale House, 90 North Church Street PO Box 2636 Grand Cayman KY1-1102 Cayman Islands Telephone: +1 (345) 814 0712 RP CA HOLDINGS: Placed Under Voluntary Wind-Up ---------------------------------------------- On Dec. 18, 2012, the sole member of RP CA Holdings Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Gavin Lowe Turners Management Ltd. Strathvale House, 90 North Church Street PO Box 2636 Grand Cayman KY1-1102 Cayman Islands Telephone: +1 (345) 814 0712 ZLP INVESTMENTS: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 20, 2012, the shareholders of ZLP Investments, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Michael Penner c/o Rachel Williams Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Cayman Islands Telephone: +1 (345) 814 3302 Facsimile: +1 (345) 949 8258 ZLP INVESTMENTS MASTER: Commences Liquidation Proceedings --------------------------------------------------------- On Dec. 19, 2012, the shareholders of ZLP Investments Master Fund, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 21, 2013, will be included in the company's dividend distribution. The company's liquidator is: Michael Penner c/o Rachel Williams Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Cayman Islands Telephone: +1 (345) 814 3302 Facsimile: +1 (345) 949 8258 E-mail: rachelwilliams@deloitte.com ============================= M A R S H A L I S L A N D S ============================= DEEP WATER: S&P Affirms 'B' Corp. Credit Rating; Outlook Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Marshal Islands-domiciled ultra-deep water driller Ocean Rig UDW Inc. The outlook is negative. S&P also affirmed its 'CCC+' ratings on Ocean Rig's senior unsecured debt and S&P's 'B' ratings on the senior secured debt. The recovery ratings of '6' (estimate of 0%-10% recovery) on the unsecured debt, and '3' (50%-70%) on the secured debt, were affirmed. At the same time, S&P removed all the ratings from CreditWatch, where they were placed with negative implications on Dec. 6, 2012. The rating actions reflect S&P's view that Ocean Rig's liquidity has improved after receiving a $1.35 billion credit facility to finance three drill ships in 2013, but S&P still views it as less than adequate. S&P foresees low single-digit headroom under financial covenants attached to the company's debt in the first half of this year. And, under S&P's base-case scenario, it assumes there will be no headroom under a leverage covenant until after the second quarter. "Furthermore, in our opinion Ocean Rig's operating performance in 2012 was poor, and substantially weaker than we had expected. Although we anticipate a gradual improvement this year, this continues to weigh on the rating. We now forecast EBITDA of $500 million-$550 million in 2013, after $355 million last year, and $850 million-$900 million in 2014. The bulk of the improvement will likely come from new rigs to be delivered in the second half of 2013, and contracts with higher day rates. We estimate free operating cash flow at negative $1 billion-$1.1 billion in 2013, owing to the purchase of the three new vessels, but don't believe a cash dividend is likely this year," S&P said. "Although we saw an improvement in Ocean Rig's business risk profile over 2012, it remains weak in our opinion. With the new vessels, the company will have a more diverse fleet of nine ultra- deep drillships by the end of this year. Also, Ocean Rig has signed several large contracts at attractive rates (more than $600,000 per day), and we foresee industry conditions remaining positive over the next one to two years. We are mindful, however, that the favorable operating conditions could also lead to excess capacity in the industry after 2015," S&P added. "We assess Ocean Rig's management and governance as weak, mainly owing to the company's weak operating performance in 2012, amid certain related-party transactions. In particular, we note the weakening performance and liquidity of DryShips Inc., Ocean Rig's main shareholder. We are aware of certain factors that, to some degree, ring-fence Ocean Rig from its weaker shareholder. Nevertheless, the risk of a default of DryShips, and the possible impact on Ocean Rig, will likely continue to weigh on our assessment of Ocean Rig's creditworthiness," S&P noted. Ocean Rig's credit ratios are low for the ratings. Funds from operations (FFO) to debt is below 10% and debt to EBITDA above 7x, and likely to stay at these levels in 2013. But S&P recognizes that debt will peak in the fourth quarter, owing to payment for the new rigs. With all rigs in operation, S&P expects a vast improvement in 2014, with FFO to debt and debt to EBITDA approaching 15% and below 5x respectively. The negative outlook reflects S&P's concerns regarding the company's limited covenant headroom in the first half of