/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130418.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, April 18, 2013, Vol. 14, No. 76 Headlines A R G E N T I N A SUPERVIELLE CREDITOS: Moody's Rates ARS200MM of Debt Securities B R A Z I L BANCO ITAU: Five Executives Leave Post Amid Restructuring C A Y M A N I S L A N D S ADM GLADIUS: Placed Under Voluntary Wind-Up ALPSTAR EUROPEAN: Commences Liquidation Proceedings ASHLAND INVESTMENTS: Placed Under Voluntary Wind-Up CLEARVIEW HOLDINGS: Commences Liquidation Proceedings DIGITAL LI-NING: Commences Liquidation Proceedings EASTERN ADVISOR: Commences Liquidation Proceedings EOS STRATEGIC: Commences Liquidation Proceedings EOS STRATEGIC MASTER: Commences Liquidation Proceedings GREEN POINT: Commences Liquidation Proceedings HAV3 (V): Commences Liquidation Proceedings JCAM MORTGAGE: Commences Liquidation Proceedings JCAM MORTGAGE (MASTER): Commences Liquidation Proceedings LEGEND HOLDINGS: Commences Liquidation Proceedings LWM GROWTH: Commences Liquidation Proceedings LWM GROWTH MASTER: Commences Liquidation Proceedings MAN LONGER: Commences Liquidation Proceedings MORGAN STANLEY ASIA: Commences Liquidation Proceedings PLUTOS INVESTMENT: Placed Under Voluntary Wind-Up SPW CAPITAL II: Commences Liquidation Proceedings TFP OVERSEAS: Commences Liquidation Proceedings M E X I C O CORPORACION GEO: Moody's Lowers Unsecured Debt Rating to Caa1 CORPORACION GEO: Debt Restructuring Cues Moody's to Cut Ratings CORPORACION GEO: Fitch Lowers Issuer Default Rating to 'CCC' DESARROLLADORA HOMEX: Fitch Cuts Issuer Default Rating to 'B' METROFINANCIERA SAPI: Moody's Takes Rating Actions on Six Cert. T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: T&T Finance Minister Bats for Airline X X X X X X X X LATIN AMERICA: Caribbean Construction Costs Likely to Fall * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= SUPERVIELLE CREDITOS: Moody's Rates ARS200MM of Debt Securities --------------------------------------------------------------- Moody's rated Supervielle Creditos 69, a transaction to be issued by Equity Trust S.A. -- acting solely in its capacity as Issuer and Trustee. The securities for this transaction have not yet been placed in the market. If any assumption or factor Moody's considers when assigning the ratings change before closing, the ratings may also change. - ARS60,000,000 in Class A Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 69", rated Aaa.ar (sf) (Argentine National Scale) and Ba3 (sf) (Global Scale, Local Currency) - ARS128,000,000 in Class B Floating Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos 69", rated Aaa.ar (sf) (Argentine National Scale) and Ba3 (sf) (Global Scale, Local Currency) - ARS12,000,000 in Certificates of "Fideicomiso Financiero Supervielle Creditos 69", rated Aa3.ar (sf) (Argentine National Scale) and B1 (sf) (Global Scale, Local Currency) Ratings Rationale: The rated securities are payable from the cash flow coming from the assets of the trust, which is an amortizing pool of approximately 26,265 eligible personal loans denominated in Argentine pesos, with a fixed interest rate, originated by Banco Supervielle, in an aggregate amount of ARS200,006,766.77 These personal loans are granted to pensioners that receive their monthly pensions from ANSES (Argentina's National Governmental Agency of Social Security - Administracion Nacional de la Seguridad Social). The pool is also constituted by loans granted to government employees of the Province of San Luis. Banco Supervielle is the payment agent entity and automatically deducts the monthly loan installment directly from the employee's paycheck and pensioner's payment. Overall credit enhancement is comprised of subordination: 6% for the Class A Fixed Rate Debt Securities, 6% for the Floating Rate Securities, calculated under the occurrence of a special event. In addition the transaction has various reserve funds and excess spread. Moody's considered the credit enhancement provided in this transaction through the initial subordination levels for each rated class, as well as the historical performance of Supervielle's portfolio. In addition, Moody's considered factors common to consumer loans securitizations such as delinquencies, prepayments and losses; as well as specific factors related to the Argentine market, such as the probability of an increase in losses if there are changes in the macroeconomic scenario in Argentina. These factors were incorporated in a cash flow model that takes into account all the relevant features of the transaction's assets and liabilities. Monte Carlo simulations were run, which determines the expected loss for the rated securities. In assigning the rating to this transaction, Moody's assumed a lognormal distribution for defaults on the main pool with a mean of 2.5% and a coefficient of variation of 50%. Also, Moody's assumed a lognormal distribution for prepayments with a mean of 25% and a coefficient of