/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130419.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, April 19, 2013, Vol. 14, No. 77 Headlines B R A Z I L CYRELA COMMERCIAL: Fitch Upgrades Issuer Default Rating to 'BB+' C A Y M A N I S L A N D S AOF HAITAI: Commences Liquidation Proceedings APP CHINA: Commences Liquidation Proceedings CAIP HAITAI: Commences Liquidation Proceedings DAVID INVESTMENTS: Placed Under Voluntary Wind-Up FRONTEER HOLDINGS: Placed Under Voluntary Wind-Up HINDE EQUITY: Placed Under Voluntary Wind-Up HINDE EQUITY FUND: Placed Under Voluntary Wind-Up HINDE EQUITY GP: Placed Under Voluntary Wind-Up JAPETUS LIMITED: Commences Liquidation Proceedings LAKESIDE RE II: Commences Liquidation Proceedings LOCKERBIE LIMITED: Placed Under Voluntary Wind-Up MADELEINE LIMITED: Commences Liquidation Proceedings MARTA EAST: Commences Liquidation Proceedings MULTICAT MEXICO: Commences Liquidation Proceedings RYLETT LIMITED: Commences Liquidation Proceedings SUMITOMO LIFE: Commences Liquidation Proceedings TCB CREDITOR: Commences Liquidation Proceedings TTO INVESTMENT: Placed Under Voluntary Wind-Up WILLROSE LIMITED: Placed Under Voluntary Wind-Up D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: $1-Bil. Bond Offer Gets Moody's B1 Rating J A M A I C A UC RUSAL: Warns of Further Drop in Price of Metal M E X I C O FERREYCORP SAA: S&P Assigns 'BB+' Corporate Credit Rating MAQUINARIA ESPECIALIZADA: S&P Puts 'BB-' Rating on CreditWatch MAQUINARIA ESPECIALIZADA: Fitch Cuts Secured Notes Rating to B- P U E R T O R I C O EDIFICA INC: Case Summary & 20 Largest Unsecured Creditors HOTEL AIRPORT: Court Confirms Reorganization Plan T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Cuts Air Jamaica Flights CL FIN'L: Ex-Clico Czar Sells Off Posh Miami Hotels V E N E N Z U E L A * VENENZUELA: Fitch Says Election Fails to Dispel Uncertainty - - - - - =========== B R A Z I L =========== CYRELA COMMERCIAL: Fitch Upgrades Issuer Default Rating to 'BB+' ---------------------------------------------------------------- Fitch Ratings has upgraded the ratings of Cyrela Commercial Properties S.A. Empreendimentos e Participacoes (CCP) as follows: -- Long-term Foreign Currency Issuer Default Rating (IDR) to 'BB+' from 'BB'; -- Long-term Local Currency IDR to 'BB+' from 'BB'; -- Long-term National Scale rating to 'AA(bra)' from 'AA-(bra)'; -- Second debenture issuance, in the amount of BRL204.4 million, due in 2017, to 'AA(bra)' from 'AA-(bra)'; -- Third debenture issuance, in the amount of BRL150 million, due in 2018, to 'AA(bra)' from 'AA-(bra)'. The Outlook for the corporate ratings is Stable. KEY RATING DRIVERS The upgrade of CCP's ratings reflects the company's consistent and growing operating results, adequate liquidity, conservative coverage ratios and manageable debt maturity schedule. The upgrades also incorporate the expectation that CCP will preserve a satisfactory financial profile, supported by adequate liquidity and considerable financial flexibility, as it moves forward with a BRL777 million capex plan, which is intended to increase the company's presence in the industry. CCP's ratings incorporate its diversified asset portfolio and position as one of the leaders in the leasing of high-quality corporate buildings in Brazil. The company's stable business base, predictable and growing operational cash generation, its experience, and the competitive advantage of an integrated business model in a highly fragmented industry were also considered in the analysis. The ratings are constrained by the cyclicality of the commercial properties business and its vulnerability to fluctuations in the domestic economy and the availability of long term credit lines. The classifications also consider the strength of the CCP brand and its operational synergies and integration with Cyrela Brazil Realty S.A. Empreendimentos e Participacoes (Cyrela, IDRs in Foreign and Local Currency 'BB' and Long Term National Scale Rating 'AA-(bra)' with a Stable Outlook), one of the largest homebuilding companies in Brazil. Consistent and Growing Operational Cash Flow CCP's cash flow from lease agreements is predictable and growing and has benefited from the occasional sale of assets. The company's net revenues increased by 57% in 2012, in comparison with 2011, to BRL489 million. This growth reflected increased lease renewals and closing of new lease agreements, as well as substantial revenues from asset sales of BRL289 million. CCP's net operating income (NOI), which considers only the lease revenue, was BRL179 million in 2012, compared with BRL150 million in 2011. EBITDA has consistently increased since 2007 and was BRL236 million in 2012, compared with BRL180 million in 2011, with an EBITDA margin of 48.7%, compared to 58.3% in the same period. The volatility of the EBITDA