this year, weak operating performance, and its majority shareholder's financial profile. This downside scenario relates mainly to liquidity issues. Although Ocean Rig has now confirmed funding for the new rigs it has ordered, S&P still anticipates it having difficulty meeting its financial covenants over the next six months. If S&P believed that Ocean Rig would likely breach these covenants, S&P could take a negative rating action. Likewise, inability to improve profitability in line with S&P's forecasts would lead to rating pressure. S&P continues to monitor developments at DryShips and the possible implications for Ocean Rig. S&P views ratings upside as limited at this stage. However, given Ocean Rig's modern and advanced fleet, its liquidity and credit ratios could improve on the back of better operating performance and as new rigs start operating. S&P might consider an upgrade if the adjusted FFO-to-debt ratio reached 20% or higher on a sustainable basis. With the current debt amortization profile, this could happen after 2015 if industry conditions remain favorable. A positive rating action would also likely depend on there being no further weakening of DryShips' creditworthiness. =============== H O N D U R A S =============== * HONDURAS: Moody's Assigns B2 Rating to US$500-Mil. Bond Issue --------------------------------------------------------------- Moody's Investors Service has assigned a B2 rating to the $500 million bond issued by the government of Honduras, maturing on March 15, 2024. The rating matches the B2 sovereign rating of Honduras, whose outlook was revised to negative from stable on February 26, 2013. The negative outlook reflects Moody's concerns about (1) the deterioration of the government accounts in 2012 and the low likelihood of significant fiscal consolidation in 2013, given that it is an election year, and (2) a weakening of the external accounts, including a widening current account deficit, which is only partially covered by FDI. Consideration of a stable outlook would require clear evidence of a return to a path of fiscal consolidation, as well as material improvement in the external accounts. Alternatively, the rating could be downgraded in the event of a continued and marked deterioration of fiscal and/or external finances. The principal methodology used in this rating was Sovereign Bond Ratings published on 9-Sep-2008. =========== M E X I C O =========== FINANCIERA INDEPENDENCIA: Fitch Affirms Long-Term IDRs at 'BB-' --------------------------------------------------------------- Fitch Ratings has affirmed Financiera Independencia's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BB-'. In addition, Fitch has affirmed Findep's national scale ratings at 'AA-(mex)' and 'F2(mex)'. The Rating Outlook is Stable. Key Rating Drivers The affirmation of Findep's ratings reflects its strong franchise in the consumer finance sector and its adequate business scale, as well as its reasonable funding and well managed liquidity profile. Recent strategic changes on underwriting and collection processes, portfolio clean-up, and loan loss reserves enhancement are also considered as positive key rating drivers. However, Findep's ratings remain constrained by the delayed capital reconstitution (tangible equity to tangible assets ratio year-end 2012 [YE12]: 12.9%, slightly below than YE11), given that Findep has not yet compensated the goodwill generated from the acquisitions of Apoyo Economico (AEF) and Finsol, since its recent financial performance has remained poor due to high credit costs (loan impairment charges) and weakening efficiency. Earnings in 2012 were particularly affected by a non-recurring loan portfolio clean-up and smaller business volumes driven by the review of its business model towards less risky segments of its clientele. The affirmation of Findep's ratings also consider Fitch's expectation that recent changes in operational standards will result in certain profitability recovery over the near future, but not to pre-crisis levels, given the persistence of fiercer competition and more stringent loan loss reserves practices. Consequently, tangible capital ratios may only recover gradually and converge towards 20% over the next three years. Rating Sensitivities Findep's ratings could be downgraded if the company fails to improve its financial performance in the near future, following the completion of the aforementioned review of its business model. Negative pressure would arise if the loan charge-off ratio remains above 20%, loan loss reserves coverage falls below 100%, operating profits are lower than 2% of average assets, and/or if the tangible equity to tangible assets ratio falls below 12%. Also, a downgrade could arise if the currently weak financial condition materially affects its