/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130515.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, May 15, 2013, Vol. 14, No. 95 Headlines B R A Z I L * BRAZIL: To Receive $200 Million IDB Fund for Education System C A Y M A N I S L A N D S ALLIANCEBERNSTEIN GLOBAL: Creditors' Proofs of Debt Due May 24 CDH LIMITED: Commences Liquidation Proceedings CHINA MILK: Placed Under Voluntary Wind-Up CROSS STAFF: Creditors' Proofs of Debt Due May 23 CURLEW LIMITED: Commences Liquidation Proceedings DDL LIMITED: Commences Liquidation Proceedings F.V.E. ASSOCIATES: Commences Liquidation Proceedings GARNET LIMITED: Commences Liquidation Proceedings HARBER LIMITED: Commences Liquidation Proceedings INTERNATIONAL TRADING: Placed Under Voluntary Wind-Up MARINER-AROYA: Creditors' Proofs of Debt Due Today MARINER-AROYA: Shareholder to Hear Wind-Up Report on May 17 MITSUI MULTI-STRATEGY: Commences Liquidation Proceedings NEW STAR: Creditors' Proofs of Debt Due May 23 NEW STAR MASTER: Creditors' Proofs of Debt Due May 23 ZAM SPECIALIST: Creditors' Proofs of Debt Due May 23 G U A T E M A L A BANCO DE LOS TRABAJADORES: Moody's Assigns Ba3 Deposit Ratings J A M A I C A OLINT: Glimmer of Hope for Investors M E X I C O COZUMEL CARIBE: New York Court Narrows Suit v. Chartis ULTRAPETROL (BAHAMAS): S&P Affirms 'B-' Corporate Credit Rating * S&P Raises Rating on 3 Series From 2 MBIA-Insured Transactions T R I N I D A D & T O B A G O CARIBBEAN AIR: Can Receive US$200 Million Write-off of its Losses - - - - - =========== B R A Z I L =========== * BRAZIL: To Receive $200 Million IDB Fund for Education System --------------------------------------------------------------- The Brazilian state of Para will receive significant support from the Inter-American Development Bank (IDB) to improve access to quality basic education, the IDB said. The Bank has approved a loan of over $200 million that will fund school construction, remedial education, teacher training, evaluation and monitoring systems among other projects. Hundreds of thousands of students living in Brazil's second largest state are expected to benefit from the program financed by this loan. The Program is the backbone of the recently launched Para Education Compact (PEC), a state's initiative that brings together municipalities, civil society and private sector to support the long term effort needed to improve the quality of basic education in the state. Only 31 percent of 19-year-olds in Para have completed secondary school, a figure that is far inferior to the decidedly low national average of 50 percent. Academic underachievement precipitated by poor quality education is the leading cause of school dropout in Brazil. The IDB, in partnership with the Secretariat of Education of the State of Para (SEDUC), aims to increase statewide graduation rates by increasing the availability and quality of secondary and vocational education. Dangerous and insufficient school infrastructure has also influenced dropout rates in Para with 40 percent of educational facilities urgently requiring improvements. The new IDB loan will finance the construction of 30 secondary schools and 2 vocational schools, and the renovation of another 350 schools, opening up quality educational opportunities to over 42,000 underserved students in the state. Learning acceleration and educational reinforcement programs for students, as well as professional development for teachers, will be implemented to reduce failure and dropout rates. In addition to the academic performance goals set for students, the program is designed to improve young beneficiaries' self-esteem and socio emotional skills. Recent IDB research shows that these skills are crucial to preparing students for a successful transition from school to the workforce. In the coming years, domestic and foreign investments in mining, transportation and tourism are expected to create hundreds of thousands of jobs in Para but low education levels among workers threaten potential economic and development gains; only 56 percent of the workforce has completed primary school. Encompassing 15 percent of the country, Para is Brazil's second largest state by geographic area. It has a population of 7.6 million, 70 percent of whom live in urban areas. Due to its sheer size and unique geographical features, Para faces logistical challenges that have compromised education access and quality in the state. This program responds to the ambitious objectives of the recent Brazilian National Educational Plan and complements the IDB's existing partnership with Brazil intended to promote social inclusion through the education sector. The IDB loan is for a 25-year term, with a 5.5-year grace period and an interest rate based on LIBOR. Local counterpart funds total $150.6 million. ========================== C A Y M A N I S L A N D S ========================== ALLIANCEBERNSTEIN GLOBAL: Creditors' Proofs of Debt Due May 24 -------------------------------------------------------------- The creditors of Alliancebernstein Global Diversified Strategies Ltd. - Hedge Fund A are required to file their proofs of debt by May 24, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 4, 2013. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue George Town Grand Cayman, KY1-9005 Cayman Islands c/o Kim Charaman Telephone: (345) 914 3207 CDH LIMITED: Commences Liquidation Proceedings ---------------------------------------------- On April 10, 2013, the shareholder of CDH Limited passed a resolution that voluntarily liquidates the company's business. The company's liquidator is: Eagle Holdings Ltd. c/o PO Box 487 Grand Cayman Cayman Islands Telephone: +1 (345) 914 6365 CHINA MILK: Placed Under Voluntary Wind-Up ------------------------------------------ On April 9, 2013, the Grand Court of the Cayman Islands entered an order to wind up the operations of China Milk Products Group Limited. The company's liquidators are: Kenneth M. Krys KRyS Global Governors Square Building 6, 2nd Floor 23 Lime Tree Bay Avenue PO Box 31237, Grand Cayman KY1-1205 Cayman Islands; Cosimo Borrelli Borrelli Walsh Limited Level 17, Tower 1, Admiralty Centre 18 Harcourt Road Hong Kong; and Jason Kardachi Borrelli Walsh Pte Limited 14-04 City House, 36 Robinson Road Singapore CROSS STAFF: Creditors' Proofs of Debt Due May 23 ------------------------------------------------- The creditors of Cross Staff Protected Profits Plus Bond Fund Ltd. are required to file their proofs of debt by May 23, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 8, 2013. The company's liquidator is: Michael Penner Grant Hiley Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue George Town KY1-1109 Cayman Islands Telephone: +1 (345) 814 2353 Facsimile: +1 (345) 949 8258 CURLEW LIMITED: Commences Liquidation Proceedings ------------------------------------------------- On April 5, 2013, the shareholders of Curlew Limited passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by May 10, 2013, will be included in the company's dividend distribution. The company's liquidator is: Charles Gary Hepburn c/o Wardour Management Services Limited Telephone: (345) 945 3301 Facsimile: (345) 945 3302 P O Box 10147, Grand Cayman KY1-1002 Caymans Islands DDL LIMITED: Commences Liquidation Proceedings ---------------------------------------------- On April 10, 2013, the shareholder of DDL Limited passed a resolution that voluntarily liquidates the company's business. The company's liquidator is: Eagle Holdings Ltd. c/o PO Box 487 Grand Cayman Cayman Islands Telephone: +1 (345) 914 6365 F.V.E. ASSOCIATES: Commences Liquidation Proceedings ---------------------------------------------------- On April 2, 2013, the sole shareholder of F.V.E. Associates (Cayman) passed a resolution that voluntarily liquidates the company's business. The company's liquidator is: Weerhaan Investments II Limited c/o Eric T. Converse 6893 Sladek Road New Hope Pennsylvania 18938 United States of America Telephone: +1 (215) 297 8415 E-mail: Eric.Converse@Nedamcocapital.com GARNET LIMITED: Commences Liquidation Proceedings ------------------------------------------------- On April 5, 2013, the shareholders of Garnet Limited passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by May 10, 2013, will be included in the company's dividend distribution. The company's liquidator is: Charles Gary Hepburn c/o Wardour Management Services Limited Telephone: (345) 945 3301 Facsimile: (345) 945 3302 P O Box 10147, Grand Cayman KY1-1002 Caymans Islands HARBER LIMITED: Commences Liquidation Proceedings ------------------------------------------------- On April 10, 2013, the shareholder of Harber Limited passed a resolution that voluntarily liquidates the company's business. The company's liquidator is: Eagle Holdings Ltd. c/o PO Box 487 Grand Cayman Cayman Islands Telephone: +1 (345) 914 6365 INTERNATIONAL TRADING: Placed Under Voluntary Wind-Up ----------------------------------------------------- On April 8, 2013, the shareholders of International Trading and Chartering Limited passed a resolution to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by May 13, 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 MARINER-AROYA: Creditors' Proofs of Debt Due Today -------------------------------------------------- The creditors of Mariner-Aroya Opportunity Master Fund, Ltd. are required to file their proofs of debt today, May 15, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 9, 2013. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands MARINER-AROYA: Shareholder to Hear Wind-Up Report on May 17 ----------------------------------------------------------- The shareholder of Mariner-Aroya Opportunity Master Fund, Ltd. will receive on May 17, 2013, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands MITSUI MULTI-STRATEGY: Commences Liquidation Proceedings -------------------------------------------------------- On April 11, 2013, the sole shareholder of Mitsui Multi-Strategy (Japan) Corporation, Ltd passed a resolution that voluntarily liquidates the company's business. Only creditors who were able to file their proofs of debt by May 13, 2013, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands NEW STAR: Creditors' Proofs of Debt Due May 23 ---------------------------------------------- The creditors of New Star Multi-Strategy Hedge Fund Limited are required to file their proofs of debt by May 23, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 28, 2013. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands NEW STAR MASTER: Creditors' Proofs of Debt Due May 23 ----------------------------------------------------- The creditors of New Star Multi Strategy Master Hedge Fund Limited are required to file their proofs of debt by May 23, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 28, 2013. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ZAM SPECIALIST: Creditors' Proofs of Debt Due May 23 ---------------------------------------------------- The creditors of Zam Specialist Opportunity Fund, Ltd are required to file their proofs of debt by May 23, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 7, 2013. The company's liquidator is: Glen Cremer c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ================= G U A T E M A L A ================= BANCO DE LOS TRABAJADORES: Moody's Assigns Ba3 Deposit Ratings -------------------------------------------------------------- Moody's Investors Service assigned a standalone bank financial strength rating (BFSR) of E+ and a baseline credit assessment (BCA) of b1 to Banco de los Trabajadores (Bantrab). Moody's has also assigned to Bantrab Ba3 and Not Prime long and short term local and foreign currency deposit ratings. The outlook on all ratings is stable. The following ratings were assigned to Banco de los Trabajadores Bank financial strength rating: E+, stable outlook Long term local currency deposit rating: Ba3, stable outlook Short term local currency deposit rating: Not Prime Long term foreign currency deposit rating: Ba3, stable outlook Short term foreign currency deposit rating: Not Prime Ratings Rationale: Moody's said that the E+ standalone BFSR and b1 BCA assigned to Bantrab reflects the bank's franchise as the sixth largest bank in Guatemala and its niche focus on consumer lending, particularly payroll-linked lending. The bank has maintained and even grown its market shares in recent years through organic means and through a series of local acquisitions. The rating also takes into account its relatively stable and granular customer-based deposit funding and therefore a low reliance on less stable sources of funding such as short term bank borrowings and debt. Bantrab's asset quality is adequate, reflecting in part its preferential creditor status per its Organic Law as well as its emphasis on payroll-deductible loans, which display relatively contained loan delinquency levels. However, Moody's also noted that the bank's high loan growth and expanding activities in consumer lending and into new customer segments such as commercial lending point to potential asset quality deterioration in future. A key constraint to the bank's standalone ratings is its still weak earnings generation capacity due in part to its focus on payroll-linked lending and its role to provide loans at a more advantageous cost to workers. The bank's fee generation to date has also been limited by this customer focus. Moody's said that the bank's profitability is also burdened by high operating and credit costs, expected to continue as the bank expands its business rapidly into other consumer products and with new commercial customers. The bank's limited internal capital generation is also a key risk factor particularly in light of heavy competition from both larger players in the Guatemalan banking industry as well as from new foreign entrants that could threaten its profitability and franchise development. Management is addressing this issue in part through its plans to raise an additional GTQ156 million of equity in 2013 in the form of preferred shares, which will boost its shareholders' equity as of December 2012 by around 19%. The lack of an independent board of directors is a further limitation to Bantrab's standalone ratings, as its board is comprised solely of shareholders and bank executives. The lack of board independence increases the bank's risk profile with respect to asset quality, given the absence of independent oversight over asset allocation, explained Moody's. The Ba3 local currency deposit rating assigned to Bantrab is based on the standalone baseline credit assessment of b1 that is mapped form the E+ BFSR. The deposit rating incorporates one notch of uplift due to Moody's assumption of the probability of systemic support in case of need. This assumption is based on the importance of the bank's franchise as a lender to Guatemalan public and private sector workers as well as its relevant deposit base. The foreign currency deposit rating derives from the local currency rating and is not constrained by Moody's Ba2 foreign currency country ceiling for Guatemala. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Based in Guatemala City, Bantrab had market shares of around 5% and reported consolidated assets of approximately $1.2 billion (GTQ9.6 billion) and total shareholders' equity of $105 million as of December 31, 2012. Established by Decree Law 383 of January 6, 1966, the bank was originally established to cater to workers and promote financial inclusion. ============= J A M A I C A ============= OLINT: Glimmer of Hope for Investors ------------------------------------ RJR News reports that there is another glimmer of hope that there could yet be a pay out to investors in the collapsed Ponzi scheme, Olint Corporation Limited. A statement from the US Department of Justice says persons who lost money in Olint and related companies may be eligible to receive compensation from the United States Government, according to RJR News reports. The report relates that it said assets forfeited by David Smith, who operated Olint, will be returned to investors through a process called Remission. In order to be considered, a Petition for Remission Form must be submitted to the US-based Remission Administrator, RJR News notes. The report relays that it must include evidence of relevant investments and returns, including copies of all required supporting documentation. Olint reportedly defrauded investors across Florida and the Caribbean out of more than US$220 million, the report says. In 2011, the report recalls that Mr. Smith was sentenced to 30 years in federal prison in the US after entering a guilty plea. His Turks and Caicos sentence runs concurrently with that sentence, the report adds. It is not clear whether the US Justice Department advisory applies equally to non Americans or persons living outside of the United States. Olint Corporation Limited was an investment club owned by David Smith. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 31, 2010, RadioJamaica said United States authorities sought to extradite Mr. Smith from Turks and Caicos Islands for his involvement in financial fraud cases. The Jamaica Gleaner said that Mr. Smith was indicted on 23 charges in the United States. The report related that the indictment handed down in the U.S. District Court for the Middle District of Florida, Orlando Division, charged Mr. Smith with four counts of wire fraud, one count of conspiracy to commit money laundering and 18 counts of money laundering to conceal specified unlawful activity. Caribbean News Now related that Mr. Smith defrauded more than US$200 million from thousands of investors in Jamaica, the Turks and Caicos Islands and Florida. =========== M E X I C O =========== COZUMEL CARIBE: New York Court Narrows Suit v. Chartis ------------------------------------------------------ In CT INV. MGT. CO., LLC v. CHARTIS SPECIALTY INS. CO., Judge Shirley Werner Kornreich of the New York County Supreme Court granted, in part, and denied, in part, a motion to dismiss the Complaint pursuant to Civil Practice Law and Rules 3211(a)(1), (5) & (7). CT filed the Complaint on November 13, 2012, asserting claims for (1) declaratory relief as to its right to recover under an insurance policy; (2) breach of contract based on an expropriatory claim; and (3) breach of contract based on a currency claim. CT Investment Management Co., LLC, through numerous transactions, is the successor in interest to the companies (such as Bear Stearns) that originally held the rights to certain contracts. On October 3, 2006, non-party LaSalle Bank National Association loaned $103 million to numerous Mexican entities that own six hotels in Mexico. LaSalle and the Mexican Borrowers executed numerous contracts governing the transfer of the proceeds from the loan payments, including: (1) a Cash Management Agreement (the CMA); (2) a Dollar Lockbox Agreement (the DLA); and (3) a Pesos Lockbox Agreement (the PLA). The DLA and the PLA governed accounts located in the United States and Mexico, respectively, and funds in both accounts were swept into the account governed by the CMA, which is located in the United States. Non-parties Pablo Ignacio Gonzalez Carbonell and Grupo Costamex, S.A. de C.V., both affiliated with the Mexican Borrowers, entered