margin reflects the larger volume of assets sold, which carry lower margins and are more volatile than those of recurring revenue from lease agreements. The large capex plan is expected to continue to pressure CCP's free cash flow (FCF), which is likely to remain negative in 2013 and in 2014, excluding occasional property sales. In 2012, the company's funds from operations (FFO) totaled BRL236 million, while its cash flow from operations (CFFO) was BRL175 million. These figures compare with BRL205 million and BRL207 million, respectively, in 2011. With investments of BRL438 million and dividends of BRL27 million, FCF was a negative BRL290 million in 2012. Fitch expects that the company will be able to obtain long- term financing for its projects with amortizations based on funds received from the assets leased, and despite high investments, FFO interest coverage should remain strong. In 2012, FFO interest coverage was 6.2x, while the EBITDA/interest expense ratio was 5.2x. Expected Leverage Increase is Manageable CCP's leverage should increase, but remain manageable, despite the investments expected for the next two years. Total debt/EBITDA ratio remained stable over the last three years at 4.0x in 2012, while net leverage was 2.8x in 2012, compared with 1.9x in 2011. Fitch expects an increase in net leverage to around 5.5x in 2013, reflecting the disbursements of the long- term real estate lines for the projects under development. Revenues from lease agreements of new projects should positively impact the company's credit metrics and leverage should reduce in 2014 and 2015. When compared with the economic value of the CCP's commercial properties, leverage remains low. The ratio loan-to-value, measured by net debt / estimated market value of assets, was of 33% at end 2012, without considering the projects under development. This ratio should not exceed 50% over the 2013 to 2015 period. Adequate Liquidity and Debt Profile CCP's liquidity is comfortable for debt maturities due by year-end 2015. As of Dec. 31, 2012, cash and marketable securities totaled BRL274 million and total debt, BRL946 million. The company's debt maturity schedule showed BRL87 million maturing in the short term, BRL98 million in 2014 and BRL107 million in 2015. Fitch expects the company to continue to manage its liquidity conservatively and benefit from an increasing lease base and growing EBITDA generation, which are expected to satisfactorily contain the effects of higher leverage and limit refinancing pressures in the short and medium terms. Fitch also views the more intensive use of long-term real estate construction financings, linked to future cash flow from the projects, as a positive. CCP counts on good financial flexibility, since around 69% of the estimated market value of its assets were unencumbered and may be available for sale or serve as collateral for a secured financing, if needed. In December 2012, unencumbered assets had an estimated market value of BRL1.4 billion and covered about 2.6x the corporate debt of BRL548 million. High Quality Portfolio of Commercial Properties CCP is one of the largest companies of investment, lease and commercialization of commercial properties in Brazil. At end 2012, the company owned 18 commercial properties, with an estimated market value of BRL2.1 billion and GLA of 223 thousand sqm. CCP's diversified portfolio includes 12 office buildings, four shopping centers and two distribution centers. CCP currently develops 16 projects, which should add 337 thousand sqm of GLA, to be delivered from 2013 to 2015. The company's high portfolio quality supports its strong market position and the positive operational track record since 2007, with low tenant turnover and residual vacancy and delinquency rates. At year-end 2012, physical and financial vacancy rates were low at 0.5% and 0.4%, respectively. The lease maturity profile is well distributed, with 14% (by revenues) maturing in 2013 and 16% in 2014. CCP has a concentration of tenants and the 20 largest represented 81% of its total monthly revenues from corporate buildings in 2012. This risk is partially mitigated by the high quality of tenants and property portfolio, and the low vacancy rates in Sao Paulo and Rio de Janeiro, where most of the company's assets are located. RATING SENSITIVITIES CCP's ratings can be negatively impacted by higher than expected increases in leverage, a weakening debt amortization profile, liquidity falling to levels that considerably weaken short-term debt coverage, and by factors that greatly impact the company's cash generation. The ratings could also be pressured by a significant increase in vacancy and delinquency rates, as well as a sharp downturn in the Brazilian economy. Positive ratings actions are not expected in the short term. CCPs' ratings could be positively affected by coverage and leverage ratios better than Fitch's expectations in this rating action. A higher scale of operations and the maintenance of a conservative cash cushion, may also impact future rating actions. ========================== C A Y M A N I S L A N D S ========================== AOF HAITAI: Commences Liquidation Proceedings --------------------------------------------- On Feb. 27, 2013, the sole shareholder of AOF Haitai (Cayman) Ltd. resolved to voluntarily liquidate the company's business. 