funding profile. In turn, Fitch considers the upside potential for FINDEP's ratings to be limited over the next 12 to 24 months. Credit Profile Findep is well recognized as one of the main companies in the unsecured personal lending sector, having expanded its geographical presence in 2011, through the acquisition of Apoyo Economico Familiar or AEF, another well-known player for personal loans, and by diversifying its product base following the 2010 purchase of Finsol, the second national leader in microfinance group-based lending. Findep's bank facilities are sourced from different entities at comfortable terms and tenors, with relatively ample available credit lines for projected growth. In addition, the company has continuously accessed the local, and more recently the global debt market. The high turnover of its loan portfolio represents its major source of liquidity, but the entity faces challenges to roll over its debt maturities under terms that do not stress in the future positive liquidity gaps (already compressed by the increased competition). The personal unsecured loan market has been affected by local and less formal competitors that do not report to credit bureau and offer lower interest rates, leading to a highly indebted market. Those conditions, coupled with Findep's massive lending model, have resulted in increasing loan impairments. Since the second half of 2012, the entity has enhanced underwriting and collection processes, while reducing credit approvals and portfolio size, which is driving early and gradual improvements in key asset quality figures. At the end of 2012, Findep decided to clean-up its portfolio, recording one time provisions for about MX$175 million and writing-off MX$300 million of impaired loans. New operating standards have improved portfolio delinquency and impaired loans are now reserved over 100%. Fitch expects that recent actions may continue stabilizing its loan impairment charges. A confluence of negative factors have constrained returns since 2010: higher funding costs, impairment charges, and weaker efficiency ratios, most of them associated to the recent acquisitions. Earnings in 2011 and 2012 were additionally affected by tight competition, resulting in net losses (YE12 ROA: -1.1%, ROE: -3.9%). Fitch has affirmed these ratings: Findep: -- Long-term foreign and local currency IDRs at 'BB-'; -- Short-term foreign and local currency IDRs at 'B'; -- US$200 million senior unsecured notes at 'BB-'; -- National-scale long-term rating at 'A-(mex)'; -- National-scale short-term rating at 'F2(mex)'; -- National-scale long-term rating for local issues of senior unsecured debt at 'A-(mex)'. The Rating Outlook is Stable. BANCO MERCANTIL: Moody's Affirms Ba1 Rating on Junior Debt ---------------------------------------------------------- Moody's Investors Service affirmed all of Banco Mercantil del Norte, S.A.'s global foreign currency subordinated and junior subordinated debt ratings and maintained a negative outlook. The following ratings on Banorte were affirmed: Baa3 (hyb) long-term global foreign currency subordinated debt and Ba1 (hyb) long-term global foreign currency junior subordinated debt ratings. The outlook on these ratings remains negative. At the same time, Moody's affirmed the A3 global foreign currency senior debt rating of Banco Mercantil del Norte, S.A. (Cayman Islands). The outlook on this rating is negative. The following ratings were affirmed with negative outlook Banco Mercantil del Norte, S.A. - Global foreign currency subordinated debt rating of Baa3 (hyb), negative outlook - Global foreign currency junior subordinated debt rating of Ba1 (hyb), negative outlook Banco Mercantil del Norte, S.A. (Cayman Islands) - Global foreign currency senior debt rating of A3, negative outlook Ratings Rationale: Moody's continuation of the negative outlook on Banorte's ratings reflects ongoing uncertainty regarding the bank's financial performance as the bank is asked to support the servicing of its holding company Grupo Financiero Banorte, S.A.B.'s (GFNorte) bridge loan, taken on to finance the bank's acquisition of Administradora de Fondos para el Retiro Bancomer, S.A. de C.V. (Afore Bancomer). It is still unclear how or when the holding will ultimately repay the sizable $800 million of new debt it has contracted. Moody's acknowledges that the downstreaming of resources from GFNorte to replenish the bank's capital supports the $700 million in goodwill generated by the acquisition of Afore Bancomer. However, as the debt remains on the group's balance sheet and given that Banorte is the largest earnings and cash generator of the group, it represents a potential drain on the bank's capital resources particularly if the group seeks to upstream additional dividends to the holding in order to