into a Guaranty Agreement with LaSalle whereby they guaranteed payment on the loan in the event of the Mexican Borrowers' bankruptcy. In conjunction with the loan, LaSalle purchased a political risk insurance policy from Chartis that was effective through October 11, 2012. Article I of the Policy sets forth that the Policy provides coverage for two types of losses: (1) a loss "caused principally and directly by an Expropriatory Act"; and (2) a loss "resulting solely and directly from a condition of Currency Inconvertibility or Non-transfer." On April 27, 2010, Mr. Carbonell and Costamex as well as non-party Epsilon Impulsora y Administrativa, S.A. de C.V. (another company related to the Mexican Borrowers) held a "shareholders' meeting" of Cozumel Caribe, S.A. de C.V. (one of the Mexican Borrowers), during which they approved the filing of a petition -- the Concurso Petition -- for voluntary bankruptcy known in Mexico as concurso mercantile, under the Mexican Business Reorganization Act. The Plaintiff contends that the vote was unauthorized and that Mr. Carbonell, Costamex, and Epsilon lacked the authority to commence the bankruptcy proceeding. On May 21, 2010, Cozumel filed the Concurso Petition in the Third District Court in the Mexican State of Quintana Roo. The Concurso Petition sought injunctive relief barring enforcement of the Mexican Borrowers' loan and the Guaranty Agreement. On May 27, 2010, the Quintana Roo District Court issued an ex parte order granting the requested injunctive relief. The Plaintiff contends that the Quintana Roo District Court lacked the statutory authority to apply the injunction against any party other than the petitioner (i.e. the other Mexican Borrowers and the guarantors). The May 2010 Order caused a Scheduled payment to be missed, and a notice of default was issued on June 25, 2010. On August 12, 2010, the Plaintiff commenced an amparo action (a proceeding alleging a constitutional violation) in the Second District Court of the City of Cancun, seeking a stay of the May 2010 Order. The Cancun District Court denied the Plaintiff's motion, which was affirmed by the Second Associate Court of the Twenty-Seventh Circuit in Mexico, which then dismissed the amparo action. On August 30, 2010, the security trustee and majority shareholder of Cozumel (BAM) voted to adopt a resolution to withdraw the Concurso Petition, and a Withdrawal Petition seeking such relief was filed in the Quintana Roo District Court on September 3, 2010. On September 7, 2010, the Quintana Roo District Court denied the Withdrawal Petition. On September 30, 2010, the Quintana Roo District Court declared Cozumel to be in concurso mercantil. On November 11, 2010, non-party Nemias Estaban Martinez Martinez was appointed as mediator for the mediation stage of Cozumel's bankruptcy proceeding (similar to a Chapter 11 proceeding), which commenced on April 1, 2011. The mediation stage ended on October 3, 2011, without a reorganization of Cozumel. On October 4, 2011, BAM filed a motion in the Quintana Roo District Court to declare the bankruptcy of Cozumel. On October 5, 2011, the Quintana Roo District Court refused to declare the bankruptcy of Cozumel. Thus, given that the bankruptcy proceeding appeared to be over without a reorganization or liquidation, BAM filed further motions to revoke the May 2010 Order, all of which were denied. In September 2010, while the bankruptcy proceedings were occurring in Mexico, the Plaintiff sent Chartis regular updates on the proceedings. On February 22, 2012, the Plaintiff formally filed a claim under the Policy through its insurance broker, Aon Crisis Management (Aon), which stated that the "Date of Loss" should be determined as of December 30, 2011 (the date that the final motion to vacate the May 2010 Order was denied). On March 26, 2012, Chartis sent a letter to Aon requesting a formal "proof of loss" within 30 days, which Aon responded to on April 26, 2012. On May 3, 2012, Chartis sent Aon a letter denying coverage for plaintiff's loss. On June 1, 2012, Aon responded that the denial of coverage was improper. On June 22, 2012, Chartis sent a letter to Aon reasserting its denial of coverage but requested further documents substantiating plaintiff's claims so that it could conduct an investigation into the Mexican proceedings. On September 13, 2012, Chartis sent a letter to Aon indicating that is was ending its investigation because the policy was set to expire on October 11, 2012, but reserved its right to request further information about plaintiff's claims. The current action captioned CT INV. MGT. CO., LLC v. CHARTIS SPECIALTY INS. CO. followed. This was the third action commenced in New York relating to the Mexican proceedings. On January 11, 2012, Judge Sweet extended comity to the May 2010 Order and stayed the Plaintiff's