variation of 70%. These assumptions are derived from the historical performance to date of the Supervielle's pools. Servicer default was modeled by simulating the default of Banco Supervielle as the servicer consistent with its current rating of B2/Aa3.ar. In the scenarios where the servicer defaults, Moody's assumed that the defaults on the pool would increase by 20 percentage points. The model results showed 0.00% expected loss for Class A Fixed Rate Debt Securities, 0.76% for Class B Floating Rate Debt Securities and 7.07% for the Certificates. Moody's ran several stress scenarios, including increases in the default rate assumptions. If default rates were increased 3 percentage points from the base case scenario for the pool (i.e., mean of 5.5% and a coefficient of variation of 50%), the ratings of Class A Fixed Rate debt securities and Class B Floating Rate debt securities would remain the same. The ratings for the Certificates would be likely downgraded to B2 (sf). Moody's also considered the risk that a disruption in the flow of payments from ANSES or the Government of San Luis to pensioners and employees respectively, could severely affect the performance of the pool. Moody's believes that the ratings assigned are consistent with this risk. Finally, Moody's also evaluated the back-up servicing arrangements in the transaction. If Banco Supervielle is removed as servicer, Equity Trust S.A. will be appointed as the back-up servicer. The principal methodology used in this rating was Moody's Approach to Rating Consumer Loan ABS transaction published in October 12, 2012. Moody's National Scale Credit Ratings (NSRs) 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 credit 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. =========== B R A Z I L =========== BANCO ITAU: Five Executives Leave Post Amid Restructuring --------------------------------------------------------- Cristiane Lucchesi at Bloomberg News reports that three unnamed sources said Marcelo Marangon, an executive director of Banco Itau BBA SA, and at least four directors have left the bank amid a restructuring with management changes. According to Bloomberg News, the sources said the departing directors include: -- Andre Cury, -- Antonio Sanches, -- Jorge Bedran Jettar and -- Paulo di Paula Abreu. Marangon, the former head of global banking in Brazil for HSBC Holdings Plc (HSBA), was hired by Sao Paulo-based Banco Itau in October 2011 to handle a newly created unit catering to large corporations. Banco Itau BBA is the wholesale arm of Itau Unibanco Holding SA (ITUB4), the biggest Latin American bank by market value. ========================== C A Y M A N I S L A N D S ========================== ADM GLADIUS: Placed Under Voluntary Wind-Up ------------------------------------------- On Feb. 7, 2013, the sole shareholder of ADM Gladius Fund Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 2, 2013, will be included in the company's dividend distribution. The company's liquidator is: Cathy Wong ADM Capital 1008 ICBC Tower 3 Garden Road, Central Hong Kong Telephone: +8 (522) 536 4567 Facsimile: +8 (522) 147 2813 ALPSTAR EUROPEAN: Commences Liquidation Proceedings --------------------------------------------------- Alpstar European Recovery Fund, Ltd. commenced liquidation proceedings on Feb. 13, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 ASHLAND INVESTMENTS: Placed Under Voluntary Wind-Up --------------------------------------------------- On Jan. 30, 2013, the shareholders of Ashland Investments resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 1, 2013, will be included in the company's dividend distribution. The company's liquidator is: Peter Charles Spencer Keeble Campbells Corporate Services Limited Willow House, Floor 4, Cricket Square Grand Cayman Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 CLEARVIEW HOLDINGS: Commences Liquidation Proceedings ----------------------------------------------------- Clearview Holdings Ltd. commenced liquidation proceedings on Feb. 19, 2013. Only creditors who were able to file their proofs of debt by April 1, 2013, will be included in the company's dividend distribution. The company's liquidator is: Campbells Directors Limited c/o Peter A de Vere Campbells Willow House, Floor 4 PO Box 268 Cricket Square Elgin Avenue Telephone: +1(345)914 5872 Facsimile: +1(345)945 2877 DIGITAL LI-NING: Commences Liquidation Proceedings -------------------------------------------------- Digital Li-Ning Company Limited commenced liquidation proceedings on Feb. 18, 2013. The company's liquidator is: Adrian Chan 1503 Ruttonjee House 11 Duddell Street Hong Kong EASTERN ADVISOR: Commences Liquidation Proceedings -------------------------------------------------- Eastern Advisor Offshore Fund, Ltd commenced liquidation proceedings on Feb. 22, 2013. The company's liquidator is: Giles S. Eyre 405 Lexington Avenue 32nd Floor New York, New York 10174 United States of America Telephone: +1 (212) 984 2339 E-mail: giles@easternadvisors.com EOS STRATEGIC: Commences Liquidation Proceedings ------------------------------------------------ EOS Strategic Income Offshore, Ltd commenced liquidation proceedings on Feb. 21, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands EOS STRATEGIC MASTER: Commences Liquidation Proceedings ------------------------------------------------------- EOS Strategic Income Master Fund, Ltd commenced liquidation proceedings on Feb. 21, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands GREEN POINT: Commences Liquidation Proceedings ---------------------------------------------- Green Point International Holding (Cayman) Co., Ltd commenced liquidation proceedings on Feb. 26, 2013. Only creditors who were able to file their proofs of debt by April 8, 2013, will be included in the company's dividend distribution. The company's liquidator is: Sergio A. Cadavid 10560 Dr. MLK, Jr., Street North Saint Petersburg Florida 33716, USA Telephone: +1 (727) 577 9748 Facsimile: +1 (727) 803 5678 HAV3 (V): Commences Liquidation Proceedings ------------------------------------------- HAV3 (V) Limited commenced liquidation proceedings on Feb. 19, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 JCAM MORTGAGE: Commences Liquidation Proceedings ------------------------------------------------ JCAM Mortgage Opportunities Fund Ltd. commenced liquidation proceedings on Feb. 11, 2013. Only creditors who were able to file their proofs of debt by April 1, 2013, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands JCAM MORTGAGE (MASTER): Commences Liquidation Proceedings --------------------------------------------------------- JCAM Mortgage Opportunities Fund (Master) Ltd. commenced liquidation proceedings on Feb. 22, 2013. Only creditors who were able to file their proofs of debt by April 1, 2013, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands LEGEND HOLDINGS: Commences Liquidation Proceedings -------------------------------------------------- Legend Holdings Limited commenced liquidation proceedings on March 11, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands LWM GROWTH: Commences Liquidation Proceedings --------------------------------------------- LWM Growth Opportunities Fund, Ltd. commenced liquidation proceedings on Feb. 15, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: DMS Corporate Services Ltd Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands LWM GROWTH MASTER: Commences Liquidation Proceedings ---------------------------------------------------- LWM Growth Opportunities Master Fund, Ltd. commenced liquidation proceedings on Feb. 15, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: DMS Corporate Services Ltd Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands MAN LONGER: Commences Liquidation Proceedings --------------------------------------------- Man Longer Term Opportunities (Master) Ltd. commenced liquidation proceedings on Feb. 22, 2013. Only creditors who were able to file their proofs of debt by April 1, 2013, will be included in the company's dividend distribution. The company's liquidator is: Beverly Mathias c/o Citco Trustees (Cayman) Limited P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MORGAN STANLEY ASIA: Commences Liquidation Proceedings ------------------------------------------------------ Morgan Stanley Asia Pacific (Holdings) Limited commenced liquidation proceedings on Feb. 20, 2013. Only creditors who were able to file their proofs of debt by April 12, 2013, will be included in the company's dividend distribution. The company's liquidator is: Rainier Hok Chung Lam c/o Jodi Jones Telephone: (345) 949 7000 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands PLUTOS INVESTMENT: Placed Under Voluntary Wind-Up ------------------------------------------------- On Feb. 17, 2013, the sole shareholder of Plutos Investment Advisory, Ltd. resolved to voluntarily wind up the company's operations. The company's liquidator is: Avalon Management Limited Reference: GL Telephone: +1 (345) 769 4422 Facsimile: +1 (345) 769 9351 Landmark Square, 1st Floor 64 Earth Close West Bay Beach PO Box 715, George Town Grand Cayman KY1-1107 Cayman Islands SPW CAPITAL II: Commences Liquidation Proceedings ------------------------------------------------- SPW Capital II, Ltd commenced liquidation proceedings on Feb. 15, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 TFP OVERSEAS: Commences Liquidation Proceedings ----------------------------------------------- TFP Overseas Fund, Ltd commenced liquidation proceedings on Feb. 19, 2013. Only creditors who were able to file their proofs of debt by April 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 =========== M E X I C O =========== CORPORACION GEO: Moody's Lowers Unsecured Debt Rating to Caa1 ------------------------------------------------------------- Moody's Investors Service downgraded Corporacion GEO., S.A.B. de C.V.'s global scale