service the debt. Moody's also noted that although a number of alternatives may be available to GFNorte to repay its debt and strengthen its capital adequacy, i.e. through a future public offering of shares, these are contingent upon market conditions and are subject to strategic decisions not yet taken or disclosed, which adds uncertainty to the group's future capital adequacy and cash flow. Banorte has historically presented a weaker capital profile relative to large Mexican bank peers' as suggested by a lower share of high-quality Tier-1 capital. In this context, despite the downstreaming of the bridge loan by GFNorte to the bank, the acquisition of Afore Bancomer and the bank's high industry and single borrower credit concentrations bring additional pressure to Banorte's capital adequacy and may challenge the bank's growth strategy as it expands to more capital-consuming assets such as consumer loans. Sub-Sovereign Sector Exposure The negative outlook on Banorte's ratings also reflects the bank's large and growing exposure to Mexico's sub-sovereign sector, and particularly its high single borrower credit concentrations with local governments relative to capital and earnings. The majority of the bank's exposure to the 20 largest borrowers is comprised of large loans to Mexican states, which account for more than 1.3 times Tier 1 capital and 3.4 times core earnings, according to Moody's estimates. Moreover, the five largest single loans to local governments represent 82% of the bank's Tier 1 capital. These high credit concentrations to a single sector point to weak loan granularity and risk diversification. Moody's also indicated that the future viability of Banorte's business with local governments, which currently represents one fifth of total loans and contributes a good share of total loan revenues is being threatened by potential new legislation and regulatory changes currently under discussion. This is critical to Banorte to the extent that business with local governments represents one of the major cornerstones of the bank's current and future growth strategy. Such potential changes in the regulatory front include: (i) new norms limiting concentrated exposures to sub-sovereign entities, including those backed by federal tax transfers; ii) new legislation that contemplates restricting the borrowing and spending activities of states and municipalities, and iii) the possibility of direct guarantees by the federal government being proffered to states and municipalities that could influence the pricing and hence the profit dynamics of banks lending to this segment, including Banorte. Affirmation Of Standalone And Deposit Ratings In affirming the standalone C-/baa2 ratings, Moody's cited Banorte's strong franchise value supported by important market shares and recurrent earnings power. Banorte's A3 deposit rating incorporates two notches of uplift from the baa2 standalone credit assessment because of Moody's assessment of a high probability of systemic support from the Mexican government in a stress situation given the bank's importance as a leading deposit-taker and lender in the Mexican market. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. The date of the last Credit Rating Action on Banorte was on 5 March 2013 when Moody's concluded the review of Mexican banks' subordinated debt ratings. Banorte is headquartered in Mexico City. As of December 31, 2012, the bank reported MXP604 billion in assets. BANCO MERCANTIL: Moody's Outlook on Ba1-Rated Debt is Negative -------------------------------------------------------------- Moody's de Mexico affirmed all of Banco Mercantil del Norte, S.A.'s ratings and maintained a negative outlook. The following ratings on Banorte were affirmed: C- standalone bank financial strength rating and A3 long-term global local currency deposit rating. Banorte's standalone C- BFSR maps to a baa2 standalone baseline credit assessment (BCA). Moody's also affirmed the Baa3 long-term subordinated debt and Ba1 junior subordinated debt ratings. The outlook on all these ratings remains negative. At the same time, Moody's affirmed the A3 global local currency issuer ratings of Arrendadora y Factor Banorte, S.A. as well as the A3 issuer rating of Casa de Bolsa Banorte, S.A. The outlook on these ratings is negative. The Mexican National Scale ratings of all these related issuers were not affected by this action. The ratings of Ixe Banco, S.A. and Casa de Bolsa Banorte Ixe, S.A. were not affected by this action either. The following ratings were affirmed with negative outlook Banco Mercantil del Norte, S.A. - Bank financial strength rating (BFSR) of C-, negative outlook - Long-term global local currency deposits of A3, negative outlook - Global local currency subordinated debt of Baa3, negative outlook - Global local currency subordinated debt program of (P) Baa3 - Global local currency junior subordinated debt of Ba1 (hyb), negative outlook - Global local currency junior subordinated debt program of (P) Ba1 - Mexican National Scale subordinated debt of Aa2.mx, negative outlook - Mexican National Scale subordinated debt program of Aa2.mx - Mexican National Scale junior subordinated debt of Aa3.mx (hyb), negative outlook Arrendadora y Factor Banorte, S.A. - Global local currency issuer of A3, negative outlook - Global local currency senior debt program of (P) A3 Casa de Bolsa Banorte, S.A. - Global local currency issuer rating of A3, negative outlook Ratings Rationale: Moody's continuation of the negative outlook on Banorte's ratings reflects ongoing uncertainty regarding the bank's financial performance as the bank is asked to support the servicing of its holding company Grupo Financiero Banorte, S.A.B.'s (GFNorte) bridge loan, taken on to finance the bank's acquisition of Administradora de Fondos para el Retiro Bancomer, S.A. de C.V. (Afore Bancomer). It is still unclear how or when the holding will ultimately repay the sizable $800 million of new debt it has contracted. Moody's acknowledges that the downstreaming of resources from GFNorte to replenish the bank's capital supports the $700 million in goodwill generated by the acquisition of Afore Bancomer. However, as the debt remains on the group's balance sheet and given that Banorte is the largest earnings and cash generator of the group, it represents a potential drain on the bank's capital resources particularly if the group seeks to upstream additional dividends to the holding in order to service the debt. Moody's also noted that although a number of alternatives may be available to GFNorte to repay its debt and strengthen its capital adequacy, i.e. through a future public offering of shares, these alternatives are contingent upon market conditions and are subject to strategic decisions not yet taken or disclosed, which adds uncertainty to the group's future capital adequacy and cash flow. Banorte has historically presented a weaker capital profile relative to large Mexican bank peers' as suggested by a lower share of high-quality Tier-1 capital. In this context, despite the downstreaming of the bridge loan by GFNorte to the bank, the acquisition of Afore Bancomer and the bank's high industry and single borrower credit concentrations bring additional pressure to Banorte's capital adequacy and may challenge the bank's growth strategy as it expands to more capital-consuming assets such as consumer loans. Sub-Sovereign Sector Exposure The negative outlook on Banorte's ratings also reflects the bank's large and growing exposure to Mexico's sub-sovereign sector, and particularly its high single borrower credit concentrations with local governments relative to capital and earnings. The majority of the bank's exposure to the 20 largest borrowers is comprised of large loans to Mexican states, which account for more than 1.3 times Tier 1 capital and 3.4 times core earnings, according to Moody's estimates. Moreover, the five largest single loans to local governments represent 82% of the bank's Tier 1 capital. These high credit concentrations to a single sector point to weak loan granularity and risk diversification. Moody's also indicated that the future viability of Banorte's business with local governments, which currently represents one fifth of total loans and contributes a good share of total loan revenues is being threatened by potential new legislation and regulatory changes currently under discussion. This is critical to Banorte to the extent that business with local governments represents one of the major cornerstones of the bank's current and future growth strategy. Such potential changes in the regulatory front include: (i) new norms limiting concentrated exposures to sub-sovereign entities, including those backed by federal tax transfers; ii) new legislation that contemplates restricting the borrowing and spending activities of states and municipalities, and iii) the possibility of direct guarantees by the federal government being proffered to states and municipalities that could influence the pricing and hence the profit dynamics of banks lending to this segment, including Banorte. Affirmation Of Standalone And Deposit Ratings In affirming the standalone C-/baa2 ratings, Moody's cited Banorte's strong franchise value supported by important market shares and recurrent earnings power. Banorte's A3 deposit rating incorporates two notches of uplift from the baa2 standalone credit assessment because of Moody's assessment of a high probability of systemic support from the Mexican government in a stress situation given the bank's importance as a leading deposit-taker and