/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130606.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, June 6, 2013, Vol. 14, No. 111 Headlines A N T I G U A & B A R B U D A LIAT: Regional Leaders Urged to Back Loan for Airline B R A Z I L STATE OF MARANHAO: Moody's Assigns Ba1 Global Scale Issuer Rating C A Y M A N I S L A N D S ALVAL INC: Members' Final Meeting Set for June 15 APOLLO RE: Commences Liquidation Proceedings ARCAPITA BANK: Cayman Court Recognizes U.S. Plan BASSO GLOBAL: Shareholders' Final Meeting Set for June 21 BASSO GLOBAL HOLDING: Shareholders' Final Meeting Set for June 21 BLACKSTONE ZM: Shareholders' Final Meeting Set for June 14 BRIDGEND INVESTMENTS: Members' Final Meeting Set for June 11 FRM PREMIUM: Shareholder to Hear Wind-Up Report on June 21 HELIOS FUND: Shareholders' Final Meeting Set for June 28 KINGSFERRY INVESTMENTS: Members' Final Meeting Set for June 11 LION/MUSTARD: Members' Final Meeting Set for June 11 SOMERSET CAPITAL: Shareholder to Hear Wind-Up Report on June 21 TANGERINE INVESTMENT: Members Receive Wind-Up Report TAZMARINE LTD: Creditors' Proofs of Debt Due June 7 TELECOM VENTURE: Members' Final Meeting Set for June 20 TRAIN FINANCING: Creditors' Proofs of Debt Due June 21 J A M A I C A DIGICEL GROUP: To Invest US$9 Billion in Burma * JAMAICA: Airline Industry May Post Higher Profits in 2013 M E X I C O SATELITES MEXICANOS: S&P Revises Outlook to Pos. & Affirms 'B' CCR P U E R T O R I C O CERTENEJAS INCORPORADO: Plan Confirmation Hearing Moved to Aug. 27 LIBERTY CABLEVISION: Moody's Cuts Corp. Family Rating to 'B3' X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Regional Leaders Urged to Back Loan for Airline ----------------------------------------------------- Jamaica Gleaner reports that Caribbean Community leaders are being urged to support a loan application by the regional airline Leeward Islands Air Transport, known as LIAT for funds to undertake a re-fleeting exercise so as to sustain its operations and improve services. A CARICOM Secretariat statement said that regional transport ministers have agreed to put forward to the regional leaders a proposal that they support the LIAT loan application to the Barbados-based Caribbean Development Bank, according to Jamaica Gleaner. The report notes that the statement gave no details regarding the costs of the re-fleeting exercise, but LIAT said it was seeking to acquire French-made 48 and 63 seater aircraft. The report relates that the statement said the transport ministers had also recommended that air transport services be included among the group of essential services and the necessary legislation be enacted to give effect to this reality. The report says that last month, LIAT's Chief Executive Officer Ian Brunton said the aviation industry should also be classified as an essential service, with legislated restricted rights to strike. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2012, Antigua Caribarena related that former Antigua Aviation Minister Robin Yearwood wants to see a merger between Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago- owned Caribbean Airlines Limited, as he believes this is the only way the Antigua-based regional carrier can survive. Mr. Yearwood's call came against the background of media reports out of Port of Spain that suggested CAL's management may be eyeing expansion into the OECS territories, according to Antigua Caribarena. About LIAT Headquartered in V. C. Bird International Airport in Saint George Parish, Antigua, Leeward Islands Air Transport, known as LIAT, operates high-frequency interisland scheduled services serving 22 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. =========== B R A Z I L =========== STATE OF MARANHAO: Moody's Assigns Ba1 Global Scale Issuer Rating ----------------------------------------------------------------- Moody's corrected on June 4, 2013, its ratings release on the State of Maranhao. The revised press release is as follows: Moody's America Latina has assigned Ba1 (Global Scale) and Aa2.br (Brazil National Scale) issuer ratings to the State of Maranhao. The outlook on the ratings is stable. This is the first time Moody's rates this issuer. Ratings Rationale The issuer ratings assigned to the State of Maranhao reflect roughly balanced fiscal results, moderate debt metrics, and adequate levels of liquidity. The ratings also incorporate the state's weakening gross operating balances and low levels of own- source revenues which reflect a relatively limited economic base. The weakness of low own-source revenue is partially mitigated