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/raid1/www/Hosts/bankrupt/TCRLA_Public/130509.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, May 9, 2013, Vol. 14, No. 91 Headlines B R A Z I L COMPANIA SUD: S&P Revises Outlook & Affirms 'B-' Ratings HYPERMARCAS: Improving Performance Cues Moody's to Up CFR to Ba2 C A Y M A N I S L A N D S 6S SMALL: Shareholders Receive Wind-Up Report ASCEND CL: Shareholders Receive Wind-Up Report ASCEND CL MASTER: Shareholders Receive Wind-Up Report BALU HOLDINGS: Shareholders' Final Meeting Set for May 10 FOXHILL OPPORTUNITY: Shareholders Receive Wind-Up Report GAVEA BRAZILIAN: Members' Final Meeting Set for May 10 MARATHON OIL: Sole Member to Hear Wind-Up Report on May 9 NATFLEET INVESTMENTS: Members to Hear Wind-Up Report Today ROSE INVESTMENTS: Members Receive Wind-Up Report SHU HOLDINGS: Shareholders' Final Meeting Set for May 10 THAMES RIVER: Shareholders' Final Meeting Set for May 24 TRAXIS EMERGING: Members Receive Wind-Up Report TRAXIS GLOBAL: Shareholders Receive Wind-Up Report UNITY CAPITAL: Shareholders to Hear Wind-Up Report on May 10 VIETNAM INVESTMENT: Members Receive Wind-Up Report C O L U M B I A TRANSPORTADORA DE GAS: S&P Raises CCR to 'BBB-' from 'BB' J A M A I C A CARIBBEAN AIRLINES: Jamaica and T&T Governments to Resolve Issues DIGICEL JAMAICA: CEO to Head Entire Region M E X I C O BANCA MIFEL: S&P Affirms 'BB- Rating; Outlook Stable URBI DESARROLLOS: Fitch Downgrades Issuer Default Rating to 'RD' URBI DESARROLLOS: Payment Default Triggers Moody's Rating Cuts URBI DESARROLLOS: Moody's Lowers Sr. Unsecured Debt Rating to Ca T R I N I D A D & T O B A G O COLONIAL LIFE: New Company Created to Succeed Collapsed Firm X X X X X X X X * Mourant Ozannes Awarded Caribbean Legal Team of the Year * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== COMPANIA SUD: S&P Revises Outlook & Affirms 'B-' Ratings -------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Compania Sud Americana de Vapores S.A. (CSAV) to positive from stable. At the same time, S&P affirmed its 'B-' ratings on the company. "The rating action reflects our belief that the capitalization and new fleet additions could strengthen the company's business risk profile and to accelerate the debt reduction," said Standard & Poor's credit analyst Diego Ocampo. The new vessels are significantly larger than CSAV's current ones and they are more fuel efficient. Also, as the debt for the new vessels is going to be drawn very close to deliveries, the increase in leverage will occur in late 2014 or early 2015, and will likely be quickly compensated by the incremental cash flows. The outlook revision incorporates a possible upgrade in the next 12 months if CSAV's performance and debt patterns in 2013 and 2014 are consistent with S&P's revised projections. S&P's new base- case suggests adjusted FFO-to-debt ratios of 12%-15% in 2013 and about 20% in 2014. HYPERMARCAS: Improving Performance Cues Moody's to Up CFR to Ba2 ---------------------------------------------------------------- Moody's Investors Service upgraded Hypermarcas' corporate family and senior unsecured debt ratings to Ba2 from Ba3 on its global scale and to A1.br from A2.br on its national scale. The ratings outlook is stable. Ratings affected by the upgrade are as follows: Issuer: Hypermarcas S.A. Corporate Family Ratings: to Ba2 from Ba3 (global scale) and to A1.br from A2.br (Brazilian national scale) $750 million senior unsecured guaranteed notes due 2021: to Ba2 from Ba3 (foreign currency) Ratings Rationale: "The upgrade reflects the improvement in Hypermarcas' credit metrics observed over the last few quarters, mainly as a result of its focus on core business assets, organic growth and deleveraging", says Moody's vice-president Marianna Waltz. The company's performance also benefited from the normalization in sales to wholesale clients, following issues with excess inventories in the channel back in 2011, and the improvement in working capital management as a consequence of more restrictive commercial policies and inventory management. Accordingly, the company posted BRL 478 million of adjusted free cash flow after dividends and capex in 2012 and was able to reduce its adjusted gross leverage ratio to 4.3x in December 2012 from 6.8x in the previous fiscal year. Hypermarcas' ratings are also supported by its solid business model through the pharma and consumer segments, a large and strong portfolio of brands and leading positions in its respective markets. Moreover, Moody's view industry's fundamentals as strong. Both the pharma and consumer segments have grown above the Brazilian GDP over the last several years, boosted by historically low unemployment rates, higher available income