foreign currency senior unsecured debt rating to Caa1 from Ba3 and placed the rating under review for downgrade. Ratings Rationale: This rating action reflects GEO's announcement on April 12 that it has hired a group of advisors to conduct an operational and financial analysis of the company with the ultimate goal of evaluating debt restructuring alternatives. The debt restructuring efforts are expected to focus on extending terms on the company's bank debt and providing more cushion on the company's covenants. An analysis of the company's existing projects and the ability to service debt with the remaining cash flows will also be conducted. Over 23% of the company's approximately $10.2 billion pesos of unsecured debt outstanding as of December 31, 2012 expires between 2013 and 2014. GEO's liquidity position has weakened substantially and is expected to remain strained over the next year. The company's business model is heavily focused on the low-income housing sector which relies on INFONAVIT and FOVISSSTE financing and increasingly requires subsidies to qualify for a mortgage. GEO experienced lower than normal sales volume in 2012 as a result of the company's reliance on home sales dependent on subsidy allocations, and is expected to continue to struggle with sales in 2013. In its review Moody's will focus on the company's ability to manage its near-term debt maturities as well as the nature of the company's debt restructuring process. Should GEO engage in a distressed exchange with its creditors, which effectively diminishes its financial obligation relative to its original obligation or is done in an effort to avoid a bankruptcy or a payment default, it will constitute a default under Moody's definition. This would result in a multiple-notch downgrade. Moody's de Mexico downgraded GEO's national scale long-term issuer rating to Caa1.mx from Baa1.mx (global scale local currency rating to Caa1 from Ba3), national scale short-term issuer rating to MX-4 from MX-3 (global scale local currency rating affirmed at Not Prime), national scale rating on the company's Certificados Bursatiles program to Caa1.mx from Baa1.mx (global scale local currency rating to (P)Caa1 from (P)Ba3) and the national scale senior unsecured debt rating to Caa1.mx from Baa1.mx (global scale local currency to Caa1 from Ba3). The ratings were placed under review for downgrade. The following ratings were downgraded and placed under review for downgrade: Moody's Investors Service Corporacion GEO, S.A.B. de C.V. -- global scale foreign currency senior unsecured notes issued in US dollars to Caa1 from Ba3 Moody's De Mexico Corporacion GEO, S.A.B. de C.V. -- national scale rating on Certificados Bursatiles program to Caa1.mx from Baa1.mx (global scale local currency rating to (P)Caa1 from (P)Ba3) Corporacion GEO, S.A.B. de C.V. -- national scale senior unsecured notes to Caa1.mx from Baa1.mx (global scale local currency rating to Caa1 from Ba3 ) Corporacion GEO, S.A.B. de C.V. -- national scale long-term issuer rating to Caa1.mx from Baa1.mx (global scale local currency rating to Caa1 from Ba3 ) The following rating was downgraded: Corporacion GEO, S.A.B. de C.V. -- national scale short-term issuer rating to MX-4 from MX-3 The following rating was affirmed: Corporacion GEO, S.A.B. de C.V. -- global scale short-term issuer local currency rating at Not Prime The last rating action with respect to GEO was on March 20, 2013, when Moody's de Mexico downgraded GEO's national scale long-term issuer rating to Baa1.mx from A3.mx (global scale local currency long rating affirmed at Ba3), national scale short-term issuer rating to MX-3 from MX-2 (global scale local currency rating affirmed at Not Prime), national scale rating on the company's Certificados Bursatiles program to Baa1.mx from A3.mx (global scale local currency rating affirmed at Ba3) and the national scale senior unsecured debt rating to Baa1.mx from A3.mx (global scale local currency affirmed at Ba3) and revised the outlook to negative, from stable. Moody's Investors Service affirmed GEO's global scale foreign currency senior unsecured debt rating at Ba3 and revised the outlook to negative, from stable. The principal methodology used in this rating was Global Homebuilding Industry Methodology published in March 2009. Corporacion GEO, S.A.B. de C.V., based in Mexico City, Mexico, is a publicly traded, fully integrated homebuilder engaged in the development, construction, marketing and sale of affordable housing developments in Mexico. The firm reported total assets of approximately $41.4 billion Mx pesos and total equity of approximately $11.3 billion Mx pesos at December 31, 2012. CORPORACION GEO: Debt Restructuring Cues Moody's to Cut Ratings --------------------------------------------------------------- Moody's de Mexico downgraded Corporacion GEO., S.A.B. de C.V.'s national scale long-term issuer rating to Caa1.mx from Baa1.mx (global scale local currency rating