/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130517.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, May 17, 2013, Vol. 14, No. 97 Headlines A R G E N T I N A EDENOR SA: Buenos Aires Stock Exchange Revokes Listing Suspension TRANSPORTADORA DE GAS: S&P Affirms 'B-' Corporate Credit Rating B A R B A D O S * BARBADOS: Minister Seeks to Close Budget Gap B E R M U D A CENTRAL EUROPEAN: S&P Raises CCR to 'B-'; Outlook Stable B R A Z I L MENDES JUNIOR: Fitch Issues Correction on May 14 Release C A Y M A N I S L A N D S BERHAR LTD: Shareholders Receive Wind-Up Report IMPALA KINGFISHER: Shareholders Receive Wind-Up Report INDIA DIVERSIFIED: Shareholders Receive Wind-Up Report MUTLEY INTERNATIONAL: Shareholder to Hear Wind-Up Report on May 24 OFFSHORE DRILLER 2: Shareholder Receives Wind-Up Report PACIFIC STAR: Shareholder Receives Wind-Up Report PARNELL INVESTMENT: Shareholder to Hear Wind-Up Report Today PEARL ENTERPRISES: Shareholders' Final Meeting Set for May 21 R-ONE KAGOSHIMA: Shareholder to Hear Wind-Up Report on May 24 R-ONE SAKAI: Shareholder to Hear Wind-Up Report on May 24 ROX CONDUIT: Shareholders' Final Meeting Set for May 24 ROX LIMITED: Shareholder to Hear Wind-Up Report on May 24 SOUTHPOINT OFFSHORE: Shareholders' Final Meeting Set for May 29 WESTERN INVESTMENT: Shareholder to Hear Wind-Up Report on May 22 WINNWELL CAPITAL: Shareholders' Final Meeting Set for June 5 C O L O M B I A OSAGE EXPLORATION: Incurs $73K Net Loss in First Quarter G U A T E M A L A EMPRESA ELECTRICA: S&P Affirms 'BB-' CCR; Outlook Stable M E X I C O CAPAMA: Moody's Downgrades Global Scale Issuer Ratings to B3 GENWORTH SEGUROS: S&P Affirms 'BB+' Rating; Outlook Negative MAQUINARIA ESPECIALIZADA: Fitch Cuts Rating on $160MM Notes to CC * Poor 2012 Performance Prompts Moody's to Cut Acapulco's Ratings T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Chairman Submits Report Requested by Minister - - - - - ================= A R G E N T I N A ================= EDENOR SA: Buenos Aires Stock Exchange Revokes Listing Suspension ----------------------------------------------------------------- The Buenos Aires Stock Exchange has decided to revoke the suspension of listing of Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR)'s Class B Common Shares in light of Resolution No. 1/2013. In addition, the BCBA has decided that the Class B Common Shares will trade on a "Reduced Trading" basis pursuant to Section 38, subsection "d" of the Trading Rules of the Buenos Aires Stock Exchange. The Buenos Aires Stock Exchange previously suspended the listing of Edenor S.A.'s shares effective as of May 10, 2013, due to the Company's negative shareholders' equity recorded in its financial statements as of March 31, 2013. About Edenor SA Headquartered in Buenos Aires, Argentina, Edenor S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos). Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires. Edenor S.A. disclosed a loss of ARS1.01 billion on ARS3.72 billion of revenue from sales for the year ended Dec. 31, 2012, as compared with a net loss of ARS291.38 million on ARS2.80 billion of revenue from sales for the year ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed ARS6.80 billion in total assets, ARS6.31 billion in total liabilities and ARS489.28 million in total equity. "Given the fact that the realization of the projected measures to revert the manifested negative trend depends, among other factors, on the occurrence of certain events that are not under the Company's control, such as the requested electricity rate increases or their replacement by a new remuneration system, the Board of Directors has raised substantial doubt about the ability of the Company to continue as a going concern in the term of the next fiscal year," according to the Company's annual report for the year ended Dec. 31, 2012. TRANSPORTADORA DE GAS: S&P Affirms 'B-' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' corporate credit and senior unsecured ratings on Transportadora de Gas del Sur. S. A. (TGS). The outlook remains negative. "The ratings on TGS continue to reflect its exposure to high political and regulatory risk, its dependence on natural gas availability for its unregulated business, and the still pending renegotiation of its concession contract," said Standard & Poor's credit analyst Candela Macchi. TGS' strong competitive position, as one of Argentina's two largest natural gas transportation companies, and sound cash flow generation partly offset these negative factors. We assess TGS' business risk profile as "vulnerable" and its financial risk profile as "aggressive." =============== B A R B A D O S =============== * BARBADOS: Minister Seeks to Close Budget Gap ---------------------------------------------- RJR News reports that Chris