and the country's increased middle class. The potential lack of performance predictability evidenced by Hypermarcas' sharp and unexpected slowdown in 2011 offsets part of the positive attributes. Also, Moody's views some vulnerability in Hypermarcas' generics and branded-generics segments, which combined represent approximately 14% of the company's sales. Although growth potential for these markets is high, pricing power is in the hands of the large drugstore chains, which could translate into more pressured margins. Moody's ratings are considering that, despite having historically an acquisitive profile, Hypermarcas will pursue an organic growth strategy over the mid-term. Accordingly, any material acquisition that could put pressure on financial metrics or bring significant integration investments would be seen as a strong credit negative. Hypermarcas' liquidity is adequate, with cash and equivalents being enough to cover reported short-term debt by 2.5x as of December 2012. In addition, Moody's still sees room for further deleveraging, following the BRL 900 million total debt reduction observed during 2012. The stable outlook reflects Moody's expectations that the company will pursue an organic growth strategy over the next several quarters and remain disciplined with working capital needs and capex disbursements. Moody's is also estimating additional improvements in leverage ratios, supported by both debt reduction and a stronger EBITDA stream. The ratings could be lowered in the case of a weakening in the company's operating performance, resulting in EBITDA margin consistently below 20% and negative free cash flow generation on few consecutive quarters. Moreover, pressure on the ratings would arise if the company proves unable to sustain leverage below 4.0x or if liquidity deteriorates. Positive pressure on the rating could develop over time if the company is able to keep generating positive free cash flow in addition to good and consistent organic growth and profitability improvement proves sustainable. This will be the case if free cash flow to debt consistently exceeds 10% and if EBIT / Interest Expense is over 3.2 times. Finally, positive rating pressure depends on company deleveraging to below 3.5x Debt/EBITDA (all figures considering Moody`s standard adjustments) and financial and liquidity policies that remain conservative. Hypermarcas, founded in 2001 and headquartered in Sao Paulo, Brazil, operates in the consumer and pharmaceutical businesses in Brazil. With nationwide coverage and a large portfolio of brands, Hypermarcas is one of the largest consumer goods and pharmaceutical companies in the country, with total revenues of BRL 3.9 billion (approximately $ 2.0 billion at current exchange rates) and a Moody's adjusted EBITDA margin of 28.5% for the fiscal period ended in December 2012. Over 2012, the pharmaceutical segment accounted for 54% of revenues and 64% of gross profit while the consumer segment contributed to 46% of revenues and 36% of gross profit. The principal methodology used in rating Hypermarcas was the Global Packaged Goods Industry Methodology published in December 2012. 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 ".br" for Brazil. ========================== C A Y M A N I S L A N D S ========================== 6S SMALL: Shareholders Receive Wind-Up Report --------------------------------------------- The members of 6S Small Cap Opportunity Fund Ltd received on May 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands ASCEND CL: Shareholders Receive Wind-Up Report ---------------------------------------------- The members of Ascend CL Fund Ltd. received on May 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands ASCEND CL MASTER: Shareholders Receive Wind-Up Report ----------------------------------------------------- The members of Ascend CL Master Fund Ltd. received on May 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands BALU HOLDINGS: Shareholders' Final Meeting Set for May 10 --------------------------------------------------------- The shareholders of Balu Holdings Corporation will hold their final meeting on May 10, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Raymond E. Whittaker c/o FCM LTD. Telephone: (345) 946 5125 Facsimile: (345) 946 5126 FCM LTD. PO Box 1982 Grand Cayman KY-1104 Cayman Islands FOXHILL OPPORTUNITY: Shareholders Receive Wind-Up Report -------------------------------------------------------- The members of Foxhill Opportunity Offshore Fund, Ltd received on May 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands GAVEA BRAZILIAN: Members' Final Meeting Set for May 10 ------------------------------------------------------ The members of Gavea Brazilian Managers Fund Ltd. will