/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130425.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 25, 2013, Vol. 14, No. 81 Headlines A R G E N T I N A BBVA: Sura Buys Stake in Peruvian Pension-Fund Unit * ARGENTINA: S&P Affirms Buenos Aires' 'B-' ICR; Outlook Negative C A Y M A N I S L A N D S CHEVRON THAILAND: Commences Liquidation Proceedings COGO WOLF: Commences Liquidation Proceedings DB CONCERTO: Commences Liquidation Proceedings ERJF ONE: Commences Liquidation Proceedings FLYING SPUR: Commences Liquidation Proceedings FPP EMERGING: Commences Liquidation Proceedings INVESTCORP FIXED: Commences Liquidation Proceedings IPH FINANCE: Commences Liquidation Proceedings IVC EMPLOYEE: Commences Liquidation Proceedings KINGS LIMITED: Commences Liquidation Proceedings MARIAN CAPITAL: Commences Liquidation Proceedings RINGWOOD CAPITAL: Commences Liquidation Proceedings SIGNUM IV: Commences Liquidation Proceedings SIGNUM PLATINUM: Commences Liquidation Proceedings SILVER DAWN: Commences Liquidation Proceedings VIETNAM INVESTMENT: Commences Liquidation Proceedings WS OPPORTUNITY: Commences Liquidation Proceedings ZAIS MATRIX III-A: Commences Liquidation Proceedings ZAIS MATRIX III-B: Commences Liquidation Proceedings ZAIS MATRIX CDO III-C: Commences Liquidation Proceedings C O S T A R I C A * COSTA RICA: Fitch Rates New Eurodollar Bond Issue 'BB+' * COSTA RICA: S&P Assigns 'BB' Rating on Global Bond E L S A L V A D O R BANCO DAVIVIENDA: Fitch Affirms 'BB+' Issuer Default Rating J A M A I C A UC RUSAL: Admits Bigger Than Reported Losses for 2012 M E X I C O FIDEICOMISO MAQUINARIA: S&P Lowers Rating on Trust to 'CCC+' URBI DESARROLLOS: Skips $6.4MM Interest Payment URBI DESARROLLOS: Moody's Lowers Global Scale Rating to Caa2 URBI DESARROLLOS: Moody's Cuts Senior Debt Rating to Caa2.mx P A R A G U A Y * PARAGUAY: Election Will Have Little Impact on Economic Policy P U E R T O R I C O COSTA BONITA: Creditor Wants Quick Payment or Case Dismissal X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= BBVA: Sura Buys Stake in Peruvian Pension-Fund Unit --------------------------------------------------- Christine Jenkins & John Quigley at Bloomberg News report that Grupo de Inversiones Suramericana SA, the Colombian pension-fund manager trying to double assets by 2017, bought a 50 percent stake in Banco Bilbao Vizcaya Argentaria SA (BBVA)'s pension unit in Peru. Sura said in a regulatory filing that it made the purchase through its Peruvian pension unit, AFP Integra, according to Bloomberg News. Bloomberg News notes that Profuturo AFP SA, Bank of Nova Scotia (BNS)'s pension unit in the country, bought the other 50 percent, according to a separate statement from Bilbao, Spain-based BBVA. The total purchase price paid by the two companies was $514 million, Sura said, Bloomberg News discloses. Chief Executive Officer David Bojanini is targeting 15 percent annual growth at Medellin-based Sura, with assets set to double through 2017, Bloomberg News relays. Peru is "very attractive for investment" because of its economic growth rate compared with other Latin American countries, Bojanini said in an interview in November, Bloomberg News notes. As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2012, Standard & Poor's Ratings Services lowered its issuer credit ratings on Banco Bilbao Vizcaya Argentaria (Panama) S.A. y Subsidiaria to 'BB+/B' from 'BBB-/A-3'. Standard & Poor's also said that it revised the outlook on the long-term rating to negative from stable. * ARGENTINA: S&P Affirms Buenos Aires' 'B-' ICR; Outlook Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' global scale issuer credit rating on the city of Buenos Aires. The outlook is negative. The 'B-' global scale rating on the city of Buenos Aires reflects the high risk inherent to the Republic of Argentina (B-Negative/B) and the close linkage between the central and local governments in Argentina. Under S&P's criteria for rating local and regional governments (LRGs), an LRG can be rated higher than its sovereign only if S&P considers that it can maintain stronger credit characteristics than the sovereign in a stress scenario. S&P currently do not believe that any local government in Argentina meets this criteria, given their close financial links with the central government. Consequently, S&P caps its ratings on the city of Buenos Aires at the sovereign rating level. The positive rating factors are the city's low debt level, good budgetary performance, high degree of independence from the central government, and its healthy economy. ========================== C A Y M A N I S L A N D S ========================== CHEVRON THAILAND: Commences Liquidation Proceedings --------------------------------------------------- On March 14, 2013, the shareholders of Chevron Thailand Power Company Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Jeffrey J. Allison