to Caa1 from Ba3), national scale short-term issuer rating to MX-4 from MX-3 (global scale local currency rating affirmed at Not Prime), national scale rating on the company's Certificados Bursatiles program to Caa1.mx from Baa1.mx (global scale local currency rating to (P)Caa1 from (P)Ba3) and the national scale senior unsecured debt rating to Caa1.mx from Baa1.mx (global scale local currency to Caa1 from Ba3). The ratings were placed under review for downgrade. Ratings Rationale: These rating actions reflect GEO's announcement on April 12 that it has hired a group of advisors to conduct an operational and financial analysis of the company with the ultimate goal of evaluating debt restructuring alternatives. The debt restructuring efforts are expected to focus on extending terms on the company's bank debt and providing more cushion on the company's covenants. An analysis of the company's existing projects and the ability to service debt with the remaining cash flows will also be conducted. Over 23% of the company's approximately $10.2 billion pesos of unsecured debt outstanding as of December 31, 2012 expires between 2013 and 2014. GEO's liquidity position has weakened substantially and is expected to remain strained over the next year. The company's business model is heavily focused on the low-income housing sector which relies on INFONAVIT and FOVISSSTE financing and increasingly requires subsidies to qualify for a mortgage. GEO experienced lower than normal sales volume in 2012 as a result of the company's reliance on home sales dependent on subsidy allocations, and is expected to continue to struggle with sales in 2013. In its review Moody's will focus on the company's ability to manage its near-term debt maturities as well as the nature of the company's debt restructuring process. Should GEO engage in a distressed exchange with its creditors, which effectively diminishes its financial obligation relative to its original obligation or is done in an effort to avoid a bankruptcy or a payment default, it will constitute a default under Moody's definition. This would result in a multiple-notch downgrade. Moody's Investors Service downgraded GEO's global scale foreign currency senior unsecured debt rating to Caa1 from Ba3 and placed the rating under review for downgrade. The following ratings were downgraded and placed under review for downgrade: Moody's Investors Service Corporacion GEO, S.A.B. de C.V. -- global scale foreign currency senior unsecured notes issued in US dollars to Caa1 from Ba3 Moody's De Mexico Corporacion GEO, S.A.B. de C.V. -- national scale rating on Certificados Bursatiles program to Caa1.mx from Baa1.mx (global scale local currency rating to (P)Caa1 from (P)Ba3) Corporacion GEO, S.A.B. de C.V. -- national scale senior unsecured notes to Caa1.mx from Baa1.mx (global scale local currency rating to Caa1 from Ba3 ) Corporacion GEO, S.A.B. de C.V. -- national scale long-term issuer rating to Caa1.mx from Baa1.mx (global scale local currency rating to Caa1 from Ba3 ) The following rating was downgraded: Corporacion GEO, S.A.B. de C.V. -- national scale short-term issuer rating to MX-4 from MX-3 The following rating was affirmed: Corporacion GEO, S.A.B. de C.V. -- global scale short-term issuer local currency rating at Not Prime Corporacion GEO, S.A.B. de C.V., based in Mexico City, Mexico, is a publicly traded, fully integrated homebuilder engaged in the development, construction, marketing and sale of affordable housing developments in Mexico. The firm reported total assets of approximately $41.4 billion Mx pesos and total equity of approximately $11.3 billion Mx pesos at December 31, 2012. CORPORACION GEO: Fitch Lowers Issuer Default Rating to 'CCC' ------------------------------------------------------------ Fitch Ratings has downgraded the following ratings for Corporacion GEO, S.A. de C.V. (GEO): -- Foreign Currency Issuer Default Rating (IDR) to 'CCC' from 'BB-'; -- Local Currency IDR to 'CCC' from 'BB-'; -- National Long-term rating to 'CCC(Mex)' from 'A-(Mex)'; -- USD54 million senior notes due 2014 to 'CCC/RR4' from 'BB-'; -- USD250 million senior notes due 2020 to 'CCC/RR4' from 'BB-'; -- USD400 million senior notes due 2022 to 'CCC/RR4' from 'BB-'; -- MXN400 million Certificados Bursatiles due 2014 to 'CCC(Mex)' from 'A-(Mex)'; -- National Long-term rating to 'C(cl)' from 'BBB(cl)'; -- Unsecured Notes (Linea de bonos No 726), USD16.5 million due in 2022 to 'C(cl)' from 'BBB(cl)'. The ratings remain on Rating Watch Negative. KEY RATING DRIVERS: The multi-notch downgrade follows an announcement by Geo that it has hired Fian Capital to help it undergo an operational and financial review, which includes evaluating debt restructuring options in light of difficult market conditions. These efforts could lead to a default or a distressed debt exchange (DDE), which would likely impose a material reduction of principal and/or interest vis-a-vis the original contractual