hold their final meeting on May 10, 2013, at 8:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 MARATHON OIL: Sole Member to Hear Wind-Up Report on May 9 --------------------------------------------------------- The sole member of Marathon Oil Jupiter Limited will receive on May 9, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Y.R. Kunetka 5555 San Felipe St. Houston, Texas 77056 U.S.A NATFLEET INVESTMENTS: Members to Hear Wind-Up Report Today ---------------------------------------------------------- The members of Natfleet Investments Holdings Limited will hold their final meeting today, May 9, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Stokoe c/o Devina Patel Telephone: (345) 949 8739 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands ROSE INVESTMENTS: Members Receive Wind-Up Report ------------------------------------------------ The members of Rose Investments Ltd. received on May 2, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands SHU HOLDINGS: Shareholders' Final Meeting Set for May 10 -------------------------------------------------------- The shareholders of Shu Holdings Corporation will hold their final meeting on May 10, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Raymond E. Whittaker c/o FCM LTD. Telephone: (345) 946 5125 Facsimile: (345) 946 5126 PO Box 1982 Grand Cayman KY-1104 Cayman Islands THAMES RIVER: Shareholders' Final Meeting Set for May 24 -------------------------------------------------------- The shareholders of Thames River Distressed Focus Fund Limited will hold their final meeting on May 24, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands TRAXIS EMERGING: Members Receive Wind-Up Report ----------------------------------------------- The members of Traxis Emerging Markets Equity Offshore Fund Ltd. received on May 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands TRAXIS GLOBAL: Shareholders Receive Wind-Up Report -------------------------------------------------- The members of Traxis Global Equity Macro Offshore Fund Ltd. received on May 8, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands UNITY CAPITAL: Shareholders to Hear Wind-Up Report on May 10 ------------------------------------------------------------ The shareholders of Unity Capital International (Cayman) Ltd will hold their final meeting on May 10, 2013, at 8:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 VIETNAM INVESTMENT: Members Receive Wind-Up Report -------------------------------------------------- The members of Vietnam Investment Fund II, Limited received on April 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nguyen Nhan Nghia Telephone: +8 (442) 222 5333 Facsimile: +8 (442) 222 5336 e-mail: nghia@bvim.com.vn BIDV Tower, 10th Floor 35 Hang Voi Hoan Kiem District Hanoi Vietnam =============== C O L U M B I A =============== TRANSPORTADORA DE GAS: S&P Raises CCR to 'BBB-' from 'BB' --------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Transportadora de Gas Internacional S.A. E.S.P. (TGI), including its corporate credit rating to 'BBB-' from 'BB'. The outlook is stable. The upgrade reflects the company's improved business risk profile to "satisfactory" from "fair" due to the stability and predictability of TGI's cash-flow stream, the company's position as a monopoly in the markets it operates, the high credit quality of its industrial clients, and the improvement in tariffs. The rating also reflectsthe strengthening of TGI's key financial metrics due to higher tariffs and revenues, and the continued support from its parent, Empresa de Energia de Bogota S. A. E. S. P. (EEB; BBB-/Stable/--). The ratings on TGI reflects S&P's view of Colombia's favorable institutional and regulatory framework, which contributes to the stability of the energy sector. TGI's aggressive capital structure, "significant" financial risk profile, and limited business and client diversity partly offset these strengths. In November 2012, the regulator, CREG (Comision de Regulacion de Energia y Gas), issued Resolution 121 establishing new tariffs for the next five years after considering TGI's appeal. The expected increase in regulated revenues is about 10%. This resolution resolves the company's 2011 appeal over the previous tariff scheme. However, TGI is currently legally pursuing a higher tariff that, according to the company's calculations, correctly reflects the cost of past and future investments. Despite the continued legal actions, the new tariffs are in force since December 2012. S&P's base case does not consider a further increase in tariffs due to the legal claims. ============= J A M A I C A ============= CARIBBEAN AIRLINES: Jamaica and T&T Governments to Resolve Issues ----------------------------------------------------------------- RJR News reports the Governments of Jamaica and Trinidad and Tobago are to meet later this month or early next month to resolve the issues surrounding Caribbean Airlines. According to the report, in his sectoral presentation to Parliament on Tuesday, Dr. Omar Davies, the Minister of Transport and Works said the problems with CAL led to a cut in the number flights in and out of Jamaica, a move with which the Government of Jamaica disagrees. He said the number of flights is way below that originally agreed with CAL. "CAL has had continued challenges in meeting its obligations to various Jamaican public sector entities, this covers the Norman Manley International Airport, the Civil Aviation Authority and Jamaica Customs. There have been calls for the administration to take aggressive action and to speak more about this problem we are of the firm view that we should seek to resolve whatever difficulties that we are facing through dialogue. There is no benefit to either country for a public spat," RJR News quoted Dr. Davies said. Caribbean Airlines, which began operations in 2007, acquired Air Jamaica in 2011. The Jamaican Government has a 16 per cent stake in the Trinidadian air carrier. 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. DIGICEL JAMAICA: CEO to Head Entire Region ------------------------------------------ The Jamaica Observer reported May 8 that Digicel Jamaica's incoming CEO, Barry O'Brien was head of the group's Barbados operations for the last four years and Andy Thorburn will step up from CEO of Digicel Jamaica to head the telecommunications firm's entire Caribbean and Central America operations. According to the report, Digicel Barbados CEO will take over from Mr. Thorburn as well as have oversight for the group's Cayman operations. In his new role, Mr. Thorburn, who reports to Digicel Group CEO Colm Delves, will have overall responsibility for Digicel's operations in 25 markets. He will continue to be based in Digicel's regional headquarters in downtown Kingston. The Jamaica Observer relates that Mr. O'Brien ran the Barbados operations for the last four years, and also oversaw Digicel Dominica and for business solutions across the Eastern Caribbean South. He said the company's focus in Jamaica will be on "ensuring that our customers can achieve extraordinary things with Digicel and that we do all that we can to give back to our communities," the report added. Digicel Group is a telecommunications provider with over 13 million customers across its 31 markets in the Caribbean, Central America and Asia Pacific. * * * As reported in the Troubled Company Reporter on Sept. 7, 2012, Moody's Investors Service assigned a Caa1 rating to Digicel Group Limited's proposed US$700 million senior unsecured notes due 2020. Net proceeds will be used to repurchase the entire tranche of the DGL 9.125%/9.875% senior PIK toggle notes due 2015 (US$415 million outstanding) and a portion of the 8.875% senior notes due 2015 (US$1 billion outstanding) via tender offers. =========== M E X I C O =========== BANCA MIFEL: S&P Affirms 'BB- Rating; Outlook Stable ---------------------------------------------------- Standard & Poor's Ratings Services affirmed its counterparty credit ratings on Banca Mifel S.A., including its 'BB-/B' global scale and 'mxBBB+/mxA-2' Mexican national scale ratings. The stand-alone credit profile (sacp) is 'bb-'. The outlook is stable. S&P's ratings on Banca Mifel reflect its assessment of its "moderate" business position, capital and earnings, and risk position, and "below-average" funding and "adequate" liquidity relative to its Mexican peers. URBI DESARROLLOS: Fitch Downgrades Issuer Default Rating to 'RD' ---------------------------------------------------------------- Fitch Ratings has downgraded the following ratings for Urbi Desarrollos Urbanos, S.A.B. de C.V.: -- Foreign currency Issuer Default Rating (IDR) to 'RD' from 'C'; -- Local currency IDR to 'RD' from 'C'; -- National long-term rating to 'RD(Mex)' from 'C(Mex)'; -- Urbi's national short-term rating to 'RD(Mex)' from 'C(Mex)'; -- MXN600 million in Certificados Bursatiles (CBs) due in 2014 to 'D(mex)' from 'C(mex)'; Fitch Ratings has also affirmed the following ratings: -- US$150 million senior notes due 2016 at 'C/RR4'; -- US$300 million senior notes due 2020 at 'C/RR4'; -- US$500 million senior notes due 2022 at 'C/RR4'; KEY RATING DRIVERS The downgrades of Urbi's IDR's to 'RD' from 'C' are a result of the company's failure to make a MXN3.9 million interest payment on its MXN600 million Certificados Bursatiles that was due on April 30, 2013, and was not cured during the grace period that expired on May 6, 2013. The 'C/RR4' ratings of the company's notes