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 APP CHINA: Commences Liquidation Proceedings -------------------------------------------- On Feb. 7, 2013, the shareholders of APP China Technology Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Chuan Luo No. 102, Door 1, Floor 2 Zhuxiyuan Xiaoquo Haidian District Beijing PRC Telephone: (86)10-57525200-1055 Facsimile: (86)10-57525300 CAIP HAITAI: Commences Liquidation Proceedings ---------------------------------------------- On Feb. 27, 2013, the sole shareholder of Caip Haitai (Cayman) Ltd. resolved to voluntarily liquidate the company's business. 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 DAVID INVESTMENTS: Placed Under Voluntary Wind-Up ------------------------------------------------- On Feb. 19, 2013, the shareholders of David Investments Ltd. 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: 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 FRONTEER HOLDINGS: Placed Under Voluntary Wind-Up ------------------------------------------------- On Feb. 19, 2013, the shareholder of Fronteer Holdings Inc. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 10, 2013, will be included in the company's dividend distribution. The company's liquidator is: Ogier c/o Kim Charaman Telephone: (345) 943 3100 Facsimile: (345) 945 4757 Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue George Town Grand Cayman KY1-9005 Cayman Islands HINDE EQUITY: Placed Under Voluntary Wind-Up -------------------------------------------- On March 1, 2013, the shareholder of Hinde Equity Feeder Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 17, 2013, will be included in the company's dividend distribution. The company's liquidator is: Swiss Financial Services (Ireland) Limited Block 4B, Cleaboy Business Park Old Kilmeaden Road Waterford Ireland HINDE EQUITY FUND: Placed Under Voluntary Wind-Up ------------------------------------------------- On March 1, 2013, the shareholder of Hinde Equity Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 17, 2013, will be included in the company's dividend distribution. The company's liquidator is: Swiss Financial Services (Ireland) Limited Block 4B, Cleaboy Business Park Old Kilmeaden Road Waterford Ireland HINDE EQUITY GP: Placed Under Voluntary Wind-Up ----------------------------------------------- On March 1, 2013, the shareholder of Hinde Equity Fund GP Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by April 17, 2013, will be included in the company's dividend distribution. The company's liquidator is: Swiss Financial Services (Ireland) Limited Block 4B, Cleaboy Business Park Old Kilmeaden Road Waterford Ireland JAPETUS LIMITED: Commences Liquidation Proceedings -------------------------------------------------- On Feb. 26, 2013, the shareholders of Japetus Limited resolved to voluntarily liquidate the company's business. 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: Hamad Abdulla Mohamed Jassim Al Thani c/o Avril Brophy PO Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 LAKESIDE RE II: Commences Liquidation Proceedings ------------------------------------------------- On March 1, 2013, the shareholders of Lakeside RE II Ltd. resolved to voluntarily liquidate the company's business. 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: Carl Gosselin Wilmington Trust (Cayman), Ltd. P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 640 6712 LOCKERBIE LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------- At an extraordinary general meeting held on Feb. 26, 2013, the shareholder of Lockerbie Limited resolved to voluntarily wind up the company's operations. 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: Royhaven Secretaries Limited c/o Julie Reynolds Telephone: 945 4777 Facsimile: 945 4799 P O Box 707 Grand Cayman KY1-1107 Cayman Islands MADELEINE LIMITED: Commences Liquidation Proceedings ---------------------------------------------------- At an extraordinary meeting held on March 1, 2013, the sole shareholder of Madeleine Limited resolved to voluntarily liquidate the company's business. 