lender in the Mexican market. The principal methodology used in these ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Banorte is headquartered in Mexico City. As of 31 December 2012, the bank reported MXP604 billion in assets (source: Comision Nacional Bancaria y de Valores). Moody's National Scale Ratings are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. The date of the last Credit Rating Action on Banorte was on March 4, 2013 when Moody's concluded the review of Mexican banks' subordinated debt ratings. The period of time covered in the financial information used to determine Banorte's rating is between December 31, 2006 and December 31, 2012. The sources and items of information used to determine Banorte's rating include 2011 and 2012 interim financial statements (source: Grupo Financiero Banorte); year-end 2011 and 2012 audited financial statements (source: Grupo Financiero Banorte, audited by Deloitte Touche Tohmatsu Limited); financial statements and information on market position (source: CNBV); regulatory capital information (source: Banxico); debt offering memorandum (source: Grupo Financiero Banorte). ===================== P U E R T O R I C O ===================== ADVANCED COMPUTER: Plan Filing Deadline Extended to April 30 ------------------------------------------------------------ At the request of Advanced Computer Technology, Inc., the Bankruptcy Court extended until April 30, 2013, the Debtor's deadline to file a Chapter 11 plan and disclosure statement. As reported in the March 11, 2013 edition of the TCR, the Debtor in August 2012 filed two separate motions for the turnover of property, requesting: a) The turnover to the Debtor of $262,307.60 deposited by the Public Buildings Authority of Puerto Rico in Civil Case No. KCD2004-0604, with the Clerk of the Court of First Instance of Puerto Rico, San Juan Section; b) The turnover to the Debtor of $692,340.24, deposited by Banco Santander Puerto Rico and Doral Bank in Civil Case No. KAC2009-1257, with the Clerk of the Court of First Instance. During a hearing held Sept. 25 on the Debtor's motion for leave to use Banco Bilbao Vizcaya Argentaria's cash collateral, the Debtor and BBVA agreed on a stipulation for the interim use of cash collateral and adequate protection, and for the Court to enter an order directing the Court of First Instance to turn over the funds deposited in Civil Cases Nos. KCD2004-0604 and KAC2009-1257 in order for those funds to be deposited with the Clerk of the Bankruptcy Court. On Nov. 30, 2012, the Bankruptcy Court entered the orders directing the Court of First Instance to turn over the funds deposited in Civil Cases Nos. KCD2004-0604 and KAC2009-1257 in order for those funds to be deposited with the Clerk of the Bankruptcy Court. On Dec. 5, 2012, the Debtor informed -- and requested -- the Court of First Instance to comply with the turnover orders. On Dec. 18, Gomez Holdings, Inc., filed an opposition to Debtor's motion for turnover in Civil Case No. KAC2009-1257. On Dec. 21, the Court of First Instance in Civil Case No. KAC2009-1257 entered an order for the turnover of funds as unopposed. On Dec. 28, the Court of First Instance in Civil Case No. KAC2009-1257 entered an order denying GHI's opposition. On Jan. 2, 2013, GHI filed a motion for reconsideration of the order of Dec. 21 and requested the stay of the turnover. On Jan. 4, GHI filed a motion for reconsideration of the Dec. 28 order, and also requested the stay of the turnover. On Jan. 23, 2013, the Court of First Instance in Civil Case No. KAC2009-1257 notified the entry of its order directing Debtor to respond to GHI's motions. In its request for extension of the Plan filing deadline, the Debtor noted that it is currently preparing its response to GHI's motions. As to Civil Case No. KCD2004-0604, the Public Buildings Authority of Puerto Rico filed an opposition to the turnover order and requested the Court of First Instance not to proceed until its counsel returned from vacation. In addition, GHI filed a request for intervention under Rule 21 of the Rules of Civil Procedure of Puerto Rico in Civil Case No. KCD2004-0604. The Debtor also is in the process of recovering the funds deposited with the Clerk of the Court of First Instance, which will allow it to determine the nature of its bankruptcy exit plan. Therefore, the Debtor said, it is indispensable for the Debtor to recover the funds prior to the filing of its Plan and Disclosure Statement. About Advanced Computer San Juan, Puerto Rico-based Advanced Computer Technology, Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-04454) in Old San Juan on June 6, 2012. The Debtor, an information system consulting firm, disclosed $10.34 million in assets and $6.176 million in liabilities in its schedules. It said software and