terms of the company's capital markets debt. The 'CCC/RR4' ratings of the company's unsecured public debt reflect average recovery prospects in the event of default. The recovery prospects incorporate the subordination of the public unsecured debt with respect to secured debt. As of Dec. 31, 2012, GEO had MXN14.2 billion of total debt. The company's short term debt - largely composed of collateralized bank loans - was MXN4.2 billion; its long-term debt at the end of 2012 was MXN10 billion, primarily composed of unsecured public debt. The ratings incorporate an expectation of continued liquidity deterioration driven by negative free cash flow (FCF). GEO's liquidity - expressed as cash and cash equivalents - was MXN2.3 billion as of Dec. 31, 2012. The company's FCF during the fourth quarter of 2012 was negative MXN1.5 billion. RATING SENSITIVITY Fitch believes the factors that have contributed to the company's cash flow deterioration in the past - a challenging regulatory environment and changing demand characteristics for the industry - are likely to continue in the near-to-medium term. The announcement of an exchange or tender offer that Fitch considers to be distressed would result in a rating downgrade. A positive rating action could occur if GEO receives extraordinary financial support from its controlling shareholders or from third parties. DESARROLLADORA HOMEX: Fitch Cuts Issuer Default Rating to 'B' ------------------------------------------------------------- Fitch Ratings downgrades Desarrolladora Homex, S.A.B. de C.V.'s ratings as follows: -- Foreign currency Issuer Default Rating (IDR) to 'B' from 'BB-'; -- Local currency IDR to 'B' from 'BB-'; -- USD250 million in senior notes due 2015 to 'B/RR4' from 'BB-'; -- USD250 million in senior notes due 2019 to 'B/RR4' from 'BB-'; -- USD400 million in senior notes due 2020 to 'B/RR4' from 'BB-'. The ratings remain on Rating Watch Negative. KEY RATING DRIVERS The rating downgrades reflect Fitch's expectations that Homex's operating results in the first half of 2013 will remain under significant pressure, resulting in continued negative free cash flow and rising leverage. The pressure on cash flow is in part a result of a change in government policy, which is now more focused on promoting vertical housing in urban areas. This has resulted in land banks that are less suitable for development. Inventories have also arisen as a result of a decline in the level of mortgages granted for new houses by Infonavit, as the agency's lending for used houses has increased; in addition, delays in Homex's collecting accounts receivables have impacted working capital cycles. Homex has expressed that 87% of its land reserves could be used for the development of housing projects. Fitch notes that the company continues to seek ways to improve liquidity; the timing and success of these endeavors remains uncertain. Possible asset sales include the penitentiaries that have been developed by the company. The Rating Watch Negative reflects the expectation that the company's liquidity will continue to tighten as it gravitates towards vertical construction. The Negative Rating Watch could be revised if the company is successful in monetizing assets, such as its penitentiary projects, in order to improve liquidity. RATING SENSITIVITY Further downgrades could result from some combination of the following factors: the company is not able to monetize its assets in order to improve its short-term liquidity; consolidated debt/EBITDA ratios remains above 5.0x, and government funding for mortgage programs declines. Conversely, positive rating actions could be taken if consolidated debt/EBITDA leverage ratio is consistently below 4.0x., free cash flow generation from homebuilding activities becomes neutral and the company is able to significantly improve its liquidity and debt structure. METROFINANCIERA SAPI: Moody's Takes Rating Actions on Six Cert. --------------------------------------------------------------- Moody's de Mexico has taken rating actions on six certificates from Mexican RMBS sponsored by Metrofinanciera. The underlying collateral consists of first-lien, fixed-rate mortgage loans denominated in UDIs and granted primarily to low-income borrowers in Mexico. The complete rating action is as follows: Originator and Servicer: Metrofinanciera S.A.P.I. de C.V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada. Issuer: Banco Invex, S.A., Institucion de Banca Multiple, Invex Grupo Financiero only in its capacity as trustee of the following securitization trusts: - METROCB 04U, ratings downgraded to B1 (sf) from Ba2 (sf) (Global Scale, Local Currency) and to Baa1.mx (sf) from A2.mx (sf) (National Scale Rating), ratings placed on review for possible downgrade; previously on Feb 2, 2011 Confirmed at Ba2 (sf) (Global Scale, Local Currency) and Confirmed at A2.mx (sf) (National Scale Rating) - METROCB 05U, ratings downgraded to B1 (sf) from Ba2 (sf) (Global