by the important transfers received from the federal government (58% of total revenues). Maranhao has a population of roughly 6.8 million inhabitants and is one of Brazil's poorest states. Maranhao contributes with only 1% of the national GDP and the state's GDP per capita is equivalent to 32% of the national level. Own-source revenues represent roughly 42% of operating revenues, a low level compared to other rated Brazilian states. Over the 2008 -- 2012 period, operating revenues have grown at a compound annual growth rate (CAGR) of 9%, outpaced by operating expenditures which have grown at a CAGR of 13% over the same period. These has led to a significant deterioration of Maranhao's gross operating balance to 3.7% of operating revenues in 2012 from 15.5% in 2008. The misalignment of revenue and expenditure growth represents, in Moody's view, one of Maranhao's most significant challenges as it hinders the state's ability to cover capital expenditures without incurring in additional debt. Considering capital revenues and expenditures, Maranhao has recorded volatile although roughly balanced results. Between 2008- 2012, cash financing requirements as a percentage of total revenues averaged 0.8%, ranging from a surplus of 6.8% in 2011 to a deficit of 6.7% in 2010. Net direct and indirect debt as a percentage of operating revenues fell to a moderate 48% in 2012, a low level when compared to peers, from a high 85% recorded in 2008. The administration plans to contract new debt by roughly BRL 1 billion per year over the next 4 years, Moody's expects that the debt indicator will be close to 53% and 58% in 2013 and 2014, respectively. WHAT COULD CHANGE THE RATINGS UP/DOWN The strengthening of own-source revenues that improves Maranhao's gross operating performance and the continuation of the balanced fiscal results could exert upward pressure on the ratings. Further deterioration of operating results along with significant increases in debt levels and the weakening of liquidity could exert downward pressure on the ratings. The principal methodology used in this rating was Regional and Local Governments Methodology published in January 2013. 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. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". ========================== C A Y M A N I S L A N D S ========================== ALVAL INC: Members' Final Meeting Set for June 15 ------------------------------------------------- The members of Alval, Inc. will hold their final meeting on June 15, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands APOLLO RE: Commences Liquidation Proceedings -------------------------------------------- On April 29, 2013, the directors of Apollo Re resolved to voluntarily liquidate the company's business. The company's liquidators are: Christopher Johnson Russell Homer Chris Johnson Associates Ltd Elizabethan Square, 80 Shedden Road PO Box 2499, Grand Cayman KY1-1104 Cayman Islands ARCAPITA BANK: Cayman Court Recognizes U.S. Plan ------------------------------------------------ On May 31, 2013, the Grand Court of the Cayman Islands entered an order in connection with the Second Amended Joint Plan of Reorganization of Arcapita Bank B.S.C.(c), and related debtors under Chapter 11 of the Bankruptcy Code, as it relates to Arcapita Investment Holdings Limited. The Cayman Order states: 1. The permissions granted to the Company and/or the directions given to the joint provisional liquidators under the following paragraphs of this Order shall be conditional upon the confirmation of the Plan, amended as provided for at Schedule 2 of this Order, by the United States Bankruptcy Court at a Confirmation Hearing held for that purpose, which shall be effective without further order from this Court upon Confirmation of the Plan. 2. In the event that there has been either (1) no Confirmation of the Plan by 31 August 2013 or (ii) the Effective Date as defined in the Plan has not occurred by 31 December 2013 then, subject to any further order of this Court, the conditional permissions and directions contained in the following paragraphs of this Order shall terminate and cease to have any effect. 3. On the Effective Date, the Company be permitted, pursuant to the Court's inherent jurisdiction to recognize the Plan and provide assistance to the United States Bankruptcy Court, to enter into a "transaction". The Plan and the order of the U.S. Bankruptcy Court confirming the Plan, including without limitation to terms of the Plan and such order in connection with or related to the proposed Debtor-in-Possession Murabaha facility, or the proposed exit Murabaha facility with Goldman Sachs International, are hereby recognized. 