Sinckler, Barbados' Minister of Finance, has sought permission from Parliament to increase the borrowing limit on short-term debt instruments to help finance a gaping hole in the government's spending plans. Mr. Sinckler asked Parliament to raise the borrowing limit for treasury bills and tax certificates by one billion Barbadian dollars to $2.75 billion, according to RJR News. RJR News notes that Mr. Sinckler, in seeking the approval, said the higher borrowing limit was needed because the Bajan government was facing "cash flow challenges" due to a sharp decline in revenue inflows. It was the fourth time in five years that the Barbadian Government has sought permission from its Parliament to raise the borrowing limit, the report relates. RJR News discloses that the Finance Minister said the authorization was sought on the short term instruments, because banks were not keen to lend the government over long periods through debentures, treasury notes and saving bonds. ============= B E R M U D A ============= CENTRAL EUROPEAN: S&P Raises CCR to 'B-'; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services said that it had raised its long-term corporate credit rating (CCR) on Bermuda-based emerging markets TV broadcaster Central European Media Enterprises Ltd. (CME) to 'B-' from 'CCC+'. The outlook is stable. S&P also raised its issue rating on the EUR240 million senior secured notes due 2017 issued by CME's subsidiary CET 21 spol.s.r.o. to 'B-' from 'CCC+'. At the same time S&P raised the issue rating on the EUR479 million senior secured notes due 2016 issued by CME to 'CCC+' from 'CCC'. The upgrade reflects S&P's view that CME's liquidity will improve thanks to the recently completed $150 million common equity increase and the $200 million preferred shares private placement guaranteed by Time Warner, which S&P understands CME expects to take place by June 30, 2013. In particular, S&P believes that CME's liquidity is now "adequate" under S&P's base-case scenario that envisages a mid-single-digit decline in advertising spending in the countries where CME operates in 2013. CME's liquidity, which stood at $123 million on March 31, 2013, will increase by approximately $40 million after the above- mentioned transactions. S&P views this level to be "adequate" to cope with the negative free cash flow it expects CME to experience in 2013 and to provide a sufficient buffer during the first half of 2014, assuming some recovery of the advertising markets. S&P estimates that the group's negative free operating cash flow (FOCF) could approach $70 million in 2013 . Depending on the extent of any advertising recovery in CME's markets, S&P believes that free cash flow could be at best neutral or slightly negative in 2014. The CCR reflects S&P's view of CME's "weak" business risk profile and "highly leveraged" financial risk profile. The stable outlook reflects S&P's view that CME's liquidity, which relies exclusively on cash balances, will likely remain "adequate" over the next 12 months, despite S&P's expectations of continued negative free cash flow in 2013. S&P expects that CME will be able to maintain approximately $110 million as a liquidity buffer to absorb potential unexpected setbacks stemming from the volatility of advertising spending in countries where it operates. The stable outlook takes also into consideration the favorable evidence of financial support from Time Warner through the recent transactions. S&P could lower the ratings if CME's cash burn was significantly higher than it expected in 2013, resulting in a deterioration of the liquidity buffer to below $110 million over the next few quarters. A positive rating action could stem from a material improvement in advertising spending in the company's key markets that translated into an EBITDA margin above 20%, resulting in a significant improvement of prospects for free cash flow generation. S&P do not see this happening over the next 12-24 months, however. =========== B R A Z I L =========== MENDES JUNIOR: Fitch Issues Correction on May 14 Release -------------------------------------------------------- (This is a correction of a release issued May 14, 2013. It corrects MJTE's national scale rating, which was listed as 'BBB(bra)' in the original release.) Fitch Ratings has assigned the following initial ratings to Mendes Junior Trading e Engenharia S.A. (MJTE): -- Foreign Currency Issuer Default Rating (IDR) 'B+'; -- Local Currency IDR 'B+'; -- National Scale Rating 'BBB+(bra)'. The Rating Outlook is Stable. Key Rating Drivers MJTE's ratings reflect its moderate business scale and its concentrated backlog on a small set of large projects linked with public sector clients. It also lacks the conservative liquidity policy necessary to support a growing business model that relies on relevant