Scale, Local Currency) and to Baa1.mx (sf) from A2.mx (sf) (National Scale Rating), ratings placed on review for possible downgrade; previously on Feb 2, 2011 Confirmed at Ba2 (sf) (Global Scale, Local Currency) and Confirmed at A2.mx (sf) (National Scale Rating) - METROCB 06U, ratings downgraded to Caa1 (sf) from Ba2 (sf) (Global Scale, Local Currency) and to Caa1.mx (sf) from A2.mx (sf) (National Scale Rating), ratings remain on review for possible downgrade; previously on Feb 22, 2013 Ba2 (sf) Placed Under Review for Possible Downgrade (Global Scale, Local Currency) and A2.mx (sf) Placed Under Review for Possible Downgrade (National Scale Rating) Issuer: Bank of New York, S.A. only in its capacity as trustee of the following securitization trust: - MFCB 05U, ratings downgraded to B1 (sf) from Ba2 (sf) (Global Scale, Local Currency) and to Baa1.mx (sf) from A2.mx (sf) (National Scale Rating), ratings remain on review for possible downgrade; previously on Feb 22, 2013 Ba2 (sf) Placed Under Review for Possible Downgrade (Global Scale, Local Currency) and A2.mx (sf) Placed Under Review for Possible Downgrade (National Scale Rating) Issuer: Banco Nacional de Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero Banamex only in its capacity as trustee of the following securitization trusts: - MTROCB 07U, ratings downgraded to Caa2 (sf) from B2 (sf) (Global Scale, Local Currency) and to Caa2.mx (sf) from Baa3.mx (sf) (National Scale Rating), ratings remain on review for possible downgrade; previously on Feb 22, 2013 B2 (sf) Placed Under Review for Possible Downgrade (Global Scale, Local Currency) and Baa3.mx (sf) Placed Under Review for Possible Downgrade (National Scale Rating) - MTROCB 08U, ratings downgraded to Caa3 (sf) from Caa1 (sf) (Global Scale, Local Currency) and to Caa3.mx (sf) from Caa1.mx (sf) (National Scale Rating), ratings remain on review for possible downgrade; previously on Feb 22, 2013 Caa1 (sf) Placed Under Review for Possible Downgrade (Global Scale, Local Currency) and Caa1.mx (sf) Placed Under Review for Possible Downgrade (National Scale Rating) Ratings Rationale: This decision follows Metrofinanciera's recent announcement that the company's assets have been attached as a result of a lawsuit filed against the company. This included a freeze of the bank accounts where the company receives collections from the securitized mortgage loans prior to remitting them to the trust account. As a result, Metrofinanciera may not be able to transfer collections to the securitization trust accounts, increasing considerably the risk that the certificates will suffer interest payment shortfalls. Metrofinanciera is currently in the process of instructing borrowers pay directly in new bank accounts. However, it is unclear when this process will be complete and when the full amount of collections will be transferred to the securitization trusts. In addition, the legal issues surrounding the attachment of Metrofinanciera's assets and the uncertainty around the timing of its resolution negatively affect the stability of Metrofinanciera as servicer and highlight the heightened operational risk that all the transactions face, despite their levels of credit enhancement. METROCB 06U, MTROCB 07U, MTROCB 08U: METROCB 06U, MTROCB 07U, and MTROCB 08U certificates do not currently benefit from any partial credit guarantees, and in some cases they have limited cash reserves. METROCB 04U,METROCB 05U,MFCB 05U: The transactions METROCB 04U,METROCB 05U,MFCB 05U currently benefit from available Partial Credit Guarantees (PCG) provided by Sociedad Hipotecaria Federal and cash reserves. The PCGs can be used to cover interest and, under certain circumstances, principal payments under the Class A certificates. METROCB 04U's available PCG line equals to 9% of Class A's balance. METROCB 05U's available PCG line equals to 26% of Class A's balance. MFCB 05U's available PCG line equals to 11% of Class A's balance. Cash reserves listed for all transactions include amounts of cash yet to be reconciled, which may not be used to make interest and principal payments if they have not been reconciled by the payment date. On February 22, 2013 Moody's had placed on review for possible downgrade the ratings of METROCB 06U, MTROCB 07U, MTROCB 08U, and MFCB 05U due to rising concerns about the potential for a higher severity of loss on defaulted loans. The rating of those certificates remains on review. In addition, the ratings of METROCB 04U and METROCB 05U certificates have been placed on review for possible downgrade. During the review period Moody's will continue to monitor performance of these transactions and whether the servicer is able to transfer collections from the securitized loans to the trusts. Depending on the timing to resolve the disruption in transfer of collections to the securitization trusts, the rating of the certificates may be downgraded again to reflect a potential higher expected loss. In addition, the