licenses rights are worth $6.30 million. The value of its 100% ownership of Sprinter Solutions, Inc., is unknown. The Debtor's only shareholder is Investigacion Y Programas, S.A. Its president is Jaime Romano and its secretary and chief executive officer is Osvaldo Karuzic, none of whom hold any shares in the Debtor. Bankruptcy Judge Brian K. Tester presides over the case. Charles Alfred Cuprill, Esq., at Charles A. Cuprill, PSC Law Offices, in San Juan, P.R., serves as the Debtor's counsel. William Santiago-Satre, Esq., at De Diego Law Offices, in Carolina, P.R., represents Banco Bilbao Vizcaya Argentaria Puerto Rico as counsel. =============================== T R I N I D A D & T O B A G O =============================== PETROTRIN: Over 2,000 Employees on Strike ----------------------------------------- Susan Mohammed at Trinidad Express reports that over 2,000 employees of Petroleum Company of Trinidad and Tobago downed tools and protested March 12, 2013, over what they said was the nonpayment of outstanding money, promised upgrades, and health and safety concerns. Roger Stewart, first branch president of the Oilfields Workers' Trade Union (OWTU) said Petrotrin workers at Trinmar in Point Fortin, Santa Flora and Barrackpore also downed tools, according to Trinidad Express. Trinidad Express relates that several tankers awaiting entry into Petrotin's Pointe-a-Pierre compound to be filled with gasoline for distribution to service stations, remained parked outside as the workers barred them from entering the compound. By afternoon, when the protest ended and workers dispersed, the tankers were refilled, the report notes. Trinidad Express says that OWTU branch secretary at Petrotrin, Shaffick Hyatali, said the protest did not affect productivity at the refinery. Petrotrin said many employees were unable to get to work as a result of the protest, Trinidad Express discloses. "We want to reassure the public that contingency plans are in place to ensure the continuation of our operations. This is a critical year for Petrotrin as we seek to improve our oil production and refinery throughput," the company said in a statement, the report discloses. Mr. Stewart said the protest may continue, the report adds. Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on June 9, 2010, Trinidad Express related that four members of Petrotrin submitted their resignation letters. According to the report, Malcom Jones resigned as chairman of Petrotrin and from the State boards. The report related board members Lawford Dupres, who chaired the National Petroleum board, attorney Kerwin Garcia and Andrew McIntosh had also resigned. Prime Minister Kamla Persad-Bissessar, the report noted, said that Cabinet had ordered a forensic audit of Petrotrin as there were "grounds for suspicion of misconduct" at Petrotrin similar to what may have transpired at special-purpose State enterprise UDeCOTT. The report said that the company was experiencing serious financial difficulties resulting in high cost overruns of its refinery upgrade. The situation was exacerbated by a US$12 billion lawsuit by World GTL Inc. against Petrotrin, the report added. ============= U R U G U A Y ============= * URUGUAY: Gets US$550MM IDB Loan to Increase Investment -------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a US$550 million operation for Uruguay to fund the Program for Strategic International Positioning, which aims to substantially increase investment and exports by strengthening the regulatory and institutional framework, promoting and facilitating trade, and boosting entrepreneurial innovation. The operation is notable for the following: It is the first IDB operation structured as a programmatic policy- based loan with a deferred drawdown option, which enables countries to draw on the resources as required. It is the first to use the new Reallocation Program approved by the IDB in July 2012, which provides that countries can prepay debt with the Bank to give them access to resources additional to the IDB's regular allocation for the country. It is the Bank's first policy reform operation in the area of trade and integration that carries out the mandate of the IDB's Ninth General Increase in Resources. "This operation is part of a comprehensive and long-term effort that the Bank has been carrying out in the country in the field of investment promotion and trade facilitation, which includes both technical and financial support," said Pablo Garcia, IDB project team leader. One program component will support Uruguay's efforts to consolidate a set of sweeping reforms designed to strengthen the overall policy framework for attracting investments. Other activities include the signing of bilateral investment and trade treaties to prevent double taxation. This will improve