lawsuit to enforce the Guaranty Agreement that was commenced in the United States District Court for the Southern District of New York. On November 14, 2012, Judge Glenn stayed a Chapter 15 adversary proceeding relating to the funds in the accounts governed by the CMA and DLA and ordered the parties to seek clarification in the Quintana Roo District Court on the precise impact of the May 2010 Order. On May 3, 2013, the New York County Supreme Court followed the lead of the federal district and bankruptcy courts, stayed CT INV. MGT. CO., LLC v. CHARTIS SPECIALTY INS. CO., and directed the parties to conduct an investigation into the status of the proceedings in the Quintana Roo District Court. "Discovery in the action is stayed until the parties conduct an investigation into the status of the proceedings in Mexico," Judge Kornreich ruled. Judge Kornreich also said, "After such investigation is conducted, Chartis may renew its motion to dismiss the Currency Claim if it can present evidence that Cozumel was actually reorganized or liquidated. If so, there would be no coverage, because the Plaintiff purchased political risk insurance, not bankruptcy insurance. If the May 2010 Order is lifted by the Quintana Roo District Court or vacated by a higher court, plaintiff's claim may be moot because plaintiff may resume enforcing the loan against the Mexican Borrowers or their guarantors. In that event, there would be no loss. Finally, if the May 2010 Order permanently prevents plaintiff from collecting on the loan and there is no bankruptcy or liquidation, there may well be a claim." Chartis' motion to dismiss the Complaint is granted in part, and the second cause of action (the Expropriatory Claim) is dismissed without prejudice and the motion is otherwise denied without prejudice, Judge Kornreich added. Chartis' motion to dismiss the Currency Claim is denied without prejudice. The parties are directed to conduct an investigation into the Mexican proceedings in accordance with Judge Kornreich's decision, and discovery is stayed in the interim. The parties are directed to appear in Part 54, Supreme Court, New York County, 60 Centre St., rm. 228, New York, NY, for a preliminary conference on August 27, 2013, at 10:00 in the forenoon, and, by August 20, 2013, the parties are directed to submit (by e-filing and fax) a joint report (not to exceed five double spaced pages) on the status of the Mexican proceedings and the two federal actions. The parties are directed to promptly inform the court of any developments in the Mexican proceedings or the related federal actions that impact the case. The case is CT INVESTMENT MANAGEMENT CO., LLC, AS SPECIAL SERVICER and ATTORNEY-IN-FACT OF THE REGISTERED HOLDERS OF MERRILL LYNCH FLOATING RATE TRUST PASS-THROUGH CERTIFICATES, SERIES 2006-1, and ON BEHALF OF THE INSURED U.S. BANK, NATIONAL ASSOCIATION AS SUCCESSOR TO BEAR STEARNS COMMERCIAL MORTGAGE, INC. and BEAR STEARNS & CO., INC., Plaintiff, v. CHARTIS SPECIALTY INSURANCE COMPANY, FORMERLY KNOWN AS AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY, Defendant, 653896/2012. Dickstein Shapiro LLP represented the Plaintiff. Cahill Gordon & Reindel LLP represented Chartis. A copy of the Court's May 3, 2013 ruling is available at http://is.gd/lW6rJKfrom Leagle.com. About Cozumel Caribe Cozumel Caribe SA de CV, a Mexican provider of tourism services at a beachfront hotel in Cozumel, sought protection from creditors under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-13913) in Manhattan New York on July 20, 2010. Cozumel filed for Chapter 15 to seek recognition of its Mexican insolvency proceedings commenced a few months before the U.S. filing. Cozumel Caribe reported more than US$100 million in debts and assets of more than US$10 million in its bankruptcy petition. ULTRAPETROL (BAHAMAS): S&P Affirms 'B-' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Ultrapetrol (Bahamas) Ltd., including the 'B-' corporate credit rating. At the same time, S&P removed the ratings from CreditWatch developing where it placed them on Dec. 3, 2012. The outlook is positive. The rating actions reflect S&P's expectation that Ultrapetrol will benefit from stronger contracted position, with higher rates and cost pass-through clauses, and from improved market conditions, leading to stronger credit metrics. Furthermore, S&P expects the company to continue to strengthen its liquidity, as the company repays the $180 million bond due 2014. The company's "highly leveraged" financial risk profile reflects its aggressive capital expenditures in recent years and poor consolidated operating results, which led to weak cash-flow protection measures. However, after Southern Cross Group's $220 million capital injection in December 2012, Ultrapetrol's capital structure and financial flexibility improved, especially after the tender offer for the $80 million convertible bonds was concluded, significantly reducing short-term obligations. S&P expects the company's financial risk profile to continue improving, as Ultrapetrol focuses on extending its debt maturity profile and reducing interest expenses, which will result in a higher cash-flow generation. * S&P Raises Rating on 3 Series From 2 MBIA-Insured Transactions ---------------------------------------------------------------- Standard & Poor's Rating Services raised its long-term global scale rating on the senior class A residential mortgage-backed notes due 2035 issued by Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. (Su Casita) and serviced by Patrimonio S.A. de C.V. S.F.O.L. (Patrimonio) to 'B (sf)' from 'CCC (sf)'. The securitization is a cross-border residential mortgage-backed securities (RMBS) transaction. At the same time, S&P raised its global and national scale ratings on senior series BRHCCB 07U and BRHCCB 07-2U from another RMBS transaction issued by Su Casita (Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III) and serviced by Patrimonio to 'B (sf)' and 'mxBB+ (sf)' from 'CCC (sf)' and 'mxCCC (sf)', respectively. The upgrades on the senior class A notes and senior series BRHCCB 07U and BRHCCB 07-2U follow the May 8, 2013, raising of S&P's insurer financial enhancement rating on MBIA Insurance Corp. (MBIA) to 'B' from 'CCC' and S&P's ratings on MBIA Mexico S.A. de C.V. (MBIA Mexico) to 'B' and 'mxBB+' from 'CCC' and 'mxCCC', respectively. Under S&P's criteria, the issue rating on an insured bond reflects the higher of the rating on the bond insurer or the Standard & Poor's underlying rating (SPUR) on the security. S&P's SPUR ratings on classes with full bond insurance reflect an issue's stand-alone capacity to pay debt service without giving effect to the external enhancement, or in this case, without the MBIA bond insurance's protection. Therefore, S&P's 'B (sf)' rating on the senior class A notes reflects the swap guarantee and the full financial guarantee provided by MBIA. S&P's 'B (sf)' global scale ratings and 'mxBB+ (sf)' national scale ratings on senior series BRHCCB 07U and BRHCCB 07-2U reflect MBIA Mexico's full financial guarantee. While the ratings on the affected series reflect the rating on the respective bond insurer's financial enhancement, the recent upgrades on MBIA and MBIA Mexico did not affect the SPURS on these series. Additionally, S&P's ratings on the subordinated series class B and BRHCCB 07-3U remain unchanged. 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 RAISED Hipotecaria Su Casita - Residential Mortgage-Backed Notes Rating Outs. amount Class Type To From (mil.) A Senior B (sf) CCC (sf) US$102.31 Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Rating Outs. amount Class Type To From (mil.) BRHCCB 07U Senior B (sf) CCC (sf) 12.28 UDIs BRHCCB 07U Senior mxBB+ (sf) mxCCC (sf) 12.28 UDIs BRHCCB 07-2U Senior B (sf) CCC (sf) 425.20 UDIs BRHCCB 07-2U Senior mxBB+ (Sf) mxCCC (sf) 425.20 UDIs OTHER OUTSTANDING RATINGS Hipotecaria Su Casita - Residential Mortgage-Backed Notes Class Type Rating Outs. amount (mil.) A SPUR CC (sf) US$102.31 B Sub mxCC (sf) MXN184.97 Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Class Type Rating Outs. amount (mil.) BRHCCB 07U SPUR CC (sf) 12.28 UDIs BRHCCB 07-2U SPUR CC (sf) 425.20 UDIs BRHCCB 07-3U Sub D (sf) 64.85 UDIs UDI--Mexican Unidad de Inversion, an inflation link unit used in Mexico. SPUR--Standard & Poor's underlying rating. MXN--Mexican peso. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIR: Can Receive US$200 Million Write-off of its Losses ----------------------------------------------------------------- RJR News reports that Caribbean Airlines Limited Caribbean Airlines could receive a US$200 million write-off of its losses, including US$60 million incurred from credit card fraud related to ticket purchases. More than US$100 million has already had to be written off from the airline's cargo department, according to RJR News. The report relates that a report submitted to CAL's board of directors states that the losses were incurred because there were no policies in place to ensure the airline received its earnings. RJR News notes that the Trinidad Express newspaper has obtained a series of e-mails and documents which point to questionable actions by CAL's management with regard to several multi-million dollar transactions which have handicapped the airline financially. CAL's board has asked an independent company to conduct an audit of the multi-million dollar cargo losses and has instructed the management to fix the credit card issues related to ticket purchases, RJR News 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. *********** 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 * * *