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: Jagjit K. Comins c/o BNP Paribas Bank & Trust Cayman Limited PO Box 10632, 3rd Floor, Royal Bank House 24 Shedden Road, George Town Grand Cayman KY1-1006 Cayman Islands E-mail: jagjit.toor-comins@bnpparibas.ky MARTA EAST: Commences Liquidation Proceedings --------------------------------------------- At an extraordinary meeting held on March 1, 2013, the shareholders of Marta East Line Limited resolved to voluntarily liquidate the company's business. 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: Carl Gosselin Wilmington Trust (Cayman), Ltd. P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 640 6712 MULTICAT MEXICO: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on March 1, 2013, the shareholders of Multicat Mexico 2009 Ltd. resolved to voluntarily liquidate the company's business. 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: Carl Gosselin Wilmington Trust (Cayman), Ltd. P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 640 6712 RYLETT LIMITED: Commences Liquidation Proceedings ------------------------------------------------- On Feb. 27, 2013, the shareholders of Rylett Limited resolved to voluntarily liquidate the company's business. 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: Buchanan Limited c/o Allison Kelly Telephone: (345) 949 0355 Facsimile: (345)949 0360 P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands SUMITOMO LIFE: Commences Liquidation Proceedings ------------------------------------------------ On Feb. 28, 2013, the sole shareholder of Sumitomo Life Fundings Cayman Limited III resolved to voluntarily liquidate the company's business. 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 TCB CREDITOR: Commences Liquidation Proceedings ----------------------------------------------- On Jan. 16, 2013, the sole shareholder of TCB Creditor Recoveries Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by April 10, 2013, will be included in the company's dividend distribution. The company's liquidators are: Christopher Johnson Russell Homer Chris Johnson Associates Ltd, Elizabethan Square, 80 Shedden Road PO Box 2499, Grand Cayman KY1-1104 Cayman Islands TTO INVESTMENT: Placed Under Voluntary Wind-Up ---------------------------------------------- On Feb. 28, 2013, the sole member of TTO Investment (Cayman) Ltd 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: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands WILLROSE LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------ On Feb. 22, 2013, the shareholder of Willrose Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 ================================== D O M I N I C A N R E P U B L I C ================================== * DOMINICAN REPUBLIC: $1-Bil. Bond Offer Gets Moody's B1 Rating --------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to the Government of the Dominican Republic's $1 billion 5.875% Amortizing Bonds due 2024. The transaction will close April 18. The bonds will amortize in three equal annual installments between 2022 and 2024. Ratings Rationale: The Dominican Republic's B1 rating reflects the country's low economic, institutional, and government financial strength and its moderate susceptibility to event risk. The DR's economy faces challenges related to its relatively small size and high poverty levels, notwithstanding a long history of strong if uneven growth. Economic growth remained subdued for the second consecutive year in 2012, notwithstanding a significant increase in government spending, and Moody's expects it will slow further this year to just 3% due to planned fiscal consolidation. Poor World Bank governance indicators reflect the weakness of the Dominican Republic's institutions, as does the absence of effective checks and balances on executive power. In the run up to last year's presidential elections, the lack of oversight and controls enabled large increases in government spending and the fiscal deficit following the early termination of the government's Standby Agreement with the IMF. However, the country has made several important institutional improvements. These enhancements include strengthened bank supervision and effective enforcement of prudential regulations, increased transparency, the development of a domestic market for government bonds, and the introduction last year of an inflation targeting regime by the Central Bank. While government debt levels remain moderate relative to GDP despite recent increases, the government's finances suffer from limited budget flexibility due to a significant decline in revenues coupled with rising interest costs and persistent losses by government-owned electricity companies. The authorities expect to reduce the fiscal deficit to a more sustainable 2.8% of GDP this year via a tax reform and significant expenditure reductions, but Moody's believes it will be challenged to achieve this target. Although external financial vulnerability has declined considerably, limited diversification of the