working capital needs and is also exposed to the intense volatility inherent to the heavy construction sector. Other limiting factors for MJTE's credit include its restricted access to the debt market, influenced by the historical contingent liability linked with other subsidiaries of the Mendes Junior Group, and its limited track record of debt issuance. The ratings also consider the company's low leverage, as well as its positive history of operational capacity and satisfactory profitability in its projects. The company has also favorable volume of backlog, equivalent to approximately four years of operations, which is an important factor for sustaining its future cash generation. Expected Lower Support To Affiliates MJTE is the main operating company and cash generator of the Mendes Junior Group. A credit concern is the exposure risk of the company towards other affiliates, including Mendes Junior S.A. (MJE). MJE is non-operating but has significant debt liabilities linked with litigations of asset receivables also under jurisdictional discussion. The maintenance of the MJE's legal and administrative structure has been financed by resources from MJTE, obtained through the assignment of receivables, which totaled, at the end December 2012, BRL246 million. Fitch expects reduction in the financial support from MJTE to affiliates. The agency also believes in a potential cash inflow to MJE, given the favorable jurisdictional decision, regarding some of its receivables under discussion, which should result in lower dependence from MJTE. The implementation of ring fencing strategy, currently underway, should also limit the support to affiliates through the establishment of financial and non-financial covenants, which should also contribute to improving the company access to the credit market. Tight Liquidity MJTE's liquidity is tight to support its long business financial cycle. By the end of December 2012, MJTE's cash reserves were equivalent to BRL 89 million, which covered 0.63x of its short- term debt. The limited liquidity combined with a scenario of growing working capital needs imposes challenge for the company in managing its refinancing risk as it develops its operations. MJTE also has a limited track record of accessing debt market and has reported high financial costs. The company has the financial strategy of lengthening the maturity profile of its concentrated debt. By the end of December 2013, MJTE total debt was BRL232 million, being 100% due until 2014 and mostly secured by receivables related to the ongoing projects of its backlog. Untill 2011, the company reported more conservative coverage ratios of short-term debt by cash and cash equivalents of 1.24 x in 2011 and 4.5x in 2010, which is positive in volatile sectors such as heavy construction. Fitch expects MJTE to succeed in its current negotiations to obtain a more adequate debt profile and that the company will resume its coverage ratios to levels that are more consistent with the volatile nature of its business and closer to those reported in previous years. These factors will be important to avoid future pressure on its current ratings. Adequate Leverage Historically the MJTE has presented low leverage. In December 2012, the company's leverage, as measured by total adjusted debt / EBITDA was 2.3x and 1.4x on a net basis. These ratios showed moderate increase during the last two years due to higher debt to sustain its business growth. In 2011 net leverage was 2.0x and 0.4x in 2010. Fitch expects MJTE to manage the growth of its operations as it maintains its net leverage at suitable levels and below 3.0x. Growing EBITDA and CFFO Pressured By Working Capital MJTE's operating cash flow has been pressured by the high volume of working capital, mainly related to the execution of Petrobras' projects. Fitch expects the company to continue reporting negative operating cash flow over the next years, since its strategy is to keep Petrobras as a relevant customer. Therefore, maintaining its historic moderate leverage as it develops its operations is a challenge for the company. In 2012, the company reported EBITDA of BRL99 million, which compares to BRL57 million in 2011 and BRL107 million in 2010. These results, particularly in 2011, were impacted by the renegotiations with Petrobras regarding changes in the projects, which resulted in revenue postponement. The flow of revenues was resumed in the second half of 2012. However, in 2012 the company's CFFO remained negative at BRL96 million, stable if compared with 2011, pressured by the higher working capital needs of BRL179 million. MJTE's free cash flow (FCF) was negative at BRL140 million, after CAPEX investments of BRL28 million and dividends distribution of BRL16 million. From 2009 to 2012, the company's EBITDA margin