c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands COGO WOLF: Commences Liquidation Proceedings -------------------------------------------- On March 5, 2013, the sole shareholder of Cogo Wolf Global Strategy Fund, Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Delta FS Limited c/o Janeen Aljadir Telephone: (345) 743 6626 Harbour Place, 4th Floor 103 South Church Street PO Box 11820 Grand Cayman KY1-1009 Cayman Islands DB CONCERTO: Commences Liquidation Proceedings ---------------------------------------------- On March 14, 2013, the sole shareholder of DB Concerto (LP) Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ERJF ONE: Commences Liquidation Proceedings ------------------------------------------- On March 14, 2013, the sole shareholder of ERJF One (Cayman Islands) Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands FLYING SPUR: Commences Liquidation Proceedings ---------------------------------------------- On March 14, 2013, the shareholders of Flying Spur Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Roland Staub c/o John O'Driscoll Walkers Walker House, 190 Elgin Avenue George Town Grand Cayman KY1-9001 Cayman Islands Telephone: +1 (345) 914 4229 FPP EMERGING: Commences Liquidation Proceedings ----------------------------------------------- On March 14, 2013, the sole shareholder of FPP Emerging Markets Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by April 24, 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 INVESTCORP FIXED: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary meeting held on March 14, 2013, the shareholders of Investcorp Fixed Income Relative Value Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by April 25, 2013, will be included in the company's dividend distribution. The company's liquidator is: Mufeed Rajab c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 Boundary Hall, Cricket Square PO Box 1111 Grand Cayman KY1-1102 Cayman Islands IPH FINANCE: Commences Liquidation Proceedings ---------------------------------------------- At an extraordinary meeting held on March 14, 2013, the shareholders of IPH Finance Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by April 25, 2013, will be included in the company's dividend distribution. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 Boundary Hall, Cricket Square PO Box 1111 Grand Cayman KY1-1102 Cayman Islands IVC EMPLOYEE: Commences Liquidation Proceedings ----------------------------------------------- On March 14, 2013, the sole shareholder of IVC Employee Finance Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by April 25, 2013, will be included in the company's dividend distribution. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 Boundary Hall, Cricket Square PO Box 1111 Grand Cayman KY1-1102 Cayman Islands KINGS LIMITED: Commences Liquidation Proceedings ------------------------------------------------ On March 14, 2013, the sole shareholder of Kings Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands MARIAN CAPITAL: Commences Liquidation Proceedings ------------------------------------------------- On March 12, 2013, the sole shareholder of Marian Capital resolved to voluntarily liquidate the company's business. Philippe De Patoul is the company's liquidator. RINGWOOD CAPITAL: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary meeting held on March 15, 2013, the shareholders of Ringwood Capital, Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by April 25, 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 SIGNUM IV: Commences Liquidation Proceedings -------------------------------------------- On March 14, 2013, the sole shareholder of Signum IV Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands SIGNUM PLATINUM: Commences Liquidation Proceedings -------------------------------------------------- On March 14, 2013, the sole shareholder of Signum Platinum III Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands SILVER DAWN: Commences Liquidation Proceedings ---------------------------------------------- On March 14, 2013, the sole shareholder of Silver Dawn Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Roland Staub Obere Heslibachstrasse 8 PO Box 1599, 8700 Kusnacht Switzerland VIETNAM INVESTMENT: Commences Liquidation Proceedings ----------------------------------------------------- On March 1, 2013, the sole shareholder of Vietnam Investment Fund II, Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Mr. Nguyen Nhen Nghia Telephone: (844) 2222 5333 Facsimile: (844) 2222 5336 e-mail: nghia@bvim.com.vn BIDV-Vietnam Partners Investment Management Joint Venture Company BIDV Tower, 10th Floor 35 Hang Voi Hoan Kiem District Hanoi Vietnam WS OPPORTUNITY: Commences Liquidation Proceedings ------------------------------------------------- On March 6, 2013, the sole shareholder of WS Opportunity Fund International, Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by April 24, 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 ZAIS MATRIX III-A: Commences Liquidation Proceedings ---------------------------------------------------- On March 14, 2013, the sole shareholder of Zais Matrix CDO III-A resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ZAIS MATRIX III-B: Commences Liquidation Proceedings ---------------------------------------------------- On March 14, 2013, the sole shareholder of ZAIS Matrix CDO III-B resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ZAIS MATRIX CDO III-C: Commences Liquidation Proceedings -------------------------------------------------------- On March 14, 2013, the shareholders of Zais Matrix CDO III-C resolved to voluntarily liquidate the company's business. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ================== C O S T A R I C A ================== * COSTA RICA: Fitch Rates New Eurodollar Bond Issue 'BB+' --------------------------------------------------------- Fitch Ratings has assigned each of Costa Rica's upcoming benchmark Eurodollar bonds maturing in 2025 and 2043 respectively an expected rating of 'BB+'. KEY RATING DRIVERS The rating is in line with Costa Rica's long-term foreign currency Issuer Default Rating (IDR), which has a Stable Outlook. RATING SENSITIVITIES The rating would be sensitive to any changes in Costa Rica's long- term foreign currency IDR. Fitch affirmed Costa Rica's ratings on Feb. 7, 2013. * COSTA RICA: S&P Assigns 'BB' Rating on Global Bond ---------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'BB' foreign currency senior unsecured debt rating on the Republic of Costa Rica's planned global bond. The total amount issued, under Rule 144A Regulation S, on the two tranches of 12 and 30 years is expected to be $1 billion in total. The ratings on Costa Rica balance the country's limited monetary and exchange rate flexibility and persistent fiscal pressures with good prospects for long-term GDP growth, stable political system, relatively high social development, and modest current account deficits largely funded by net foreign direct investment. The stable outlook on the ratings reflects S&P's expectation that the government will take minor steps to boost tax revenues to contain its fiscal deficit at levels that imply an only modest increase in the general government debt burden. Good economic prospects, along with high foreign direct investment that largely funds the country's current account deficit (perhaps about 5%-6% of GDP in 2013), contain the risk of a sudden loss of external liquidity. RATINGS LIST Republic of Costa Rica Sovereign Credit Rating BB/Stable/B New Rating Republic of Costa Rica Senior Unsecured Notes due in 2025 and 2043 BB ==================== E L S A L V A D O R ==================== BANCO DAVIVIENDA: Fitch Affirms 'BB+' Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has affirmed Banco Davivienda Salvadoreno's Long- Term Issuer Default Rating at 'BB+'. The rating outlook is Stable. Fitch has also affirmed Davivienda Sal's and Inversiones Financieras Davivienda's National Ratings. KEY RATING DRIVERS - IDRs, NATIONAL RATINGS AND SENIOR DEBT The IDRs, National and senior debt ratings reflect the potential support it would receive from its shareholder, the Colombian Banco Davivienda, S.A. (Davivienda, BBB-/Stable), should it be required. Fitch views Inversiones Financieras Davivienda and Davivienda Sal as strategically important for its Colombian shareholder, according to Fitch's criteria 'Rating FI Subsidiaries and Holding Companies'. Such classification is based on Fitch's view on the role of the Salvadoran subsidiaries to foster the expansion and diversification of Davivienda in Central America, under a shared franchise and commercial name. The classification of the Salvadoran subsidiaries as strategically important also reflects Fitch's expectation that these operations will provide a recurring and meaningful share of the consolidated revenues over the medium term. However, their current contribution is still limited. In Fitch's opinion, the achieved degree of integration should increase as the new shareholder enhances its influence over the Central American operations. KEY RATING DRIVERS - VR The bank's Viability Rating (VR) reflects its domestic franchise and relevant market share, while also factoring in strong capital position and liquidity. Weaknesses include asset quality, sluggish credit growth and reserves coverage below peers' average. RATING SENSITIVITIES - IDRs, NATIONAL RATINGS AND SENIOR DEBT The Stable Outlook reflects Fitch's expectation of no substantial changes in Davivienda Sal's key rating drivers. However, the IDRs, National and senior debt ratings are sensitive to a change in Fitch's opinion on the parent's capacity and/or propensity to support its subsidiaries. They could be upgraded if Daviviendas's IDRs are upgraded. RATING SENSITIVITIES - VR The bank's VR is sensitive to a change in Davivienda Sal's capital position, franchise and competitive position. The VR could be pressured downward by material deterioration in capital ratios (Fitch Core Capital <14%) and/or its franchise and competitive position. In turn, the bank's VR has limited upside potential; nevertheless, significant improvements on profitability, that reflect a greater control of operating costs and asset quality, could potentially result in an upgrade. Fitch affirmed Davivienda Sal's rating as follows: - Long-Term IDR at 'BB+', Rating Outlook Stable; - Short-Term IDR at 'B'; - Viability Rating at 'bb'; - Support at 3. National Ratings - Long-Term at 'AA+(slv)', Rating Outlook Stable; - Short-Term at 'F1+(slv)'; - Long-Term Senior Secured Debt at 'AAA(slv)'; - Long-Term Senior Unsecured Debt at 'AA+(slv)'; - Short-Term Senior Secured Debt at 'F1+(slv)'; - Short-Term Senior Unsecured Debt at 'F1+(slv)'. Fitch affirmed Inversiones Financieras Davivienda's National Ratings as follows: -- Long-Term at 'AA+(slv)', Rating Outlook Stable; -- Short-Term at 'F1+(slv)'. ============= J A M A I C A ============= UC RUSAL: Admits Bigger Than Reported Losses for 2012 ----------------------------------------------------- RJR News reports that UC Rusal said its financial losses for 2012 were bigger than initially reported. The company has revised its net loss to US$337 million from the US$55 million US dollar loss reported last month, according to RJR News. The report relates that UC Rusal said the adjustment was made after reviewing its share of profit from its subsidiary Norilsk Nickel. UC Rusal, the report relates, said the adjusted financial statements have been reviewed by its auditor, RJR News notes. The report relays that Norilsk Nickel, in which Rusal has a 28 per cent stake, said its full-year net income fell 41 per cent to US$2.1 billion after taking a US$975 million write down on assets. UC Rusal is planning to cut output this year after aluminum prices on the London Metal Exchange dropped 16 per cent from a year earlier, RJR News says. =========== M E X I C O =========== FIDEICOMISO MAQUINARIA: S&P Lowers Rating on Trust to 'CCC+' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Fideicomiso Maquinaria Especializada MXO Trust Agreement No. F/00762's (Geo Maquinaria Trust's) US$160 million fixed-rate secured notes series 2011 to 'CCC+ (sf)' from 'BB- (sf)'. The rating remains on CreditWatch with negative implications, where S&P placed it on April 16, 2013. The issuance is an asset-backed securities transaction secured by 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. The rating action reflects the recent downgrade on Geo's issuer credit rating after the company announced it will undergo 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 series 2011 notes, and Geo has not published additional information on its planned restructuring. 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 used to acquire and replace machinery. S&P expects to resolve the CreditWatch status of the rating once it has more clarity and detail on the proposed terms of Geo's restructuring, its impact on the company's issuer credit rating, and the possible impact on the 2011 notes. The rating on the series 2011 notes could continue to be capped by Geo's issuer credit rating, or it could be temporarily de-linked under certain scenarios. For example, the rating could be de-linked if Geo were to default on its direct financial obligations, but this transaction continues to make timely principal and interest payments, as per its original terms and conditions. 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 URBI DESARROLLOS: Skips $6.4MM Interest Payment ----------------------------------------------- Amy Guthrie at Daily Bankruptcy Review reports that Urbi Desarrollos Urbanos SAB said it will take advantage of a 30-day grace period to delay a $6.4 billion interest payment on its 2016 bonds due. Urbi Desarrollos Urbanos is a publicly traded, fully integrated homebuilder engaged in the development, construction, marketing and sale of affordable housing in Mexico. URBI DESARROLLOS: Moody's Lowers Global Scale Rating to Caa2 ------------------------------------------------------------ Moody's Investors Service downgraded Urbi Desarrollos Urbanos, S.A.B. de C.V.'s global scale foreign currency senior unsecured debt rating to Caa2 from B2. The rating remains under review for downgrade. Ratings Rationale: On April 19, 2013 the company missed an interest payment on its $150 million unsecured bond due 2016. The company has a 30-day grace period to cure the missing payment. A default will cause a payment acceleration of Urbi's bonds, placing a large burden on the company's liquidity position and viability. In its review Moody's will focus on Urbi's future cash