4. Pursuant to s.99 of the Law, no disposition of the Company's property or other transaction by the Company effected pursuant to the Plan, the order of the United States Bankruptcy Court confirming the plan or the Transaction shall be void in the event that the Company is wound up. 5. On the Effective Date and following completion of the Transaction, the Company be permitted, pursuant to the Court's inherent jurisdiction to recognize the Plan and provide assistance to the United States Bankruptcy Court, to remit to the appropriate disbursing agent in the State of New York the shares, warrants and other assets provided to the Company as consideration under the Transaction and which the Company will then hold for the purpose of the consideration being applied in accordance with the terms of the Plan. The "transaction" refers to the sale on the Effective Date of all of the assets to which the Company has a legal or equitable title, wherever located, including but not limited to any and all claims and causes of action of any nature or type whatsoever, including causes of action under Chapter 5 of the Bankruptcy Code, to New Arcapita Holdco 2. A copy of the Cayman Order is available at: http://bankrupt.com/misc/arcapita.doc1198.pdf The Chapter 11 Plan The Plan proposes to establish a new Cayman Islands holding company ("New Arcapita Topco") which will own and control a series of newly formed intermediate Cayman Islands, Delaware and potentially Bahraini holding company subsidiaries (collectively with New Arcapita Topco, the "New Holding Companies"). The New Holding Companies will own, directly or indirectly, 100% of the Debtors' assets. In exchange for their Allowed Claims, the majority of the Debtors' unsecured creditors will receive a Pro Rata Share of a new Shari'ah compliant Sukuk facility, substantially all of the equity of the New Holding Companies and certain warrants issued by New Arcapita Topco. A copy of the First Amended Disclosure Statement is available at: http://bankrupt.com/misc/arcapita.doc983.pdf About Arcapita Bank Arcapita Bank B.S.C., also known as First Islamic Investment Bank B.S.C., along with affiliates, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 12-11076) in Manhattan on March 19, 2012. The Debtors said they do not have the liquidity necessary to repay a US$1.1 billion syndicated unsecured facility when it comes due on March 28, 2012. Falcon Gas Storage Company, Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-11790) on April 30, 2012. Falcon Gas is an indirect wholly owned subsidiary of Arcapita that previously owned the natural gas storage business NorTex Gas Storage Company LLC. In early 2010, Alinda Natural Gas Storage I, L.P. (n/k/a Tide Natural Gas Storage I, L.P.), Alinda Natural Gas Storage II, L.P. (n/k/a Tide Natural Gas Storage II, L.P.) acquired the stock of NorTex from Falcon Gas for $515 million. Arcapita guaranteed certain of Falcon Gas' obligations under the NorTex Purchase Agreement. The Debtors tapped Gibson, Dunn & Crutcher LLP as bankruptcy counsel, Linklaters LLP as corporate counsel, Towers & Hamlins LLP as international counsel on Bahrain matters, Hatim S Zu'bi & Partners as Bahrain counsel, KPMG LLP as accountants, Rothschild Inc. and financial advisor, and GCG Inc. as notice and claims agent. Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. Houlihan Lokey Capital, Inc., serves as its financial advisor and investment banker. Founded in 1996, Arcapita is a global manager of Shari'ah- compliant alternative investments and operates as an investment bank. Arcapita is not a domestic bank licensed in the United States. Arcapita is headquartered in Bahrain and is regulated under an Islamic wholesale banking license issued by the Central Bank of Bahrain. The Arcapita Group employs 268 people and has offices in Atlanta, London, Hong Kong and Singapore in addition to its Bahrain headquarters. The Arcapita Group's principal activities include investing on its own account and providing investment opportunities to third-party investors in conformity with Islamic Shari'ah rules and principles. The Arcapita Group had roughly US$7 billion in assets under management. On a consolidated basis, the Arcapita Group owns assets valued at roughly US$3.06 billion and has liabilities of roughly US$2.55 billion. The Debtors owe US$96.7 million under two secured facilities made available by Standard Chartered Bank. Arcapita explored out-of-court restructuring scenarios but was unable