economy, large current account deficits, and relatively low international reserves leave the country exposed to terms-of-trade shocks and balance of payments pressures. For 2013, however, Moody's expects the current account deficit will decrease to a relatively moderate 3.9% GDP thanks to increased export earnings from a recently opened $4 billion gold mine, the largest investment in the country's history. In addition, the government balance sheet faces exchange-rate risks related to its significant exposure to foreign currency-denominated financial obligations. The stable outlook on the DR's bonds reflects Moody's expectation that the government will be willing and able to make the adjustments necessary to restore fiscal sustainability. The outlook also incorporates the expectation that the new administration will remain committed to policies that seek to maintain macroeconomic stability, while continuing to strengthen the institutional framework. The rating could face upward pressure if vulnerabilities to external shocks decline, if budgetary flexibility is improved through a combination of reduced transfers to the electric sector and revenue increases, and/or if the government prevents a recurrence of election cycle-driven fiscal deterioration. A material drop in international reserves or an abrupt depreciation of the exchange rate could put downward pressure on the rating. Inability to achieve the fiscal consolidation targets, continued increases in debt levels, or difficulty securing funding could also lead to lower ratings. The principal methodology used in this rating was Sovereign Bond Ratings Methodology published in September 2008. ============= J A M A I C A ============= UC RUSAL: Warns of Further Drop in Price of Metal ------------------------------------------------- RJR News reports that Oleg Mukhamedshin, Rusal's deputy chief executive, warned that the price of the metal may fall further unless production is cut as current stocks could last for another three years. This could have implications for Jamaica's bauxite/alumina sector in which Rusal is a major stakeholder, according to RJR News. The report relates that Mr. Mukhamedshin said the global inventory stands at five to six million tones. The report relays that his comments coincided with the aluminum price hitting a four-year low of 1-thousand 875 US dollars a ton. Rusal has announced it will cut production by 300,000 tonnes this year. UC Rusal has a stake in the Alpart and Kirkvine alumina refineries in Jamaica, the report says. As reported in the Troubled Company Reporter-Latin America on Sept. 28, 2012, RJR News said that Russian aluminum giant UC Rusal, which has a major stake in Jamaica's bauxite/alumina industry, expects to reach a deal with its lenders within six months to refinance part of an US$11 billion debt burden. It will agree to new loan conditions by the end this year before its covenant holiday expires, according to RJR News. =========== M E X I C O =========== FERREYCORP SAA: S&P Assigns 'BB+' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' corporate credit rating to Ferreycorp S.A.A. S&P also assigned its 'BB+' issue-level rating to Ferreycorp S.A.A.'s proposed $300 million senior unsecured notes due 2023. The outlook is stable. The 'BB+' ratings on Ferreycorp reflects S&P's assessment of the company's "satisfactory" business risk profile, "significant" financial risk profile, and "less-than-adequate" liquidity. S&P's assessment of Ferreycorp's business risk profile as "satisfactory" reflects its solid and established relationship with Caterpillar Inc. (A/Stable/--) as an exclusive dealer in Peru, its leading position within the Peruvian capital goods market, an extensive product portfolio with strong brand recognition, and its continued growth in the replacement parts and services business. "The partly offsetting factors are the company's exposure to cyclical resource-based industries, such as energy and mining, as well as its limited geographic diversification," said Standard & Poor's credit analyst Luis Martinez. MAQUINARIA ESPECIALIZADA: S&P Puts 'BB-' Rating on CreditWatch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB- (sf)' rating on Maquinaria Especializada MXO Trust Agreement No. F/00762's (Geo Maquinaria Trust's) US$160 million fixed-rate secured notes Series 2011 on CreditWatch with negative implications. The transaction is an ABS securitization of the rights of the service rendering agreement between Maquinaria Especializada MXO S.A. de C.V. and Corporacion Geo S.A.B. de C.V. (Geo) and its subsidiaries. This follows S&P's April 12, 2013, rating action on Geo. At that time, S&P lowered the global-scale credit rating on Geo to 'CCC+' from 'BB-' and put it on CreditWatch negative after the company announced the commencement of a financial