transparency in the taxation of investment in line with global standards of fiscal transparency. In addition, the program will support the consolidation of the regulatory framework for the development of large investment projects in infrastructure through public-private partnerships. Two other components include actions to support trade promotion and facilitation, as well as improve capacity for business innovation. The program is expected to help increase the country's average annual investment rate from 19% of GDP in 2009-2011 to 22% of GDP in 2014-2016. It is also expected to increase annual exports from $12.8 billion in 2011 to $16.5 billion in 2016. Other results will include reducing time and costs required for export activities and increasing business innovation. The operation consists of two loans: one from the regular IDB allocation for the country and the other from the Bank's Reallocation Program. The loan from the regular allocation is for US$183.75 million; it has 20-year term, an interest rate based on Libor, and a three-year term for using the resources, which is renewable for an additional three years. The loan from the additional allocation provided through the Reallocation Program, in which Uruguay has opted to prepay its debt with the IDB, is for US$366.25 million; it has an 11-1/2-year term with a one-year grace period, an interest rate based on Libor, and a non-renewable term of three years for using the resources. =============== X X X X X X X X =============== * Fitch Reports Net Negative Sovereign Rating Actions in 2012 ------------------------------------------------------------- With the eurozone reverting to recession and emerging market growth decelerating, sovereign rating actions turned net negative in 2012. Downgrades topped upgrades by a ratio of 1.9 to 1 -- a reversal of 2011's 0.5 to 1, according to a new report by Fitch Ratings. Fitch recorded seven sovereign upgrades in 2012, down from 19 in 2011. Downgrades climbed to 13 from 10. The resulting downgrade rate (12.6%) readily topped the upgrade rate (6.8%), reversing 2011 results of 9.8% and 18.6%, respectively. The 13 sovereign downgrades by region include: Asia Pacific 1 Europe 8 Latin America 2 Middle East and Africa 2 The upward momentum of emerging market sovereigns slowed considerably in 2012, with upgrades falling to six from 18 in 2011 and 11 in 2010. Fitch registered a single long-term sovereign Issuer Default Rating (IDR) default in 2012, Greece. The country sustained the largest sovereign debt restructuring in modern times and the first of any developed market economy since the Second World War. Greece's default resulted in a Fitch sovereign issuer-based default rate for 2012 of 0.96%. This new study provides data and analysis on the performance of Fitch's sovereign ratings in 2012 and over the long term, capturing the period 1995-2012. The report provides summary statistics on the year's key sovereign rating trends. The study is titled 'Fitch Ratings Sovereign 2012 Transition and Default Study' and is available on Fitch's web site under Credit Market Research. * Wilk Auslander Among Latin Lawyer Deal of the Year Nominees ------------------------------------------------------------- Wilk Auslander LLP has been named in Latin Lawyer's shortlist of nominees for its Deal of the Year Award, in connection with the firm's representation of Compania de Inversiones de Energia S.A. ("CIESA") in litigation in New York. The firm represented, in addition to CIESA, parties such as Petrobras Energia S.A. in the litigation. Latin Lawyer, the leading business law resource for Latin America, has shortlisted the CIESA litigation in the Disputes category. The litigation related to a restructuring of "US$220 million worth of notes," as reported in an August 2, 2012 Latin Lawyer article by Rachel Hall. The Wilk Auslander LLP litigation team included partners Jay S. Auslander and Natalie Shkolnik and associate Julie Cilia. Latin Lawyer will present its 7th Annual Deal of the Year Awards ceremony in Sao Paulo, Brazil on March 19, 2013. The ceremony will feature awards in the areas of Corporate Finance, M&A, Restructuring, Project Finance, Disputes, Outbound Investment, Regulatory, and Private Equity. About Wilk Auslander LLP Wilk Auslander LLP is a law firm with offices in New York City and Europe. Its litigation department represents clients in a wide array of business disputes, including diverse matters relating to general commercial issues, distressed debt, judgment enforcement, regulatory enforcement, securities, real estate, and bankruptcy. The firm also provides transactional legal services to clients in areas such as real estate, tax, corporate, employment, and intellectual property. *********** 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 * * *