to achieve 100% lender consent required to effectuate the terms of an out-of-court restructuring. Subsequent to the Chapter 11 filing, Arcapita Investment Holdings Limited, a wholly owned Debtor subsidiary of Arcapita in the Cayman Islands, issued a summons seeking ancillary relief from the Grand Court of the Cayman Islands with a view to facilitating the Chapter 11 cases. AIHL sought the appointment of Zolfo Cooper as provisional liquidator. On Feb. 8, 2013, the Debtors filed with the Bankruptcy Court a disclosure statement in support of their Joint Plan of Reorganization, dated Feb. 8, 2013. The Plan contemplates, among others, the entry of the Debtors into a $185 million Murabaha exit facility that will allow the Debtors to wind down their businesses and assets for the benefit of all creditors and stakeholders. On April 25, 2013, the Debtors filed their Second Amended Joint Plan of Reorganization. On April 26, 2013, the Court approved the related disclosure statement. A copy of the Second Amended Disclosure Statement is available at: http://bankrupt.com/misc/arcapta.doc1038.pdf A hearing is scheduled for consideration of the Plan on June 11, 2013. BASSO GLOBAL: Shareholders' Final Meeting Set for June 21 --------------------------------------------------------- The shareholders of Basso Global ARB Fund Ltd. will hold their final meeting on June 21, 2013, at 4:00 p.m., to receive 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 BASSO GLOBAL HOLDING: Shareholders' Final Meeting Set for June 21 ----------------------------------------------------------------- The shareholders of Basso Global ARB Holding Fund Ltd. will hold their final meeting on June 21, 2013, at 4:00 p.m., to receive 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 BLACKSTONE ZM: Shareholders' Final Meeting Set for June 14 ---------------------------------------------------------- The shareholders of Blackstone ZM Offshore Fund, Ltd will hold their final meeting on June 14, 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: Sean Flynn HF Fund Services Ltd P.O. Box 242 45 Market Street, Gardenia Court, Camana Bay Grand Cayman KY1-1104 Cayman Islands BRIDGEND INVESTMENTS: Members' Final Meeting Set for June 11 ------------------------------------------------------------ The members of Bridgend Investments Ltd. will hold their final meeting on June 11, 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: Robin Lee Mcmahon c/o Barry MacManus Telephone: (345) 814 8997 Facsimile: (345) 814 8529 c/o Ernst & Young Ltd. 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman KY1-1106 Cayman Islands FRM PREMIUM: Shareholder to Hear Wind-Up Report on June 21 ---------------------------------------------------------- The shareholder of FRM Premium Portfolio will receive on June 21, 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 Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943 3100 HELIOS FUND: Shareholders' Final Meeting Set for June 28 -------------------------------------------------------- The shareholders of Helios Fund will hold their final meeting on June 28, 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: Fides Limited P.O. Box 10338 Grand Cayman KY1-1003 Telephone: (345) 949 7232 KINGSFERRY INVESTMENTS: Members' Final Meeting Set for June 11 -------------------------------------------------------------- The members of Kingsferry Investments Ltd. will hold their final meeting on June 11, 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: Robin Lee Mcmahon c/o Barry MacManus Telephone: (345) 814 8997 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman KY1-1106 Cayman Islands LION/MUSTARD: Members' Final Meeting Set for June 11 ---------------------------------------------------- The members of Lion/Mustard Cayman Topco Limited will hold their final meeting on June 11, 2013, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Limited c/o Mourant Ozannes, Attorneys-at-law 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands SOMERSET CAPITAL: Shareholder to Hear Wind-Up Report on June 21 --------------------------------------------------------------- The shareholder of Somerset Capital Offshore Fund, Ltd. will receive on June 21, 2013, at 9:15 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 90 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 TANGERINE INVESTMENT: Members Receive Wind-Up Report ---------------------------------------------------- The members of Tangerine Investment Management Limited received on May 29, 2013, 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) 914 8739 Facsimile: (345) 945 4237 PwC Corporate Finance & Recovery (Cayman) Limited PO Box 258 Strathvale House North Church Street, George Town Grand Cayman Cayman Islands TAZMARINE LTD: Creditors' Proofs of Debt Due June 7 --------------------------------------------------- The creditors of Tazmarine Ltd. are required to file their proofs of debt by June 7, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 29, 2013. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands TELECOM VENTURE: Members' Final Meeting Set for June 20 ------------------------------------------------------- The members of Telecom Venture Group FF L.D.C. will hold their final meeting on June 20, 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: Varun Kumar Bery c/o TVG Capital Partners Limited World Trust Tower Unit A, 8th Floor 50 Stanley Street, Central Hong Kong Telephone: (852) 2147 2080 Facsimile: (852) 2147 3320 TRAIN FINANCING: Creditors' Proofs of Debt Due June 21 ------------------------------------------------------ The creditors of Train Financing Corporation Limited are required to file their proofs of debt by June 21, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 14, 2013. The company's liquidator is: Fides Limited c/o Ian Goddard and Natalee Mclean P.O. Box 10338 Grand Cayman KY1-1003 Cayman Islands Telephone: (345) 949 7232 ============= J A M A I C A ============= DIGICEL GROUP: To Invest US$9 Billion in Burma ---------------------------------------------- RJR News reports that the Digicel Group consortium will invest almost US$9 billion in a mobile phone network in Burma if its bid for one of the two highly sought-after licenses in the country is successful. The report relates that the consortium has submitted its tender application for the license, promising to employ more than 7,000 people in the country by the end of the first year and invest US$6.6 billion dollars. According to RJR News, the Digicel consortium has committed to launching its fourth-generation mobile phone network across rural and urban Burma on December 1 this year. It has also told the government of the country, which is also known as Myanmar, that its network will reach 52 per cent of the population by the end of this year and achieve coverage of 96 per cent by 2016, the report relates. The report notes that the roll-out will involve 7,000 kilometres of fibre optic cable, the provision of 23,000 wi-fi hot spots and the world's largest single mobile deployment of solar power. The report relays that the consortium comprises the Denis O'Brien- controlled Digicel, George Soros's Quantum Strategic Partners and YSH Finance, a joint venture that includes the involvement of Serge Pun, one of the most successful businessmen in Burma. Digicel Group, with regional headquarters in Jamaica, entered the Panama market in 2008. * * * 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. * JAMAICA: Airline Industry May Post Higher Profits in 2013 ----------------------------------------------------------- RJR News reports that the global airline industry is expected to deliver higher profits this year, though concerns remain over carriers' ability to keep increasing fares and secure the returns needed to finance a looming bulge of new aircraft deliveries. The International Air Transport Association, or IATA, said industry profits are expected to rise to 127 billion dollars from an estimated USD7.6 billion dollars in 2012. According to the report the revised outlook came as airline executives gathered in Cape Town for IATA's annual meeting against a background of weakening global growth that is expected to put increased focus on efforts to boost efficiency. The report discloses that Tony Tyler, IATA's chief executive, summed up the challenge facing an industry that has delivered consistent growth but historically poor financial returns. =========== M E X I C O =========== SATELITES MEXICANOS: S&P Revises Outlook to Pos. & Affirms 'B' CCR ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Satelites Mexicanos S.A. de C.V. (Satmex) to positive from stable. At the same time, S&P affirmed its 'B' corporate credit and issue ratings. In addition the recovery rating of '3', indicating S&P's expectation of meaningful (50% to 70%) recovery for debt holders in the event of a payment default, remains unchanged. "The outlook revision is based on the company's future customer backlog that will be increased through the sale of 45% Satmex 8's incremental capacity. Previously, additional revenue and EBITDA were hindered by near 100% satellite utilization rates in both Satmex 5 and Satmex 6," said