due in 2015, 2020, and 2022 notes reflect an anticipated recovery of between 31% and 50% of principal and related interest. RATING SENSITIVITY The company's IDRs and debt ratings will be revised once the company announces and executes the next steps related to its debt restructuring process. URBI DESARROLLOS: Payment Default Triggers Moody's Rating Cuts -------------------------------------------------------------- Moody's de Mexico downgraded Urbi Desarrollos Urbanos, S.A.B. de C.V.'s national scale Certificados Bursatiles program rating to Ca.mx, from Caa2.mx (global scale local currency rating to (P)Ca from (P)Caa2), its national scale senior unsecured debt rating to Ca.mx, from Caa2.mx (global scale local currency rating to Ca from Caa2) and its corporate family rating to Ca from Caa2. 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: This rating action follows Urbi's failure to make the $3.9 million pesos interest payment of its 2014 local bonds (URBI 11) within the required three business day grace period, which expired on May 6. This constitutes an event of default under the bond indenture and triggers a payment acceleration of not only the local bond, but would likely trigger an event of default and an acceleration of the company's remaining debt, placing a large burden on the company's already feeble liquidity position and viability. The Ca rating implies a diminished recovery to bondholders and other stakeholders. In its review Moody's will monitor Urbi's ability to repay its short-term obligations, in light of the company's limited access to external sources of capital. Moody's will also closely monitor the company's ultimate strategic direction and capital structure as well as the overall recovery for bondholders once the restructuring plan is consummated. Urbi has limited liquidity and its cash flows continue 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. Should the debt restructuring plan result in higher loss severity for bondholders than the loss reflected in the Ca rating, the ratings will be downgraded to C. Moody's Investors Service downgraded Urbi's global scale foreign currency senior unsecured debt rating to Ca from Caa2. 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 Ca, from Caa2 Moody's de Mexico Urbi Desarrollos Urbanos, S.A.B. de C.V. -- National scale Certificados Bursatiles program rating to Ca.mx, from Caa2.mx (global scale local currency rating to (P)Ca from (P) Caa2), its national scale senior unsecured debt rating to Ca.mx, from Caa2.mx (global scale local currency rating to Ca from Caa2) and its corporate family rating to Ca from Caa2. 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 April 23, 2013 when 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 remained under review for downgrade. 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 remained 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). 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 MXP47.6 billion and equity of approximately MXP15.1 billion at March 31, 2013. 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. URBI DESARROLLOS: Moody's Lowers Sr. Unsecured Debt Rating to Ca ---------------------------------------------------------------- Moody's Investors Service downgraded Urbi's global scale foreign currency senior unsecured debt rating to Ca from Caa2. The rating remains under review for downgrade. Ratings Rationale: This rating action follows Urbi's failure to make the $3.9 million pesos interest payment of its 2014 local bonds (URBI 11) within the required three business day grace period, which expired on May 6. This constitutes an event of default under the bond indenture and triggers a payment acceleration of not only the local bond, but would likely trigger an event of default and an acceleration of the company's remaining debt, placing a large burden on the company's already feeble liquidity position and viability. The Ca rating implies a diminished recovery to bondholders and other stakeholders. In its review Moody's will monitor Urbi's ability to repay its short-term obligations, in light of the company's limited access to external sources of capital. Moody's will also closely monitor the company's ultimate strategic direction and capital structure as well as the overall recovery for bondholders once the restructuring plan is consummated. Urbi has limited liquidity and its cash flows continue 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. Should the debt restructuring plan result in higher loss severity for bondholders than the loss reflected in the Ca rating, the ratings will be downgraded to C. Moody's de Mexico downgraded Urbi Desarrollos Urbanos, S.A.B. de C.V.'s national scale Certificados Bursatiles program rating to Ca.mx, from Caa2.mx (global scale local currency rating to (P)Ca from (P)Caa2), its national scale senior unsecured debt rating to Ca.mx, from Caa2.mx (global scale local currency rating to Ca from Caa2) and its corporate family rating to Ca from Caa2. 