was 8.4% on average, satisfactory for the industry. In 2012, the EBITDA margin recovered to 8%, after 4.5% reported in 2011, which have been negatively impacted by the costs incurred combined with the postponement of revenues from Petrobras' projects. Concentrated Backlog At the end of 2012, the MJTE's backlog was relevant and totaled BRL5 billion, equivalent to approximately four years of operations. Over the past three years, the company's backlog grew 55% per year on average and increased 76% in 2012. The company's proven expertise in project execution, mainly for Petrobras, and the demand of the construction sector should support the growth of MJTE operations in the next three years. The company's operations should also benefit from the infrastructure bottlenecks in the country, the projects related to the oil and gas industry, and those linked to the coming sporting events (World Cup and Olympics). In the same period the company's backlog was, however, concentrated, with 54% on projects for Petrobras and about 90% linked with public sector clients. MJTE's backlog is also concentrated on seven large projects that represented two-thirds of its total backlog by Dec.2012. The expectation is that the company will expand geographically, following its strategy of focusing on the development of international projects. Rating Sensitivities Deterioration in operating performance evidenced by prolonged margins reduction, increased leverage to ratios higher than 3.0x or loss of MJTE's cash flow to support affiliates may lead to a negative rating action or perspective. A positive rating action is dependent on the company maintaining high margins coupled with significant improvement on liquidity levels, diversification of its backlog and implementation of a robust structure for ring fencing the transfer of resources to affiliates. ========================== C A Y M A N I S L A N D S ========================== BERHAR LTD: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Berhar Ltd received on May 15, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barnaby Gowrie Telephone:+1 (345) 914 6365 IMPALA KINGFISHER: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Impala Kingfisher Limited received on May 14, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd Clifton House, 75 Fort Street PO Box 1350, George Town Grand Cayman KY1-1108 Cayman Islands INDIA DIVERSIFIED: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of India Diversified Fund SPC received on March 25, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gray Smith c/o Clifton House, 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands MUTLEY INTERNATIONAL: Shareholder to Hear Wind-Up Report on May 24 ------------------------------------------------------------------ The shareholder of Mutley International Ltd will receive on May 24, 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: David O'Connor c/o Rotschild Trust (Schweiz) AG Zollikerstrasse 181 8034 Zurich Switzerland Telephone: +00 (414) 4384 7280 OFFSHORE DRILLER 2: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Offshore Driller 2 Ltd received on May 14, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Geir Johansen 10 Collyer Quay, Ocean Financial Centre #37-06/10 Singapore 049315 PACIFIC STAR: Shareholder Receives Wind-Up Report ------------------------------------------------- The shareholder of Pacific Star Financial Vietnam (Cayman) Ltd received on May 14, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands PARNELL INVESTMENT: Shareholder to Hear Wind-Up Report Today ------------------------------------------------------------ The shareholder of Parnell Investment Holdings Limited will receive today, May 17, 2013, 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 PEARL ENTERPRISES: Shareholders' Final Meeting Set for May 21 ------------------------------------------------------------- The shareholders of Pearl Enterprises will hold their final meeting on May 21, 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: Mr. Vincent G Maffei Jr. 11531 NW 27 Court Plantation, Florida 33323 U.S.A. Telephone: +1 (954) 445 8461 R-ONE KAGOSHIMA: Shareholder to Hear Wind-Up Report on May 24 ------------------------------------------------------------- The shareholder of R-One Kagoshima Holdings will receive on May 24, 2013, at 8:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 R-ONE SAKAI: Shareholder to Hear Wind-Up Report on May 24 --------------------------------------------------------- The shareholder of R-One Sakai Ishihara Holdings will receive on May 24, 2013, at 8:45 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 ROX CONDUIT: Shareholders' Final Meeting Set for May 24 ------------------------------------------------------- The shareholders of Rox Conduit Limited will hold their final meeting on May 24, 2013, at 2:00 p.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 ROX LIMITED: Shareholder to Hear Wind-Up Report on May 24 --------------------------------------------------------- The shareholder of Rox Limited will receive on May 24, 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: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 SOUTHPOINT OFFSHORE: Shareholders' Final Meeting Set for May 29 --------------------------------------------------------------- The shareholders of Southpoint Offshore Fund, Ltd. will hold their final meeting on May 29, 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: Anthony J. Buffalano III 623 Fifth Avenue Suite 2601, New York New York 10022 United States of America Telephone: +1 (212) 692 6356 E-mail: Anthony@southpoint-capital.com WESTERN INVESTMENT: Shareholder to Hear Wind-Up Report on May 22 ---------------------------------------------------------------- The shareholder of Western Investment Total Return Fund Ltd. will receive on May 22, 2013, at 4:00 p.m., 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 House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands WINNWELL CAPITAL: Shareholders' Final Meeting Set for June 5 ------------------------------------------------------------ The shareholders of Winnwell Capital LLC will hold their final meeting on June 5, 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 Kim Charaman Telephone: (345) 914 3207 =============== C O L O M B I A =============== OSAGE EXPLORATION: Incurs $73K Net Loss in First Quarter -------------------------------------------------------- Osage Exploration and Development, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $73,425 on $2.42 million of total operating revenues for the three months ended March 31, 2013, as compared with net income of $456,026 on $1.35 million of total operating revenues for the same period a year ago. The Company's balance sheet at March 31, 2013, showed $20.74 million in total assets, $12.53 million in total liabilities and $8.20 million in total stockholders' equity. "The Company's operating plans require additional funds which may take the form of debt or equity financings. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon achieving profitable operations and obtaining additional financing. There is no assurance additional funds will be available on acceptable terms or at all." GKM, LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2011 financial results. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit as of Dec 31, 2011. Bankruptcy Warning "The Company's operating plans require additional funds which may take the form of debt or equity financings. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon achieving profitable operations and obtaining additional financing. There is no assurance additional funds will be available on acceptable terms or at all. In the event we are unable to continue as a going concern, we may elect or be required to seek protection from our creditors by filing a voluntary petition in bankruptcy or may be subject to an involuntary petition in bankruptcy. To date, management has not considered this alternative, nor does management view it as a likely occurrence." A copy of the Form 10-Q is available for free at: http://is.gd/kHkrtG About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. ================= G U A T E M A L A ================= EMPRESA ELECTRICA: S&P Affirms 'BB-' CCR; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Empresa Electrica de Guatemala S.A. (EEGSA). The outlook remains stable. The rating on EEGSA reflects its "significant" financial risk profile, "fair" business risk profile, and "adequate" liquidity. The rating incorporates EEGSA's competitive position as the largest electricity distribution company in Guatemala and its stable and predictable cash flow generation. Furthermore, the rating reflects the company's prudent debt management, its moderate leverage, and its expectation that its key financial metrics will remain unchanged under its base-case scenario. The rating reflects the challenges inherent in doing business in Guatemala, the discretionary role of Comision Nacional de Energia Electrica (the National Electric Energy Commission) in setting the value-added distribution (VAD) tariff to compensate distribution companies for their investment, and the Guatemalan power sector's dependence on a developing economy that is especially vulnerable in times of economic stress. The rating also reflects EEGSA's 'bb-' stand-alone credit risk profile. The rating also incorporates S&P's opinion that there is a moderate likelihood of timely and sufficient extraordinary support from the Republic of Guatemala (foreign currency: BB/Stable/B; local currency: BB+/Stable/B) to EEGSA in the event of financial distress. In accordance with S&P's criteria for government-related entities, it base this opinion on its assessment of EEGSA's important role as the largest electricity distribution company in Guatemala and its limited link with the government, given its 14% ownership stake in the company. Empresas Publicas de Medellin (EPM; unrated), a Colombia-based water and electric utility and telecom operating group, holds an 80.9% ownership stake in EEGSA. =========== M E X I C O =========== CAPAMA: Moody's Downgrades Global Scale Issuer Ratings to B3 ------------------------------------------------------------ Moody's de Mexico downgrades issuer ratings of CAPAMA to B3 (Global Scale, local currency) and B1.mx (Mexico National Scale) from B2 and Ba2.mx, respectively and assigned a negative outlook. At the same time, Moody's affirms the Baa3/Aa3.mx ratings of CAPAMA's MXN 148 million enhanced loan. The State of Guerrero (Ba2/A2.mx, Stable) is a joint obligor of this loan. Ratings Rationale: The rating action was prompted by the downgrade of the ratings of the Municipality of Acapulco to B3/B1.mx. The rating action reflects Moody's assessment that CAPAMA is institutionally, operationally and financially linked to the municipality of Acapulco. As such, in Moody's view CAPAMA's creditworthiness is equivalent to that of Acapulco. The Baa3/Aa3.mx ratings of CAPAMA's MXN 148 million enhanced loan from Banorte remain unchanged as these reflect the State of Guerrero's payment obligation and the uplift provided by its pledge of 1% of the state's participation transfers as well as the cash reserves for debt service payment embedded in the structure. What Could Change The Ratings Up/Down Given the institutional, operational and financial links between CAPAMA and Acapulco, only an upgrade of the Municipality of Acapulco's issuer ratings along with adequate financial performance of CAPAMA could exert upward pressure on the ratings. A downgrade of Acapulco's issuer ratings could exert downward pressure on CAPAMA's ratings. Furthermore, deterioration of CAPAMA's financial performance could exert downward pressure on the ratings. An upgrade on the ratings of the State of Guerrero would likely result in an upgrade on the ratings of the loan. Conversely, the loan ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations or the ratings of the State of Guerrero are downgraded. The principal methodologies used in these ratings were "Government-Related Issuers: Methodology Update" published in July 2010, "Mapping Moody's National Scale Ratings to Global Scale Ratings" published in October 2012 and "Enhanced Municipal and State Loans in Mexico" published in January 2011. 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. GENWORTH SEGUROS: S&P Affirms 'BB+' Rating; Outlook Negative ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB+' global scale financial strength and 'mxAA-' national scale ratings on Genworth Seguros de Credito a la Vivienda (GSCV). The outlook remains negative. S&P's financial strength rating on GSCV incorporates Genworth Holding Inc.'s (formerly Genworth Financial Inc.; BBB-/Negative/A- 3) explicit support. This support comes in the form of a guarantee for a maximum amount of $260 million. Even if Genworth Holding Inc. were to discontinue this guarantee, it would continue guaranteeing the potential liabilities arising from any of GSCV's current policies up to one day before the policy's term. However, in S&P's view, as GSCV grows over the long term, the guarantee could become insufficient to support its increased scale. "As the business continues to expand, we expect Genworth Holding Inc. to continue supporting GSCV through capital injections as needed in order to meet capital requirements until it is able to build up capital on its own," said Standard & Poor's credit analyst Amalia Bulacios. MAQUINARIA ESPECIALIZADA: Fitch Cuts Rating on $160MM Notes to CC ----------------------------------------------------------------- Fitch Ratings has downgraded the following senior secured notes issued by Maquinaria Especializada MXO Trust Agreement No. F/00762: -- US$160 million notes to 'CC' from 'B-'; Removed from Rating Watch Negative. The underlying issuance is a securitization of the payment rights related to the leasing of existing and future essential construction machinery pertaining to Corporacion Geo S.A.B. de C.V. (Geo Corp.). Repayment of the notes is supported by an irrevocable and unconditional quarterly servicer payment paid by Geo Corp. during a 10-year period under the terms of the service agreement (SA) for the operation of the equipment. Quarterly payments under the SA are made at the beginning of each quarterly lease period. KEY RATING DRIVERS The rating action reflects (i) Geo Corp.'s failure to make the quarterly payment under the SA on May 10, 2013 for the May - July period, and (ii) potential termination of the SA if Geo Corp. does not cure within 30 days of the scheduled payment date. The rating also takes into consideration (i) the payment of the senior secured notes on May 1, 2013 with collections received during the previous period, (ii) available liquidity in the form of cash deposited in the Trust Estate accounts totaling approximately $31 million which could be used to pay the notes; and (iii) the additional collateral in the form of construction equipment. Fitch's rating addresses the timely payment of interest and principal according to the original schedule and does not include any potential acceleration amounts. On May 14, 2013 the agency received a notification from the local Trustee informing that Geo Corp. did not make the $11.2 million payment for the May - July period due on May 10, 2013. Geo Corp. may cure its missed payment within 30 days. Failure to cure would allow the controlling party to request termination of the SA by the Indenture Trustee and subsequent acceleration of the notes. At that point, the note holders would have the right to execute an unsecured claim against Geo Corp. in an amount equal to 100% of the outstanding balance of the notes. The next debt service payment of $4.63 million is due August 2013. On May 8, 2013, Fitch downgraded Geo. Corp.'s foreign currency and local currency Issuer Default Ratings to 'RD' from 'C' after the company failed to make a MXN2.4 million interest payment on its MXN400 million Certificados Bursatiles that was due on April 26, 2013, and was not cured during the grace period that expired on May 6, 2013. RATING SENSITIVITIES The transaction's rating is subject to the performance risk of Geo Corp., material changes in the collection of the pledged payments to the Trust, reduction on the balances of the reserve accounts and a significant decrease in the number of pieces of essential equipment held by the trust. If Geo Corp. does not cure non- payment under the SA, the transaction may be subject to further rating actions. Initial Key Rating Drivers and Rating Sensitivity are further described in the New Issue report 'Maquinaria Especializada Trust Agreement No. F/00762 $160 Million Notes Due 2021,' published on May 2, 2011. * Poor 2012 Performance Prompts Moody's to Cut Acapulco's Ratings ----------------------------------------------------------------- Moody's de Mexico downgraded Acapulco's issuer ratings to B1.mx (Mexican National Scale) and B3 (Global Scale) from Ba2.mx and B2 respectively, and assigned a negative outlook to the ratings. This action concludes the review initiated on January 15. In addition, Moody's downgraded the debt ratings assigned to the MXN 360 million enhanced loan contracted with Scotiabank to Baa2.mx (Mexican National Scale) and B1 (Global Scale) from Baa1.mx and Ba3. Ratings Rationale: The downgrade of Acapulco's ratings reflects the municipality's poor financial performance in 2012 and its weak liquidity position. The ratings also take into account a relatively wealthy local economy and moderate debt levels, with net direct and indirect debt equivalent to approximately 24% of 2012 total revenues. In December 2012, Acapulco faced severe liquidity stress, which led the municipality to default on a MXN 50 million short-term credit facility (approximately 2% of Acapulco's total revenues). Following this event, Moody's downgraded the municipality's rating to B2 from Ba2 on 15 January 2013 and placed it on review for further downgrade. This rating downgrade reflects Moody's assessment that the municipality's financial fundamentals remain weak and that liquidity risks are still significant. The assigned ratings also capture the refinancing risks that Acapulco faces stemming from the right of the lenders to trigger acceleration clauses. Acapulco's outstanding long term debt consists of two enhanced loans: MXN 360 million loan with Scotiabank and MXN 60 million loan with Banorte (not rated by Moody's). While Moody's notes that the structures continue to perform solidly (Scotiabank loan has minimum debt service coverages of 3.2 and 2.7 times in Moody's base and stress cases respectively) per the documentation of these loans, acceleration clauses could be triggered, potentially posing refinancing risks to the municipality. Moody's assessment of Acapulco's creditworthiness also reflects some concerns regarding the quality and reliability of the financial information presented by the municipality. The downgrade of the MXN 360 million enhanced loan debt ratings reflects the downgrade of Acapulco's issuer ratings. Notwithstanding the embedded credit enhancements of the loan, its credit quality has links with the obligor that ultimately ties its ratings to those of Acapulco. The negative outlook reflects Moody's expectation that that the municipality will continue to face significant challenges to redress its financial performance. Indeed, Moody's believes that the municipality's financial deficit is likely to remain significant in 2013, which should cause the current moderate debt ratio to significantly increase this year. While the rating agency recognizes that the municipality is currently implementing cost- cutting measures, particularly on the personnel item, Moody's believes that improvement in the municipality's fiscal outcome is uncertain due to significant implementation risks associated to these restructuring measures and lingering pressures in capital expenditure. What Could Change The Ratings Up/Down Given the negative outlook, Moody's does not expect upward pressure on the ratings. An improvement of Acapulco's financial performance along with the strengthening of liquidity management could lead to the revision of the outlook back to stable provided that the information supporting those improvements be consistent and reliable. If Acapulco records higher than expected cash financing requirements and debt levels, along with further deterioration of liquidity, the ratings could be further downgraded. Given the links between the loan and the credit quality of the obligor, an upgrade of the Municipality of Acapulco's issuer ratings would likely result in an upgrade of the ratings on the MXN 360 million enhanced loan. Conversely, a downgrade of Acapulco's issuer ratings could exert downward pressure on the debt ratings of the loan. In addition, the ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations. The principal methodologies used in this rating were Regional and Local Governments published on 18-Jan-2013, Enhanced Municipal and State Loans in Mexico published on 27-Jan-2011 and Mapping Moody's National Scale Ratings to Global Scale Ratings published on 9-Oct- 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 ".mx" for Mexico. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Chairman Submits Report Requested by Minister ----------------------------------------------------------------- Trinidad and Tobago Newsday reports that Caribbean Airlines Limited Chairman, Rabindra Moonan, said he has submitted a report requested by Finance Minister, Larry Howai, and Minister in the Ministry of Finance, Vasant Bharath. Messrs. Howai and Bharath requested a report from Mr. Moonan following a newspaper article alleging that CAL vice-chairman, Mohan Jaikaran, approved 19 complimentary airline tickets to New York and Toronto for a Mother's Day show, he was allegedly co- promoting, according to Trinidad and Tobago Newsday. Trinidad and Tobago Newsday relates that speaking with reporters as he left a Caribbean Growth Forum, hosted by the Planning Ministry at the Hyatt Regency Hotel, Mr. Bharath said he and Mr. Howai had requested a report from Mr. Moonan on the matter. However, Trinidad and Tobago Newsday discloses that Mr. Moonan said he has received "no feedback" to date from them about it. Mr. Moonan did not disclose what were the contents of the report, but said Mr. Jaikaran has been continuing to perform his duties as vice-chairman, Trinidad and Tobago Newsday notes. On recent reports making different claims about the state of the airline's finances, Mr. Moonan described it as "old news being re- packaged. . . . We have already started to implement the transformation plan, and some may feel threatened," he stated, Trinidad and Tobago Newsday relays. In an article published in Newsday's Business Day magazine on April 18, Mr. Moonan said CAL was "on the road to recovery and profitability," Trinidad and Tobago Newsday says. Mr. Moonan indicated that while the turnaround could take two to three years to manifest itself, "we are already starting to see hints of black," Trinidad and Tobago Newsday says. He explained that through prudent management techniques, "we have been able at this point to satisfy all our creditors," Trinidad and Tobago Newsday adds. About Caribbean Airlines Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. In 2010, Port of Spain and Kingston agreed to a deal that allowed the Jamaica government to own 16% of CAL as part of the conditions for CAL taking over the lucrative routes of Air Jamaica. The deal also allows for Trinidad and Tobago agreeing to a US$300 million transition plan for CAL to acquire and operate six Air Jamaica aircraft and eight of its routes. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News noted that Trinidad Express reported that the arrears were built up as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January. *********** 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 * * *