Standard & Poor's credit analyst Marcela Duenas. Standard & Poor's Ratings Services' ratings on Satmex reflect the company's "weak" business risk profile and its "aggressive" financial risk profile. These assessments take into account the intense competition from regional and global satellite companies, its limited fleet, its customer concentration risk, since some of its largest clients are part of, or related to, satellite operators so the potential for clients to switch service providers is high; operational risks related to the launch of its Satmex 7 satellite; and its "less than adequate liquidity." It also considers Satmex's high debt levels and small scale that could constrain its ability to react to changes in the business, especially given the greater financial flexibility of its main competitors. These factors are partially mitigated by the following features inherent to the fixed satellite services (FSS) industry: high entry barriers given the scarcity of licenses for orbital slots (Satmex holds three orbital locations); the high cost of building, insuring, launching, and operating satellites; attractive orbital locations and elevation angles that provide robust coverage to 90% of the population of the Americas; high utilization rates; and favorable growth opportunities in the region as demand for data applications continue to grow. Additionally, the company's long term maturities and dollar- denominated contracts mitigating its foreign-exchange risk, are a credit positive for the company. ===================== P U E R T O R I C O ===================== CERTENEJAS INCORPORADO: Plan Confirmation Hearing Moved to Aug. 27 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Puerto Rico will continue the hearing to consider confirmation of Certenejas Incorporado's Plan of Reorganization on Aug. 27, 2013, at 10:00 a.m. According to the explanatory disclosure statement, Banco Popular de Puerto Rico, holder of a $40.4 million claim secured by substantially all assets of the Debtor, will recover 100%. On the effective date, the Debtor will surrender, as payment in kind to BPPR or will consent to the foreclosure of the Motel Molino Azul (valued at $6.95 million), Motel Molino Rojo ($5.60 million), Motel Las Palmas ($8.50 million), Motel El Rio ($6.67 million), and Motel El Eden ($3.25 million), and a parcel of land in Rio Grand, Puerto Rico ($1.45 million). The Debtor will retain the real property known as Motel Flor Del Valle (valued at $4.5 million). The balance of BPPR's secured claim for $4.5 million will be paid through monthly payments with a balloon payment of $4.32 million on Dec. 31, 2014. Holders of general unsecured claims aggregating $4.65 million will recover 1%. They will split a $50,000 carve out to be agreed with BPPR. Holders of interests are unimpaired. Mr. Luis Jaime Meaux and Mrs. Marta I. Muniz Melendez will retain their shares unaltered. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/Certenejas_Inco_Plan_Outline.pdf About Certenejas Incorporado Certenejas Incorporado -- aka Hotel Flor Del Valle, Motel El Eden, Motel Molino Azul, Motel Molino Rojo, Motel Las Palmas, and Motel El Rio -- owns motels or short-term guest houses in Puerto Rico. It filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-02806) in Old San Juan, Puerto Rico, on April 11, 2012. The Debtor disclosed US$27.68 million in assets and US$45.29 million in debts as of the Chapter 11 filing. Charles Alfred Cuprill, Esq., serves as the Debtor's counsel. The petition was signed by Luis J. Meaux Vazquez, president. Certenejas Incorporado and three of its affiliates previously sought Chapter 11 bankruptcy protection (Bankr. D.P.R. Case Nos. 09-08470 to 09-08473) on Oct. 2, 2009. The affiliates are Rojoazul Hotel, Inc., Jonathan Corporation, and Silvernugget Development Corporation. According to the schedules filed in the 2009 case, Certenejas Incorporado had total assets of US$13,800,000, and total debts of US$41,596,637. The petition was signed by Luis J. Meaux Vazquez, the Company's president. LIBERTY CABLEVISION: Moody's Cuts Corp. Family Rating to 'B3' ------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Liberty Cablevision of Puerto Rico LLC (LCPR, previously known as San Juan Cable LLC or OneLink) to B3 and its probability of default rating to B3-PD, concluding the review for downgrade initiated May 9. The outlook is now negative. Liberty Cablevision of Puerto Rico LLC Corporate Family Rating, Downgraded to B3 from B2 Probability of Default Rating, Downgraded to B3-PD from B2-PD Senior Secured First Lien Credit