restructuring. Geo and its subsidiaries play crucial roles as the sole obligors of the issuing trust's transferred receivables and quarterly payment obligations and, as described in the transaction's service rendering agreement, are the beneficiaries of the machinery availability services provided by the issuing trust. As such, S&P generally views the rating on the Series 2011 notes as capped (weak-linked) to the rating on Geo. It is unclear at this time if and how Geo's announced financial restructuring could affect the 2011 notes. The transaction benefits from a reserve account of US$24.5 million as of the last payment date in February 2013, which is sufficient to cover any principal or interest shortfall for at least four quarterly payments. It also has a capital expenditures reserve fund of US$3.2 million for the acquisition and replacement of machinery. S&P expects to resolve the CreditWatch status of the ratings once it has more clarity and detail on the proposed terms of Geo's restructuring and its possible impact on the 2011 notes. S&P could lower the rating on the 2011 notes to align it with the issuer credit rating on Geo if it believes that the transaction could be affected by the company's restructuring or if S&P viewed the deal's performance as dependent on the credit rating on Geo. On the other hand, S&P could temporarily de-link the rating on the notes from the rating on Geo if it believes that Geo's restructuring might not affect the transaction immediately. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LIST Maquinaria Especializada MXO Trust Agreement No. F/00762's Series 2011 notes To From BB- (sf)/Watch Neg BB- (sf) MAQUINARIA ESPECIALIZADA: Fitch Cuts Secured Notes Rating to B- --------------------------------------------------------------- Fitch Ratings has downgraded the following notes issued by Maquinaria Especializada MXO Trust Agreement No. F/00762: -- US$160 million senior secured notes due 2021 to 'B-' from 'BB-'. Fitch has also placed the senior secured notes on Rating Watch Negative. The underlying issuance is a securitization of the payment rights related to the leasing of existing and future essential construction machinery pertaining to Corporacion Geo S.A.B.de C.V. (Geo Corp.). Repayment of the notes is supported by an irrevocable and unconditional quarterly servicer payment paid by Geo Corp. during a 10-year period under the terms of the service agreement (SA) for the operation of the equipment. KEY RATING DRIVERS The rating action on the notes follows Fitch's downgrade of Geo Corp.'s Issuer Default Rating (IDR) to 'CCC' from 'BB-' on April 16, 2013. The securitization's rating incorporates Geo Corp.'s IDR as the company is responsible for all payments under an irrevocable SA as well as any termination fees in the event of default and/or termination of the agreement. The rating action also takes into consideration the transaction's performance, the stable sovereign environment, and additional liquidity available in the form of cash reserve accounts that benefit the transaction. Downgrades to Geo Corp.'s ratings reflect the company's recent announcement about evaluating debt restructuring options in light of difficult market conditions and Fitch's expectation of continued deterioration in liquidity. Geo Corp. concluded 2012 with a highly constrained liquidity position driven by negative free cash flow (FCF). Geo Corp.'s liquidity - expressed as cash and cash equivalents - was MXN 2.3 billion as of Dec. 31, 2012. The company's FCF during the fourth quarter of 2012 was negative MXN 1.50 billion. Fitch's rating action on the notes also considers the available liquidity which may allow the transaction to make the next scheduled principal and interest payment of USD 4.35 million on May 2, 2013. As of February 2013, the securitization benefits from a reserve account with a current balance of USD 25.60 million, which can be used to provide liquidity to the transaction or to pay down the balance of the outstanding notes. Additional credit support is provided by security over the essential construction equipment in the trust. As of Jan. 31, 2013, the trust held 1,117 pieces of heavy construction equipment. In the event of default, the trust may liquidate this machinery and apply the proceeds to pay down the debt balance. While this equipment is essential to Geo Corp. and this should provide increased incentives to honor the SA, it may be difficult to repossess and liquidate the collateral. The placement of the notes on Rating Watch Negative reflects the deteriorating credit quality of Geo Corp. and Fitch's concern about the company's ability to perform under the terms of the SA. RATING SENSITIVITIES The transaction is subject to the performance risk of Geo Corp., material changes in the collection of the pledged payments to the trust, reduction on the balances of the reserve accounts and a significant decrease in the number of pieces of essential equipment held by the trust. Initial Key Rating Drivers and Rating Sensitivity are further described in the New Issue report 'Maquinaria Especializada Trust Agreement No. F/00762 $160 Million Notes Due 2021,' published on May 2, 2011. ===================== P U E R T O R I C O ===================== EDIFICA INC: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Edifica Inc. PMB 277 1353 Road 19 Guaynabo, PR 00966 Bankruptcy Case No.: 13-02850 Chapter 11 Petition Date: April 12, 2013 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Judge: Edward A. Godoy Debtor's Counsel: Carlos Rodriguez Quesada, Esq. LAW OFFICE OF CARLOS RODRIGUEZ QUES P.O. Box 9023115 San Juan, PR 00902-3115 Tel: (787) 724-2867 E-mail: cerqlaw@coqui.net Scheduled Assets: $996,546 Scheduled Liabilities: $1,476,177 A copy of the Company's list of its 20 largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/prb13-2850.pdf The petition was signed by Hector Rivera Vega, president. HOTEL AIRPORT: Court Confirms Reorganization Plan ------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico entered an order on March 21, 2012, confirming Hotel Airport Inc. Chapter 11 plan of Reorganization dated Nov. 9, 2012. As reported in the TCR on Feb. 20, 2013, 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. The Plan treats claims and interests as follows: * Holders of allowed administrative expense priority claims, which are unclassified, will be paid in full on the effective date of the Plan. * General unsecured creditors were listed in the Debtor's schedules in the total amount of $155,666,718. The bulk of this debt ($155,500,000) arises out of HAI being a co-obligor with its parent company, CAF, regarding loans secured by property owned by non-debtor parties. These loans made to the related companies are secured by property held by them, and are being paid according to the debt-service agreed between the creditor and the respective principal debtor. Hence, the Debtor will not be making payments on said claims, but will remain as a guarantor in case of default. * The other unsecured claims are to be paid 100% of their allowed amounts, without interest, in 36 monthly installments starting 30 days after the Effective Date. * Stockholders (Class 4) will retain their interest in stock, but will receive no dividends until payments to unsecured creditors are concluded. * FirstBank's secured claim (Class 5) is secured with a mortgage encumbering the Debtor's main asset -- its lease contract with PRPA -- and virtually all the other assets. The PoC 5 filed by this creditor shows a balance of $9,635,213, which has been reduced through postpetition payments. The Debtor will maintain the debt service agreed upon with FirstBank, with any modification that may be agreed upon with said creditor. A copy of the Amended Disclosure Statement is available at: http://bankrupt.com/misc/HAI.doc189.pdf 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. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Cuts Air Jamaica Flights -------------------------------------------- Curtis Rampersad at Trinidad Express reports that Caribbean Airlines Limited has cut the number of flights of its Air Jamaica subsidiary by 50% in a bid to stem multi-million-dollar losses at the national airline. CAL has reduced the flight frequencies of Air Jamaica's core schedule services from Kingston and Montego Bay, Jamaica, to North American destinations including Toronto, Canada and South Florida stops by as much as 50%, but has not eliminated any flights altogether, airline sources confirmed, according to Trinidad Express. The changes went into effect on April 16. Trinidad Express notes that daily flights from Port of Spain to Kingston and Georgetown, Guyana, have not been affected. The report relates that the flight frequencies are being reduced because of lighter passenger loads. It is one measure implemented by CAL to reduce hundreds of millions of dollars in losses in from 2012 into 2013 as reported exclusively in last week's Sunday Express, Trinidad Express discloses. But it also comes at a time when the Jamaican government is threatening to remove the Air Jamaica brand from CAL if flights are reduced, Trinidad Express relates. Meanwhile, RJR News reports that Vasant Bharath, Trinidad and Tobago's Minister of Industry has dismissed concerns that the two- year-old Caribbean Airlines (CAL)/Air Jamaica deal is in trouble. According to Mr. Bharath, the report relates, CAL is close to the number of routes contained in the agreement. At the same time he said competition in the airline industry has gotten stiffer and Caribbean Airlines will have to look at rationalizing, the report says. 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. CL FIN'L: Ex-Clico Czar Sells Off Posh Miami Hotels --------------------------------------------------- Trinidad and Tobago Newsday reports that CL Financial Group Limited Chairman Lawrence A. Duprey has sold three of his Fort Lauderdale hotels to a Swedish investor Par Sanda to pay off US$5.6 million owed in mortgages to US bank Iberiabank. The properties, which operated under the group of hotels Sable Resorts, were sold, according to the online South Florida Business Journal, for the sum of US$4.9 million after the bank filed a foreclosure lawsuit in 2011 against Sable Resorts Inc and Duprey for "over $5.6 million in mortgages securing four hotels," according to Trinidad and Tobago Newsday. Trinidad Express relates that Mr. Duprey according to Sable Resorts Inc is its chairman, a director, president, and principal, while his wife Sylvia Baldini is its vice chairman, a director, and secretary. Contacted about the sales in Fort Lauderdale, Duprey told Trinidad and Tobago Newsday, "I don't know about that. I don't speak to reporters. Talk to my lawyers. Because of the (commission of) enquiry, I can't talk to reporters." In March, the journal said, the bank won a judgment and ordered that the properties be auctioned, Trinidad and Tobago Newsday relates. Par Sanda, the investor which has bought the properties, is according to the journal developing much of the area, Trinidad and Tobago Newsday says. The properties were paid for through one of Par Sanda's limited liability company, "Kathy is Great." The properties sold were "The Martindale," an 11,453-square-foot complex with 18 Art Deco rooms and a pool at 3016 Bayshore Drive, the "Seaside Motel," an 8,582-square-foot resort with 22 units and a pool at 350 N Birch Road, and the "Sandy Shores Motel" at 3008 Bayshore Drive with 6,064 square feet and a pool. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. =================== V E N E N Z U E L A =================== * VENENZUELA: Fitch Says Election Fails to Dispel Uncertainty ------------------------------------------------------------- The unexpectedly close election outcome in Venezuela's presidential race has created a more dynamic and uncertain political situation, which could influence the new government's approach to economic policy and its ability to govern effectively, according to Fitch. President-elect Nicolas Maduro's failure to capture a clear electoral mandate could complicate the task of making policy adjustments to rebalance the Venezuelan economy. This could slow progress toward the reduction of fiscal and external vulnerabilities that could undermine growth and erode sovereign creditworthiness. Although the Electoral National Council (CNE) has already declared Maduro the winner, the opposition has not acknowledged the election outcome and has demanded a recount due to the tight margin (1.8%) and alleged irregularities. Tensions have risen, as opposition and pro-government groups have staged demonstrations, and clashed in some instances, reflecting the high level of political polarization present in Venezuela. "We remain focused on the new government's willingness to implement policy adjustments reining in macroeconomic distortions that lead to reduced fiscal and external vulnerabilities. While the governing United Socialist Party of Venezuela's (PSUV) near monopoly of state institutions could make it difficult for the opposition to mount a serious challenge to government proposals, political and policy uncertainty has not been dispelled, as the new president will likely have to balance the need to consolidate his political position while addressing economic policy challenges," Fitch says. "The Maduro government's capacity to rationalize fiscal policy in the context of a possibly short honeymoon period will be critical in reducing the rapid pace of government debt buildup. We also believe that the government's efforts to reform the foreign exchange system could reduce the need for government debt issuance in the domestic market for exchange rate policy purposes. Nevertheless, transparency and efficiency improvements in the allocation of FX to the private sector will likely be necessary to reduce inflationary pressures, ease shortages, and reduce constraints to growth. "Venezuela's 'B+' IDR with Negative Outlook incorporates the country's weak institutional framework and the potential for social and political unrest. In spite of rising tensions and the high level of political polarization, we consider the risk of social and political unrest leading to disruption in oil-derived revenues to be limited. Nevertheless, increased governability risks that undermine the potential for policy adjustments could weigh on Venezuela's creditworthiness." *********** 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 * * *