ratings of METROCB 06U, MTROCB 07U, MTROCB 08U, and MFCB 05U certificates may also be downgraded upon the conclusion of the review regarding transaction severities, as mentioned in the press release titled "Moody's places ratings of 18 Mexican Sofol RMBS certificates on review for downgrade", dated February 22, 2013. Given that this rating action is monitoring-related, a review of origination practices did not apply. Moody's considered the servicer's practices and considers them adequate. The methodologies used in this rating were 'Moody's Approach to Rating Mexican RMBS' published in August 2012 and 'Moody's Approach to Monitoring Residential Mortgage-Backed Securitizations in Mexico' published in August 2009. Moody's also considered the rating implementation guidance "Moody's Approach to Rating Structured Finance Securities in Default," published in November 2009, in its decision to downgrade the certificates. Moody's National Scale Ratings (NSRs) 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. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: T&T Finance Minister Bats for Airline --------------------------------------------------------- RJR News reports that Trinidad and Tobago's Minister of Finance has declared that bankruptcy is not an option being considered for debt-riddled Caribbean Airlines which is getting ready to reduce flights to Jamaica. Minister Larry Howai on Monday said the airline will have to reorganize its entire finance structure in order to meet payments and commitments out of existing cash flows, according to RJR News. The report relates that Mr. Howai said it is unclear if this will require staff cuts. Mr. Howai said everything will be up for review -- including the board, the report relays. CAL's predecessor BWIA also suffered from severe debt issues and was dissolved in 2007, RJR News recalls. Caribbean Airlines is facing a $1.4 billion debt and has racked up losses attributed to the 2011 acquisition of Air Jamaica. The air carrier intends to bring in international experts to advice on the best way forward, the report adds. About Caribbean Airlines 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. In 2010, Port of Spain and Kingston agreed to a deal that allowed the Jamaica government to own 16% of CAL as part of the conditions for CAL taking over the lucrative routes of Air Jamaica. The deal also allows for Trinidad and Tobago agreeing to a US$300 million transition plan for CAL to acquire and operate six Air Jamaica aircraft and eight of its routes. * * * 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 noted that Trinidad Express reported that the arrears were built up as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January =============== X X X X X X X X =============== LATIN AMERICA: Caribbean Construction Costs Likely to Fall ---------------------------------------------------------- Jason Smith at The BVI Beacon reports that Caribbean construction costs are likely to decline in the coming years until 2015, a research study shows, attributing the fall to a decrease in activity and predictions of commodity prices. The BCQS Market Trend Report 2012, released, studied 10 jurisdictions across the region and recorded a decrease in construction costs last year for the Bahamas, the Virgin Islands and St. Lucia, according to The BVI Beacon. The BVI Beacon relates that while the prediction from the quantity surveying and construction management firm's news is good for developers, others in the industry may face tough times. "We can only foresee that the property and construction industries will be forced into measures to keep their markets moving and generating income," the report stated, according to The BVI Beacon. The report added that across the region, property prices have "bottomed out" in some countries and there are signs of growth, The BVI Beacon notes. "Whil[e] a staggering number of construction projects still remain on hold, it would appear that banks are now initiating steps for reviewing, evaluating and offloading their liabilities, which may be just the stimulus required for the region," the report said, The BVI Beacon relays. While the region's construction costs vary markedly depending on geography, infrastructure and population, high-quality builders often are able to distinguish themselves from the competition, according to the report, The BVI Beacon notes. "Build quality plays a major role and is not only restricted to a change in finishing materials or local standards . . . . Changes in building technology and the quality of standard finishes can vary drastically between semi-skilled, skilled and professionally trained tradesmen, making an acceptable product in one jurisdiction subpar for another," the report added, The BVI Beacon discloses. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Apr. 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, 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 * * *