/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130320.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, March 20, 2013, Vol. 14, No. 56 Headlines C A Y M A N I S L A N D S ADM MACULUS: Shareholders Receive Wind-Up Report APC ABSOLUTE: Members Receive Wind-Up Report APC ABSOLUTE (OFFSHORE): Members Receive Wind-Up Report BELVEDERE INVESTMENTS: Shareholder Receives Wind-Up Report CHESTNUT FUND: Shareholder Receives Wind-Up Report F. LEE HOLDINGS: Members Receive Wind-Up Report FORMENTOR HOLDINGS: Shareholder Receives Wind-Up Report GOLDEN ARCHES: Members Receive Wind-Up Report JAPAN RESORTS: Shareholder Receives Wind-Up Report JAYCE INVESTMENT: Shareholders Receive Wind-Up Report JSM INDOCHINA: Shareholders Receive Wind-Up Report METHANE POWER: Shareholder Receives Wind-Up Report MSR PROJECT: Shareholders Receive Wind-Up Report OFFICE PARK: Members Receive Wind-Up Report SEVENWOOD LIMITED: Members Receive Wind-Up Report SOVEREIGN 8: Members Receive Wind-Up Report SOVEREIGN 18: Members Receive Wind-Up Report SSF III: Shareholder Receives Wind-Up Report VORAS GLOBAL: Shareholder Receives Wind-Up Report VORAS MANAGEMENT: Shareholder Receives Wind-Up Report J A M A I C A CARIBBEAN AIRLINES: Hit Hard by Increased Competition CARIBBEAN CEMENT: Board Member Resigns M E X I C O MXBK GROUP: Federal Court Imposes US$57MM++ Sanction for Fraud SERVICIOS CORPORATIVOS: Fitch Affirms 'B' Issuer Default Rating SERVICIOS CORPORATIVOS: Moody's Rates Senior Notes Add-on 'B1' P U E R T O R I C O EL FARMER: Court Approves Modesto Bigas as Counsel HOTEL AIRPORT: Plan Confirmation Hearing on Thursday MAROT RENTAL: Case Summary & 11 Unsecured Creditors T R I N I D A D & T O B A G O PETROTRIN: Loses $100MM a Day Due to Workers' Industrial Action V E N E N Z U E L A BANCO EXTERIOR: Fitch Affirms 'B+' IDR; Outlook Negative - - - - - ========================== C A Y M A N I S L A N D S ========================== ADM MACULUS: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of ADM Maculus Investments Limited received on Jan. 29, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Christopher Robert Botsford 1008 ICBC Tower, 3 Garden Road Central Hong Kong Telephone: +8 (522) 536 4567 Facsimile: +8 (522) 147 2813 APC ABSOLUTE: Members Receive Wind-Up Report -------------------------------------------- The members of APC Absolute Return Master Fund received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jonathan Paul c/o Maples and Calder, 53rd Floor The Center 99 Queen's Road Central Hong Kong APC ABSOLUTE (OFFSHORE): Members Receive Wind-Up Report ------------------------------------------------------- The members of APC Absolute Return (Offshore) Ltd. received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jonathan Paul c/o Maples and Calder, 53rd Floor The Center 99 Queen's Road Central Hong Kong BELVEDERE INVESTMENTS: Shareholder Receives Wind-Up Report ---------------------------------------------------------- The shareholder of Belvedere Investments (Cayman) Limited received on Jan. 2, 2013, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Rankine Mcmillan Emily Anne Tibbetts 62 Forum Lane, 2nd Floor Camana Bay Grand Cayman KY1-1004 Cayman Islands CHESTNUT FUND: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Chestnut Fund Ltd. received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands F. LEE HOLDINGS: Members Receive Wind-Up Report ----------------------------------------------- The members of F. Lee Holdings Limited received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands FORMENTOR HOLDINGS: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Formentor Holdings Limited received on Jan. 23, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 GOLDEN ARCHES: Members Receive Wind-Up Report --------------------------------------------- The members of Golden Arches Limited received on Jan. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands JAPAN RESORTS: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Japan Resorts & Leisure received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands JAYCE INVESTMENT: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Jayce Investment Holdings Limited received on Jan. 21, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Stokoe c/o Devina Patel Telephone: (345) 949 7000 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands JSM INDOCHINA: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of JSM Indochina Limited received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K.D. Blake c/o Nicola Wright Telephone: (345) 815 2621/ (345) 949 4800 Facsimile: (345) 949 7164 P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands METHANE POWER: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Methane Power Limited received on Jan. 23, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 MSR PROJECT: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of MSR Project Grand Slam Holdings Ltd. received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rebecca Hume Telephone: 949 4544 Facsimile: 949 7073 Charles Adams Ritchie & Duckworth Zephyr House, 2nd Floor, 122 Mary Street PO Box 709 Grand Cayman KY1-1107 Cayman Islands OFFICE PARK: Members Receive Wind-Up Report ------------------------------------------- The members of Office Park Limited received on Jan. 21, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands SEVENWOOD LIMITED: Members Receive Wind-Up Report ------------------------------------------------- The members of Sevenwood Limited received on Jan. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands SOVEREIGN 8: Members Receive Wind-Up Report ------------------------------------------- The members of Sovereign 8 Ltd. received on Jan. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands SOVEREIGN 18: Members Receive Wind-Up Report -------------------------------------------- The members of Sovereign 18 Ltd received on Jan. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands SSF III: Shareholder Receives Wind-Up Report -------------------------------------------- The shareholder of SSF III Island Holding, Ltd. received on Jan. 22, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Madeleine Welham 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: (345) 815 1750 Facsimile: (345) 949 9877 VORAS GLOBAL: Shareholder Receives Wind-Up Report ------------------------------------------------- The shareholder of Voras Global Liquid Opportunities Fund Limited received on Jan. 21, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rob Mcmahon c/o Robert Crockett Ernst & Young Ltd 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman KY1 -1106 Cayman Islands Telephone: +1 (345) 814 8986 VORAS MANAGEMENT: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of Voras Management Limited received on Jan. 21, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rob Mcmahon c/o Robert Crockett Ernst & Young Ltd 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman KY1 -1106 Cayman Islands Telephone: +1 (345) 814 8986 ============= J A M A I C A ============= CARIBBEAN AIRLINES: Hit Hard by Increased Competition ----------------------------------------------------- RJR News reports that Caribbean Airlines Limited's operations in Jamaica have been hit hard by increased competition on some of its routes as well as rising fuel prices. Clive Forbes, general manager of Caribbean Airlines in Jamaica, has admitted that the entity is trying to remain viable amid what he described as a difficult environment, according to RJR News. "We face difficult climate, competitive pressure. . . . we continue to fight for market share and, given the nature of the fuel price and everything which eat into our margin and the competitive nature of other routes out of Jamaica and that is where the crunch is coming in. But we still have customer loyalty, we appreciate the support of our customers from the Diaspora, the tourism sector and all those who continue to support Caribbean Airlines in and out of Jamaica," the report quoted Mr. Forbes as saying. Mr. Forbes also pointed to recent developments in the aviation industry, the report notes. Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News notes that Trinidad Express reported that the arrears were built up over the last six weeks as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January 2007. CARIBBEAN CEMENT: Board Member Resigns -------------------------------------- RJR News reports that a member of the Board of Caribbean Cement Company Limited has resigned. The company has informed the Jamaica Stock Exchange that attorney Derrick Jones is no longer on the Board, according to RJR News. The report relates that his resignation was effective February 21. Caribbean Cement Company Limited manufactures and sells cement. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 18, 2011, Caribbean Cement Company Limited has incurred a JM$608.08 million loss in the three months ended April to June 2011 from JM$217.95 million loss in the same period last year. The company incurred JM$857.56 million loss in the six months ended January to June 2011 from a JM$213.40 million in the same period 2010. Caribbean Cement posted a JM$1.58 billion loss in the year ended 2010. =========== M E X I C O =========== MXBK GROUP: Federal Court Imposes US$57MM++ Sanction for Fraud -------------------------------------------------------------- The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court judgment against two Mexican companies, MXBK Group S.A. de C.V., and its forex division, MBFX S.A., requiring them jointly to pay restitution of US$28,969,059 to defrauded U.S. customers and an equal amount as a civil monetary penalty. The Order, entered on March 7, 2013, by Chief Judge Ted Stewart of the U.S. District Court for the District of Utah, finds that MXBK and MBFX accepted at least US$28 million from more than 800 U.S. customers to trade forex transactions in pooled accounts. The Order finds that MXBK and MBFX defrauded their customers, in part, by misrepresenting their historical trading results. The Order also finds that MXBK and MBFX willfully made, or caused to be made, false reports or statements to their customers regarding the profitability of their accounts. Specifically, the Order finds, as was alleged in the CFTC's complaint filed on Dec. 1, 2010, that during the period from June 2008 through April 2009, MXBK and MBFX reported overall trading profits when, in fact, they lost approximately US$19.4 million. The Order also imposes permanent trading and registration bans against MXBK and MBFX and prohibits them from violating the anti- fraud provisions of the Commodity Exchange Act, as charged. The CFTC's enforcement action arose from a joint CFTC cooperative enforcement investigation with the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the Securities and Exchange Commission (SEC). On Nov. 30, 2010, the SEC filed a complementary action in the U.S. District Court for the District of Utah (SEC v. Oram), which alleged violations of U.S. securities laws by three U.S. residents alleged to be involved in the MXBK and MBFX enterprise. The SEC case has since settled. The CFTC thanks the FBI, IRS, and the SEC for their assistance. CFTC Division of Enforcement staff members responsible for this case are William Janulis, Theodore Polley, Melissa Glasbrenner, Elizabeth Padgett, Mary Lutz, Scott Williamson, Rosemary Hollinger, and Richard B. Wagner. SERVICIOS CORPORATIVOS: Fitch Affirms 'B' Issuer Default Rating --------------------------------------------------------------- Fitch Ratings has affirmed Servicios Corporativos Javer, S.A.P.I. de C.V.'s ratings as follows: -- Foreign currency Issuer Default Rating (IDR) at 'B'; -- Local currency IDR at 'B'; -- USD270 million senior unsecured notes due 2021 at 'B+/RR3'; -- USD6.3 million senior unsecured notes due 2014 at 'B+/RR3'. In addition, Fitch has removed Javer's ratings from Rating Watch Negative and assigned a Stable Rating Outlook. Javer has announced the reopening of its notes due 2021. The reopening will carry the same rating as the original deal of 'B+/RR3'. Proceeds from the add-on issuance of up to USD50 million will be used to refinance the existing debt of ViveICA, a housing development that the company is acquiring. Fitch Ratings has removed Javer's ratings from Rating Watch Negative and has assigned a Rating Outlook of Stable. The change in Javer's Rating Outlook to Stable reflects the company's successful management of its working capital during 2012, a difficult time for an industry that was transitioning to the Mexican government's new vertical housing initiative. Javer's working capital management allowed the company to generate MXN211 million of positive free cash flow (FCF) during 2012. The company's land bank is considered to be strong for the 'B' category with 85% of its land bank qualifying as S1 or S2, and 99% qualifying as S1, S2 and S3. The ratings of the leading Mexican homebuilders, Javer, Urbi Desarrollos Urbanos, S.A.B. de C.V., Desarrolladora Homex, S.A.B de C.V. and Corporacion GEO, S.A. de C.V., were all placed on Rating Watch Negative on Feb. 22, 2013. The ratings of Geo and Homex remain on Rating Watch Negative due to their very weak performance during 2012 which was marked by very negative cash flow trends. The Rating Watch for these homebuilders is expected to be resolved within the next six months. Key credit considerations will include: the ability of these companies to turn around their operations and the verification of the suitability of their existing land banks for subsidies under future government programs. Fitch downgraded URBI to 'CCC' on March 1, 2013. In Fitch's view, Javer's limited geographic diversification constrains its ratings at 'B'. Other limitations include its modest FCF generation through the economic cycle, high financial gross leverage levels, and the integration risk related to additional working capital needs associated with the acquisition of ViveICA. The ratings also consider the increasing competition from used homes, limited sources of liquidity for the industry, and the industry's near-term challenging business environment, which is a result of the government's transition to a housing policy that promotes vertical housing in urban areas. Positively, Javer's 'B' ratings reflect its consistent business strategy that is oriented to the affiliated low-income segment, with Infonavit as its main mortgage provider. This strategy has allowed Javer to collect its receivables and manage its working capital needs. The company funding strategy of relying primarily upon long-term public debt with almost no secured debt is also unique for the industry and has led to an 'RR3' rating of its public bonds. Further considered in the company's ratings are its healthy cash position and manageable debt amortization schedule. KEY RATING DRIVERS: Positive FCF in 2012: Positively factored into Javer's ratings is the company's capacity to adjust its business strategy during 2012 to face the industry's challenging operating environment. During 2012, the company adjusted down its initial 2012 annual target of units sold from between 20,000 and 21,000 units to end the year with total units sold of 17,533, a 7.3% increase over 16,339 total units sold in 2011. This strategy of limiting growth allowed the company to maintain manageable working capital needs and achieve a slightly positive FCF during 2012 of MXN211 million, reversing the negative trend of the last two prior years when the company's FCF was negative MXN390 million in 2011 and MXN586 million in 2010. FCF calculation considers cash flow from operations less interest paid less capital expenditures. The company's FCF is expected to be neutral to mildly positive in 2013. Comfortable Liquidity Profile, No Short-term Debt: Javer has a manageable debt payment schedule with no material debt maturities during the upcoming years. Javer's cash position as of Dec. 31, 2012 was MXN417 million. This level of cash remains relatively unchanged from MXN416 as of Dec. 31, 2011. The company does not maintain any factoring of its account receivables embedded in its cash position. The ratings reflect the expectation that the company's cash position will remain relatively stable at around MXN400 million during 2013. Javer's debt of MXN3.6 billion consists primarily of its USD270 million (MXN2.62 billion) senior unsecured notes due in 2021. During the second quarter of 2011, the company completed an exchange offering, which includes an 18% premium paid during the company's exchange offering completed in mid-2011. The premium amount is approximately USD36.6 million (MXN476 million). Javer's remaining debt balance is primarily composed of capital leases. Debt payments due in 2013 and 2014 are approximately MXN50.8 million and MXN103 million, respectively. Declining Margins: Javer's EBITDA margins have declined during the last two years reaching 19% and 14.3% during 2011 and 2012, respectively. This margin compression reflects deterioration in the business environment during 2012 in terms of limited government subsidy availability in the company's area of operations, as well as its strategic decision of moving its product mix toward the lower end of the low-income segments, where demand presents better prospects but margins per unit are lower. This situation is not expected to materially change in 2013; the ratings incorporate the expectation that the company's EBITDA margin will remain stable at around 15% during 2013. Higher Relative and Absolute Debt Levels: The ratings are constrained by the growing trend in the company's gross leverage during past few years, which reflects deterioration in the company's EBITDA levels coupled with higher levels of absolute debt. Javer's gross leverage was 4.9x as of Dec. 31, 2012, which compares negatively with its gross leverage ratios of 4.3x in 2011 and 3.0x in 2010. Javer's EBITDA for 2012 was MXN728 million, a 19% decline when compared with its EBITDA levels of MXN902million in 2011. On a pro forma basis considering the proposed reopening and the incremental EBITDA coming from housing developments being acquired, Javer's gross leverage is estimated at 4.4x. The ratings incorporate the expectation that Javer's gross leverage will be around 4.5x during 2013. Potential Increase in Working Capital Needs: The ratings incorporate the announced agreement between Javer and Empresas ICA, S.A.B. de C.V. (ICA) to combine their homebuilding assets in Mexico. Javer will acquire the assets and operating liabilities related to 20 affordable housing development projects being developed by ICA through its ViveICA subsidiary in exchange for newly issued shares of stock representing a 23% ownership interest in Javer. The developments being incorporated represent annual sales of approximately MXN2 billion with an EBITDA margin around 11%. Javer is also assuming MXN600 million of secured debt associated with the acquired developments, which is expected to be refinanced with the USD50 million proposed reopening (approximately MXN650 million incremental debt). The acquisition is not adding leverage to Javer as it implies a gross financial leverage of 2.8x. Post-acquisition, Javer will consolidate its position as one of the main players in the Mexican homebuilding industry by increasing the numbers of developments to 46 in 11 states nationwide, and reaching annual unit sales of approximately 25,000 units, 7,000 units coming from the acquired developments. The main credit concern is related to the potential deterioration in the company's working capital cycle due to the integration of the acquired operations that could require additional working capital investments, as post transaction the company is expected to increase revenues by approximately 40% during the first year of operations. RATING SENSITIVITIES: The ratings are expected to be driven during 2013 by developments in the company's liquidity position, the level of FCF generation, and the gross leverage that results from integrating ViveICA. A negative rating action could be triggered by a deterioration of the company's credit protection measures and cash position due to weak operational results, deterioration in FCF generation driven by increasing working capital needs, and continued decline in EBITDA margins. Failure to complete the proposed reopening resulting in covering the incremental debt with secured debt will be viewed negatively in terms of recovery prospects for the company's unsecured public debt and could result in a negative rating action. Conversely, a positive rating action could be triggered by a combination of the following factors: material improvement in FCF generation resulting in consistently positive FCF levels, stable operational performance reflecting a smooth integration process of the new acquired developments, and significant enhancement in the company's liquidity and leverage metrics. SERVICIOS CORPORATIVOS: Moody's Rates Senior Notes Add-on 'B1' -------------------------------------------------------------- Moody's Investors Service confirmed the senior unsecured debt rating of Servicios Corporativos Javer, S.A.P.I. de C.V. Moody's concurrently assigned a B1 rating to Javer's proposed US$50 million add-on to its existing senior unsecured notes due 2021. The rating outlook is negative. This concludes the review which began on December 3, 2012. Ratings Rationale: The confirmation of the B1 rating reflects the fact that Javer, upon completion of the proposed ViveICA, S.A. de C.V. ("ViveICA") transaction, will be one of the largest players in the industry with a more diversified portfolio, stronger leverage and interest coverage metrics and neutral to positive free cash flow. The closing of Javer's acquisition of most of the housing developments of ViveICA from Empresas ICA S.A.B. de C.V. is imminent. Javer has announced the reopening of its US$270 million senior unsecured notes due 2021 in order to finance the $600 million pesos debt assumption from the ViveICA transaction. The company also has a $600 million pesos commitment from Banco Santander in the form of a two-year term loan, which would be used only as a backup financing should the reopening not be successful. The negative rating outlook reflects continued difficulty for Javer in meeting sales targets which has resulted in weaker than expected credit metrics, including Net Debt/EBITDA, Interest Coverage and EBITDA Margins. The fourth quarter of 2012 was challenging for the sector as a whole due to fewer subsidies allocated than what was projected as well as a new federal government that took office which slowed down the operations of the main housing agencies. In addition, demand for middle-income homes in the areas where Javer operates is still slow to recover and demand has not returned to pre-recession levels. Over 40% of Javer's revenues came from middle-income home sales in 2012. Competition is strong from regional players which has also factored into weak sales. Moody's stated that upward rating movement is unlikely in the intermediate term. A return to a stable rating outlook would be predicated upon the company maintaining EBITDA margins at or above 15%, while at least maintaining its current credit metrics. A smooth integration of the ViveICA portfolio would also be necessary for a stable rating outlook. Despite the ViveICA transaction, Javer continues to have a high concentration in the state of Nuevo Leon. A negative rating movement will occur should Javer encounter further challenges in reaching titling and sales targets which result in a weakening of credit metrics from current levels such that EBITDA margins fall below 15% and/or debt/EBITDA increases to or surpasses 4x, all on a sustained basis. Any challenges in the integration of the ViveICA acquisition would also cause negative rating pressure. The following rating was confirmed with a negative outlook: Servicios Corporativos Javer, S.A.P.I. de C.V. -- Senior Unsecured Debt Rating at B1 The following rating was assigned with a negative outlook: Servicios Corporativos Javer, S.A.P.I. de C.V. -- proposed US$50 million senior unsecured notes add-on at B1 The last rating action with respect to Javer was on December 3, 2012 when Moody's placed Javer's senior unsecured debt rating under review direction uncertain. The principal methodology used in this rating was Global Homebuilding Industry Methodology published in March 2009. Servicios Corporativos Javer, S.A.P.I. de C.V., headquartered in Monterrey, Mexico is one of the largest privately-owned, fully integrated homebuilders engaged in the development, construction, marketing and sale of affordable housing in Mexico. The firm reported assets of approximately $6.8 billion Mx pesos and equity of approximately $1.4 billion Mx pesos at December 31, 2012. ===================== P U E R T O R I C O ===================== EL FARMER: Court Approves Modesto Bigas as Counsel -------------------------------------------------- El Farmer Inc. sought and obtained approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Modesto Bigas Law Office as its counsel. A $1,000 retainer was paid by the Debtor against which the law firm would bill on the basis of $250 per hour plus expense for work performed by Modesto Bigas Mendez, Esq.; attorney Alexandra Bigas Valendon, $200 per hour, upon application and the approval of the Court. The firm attests that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. El Farmer Inc. filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-09687) in Old San Juan, Puerto Rico, on Dec. 7, 2012. The Debtor scheduled $18.3 million in assets and $12.0 million in liabilities, including $11.0 million owed to secured creditor Banco Popular De Puerto Rico. The Debtor owns farm lands in Isabela, Puerto Rico. HOTEL AIRPORT: Plan Confirmation Hearing on Thursday ---------------------------------------------------- The U.S. Bankruptcy for the District of Puerto Rico has moved to March 21, 2013, at 9:30 a.m., the hearing on the confirmation of Hotel Airport Inc.'s Chapter 11 plan. The hearing was initially set for March 19, 2013, at 2:00 p.m., after the Debtor obtained the Court's approval of the explanatory disclosure statement filed in November. The Plan will be substantially funded by the Debtor's assets and income from the operation of its business. The Plan contemplates the assumption of the lease contract with the Puerto Rico Ports Authority under Bankruptcy Code Section 365. The assumption is part of the stipulation which provide for the curing of defaults through payments and withdrawal of funds which are underway. At the time of filing of this bankruptcy case, the Debtor was involved in the eviction litigation with the PRPA. This litigation has been settled. About Hotel Airport Hotel Airport Inc., in San Juan, Puerto Rico, is a wholly-owned subsidiary of Caribbean Airport Facilities Inc. ("CAF"). HAI was organized on Feb. 20, 2003, under the corporate laws of Puerto Rico by parties unrelated to the Debtor's current directors or shareholders. Under its original management, and owners, during 2003 and the first six months of 2004, HAI was engaged in the restoration and refurbishing of the San Juan Airport Hotel located in the Luis Munoz Marin International Airport in Carolina, Puerto Rico. Operations commenced in July 2004. The hotel consists of 125 rooms, a restaurant, various meeting spaces and supporting facilities in an area of approximately 60,000 square feet. During the year ending June 30, 2009, HAI's management, decided to discontinue the Casino operations, and on July 7, 2009, said operation was closed. The casino property and equipment amounting to $967,399 was liquidated and the proceeds applied to the outstanding loan with Firstbank. HAI leases the hotel facilities from the Puerto Rico Port Authority under a lease agreement executed on March 27, 2007, and subsequently amended on various occasions. HAI filed for Chapter 11 bankruptcy (Bankr. D.P.R. Case No. 11-06620) on Aug. 5, 2011. Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo Munoz, PSC, in San Juan, P.R., serves as bankruptcy counsel. Francisco J. Garrido Molina serves as its accountant, and RS & Associates as external auditors to perform auditing services. The Debtor disclosed US$8,547,993 in assets and US$171,169,392 in liabilities as of the Chapter 11 filing. The petition was signed by David Tirri, its president. MAROT RENTAL: Case Summary & 11 Unsecured Creditors --------------------------------------------------- Debtor: Marot Rental & Development, Corp. P.O. Box 363035 San Juan, PR 00936 Bankruptcy Case No.: 13-02003 Chapter 11 Petition Date: March 15, 2013 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Jesus Santiago Malavet, Esq. SANTIAGO MALAVET AND SANTIAGO LAW OFFICE 473 Sagrado Corazon Street San Juan, PR 00915 Tel: (787) 727-3058 Fax: (787) 726-5906 E-mail: jsantiago.smslopsc@gmail.com Scheduled Assets: $1,150,451 Scheduled Liabilities: $1,736,253 A copy of the Company's list of its 11 largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/prb13-02003.pdf The petition was signed by Juan Ramon Natal Henriquez, president. =============================== T R I N I D A D & T O B A G O =============================== PETROTRIN: Loses $100MM a Day Due to Workers' Industrial Action --------------------------------------------------------------- Trinidad Express reports that industrial action by Petroleum Company of Trinidad and Tobago workers has caused the shutdown of its refinery operations at Pointe-a-Pierre, and it is costing the company $100 million a day in lost revenue. The work stoppage entered its sixth day on March 17, 2013, with the Oilfields Workers' Trace Union (OWTU) demanding the settlement of outstanding payments, and the removal of alleged political appointees at the company, according to Trinidad Express. The report relates that the company issued a press release stating, "Prior to this spate of work stoppages, through the dedication and hard work of its employees, Petrotrin had been operating at increasingly improving performance levels, with refinery throughputs of 160,000 barrels oil per day, and reported production levels at Land and Trinmar of 13,500 and 22,500 barrels oil per day respectively, and rising. . . . The last six days of industrial action, however, have resulted in the complete shut- down of the refinery, with resultant gross revenue losses of $100 million for every day. . . " 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. =================== V E N E N Z U E L A =================== BANCO EXTERIOR: Fitch Affirms 'B+' IDR; Outlook Negative -------------------------------------------------------- Fitch Ratings has affirmed Banco Exterior, C.A. Banco Universal's long-term Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Negative. RATING ACTION RATIONALE - IDRs, VR and National Ratings Fitch has affirmed Exterior's Viability Rating (VR), IDRs and national ratings as the bank remains well positioned to deliver strong financial results (even when adjusting for inflation) despite the high degree of government intervention in the banking business. In Fitch's opinion, the bank's focus on risk management, combined with its vast knowledge of the Venezuelan market will continue to underpin the resilience of the Exterior's solid credit profile, even with the expected weakening of the operating environment this year. KEY RATING DRIVERS - IDRs, VR and National Ratings Exterior's financial profile, as reflected in its VR, drives the bank's long-term IDR. Exterior's ratings balance robust asset quality, good profitability, and an adequate capital base against its lower market share and limited revenue diversification. Exterior's ratings are constrained by the sovereign due to the negative effects of government control over the financial sector and the broader economy (reflected in Venezuela's 'B+'; Negative Outlook). Exterior's expertise in its niche market of middle-market commercial loans and consumer loans remains crucial in preserving asset quality ratios despite frequent periods of economic volatility. As of Dec. 31, 2012, Exterior's 0.5% ratio of impaired loans to gross loans continued to compare favorably to domestic (i.e. private sector universal banks) and international (emerging market commercial banks with VRs of 'b-/b/b+') peers. Loan loss reserve coverage is sufficient for the bank's risk profile. The stable trend in profitability continued in 2012 as Exterior remained among the most profitable domestic banks. ROAA averaged 4.3% over the four years ending in 2012. Ample spreads and strong loan growth continue to underpin profitability, while low credit costs compensate still limited income diversification, trends Fitch expects to continue. However, Fitch notes that Venezuelan banks are not required to adjust for inflation. Including an adjustment for inflation, Exterior's ROAA would be in line with similarly rated international peers. At 32% as of year-end 2012 (YE12), Exterior's ratio of liquid assets to deposits and short-term funding ratio is now more in line with domestic peers. While Exterior's liquidity profile is sufficient for its market, Fitch cautions that the majority of the bank's liquid holdings are in Venezuelan public sector instruments. Furthermore, Exterior has a large negative mismatch between its short-term assets and liabilities. However, this position is manageable under Venezuela's current scheme of foreign exchange controls. Exterior's capital base remains relatively stable and is mostly unencumbered. However, in light of potential economic instability in 2013, sustained rapid loan expansion over the past two years and a complex regulatory regime, internal capital generation and hence, capitalization ratios could deteriorate this year. RATING SENSITIVITIES - IDRs, VRs and National Ratings Government intervention that pressures Exterior's financial performance could negatively affect its ratings. There is no upside potential to the bank's international ratings in the near term as the IDRs currently have a Negative Outlook, in line with those of the sovereign. Future rating actions will mirror those of the sovereign. Additionally, a sustained deterioration in profitability or asset quality that pressures capitalization ratios to levels that are no longer consistent with its current rating could also be negative for Exterior's ratings. KEY RATING DRIVERS - Support and Support Rating Floors Fitch believes that the shareholders' willingness to provide support should it be required is possible, though it cannot be relied upon due to the governments interference with the banking system, which is what results in Exterior's Support Rating of '5'. Exterior's Support Floor of 'No Floor' (NF) reflects Venezuela's speculative-grade rating, and the government's mixed history in providing bank support. The IDRs and national ratings do not incorporate any external support. RATING SENSITIVITIES - Support and Support Rating Floors There is limited upside to the bank's Support Rating and Support Floor over the medium term given the sovereign's current ratings and Outlooks and the government's propensity to intervene in the banking business and overall private sector activities. Additionally, Exterior's size and the lack of systemic importance also makes it unlikely that it would receive any support. Fitch has affirmed Exterior's ratings: -- Long-term foreign and local currency Issuer Default Ratings (IDR) at 'B+'; Negative Outlook; -- Short-term foreign and local currency ratings at 'B'; -- Viability at 'b+'; -- Support at '5'; -- Support floor at 'NF'; -- Long-term national scale rating at 'AA(ven)'; Stable Outlook; -- Short-term national scale rating at 'F1+(ven)'. *********** 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 * * *