flow generation and its ability to make timely interest and principal payments on its upcoming debt. The company has a 30-day grace period to make the missed payment. Urbi has limited liquidity and its cash flows continued to be stressed, which likely implies difficulty in being able to quickly develop and sell homes. Furthermore, Moody's expects that the company will continue to experience deterioration in its operating profits and credit metrics. Moody's stated that should the company make its required payment during the cure period the ratings will most likely be affirmed. Conversely, should Urbi fail to pay and is declared in default the ratings will most likely be downgraded multiple notches. Moody's de Mexico downgraded Urbi's national scale Certificados Bursatiles program rating to Caa2.mx, from Ba2.mx (global scale local currency rating to (P)Caa2 from (P)B2), its national scale senior unsecured debt rating to Caa2.mx, from Ba2.mx (global scale local currency rating to Caa2 from B2) and its corporate family rating to Caa2 from B2. These ratings remain under review for downgrade. Urbi's commercial paper program on the national scale was affirmed at MX-4 (global scale local currency commercial paper program rating affirmed at Not Prime). The following ratings were downgraded and remain under review for downgrade: Moody's Investors Service Urbi Desarrollos Urbanos, S.A.B. de C.V. -- Global scale foreign currency senior unsecured debt rating to Caa2, from B2 Moody's De Mexico Urbi Desarrollos Urbanos, S.A.B. de C.V. -- National scale Certificados Bursatiles program rating to Caa2.mx, from Ba2.mx (global scale local currency rating to (P)Caa2 from (P)B2), its national scale senior unsecured debt rating to Caa2.mx, from Ba2.mx (global scale local currency rating to Caa2 from B2) and its corporate family rating to Caa2 from B2. The following rating was affirmed: Urbi Desarrollos Urbanos, S.A.B. de C.V. -- National scale commercial paper program at MX-4 (global scale local currency at Not Prime) The last rating action with respect to Urbi took place on March 20, 2013 when Moody's Investors Service downgraded the global scale foreign currency senior unsecured debt rating to B2 from Ba3 and placed the rating under review for downgrade. Moody's de Mexico downgraded Urbi's Certificados Bursatiles program to Ba2.mx, from Baa1.mx (global scale local currency to (P)B2 from (P)Ba3), national scale senior unsecured debt rating to Ba2.mx, from Baa1.mx (global scale local currency rating to B2 from Ba3) and its corporate family rating to B2 from Ba3. These ratings were also placed under review for downgrade. Urbi's national scale commercial paper program rating was downgraded to MX-4, from MX-2 (global scale local currency commercial paper program rating affirmed at Not Prime). Urbi Desarrollos Urbanos is a publicly traded, fully integrated homebuilder engaged in the development, construction, marketing and sale of affordable housing in Mexico. The firm reported total assets of approximately $50.4 billion Mexican pesos and equity of approximately $16.6 billion Mexican pesos at December 31, 2012. The principal methodology used in this rating was Global Homebuilding Industry Methodology published in March 2009. URBI DESARROLLOS: Moody's Cuts Senior Debt Rating to Caa2.mx ------------------------------------------------------------- Moody's de Mexico downgraded Urbi Desarrollos Urbanos, S.A.B. de C.V.'s national scale Certificados Bursatiles program rating to Caa2.mx, from Ba2.mx (global scale local currency rating to (P)Caa2 from (P)B2), its national scale senior unsecured debt rating to Caa2.mx, from Ba2.mx (global scale local currency rating to Caa2 from B2) and its corporate family rating to Caa2 from B2. These ratings remain under review for downgrade. Urbi's commercial paper program on the national scale was affirmed at MX-4 (global scale local currency commercial paper program rating affirmed at Not Prime). Ratings Rationale: On April 19, 2013 the company missed an interest payment on its $150 million unsecured bond due 2016. The company has a 30-day grace period to cure the missing payment. A default will cause a payment acceleration of Urbi's bonds, placing a large burden on the company's liquidity position and viability. In its review Moody's will focus on Urbi's future cash flow generation and its ability to make timely interest and principal payments on its upcoming debt. The company has a 30-day grace period to make the missed payment. Urbi has limited liquidity and its cash flows continued to be stressed, which likely implies difficulty in being able to quickly develop and sell homes. Furthermore, Moody's expects that the company will continue to experience deterioration in its operating profits and credit metrics. Moody's stated that should the company make its required payment during the cure period the ratings will most likely be affirmed. Conversely, should Urbi fail to pay and is declared in default the ratings will most likely be downgraded multiple notches. Moody's Investors Service downgraded Urbi's global scale foreign currency senior unsecured debt rating to Caa2 from B2. The rating remains under review for downgrade. The following ratings were downgraded and remain under review for downgrade: Moody's Investors Service Urbi Desarrollos Urbanos, S.A.B. de C.V. -- Global scale foreign currency senior unsecured debt rating to Caa2, from B2 Moody's De Mexico Urbi Desarrollos Urbanos, S.A.B. de C.V. -- National scale Certificados Bursatiles program rating to Caa2.mx, from Ba2.mx (global scale local currency rating to (P)Caa2 from (P)B2), its national scale senior unsecured debt rating to Caa2.mx, from Ba2.mx (global scale local currency rating to Caa2 from B2) and its corporate family rating to Caa2 from B2. The following rating was affirmed: Urbi Desarrollos Urbanos, S.A.B. de C.V. -- National scale commercial paper program at MX-4 (global scale local currency at Not Prime) The last rating action with respect to Urbi took place on March 20, 2013 when Moody's Investors Service downgraded the global scale foreign currency senior unsecured debt rating to B2 from Ba3 and placed the rating under review for downgrade. Moody's de Mexico downgraded Urbi's Certificados Bursatiles program to Ba2.mx, from Baa1.mx (global scale local currency to (P)B2 from (P)Ba3), national scale senior unsecured debt rating to Ba2.mx, from Baa1.mx (global scale local currency rating to B2 from Ba3) and its corporate family rating to B2 from Ba3. These ratings were also placed under review for downgrade. Urbi's national scale commercial paper program rating was downgraded to MX-4, from MX-2 (global scale local currency commercial paper program rating affirmed at Not Prime). Urbi Desarrollos Urbanos is a publicly traded, fully integrated homebuilder engaged in the development, construction, marketing and sale of affordable housing in Mexico. The firm reported total assets of approximately $50.4 billion Mexican pesos and equity of approximately $16.6 billion Mexican pesos at December 31, 2012. The principal methodology used in this rating was Global Homebuilding Industry Methodology published in March 2009. 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. =============== P A R A G U A Y =============== * PARAGUAY: Election Will Have Little Impact on Economic Policy --------------------------------------------------------------- The victory of Colorado Party candidate Horacio Cartes in Paraguay's presidential election will likely have little impact on economic policy, according to Fitch. "We believe better growth prospects, coupled with a continuation of fiscal and monetary discipline under the new government, will likely contribute to stability in the sovereign credit profile this year," Fitch says. The Colorado Party's long tenure as Paraguay's ruling party prior to 2008 suggests that any sharp deviations from previous policy priorities are unlikely. Paraguay's credit profile has benefited from a long period of fiscal discipline, which began in 2003, when reforms helped drive seven consecutive years of central government budget surpluses. This has kept public financing needs low, which contributed to debt levels remaining below 'BB' sovereign medians. Fiscal deterioration in 2012 resulted primarily from weaker tax collection and more rapid growth in current and capital expenditure. "We expect that an expansionary fiscal stance will continue in 2013, with fiscal consolidation expected only in 2014 and beyond under the new administration," Fitch says. "We forecast that GDP growth will exceed 9% in 2013, following the economic contraction in 2012, when a severe drought hit the country's vital agricultural sector hard, and sanitary restrictions were imposed on beef exports. Volatility in Paraguay's economic growth performance underscores the risks related to high commodity dependence. This situation is unlikely to change quickly, and the new government is expected to continue promoting historically strong sectors, such as cattle ranching and agribusiness." Paraguay has the potential to develop its agricultural sector further, thanks to its ample access to water, fertile soil, and the possibility of introducing short harvesting cycles. The country's mining endowments and cheap and abundant electricity could also attract large inflows of foreign direct investment (FDI) into the energy-intensive mining sector, further improving growth prospects. In fact, the government's main economic objective is for GDP growth to average 7% over the next five years, up from the 3.6% observed in the last decade. Structural factors continue to weigh on the sovereign profile. Despite faster GDP growth in recent years and some progress in reducing poverty, Paraguay remains a poor country compared with the 'BB' median. It lags its rating peers in human development indicators, productivity, and education levels. Lack of infrastructure remains the main obstacle, the result of public inaction during recent years despite the fiscal space available. Still, expected growth in government spending on infrastructure and education could help improve performance on social indicators over time. International reserves remain strong, and external financing needs are modest. Paraguay's creditor position has become stronger during the last decade and climbed to 14.4% of GDP in 2012, one of the strongest showings in the 'BB' category. Paraguay's successful launch of a $500 million global bond issue in January demonstrated that the country has access to international financing. This may become more important under the new government, if large increases in public spending drive a need for additional external financing. ===================== P U E R T O R I C O ===================== COSTA BONITA: Creditor Wants Quick Payment or Case Dismissal ------------------------------------------------------------ Asociacion de Condomines de Costa Bonita Beach Resort, a creditor, has asked the U.S. Bankruptcy Court for the District of Puerto Rico to require Costa Bonita Beach Resort Inc to pay $52,894.08, or dismiss or convert the Debtor's case to Chapter 7. On April 23, 2012, the Creditor requested from the Court the payment of administrative expenses in the amount of $16,028.51 monthly. The Creditor's motion was granted on May 31, 2012, but the Debtor failed to pay. As of April 18, 2013, the expenses amount to $52,894.08. The Creditor said that the failure to comply with the order has provoked irreparable damages to the Creditor. The Debtor, according to the Creditor, made a payment in February "for the amount of $10,472.08 and $5,556.43 both were returned for lack of sufficient funds." "The Creditor does not own the means to keep maintaining the premises and irreparable deterioration will be unstoppable," the Creditor stated. The Creditor added that the situation can be reversed and the premises could be maintained in clean and appealing conditions if the Debtor complies with their reponsibility to pay their share of the maintenance fee. The Creditor said that the only way the Debtors can reorganize is by selling units, but the premises and communal areas need to be on a healthy and appealing manner for the banks to lend and for the future prospect to be willing to pay for the units. The Court has given the Debtor up to 14 days from the April 19, 2013 notice of the order to file an objection to the Creditor's moiton. If no objection is filed, the Court will dismiss or convert the Debtor's case to Chapter 7. If a timely opposition is filed, a hearing will be held on May 15, 2013, at 10:30 a.m. The Creditor is represented by: Jose M. Prieto Carballo, Esq. JPC LAW OFFICE P.O. Box 363565 San Juan, PR 00936-3565 Tel: (787)607-2066 (787)607-2166 E-mail: jpc@jpclawpr.com About Costa Bonita Costa Bonita Beach Resort, Inc., owns 50 apartments at the Costa Bonita Beach Resort in Culebra, Puerto Rico. It filed a bankruptcy petition under Chapter 11 of the Bankruptcy Code for the first time (Bankr. D.P.R. Case No. 09-00699) on Feb. 3, 2009. During this case, the Court entered an Opinion and Order finding that the Debtor satisfied all three (3) prongs of the Single Asset Real Estate, and, as such is a SARE case subject to 11 U.S.C. Sec. 362(d)(3). The Court also entered an Order modifying the automatic stay to allow creditor DEV, S.E., to continue in state court proceedings for the removal of the illegal easement and the restoration of DEV, S.E.'s land to its original condition by the Debtor. The first bankruptcy petition was dismissed on May 10, 2011 on the grounds that the Debtor failed to comply with an April 21, 2011 Order and the Debtor's failure to maintain adequate insurance. The case was subsequently closed on Oct. 11, 2011. Costa Bonita Beach Resort filed a second bankruptcy petition (Bankr. D. P.R. Case No. 12-00778) on Feb. 2, 2012, in Old San Juan, Puerto Rico. In the 2012 petition, the Debtor said assets are worth $15.1 million with debt totaling $14.2 million, including secured debt of $7.8 million. The apartments are valued at $9.6 million while a restaurant and some commercial spaces at the resort are valued at $3.67 million. The apartments serve as collateral for the $7.8 million while the commercial property is unencumbered. Bankruptcy Judge Enrique S. Lamoutte presides over the 2012 case. Charles Alfred Cuprill, Esq., serves as counsel in the 2012 case. The petition was signed by Carlos Escribano Miro, president. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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/ *********** 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 * * *