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 Ca, from Caa2 Moody's De Mexico Urbi Desarrollos Urbanos, S.A.B. de C.V. -- National scale Certificados Bursatiles program rating to Ca.mx, from Caa2.mx (global scale local currency rating to (P)Ca from (P) Caa2), its national scale senior unsecured debt rating to Ca.mx, from Caa2.mx (global scale local currency rating to Ca from Caa2) and its corporate family rating to Ca from Caa2. 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 April 23, 2013 when 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 remained under review for downgrade. 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 remained 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). 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 $47.6 billion Mexican pesos and equity of approximately $15.1 billion Mexican pesos at March 31, 2013. The principal methodology used in this rating was Global Homebuilding Industry Methodology published in March 2009. =============================== T R I N I D A D & T O B A G O =============================== COLONIAL LIFE: New Company Created to Succeed Collapsed Firm ------------------------------------------------------------ Sascha Wilson, writing for Business Guardian, reported that a new company is being created to succeed collapsed financial giant Colonial Life Insurance Company (Clico). The company, to be called Atrius, will be formed through a merger of British-American Insurance Company and Clico, sources told the T&T Guardian. At the United National Congress (UNC) Monday night meeting at Gasparillo Secondary School, Minister in the Ministry of Finance and Economy Rudranath Indarsingh spoke about the establishment of the new company but did not give any details. In a telephone interview Tuesday with Business Guardian, Mr. Indarsingh did not want to reveal the name of the new company. He said the government is yet to finalise the directors and management. Asked for further information, Mr. Indarsingh would only say that the new company will be doing "the traditional things that Clico is doing, nothing outside of that." He did not give a timeframe for when the company will begin operations. However, Sascha Wilson relates, a source said the company, to be called Atrius, will deal with life insurance and pensions. "You know Clico did house and property insurance. We will not be doing that," said the source who also revealed that the company will absorb the accounts of existing policy holders. He said government has assured that stringent measures will be in place to prevent a re-occurrence of the Clico catastrophe. The report further relates that in his address on Monday night, Mr. Indarsingh said: "Today I could successfully report to you that we have established the Clico Investment Fund. It is now trading on the T&T Stock Exchange and we are on the verge of establishing a new entity to succeed Clico and we must be able to tell ourselves that while it has cost taxpayers of T&T $25 billion we have saved T&T from financial collapse and ruin." With regards to the Hindu Credit Union Co-operative Society Ltd, he said the ministry continues to mail out information packages to shareholders with deposits and shares of over $75,000. =============== X X X X X X X X =============== * Mourant Ozannes Awarded Caribbean Legal Team of the Year ---------------------------------------------------------- Caribbean News Now reported May 8 that trust and law firms scooped the first ever Society of Trust and Estate Practitioners (STEP) Caribbean awards held in St Kitts on Sunday. Meritus Trust was recognised as Caribbean Trust Company of the Year, while law firm Mourant Ozannes received the accolade of Caribbean Legal Team of the Year. Tim Prudhoe, chair of the judging panel, said: "These awards demonstrate the vitality of the Caribbean as a centre of excellence in wealth structuring. I congratulate the winners and they should be doubly proud as the standard of competition was very high." Lisa Wilcox of Scotiatrust in The Bahamas was named Caribbean Student of the Year. She had registered the highest overall grade of her peer group for the STEP Diploma in International Trust Management in an award kindly sponsored by CLT International. Trust and legal teams must have been based on an island in the Caribbean, or Bermuda or Belize to qualify. * 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. 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