Facility, Downgraded to B2 from B1 Senior Secured Second Lien Credit Facility, Downgraded to Caa2 from Caa1 Outlook, Changed To Negative From Rating Under Review Ratings Rationale The downgrade and negative outlook incorporate the deterioration of the liquidity profile, weaker than anticipated credit metrics, and lack of clarity in financial reporting, recognizing the company is in compliance with all financial reporting covenants for its credit agreement. The execution of a waiver of a technical default within the credit agreement reduced default risk, supporting the B3 corporate family rating. In November 2012, Searchlight Capital Partners (Searchlight) and Liberty Global, Inc. (LGI) acquired San Juan Cable Holdings, LLC (OneLink) from its existing owners, and LGI, the parent of LCPR, simultaneously merged LCPR into OneLink, with LGI retaining control through its 60% ownership and Searchlight owning the remaining 40%. In May, LGI disclosed the discovery that materially misstated financial information was provided to lenders relating to financial periods prior to the merger, constituting a technical default. Lenders agreed to waive this default, and the company paid a modest fee of just under $1 million to execute the waiver. LCPR reported a thin cushion of compliance under its bank financial covenants for the first quarter of 2013, and the current leverage would likely prevent incremental borrowings under the $25 million revolver. The limited revolver access and cash balance of approximately $5 million as of March 31 afford LCPR with minimal margin of error as it integrates the companies while also facing intense competition and weak economic conditions in Puerto Rico. The tight cushion raises the risk of risk of a breach, though the credit facility does permit an equity cure and Moody's believes the owners likely to contribute cash to facilitate compliance if necessary. LGI Broadband Operations, an indirect wholly-owned subsidiary of LGI, provided a $10 million shareholder loan to LCPR at the end of 2012 with proceeds used to pay down revolver borrowings. This debt does not factor into leverage calculations for covenant compliance, and the cash boosted short term liquidity. However, the incremental debt elevates overall leverage and adds interest expense, weakening the credit profile. Using the pro forma financial information available for 2012, Moody's estimates leverage at approximately 7 times debt-to-EBITDA before expected synergies, higher than previously expected pro forma leverage in the low 6 times range. Based on available information, it appears that the weaker EBITDA results primarily from the restatement of historical San Juan Cable financials, and management has not revised its forecast for the combined entity. However, the limited information reduces Moody's ability to monitor trends and performance, raising the risk of negative surprises. Nevertheless, the reporting challenges do not meaningfully alter Moody's view that the combination of the two Puerto Rican operators will yield revenue and cost synergies and enhance the entity's competitive position. Furthermore, the 60% ownership and implicit backing from LGI continues to support the rating. The negative outlook incorporates concerns over the liquidity profile. Further deterioration of the liquidity profile could warrant a downgrade. Moody's would consider a stable outlook with evidence of improved cushion under bank financial covenants and expectations for the company to generate sustainable positive free cash flow. Expectations for the company to achieve leverage below 6 times debt-to-EBITDA, an improved liquidity position, and more detailed reporting demonstrating progress in executing on the integration could warrant an upgrade. The principal methodology used in this rating was the Global Pay Television - Cable and Direct-to-Home Satellite Operators Methodology published in April 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. In November 2012, Searchlight Capital Partners (Searchlight) acquired San Juan Cable Holdings, LLC (OneLink) from its existing owners (MidOcean Partners and Crestview Partners) with an all cash, all common, equity contribution. Liberty Global, Inc. (LGI), the parent of Liberty Cablevision of Puerto Rico, LLC (LCPR) simultaneously merged LCPR into OneLink, with LGI retaining control through its 60% ownership and Searchlight owning the remaining 40%. The combined entity passes approximately 700,000 homes in Puerto Rico and has annual revenue of approximately $300 million. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *