/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130916.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 Monday, September 16, 2013, Vol. 14, No. 183 Headlines B R A Z I L GOL LINHAS: Reveals Air Traffic Figures for August 2013 OGX PETROLEO: Seeks Lifeline From Creditors PETROLEO BRASILEIRO: Sells Colombian Oil Assets to Perenco C A Y M A N I S L A N D S ANDERBURY LIMITED: Creditors' Proofs of Debt Due Oct. 6 B.A. INTERNATIONAL: Commences Liquidation Proceedings BERKSHIRE INVESTMENTS: Placed Under Voluntary Wind-Up CHEUNG CHOW: Placed Under Voluntary Wind-Up EBULLIO COMMODITY: Creditors & Contributories to Meet on Sept. 23 ETHAN INVESTMENTS: Placed Under Voluntary Wind-Up HBM BIOMED: Commences Liquidation Proceedings HIGHBRIDGE MANAGED: Shareholder to Hear Wind-Up Report on Oct. 18 LUMIERE SPV: Creditors' Proofs of Debt Due Oct. 14 OPE 1ST SECURITIZATION: Creditors' Proofs of Debt Due Sept. 30 POLLUX PARTNERS I: Creditors' Proofs of Debt Due Sept. 30 RIVERDALE LIMITED: Creditors' Proofs of Debt Due Sept. 30 SMARAGD: Creditors' Proofs of Debt Due Sept. 30 SONJA INVESTMENTS: Creditors' Proofs of Debt Due Sept. 30 VICTORIA FALLS: Creditors' Proofs of Debt Due Sept. 24 J A M A I C A BANK OF JAMAICA: Incurs JM$15.7 Billion Year-to-Date Losses DIGICEL GROUP: To Unveil Fixed Line Product M E X I C O MAXCOM TELECOMUNICACIONES: Court Confirms Prepackaged Ch. 11 Plan N I C A R A G U A * NICARAGUA: To Improve Transport System With US$91.5MM IDB Loan P E R U MAESTRO PERU: Fitch Affirms 'B+' Issuer Default Rating X X X X X X X X BOND PRICING: For the Week From Sept. 9 to Sept. 13, 2013 - - - - - =========== B R A Z I L =========== GOL LINHAS: Reveals Air Traffic Figures for August 2013 ------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A. disclosed its preliminary air traffic figures for August 2013. PRASK, Yield and Fuel Prices Net PRASK presented a 24% growth over August/12, even with a supply reduction of 7.6% in the domestic market in the period. The additional supply reduction announced at the end of June contributed to this expressive PRASK growth on an annual comparison. This is the 17(th) consecutive monthly PRASK increase, a result of the Company's focus on maximizing the profitability of its supply. Net yield in August posted a 33% increase year-over-year, registering between R$24.0 and R$24.5 cents. GOL maintained its strategy of always improving the attractiveness of its product for passengers who present a differentiated profile in terms of the consumption frequency and standard. Fuel prices* moved up by 9% in the month when compared to August/12, driven by the continuous depreciation of the Real against the Dollar in the last months comprising the jet fuel price formation period, which carries a time lag. For the next months, the tendency is of further price hikes. (*) Fuel price per liter considers total fuel and lubricant expenses divided by period consumption Domestic Market In August, supply reduced by 7.6% the domestic market when compared to August/12. International Market In August, supply moved up by 22.4%, when compared to the same month in 2012, a reflection of the introduction of the flights to Santo Domingo, Miami and Orlando in the end of last year. Gol Linhas Aereas Inteligentes SA (NYSE:GOL) is a low-cost, low- fare airline in the world providing service on routes connecting all of Brazil's cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 7, 2013, Fitch Ratings assigned an expected rating of 'B/RR5(exp)' to Gol Linhas Aereas Inteligentes S.A.'s proposed unsecured notes. Fitch also assigned a 'B+' rating to its foreign and local currency long-term Issuer Default Ratings. OGX PETROLEO: Seeks Lifeline From Creditors ------------------------------------------- Emily Glazera and Luciana Magalhaes at The Wall Street Journal, citing unnamed sources, reported that Brazilian tycoon Eike Batista's OGX Petroleo e Gas Participacoes SA may need hundreds of millions of dollars to continue operations as it faces a debt restructuring and operational struggles. Sources said that about 20 restructuring advisers for OGX Petroleo and its creditors gathered in New York to discuss the struggling oil company's business plan and possible next steps, according to The Wall Street Journal. The company has told some advisers it needs about US$500 million to stay afloat, and in the meeting asked creditors through their advisers for a roughly US$300 million capital injection, some of these people said, notes WSJ. If the creditors don't agree, the company said it would look for other financial investors, the WSJ added, citing one of these people as saying. According to the source, WSJ discloses, the sides will continue to hash out negotiations, and as they get closer to a compromise some creditors may become "restricted," or sign confidentiality agreements, as soon as early next week. This would enable them to craft a deal with the company but the situation remains fluid, the source added, WSJ relates. The WSJ relays that Mr. Batista has been selling assets amid a financial crisis triggered more than a year ago when OGX failed to meet production targets, sending shocks through his interlinked companies, which are grouped under parent EBX Group. The oil firm has some US$3.6 billion in bonds outstanding. The value of the bonds has fallen to below 20 cents on the dollar, indicating that investors aren't expecting to recover much of their initial investment, WSJ notes. OGX will seek to secure fresh capital from creditors as part of talks to restructure the debts, the firm's Chief Executive Officer, Eduardo Carneiro, told reporters, after a meeting of OGX shareholders, WSJ discloses. Mr. Batista and the creditors will also discuss changes in ownership and control of the company, Mr. Carneiro said, WSJ relays. The firm has held a first round of discussions with creditors, but there is no date yet for completion, WSJ quoted Mr. Carneiro as saying. Other avenues OGX is pursuing to raise funds include demanding an extra US$1 billion in capital from Mr. Batista, under an agreement signed late last year, as well as selling a 40% stake in the firm's main oil field to Malaysia's government-run oil company, Petroliam Nasional, or Petronas, Mr. Carneiro said, WSJ relates. WSJ says that both those options are in doubt, however. Mr. Batista has refused to put fresh capital into the company, and has said he would seek arbitration if OGX's management team insists, WSJ notes. Petronas, meanwhile, has said it won't conclude the deal with OGX until the Brazilian firm restructures its debts, notes the report. OGX, which has discontinued development of most of its oil fields, has fallen into turmoil, WSJ says. Its travails have also thrown the future of Mr. Batista's infrastructure conglomerate -- with interests in oil and gas, mining and logistics -- into question, WSJ added. Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participacoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. PETROLEO BRASILEIRO: Sells Colombian Oil Assets to Perenco ---------------------------------------------------------- Rodrigo Orihuela at Bloomberg News reports that Petroleo Brasileiro SA, the most indebted publicly traded oil company, agreed to sell oil blocks and pipelines in Colombia to Perenco UK Ltd. for US$380 million. "The Petrobras Colombia assets that are part of the transaction include 11 onshore exploration and production blocks with an average production of 6,530 barrels of oil equivalent per day, as well as the Colombia and Alto Magdalena oil pipelines," Petrobras, said in a regulatory filing, according to Bloomberg News. The sale is pending approval from Colombia's oil regulator. Bloomberg News relates that Petrobras is selling overseas assets to help finance development of its so-called pre-salt oil reserves below the Brazilian seabed. The Rio de Janeiro-based company sold 50 percent stakes in African assets to Grupo BTG Pactual for US$1.5 billion last month, Bloomberg News notes. Bloomberg News says that Petrobras is spending more than 60 percent of its US$237 billion five-year business plan on exploration and production, mostly in the pre-salt area. Petrobras said in the filing it will hold on to its offshore oil blocks, one onshore block and gasoline stations in Colombia. Perenco, the oil producer that scrapped an initial public offering of its Brazilian unit in 2011, is an operator and non-operator of Colombian oil-fields, Bloomberg News notes. HSBC Holdings Plc advised Petrobras on the sale. Bloomberg News says that unknown sources said China National Petroleum Corp., the country's largest oil producer, was considering buying Petrobras assets in Colombia and Peru. Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. -- Petrobras (Brazilian Petroleum Corporation) -- explores for oil and gas and produces, refines, purchases, and transports oil and gas products. The Company has proved reserves of about 14.1 billion barrels of oil equivalent and operates 16 refineries, an extensive pipeline network, and more than 8,000 gas stations. ========================== C A Y M A N I S L A N D S ========================== ANDERBURY LIMITED: Creditors' Proofs of Debt Due Oct. 6 ------------------------------------------------------- The creditors of Anderbury Limited are required to file their proofs of debt by Oct. 6, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 19, 2013. 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 Cayman Islands B.A. INTERNATIONAL: Commences Liquidation Proceedings ----------------------------------------------------- On Aug. 26, 2013, the sole shareholder of B.A. International (Cayman) Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Nina Tai 135 South LaSalle Street, Chicago, IL 60603 USA Telephone: +1 (312) 828 6491 e-mail: nina.tai@bankofamerica.com BERKSHIRE INVESTMENTS: Placed Under Voluntary Wind-Up ----------------------------------------------------- At an extraordinary general meeting held on July 2, 2013, the shareholders of Berkshire Investments Ltd. resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM Ltd. Governor's Square Ground Floor, West Bay Road P.O. Box 1982 Grand Cayman KY-1104 Cayman Islands CHEUNG CHOW: Placed Under Voluntary Wind-Up ------------------------------------------- At an extraordinary general meeting held on Aug. 29, 2013, the shareholder of Cheung Chow Investments Ltd resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 EBULLIO COMMODITY: Creditors & Contributories to Meet on Sept. 23 ----------------------------------------------------------------- The creditors and contributories of Ebullio Commodity Master Fund L.P will hold a meeting on Sept. 23, 2013, at 10:00 a.m. The company commenced wind-up proceedings on Aug. 23, 2013. The company's liquidator is: Matthew Wright c/o Chris Kennedy Telephone: (345) 949 7576 Facsimile: (345) 949 8295 RHSW (Cayman) Limited P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands ETHAN INVESTMENTS: Placed Under Voluntary Wind-Up ------------------------------------------------- At an extraordinary general meeting held on Aug. 29, 2013, the shareholder of Ethan Investments Limited resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 HBM BIOMED: Commences Liquidation Proceedings --------------------------------------------- On Aug. 26, 2013, the sole shareholder of HBM Biomed China resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Harbour Management Services Ltd. 10 Market Street Suite 140 Camana Bay, Grand Cayman, KY1-9006 Cayman Islands HIGHBRIDGE MANAGED: Shareholder to Hear Wind-Up Report on Oct. 18 ----------------------------------------------------------------- The shareholder of Highbridge Managed Portfolio Master, Ltd. will receive on Oct. 18, 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 Kim Charaman/Jennifer Chailler Telephone: (345) 943 3100 LUMIERE SPV: Creditors' Proofs of Debt Due Oct. 14 -------------------------------------------------- The creditors of Lumiere SPV Holding are required to file their proofs of debt by Oct. 14, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 6, 2013. The company's liquidator is: Darren P. Riley c/o BNP Paribas Bank & Trust Cayman Limited PO Box 10632, 3rd Floor, Royal Bank House 24 Shedden Road, George Town Grand Cayman KY1-1006 Cayman Islands OPE 1ST SECURITIZATION: Creditors' Proofs of Debt Due Sept. 30 -------------------------------------------------------------- The creditors of OPE 1ST Securitization SPV are required to file their proofs of debt by Sept. 30, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 26, 2013. The company's liquidator is: Ogier c/o Ben Gillooly Telephone: (345) 815-1764 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands POLLUX PARTNERS I: Creditors' Proofs of Debt Due Sept. 30 --------------------------------------------------------- The creditors of Pollux Partners I are required to file their proofs of debt by Sept. 30, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 22, 2013. The company's liquidator is: Ogier c/o Ben Gillooly Telephone: (345) 815-1764 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands RIVERDALE LIMITED: Creditors' Proofs of Debt Due Sept. 30 --------------------------------------------------------- The creditors of Riverdale Limited are required to file their proofs of debt by Sept. 30, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 30, 2013. The company's liquidator is: Carl Gosselin Wilmington Trust Corporate Services (Cayman) Limited P.O. Box 32322, Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 640 6712 SMARAGD: Creditors' Proofs of Debt Due Sept. 30 ----------------------------------------------- The creditors of SMARAGD are required to file their proofs of debt by Sept. 30, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 27, 2013. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands SONJA INVESTMENTS: Creditors' Proofs of Debt Due Sept. 30 --------------------------------------------------------- The creditors of Sonja Investments Ltd are required to file their proofs of debt by Sept. 30, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Aug. 30, 2013. The company's liquidator is: Carl Gosselin Wilmington Trust Corporate Services (Cayman) Limited P.O. Box 32322, Grand Cayman, KY1-1209 Cayman Islands Telephone: (345) 640 6712 VICTORIA FALLS: Creditors' Proofs of Debt Due Sept. 24 ------------------------------------------------------ The creditors of Victoria Falls Investment Fund are required to file their proofs of debt by Sept. 24, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 29, 2013. The company's liquidator is: Appleby Trust (Cayman) Ltd. Clifton House 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands ============= J A M A I C A ============= BANK OF JAMAICA: Incurs JM$15.7 Billion Year-to-Date Losses ----------------------------------------------------------- RJR News reports that there has been a further increase in year-to- date losses at the Bank of Jamaica. Its balance sheet as at August 28 puts the figure at JM$15.7 billion, according to RJR News. The report notes that this is up from JM$14.8 billion dollars three weeks earlier. DIGICEL GROUP: To Unveil Fixed Line Product ------------------------------------------- RJR News reports that Digicel Group Limited will unveil its fixed line product, DigiHome. This follows the recent announcement by Barry O'Brien, Digicel chief executive officer, of the company's decision to enter the fixed line market, according to RJR News. The report, citing a statement from Digicel, relates that DigiHome is a fixed line voice service that is billed per second. The report notes that Mr. O'Brien expects DigiHome will enable Digicel to secure market share in the fixed line business over the next few months. Headquartered in Jamaica, Digicel Group Limited is a telecommunications provider with over 13 million customers across its 31 markets in the Caribbean, Central America and Asia Pacific. * * * As of Sept. 15, 2013, the company continues to carry Moody's "Caa1" Senior Unsecured Debt rating and "B2" long-term ratings, long-term corporate family rating, and probability of default rating. =========== M E X I C O =========== MAXCOM TELECOMUNICACIONES: Court Confirms Prepackaged Ch. 11 Plan ----------------------------------------------------------------- Maxcom Telecomunicaciones, S.A.B. de C.V. disclosed that the U.S. Bankruptcy Court for the District of Delaware on Sept. 10 entered an order confirming the Company's prepackaged Chapter 11 plan of reorganization. Confirmation of the Plan was fully-consensual: the only class of creditors entitled to vote overwhelmingly voted in favor of the Plan and no party objected to confirmation of the Plan. Confirmation of the Plan paves the way for Maxcom to effectuate its previously announced comprehensive recapitalization and debt restructuring, consistent with Maxcom's expectations to emerge from Chapter 11 by early fall. Under the confirmed Plan, subject to the conditions set forth in the recapitalization agreement and the restructuring and support agreement, Maxcom will complete a recapitalization and debt restructuring that is expected to significantly reduce Maxcom's debt service expense and position Maxcom for growth with a US$45 million capital infusion. The Plan's restructuring of the Company's funded debt obligations and the parallel out-of-court transactions (i.e., the proposed tender offer and new capital contribution) to be effectuated in accordance with applicable Mexican and United States law will enable Maxcom to emerge from Chapter 11 with a healthy, sustainable balance sheet and a new capital contribution from the new owners of a substantial portion of Maxcom's equity. This capital will permit the Debtors to continue to upgrade and expand their telecommunications network, thereby solidifying the Debtors' long-term growth prospects and operating performance. As anticipated, the restructuring has not adversely affected Maxcom's customers, employees, or vendors. All telecommunications services have continued without change or interruption, and employees and vendors have been paid in the ordinary course of business. Previously Announced Recapitalization and Debt Restructuring Maxcom, private equity firm Ventura Capital Privado, S.A. de C.V., an ad hoc group holding an aggregate amount of approximately US$86 million of Maxcom's 11% Senior Notes due 2014, and certain of its current equity holders have reached agreement on the terms of the restructuring and support agreement, recapitalization agreement, and agreements to tender. Pursuant to the recapitalization agreement, Ventura and certain related parties have agreed to make a capital contribution of US$45.0 million dollars and conduct a tender offer to acquire for cash, at a price equal to Ps.$2.90 (two pesos and 90/100) per CPO, up to 100% (one hundred percent) of the issued and outstanding shares of Maxcom, subject to the terms of the recapitalization agreement. The Purchasers' obligation to consummate the tender offer and make the capital contribution is subject to a number of conditions, including: receiving legal and regulatory approvals from the Mexican Banking and Securities Commission (Comision Nacional Bancaria y de Valores), the Mexican Ministry of Communications and Transportation (Secretaria de Comunicaciones y Transportes), and the Mexican Antitrust Commission (Comision Federal de Competencia); the absence of certain material adverse effects; and that the bankruptcy court order confirming the Plan has become final. Pursuant to the terms of the Plan, all classes of creditors are unimpaired and will be paid in full under the Plan, except for the Senior Notes claims, which will receive (1) the step-up senior notes (which include the capitalized interest amount for unpaid interest accrued on the Senior Notes from (and including) April 15, 2013 through (and excluding) June 15, 2013, at the rate of 11% per annum), (2) cash in the amount of unpaid interest accrued on the Senior Notes (A) from (and including) December 15, 2012 through (and excluding) April 15, 2013, at the rate of 11% per annum, and (B) from (and including) June 15, 2013 through (and excluding) the effective date of the Plan at the rate of 6% per annum, and (3) rights to purchase equity that is unsubscribed by the Company's current equity holders pursuant to the terms of the Plan. The step-up senior notes will: (a) be issued in an aggregate principal amount of US$200 million, minus the amount of Senior Notes held in treasury by the Company, plus the capitalized interest amount; (b) bear interest (i) from the date of issuance until June 14, 2016, at the annual rate of 6% per annum, (ii) from June 15, 2016 until June 14, 2018, at the annual rate of 7% per annum, and (iii) from June 15, 2018 until the maturity date, at the annual rate of 8% per annum; (c) have a maturity date of June 15, 2020; (d) be secured by the same collateral that currently secures the Senior Notes; and (e) be unconditionally guaranteed, jointly and severally and on a senior unsecured basis, by all of Maxcom's direct and indirect subsidiaries, excluding Fundacion Maxcom, A.C. As of the voting deadline on July 23, 2013, over 98 percent in amount and over 94 percent in number of the holders of Senior Notes that cast ballots voted to accept the Plan. These results exceed the amount required for the court to approve the Plan, and were certified and filed with the U.S. Bankruptcy Court by GCG, Inc., Maxcom's proposed notice, claims, and balloting agent. As previously announced, the Company engaged Lazard and its alliance partner Alfaro, Davila y Rios, S.C. as its financial advisor and Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its U.S. and Mexican legal advisors in connection with its restructuring proceedings and potential Chapter 11 case. The Ad Hoc Group has retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz, S.C., as its U.S. and Mexican legal advisors. Ventura has retained VACE Partners as its financial advisor, and Paul Hastings LLP and Jones Day as its U.S. and Mexican legal advisors, respectively. About Maxcom Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a "smart-build" approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long distance, data, value-added, paid TV and IP-based services on a full basis in greater metropolitan Mexico City, Puebla, Tehuacan, San Luis, and Queretaro, and on a selected basis in several cities in Mexico. In June 2013, Maxcom didn't make an $11 million interest payment on the notes. Maxcom sought bankruptcy protection (Bankr. D. Del. Case No. 13-11839) in Wilmington, Delaware, on July 23, 2013. Maxcom listed $11.1 billion in assets and $402.3 million in debt. The company had assets valued at 4.98 billion pesos ($394 million) in the quarter ended March 31, according to an April 26 regulatory filing. The company reached a restructuring agreement with Ventura Capital, a group holding about $86 million, or 48.7 percent, of the senior notes and about 44 percent of its equity holders, court papers show. The Company has engaged Lazard Freres & Co. LLC and its alliance partner Alfaro, Davila y Rios, S.C., as its financial advisor and Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its U.S. and Mexican legal advisors in connection with its restructuring proceedings and potential Chapter 11 case. The Ad Hoc Group has retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz, S.C., as its U.S. and Mexican legal advisors. Ventura has retained VACE Partners as its financial advisor, and Paul Hastings LLP and Jones Day as its U.S. and Mexican legal advisors, respectively. ================= N I C A R A G U A ================= * NICARAGUA: To Improve Transport System With US$91.5MM IDB Loan ---------------------------------------------------------------- Nicaragua will improve the efficiency and safety of its road transportation system and advance regional integration with a US$91.5 million loan approved by the Inter-American Development Bank. The overall objective of the program is to make road transport in Nicaragua more efficient in order to foster economic activity and improve the population's quality of life, while facilitating integration of the country's various regions with the rest of Central America. The project also will work to reduce vehicle operating costs, increase travel speeds, reduce accident rates and conduct studies on the impact of climate change on infrastructure. One of the main challenges faced by Central American countries is the low level of logistical performance that affects their ability to integrate competitively with their neighbors as well as the global economy. The government's priority is to improve the road network in order to increase access to basic services and markets. This loan includes the improvement of 36.4 km of the Villa 15 de Julio- Malpaisillo junction highway, rehabilitation of 24.7 km of the Boaco-Muy Muy highway, rehabilitation of 31.4 km of the Chinandega- Guasaule highway that is part of the Pacific Corridor, and the improvement and maintenance of 60.5 km of roads at the Las Piedrecitas-Nagarote-Izapa junction. The project also aims to increase the total number of new shops and businesses operating in the service areas of the road sections being rehabilitated by a minimum 5 percent; reduced vehicle operating costs and increased travel speeds, with an eye to reduce traffic disruptions and accidents. Nicaragua has a road network of nearly 24,000 kilometers, of which just over 3,100 kilometers are paved. The poor quality of its roads translates into high transport costs, hurting economic. The IDB financing consists of a US$45.750 million 30-year loan from the Bank's ordinary capital with a 5.5-year grace period and a variable interest rate based on LIBOR. An additional US$45.750 million is from the concessional Fund for Special Operations for a 40-year term with a 40-year grace period. ======= P E R U ======= MAESTRO PERU: Fitch Affirms 'B+' Issuer Default Rating ------------------------------------------------------ Fitch Ratings has affirmed Maestro Peru S.A.'s (Maestro) ratings as follows: -- Foreign currency Issuer Default Rating (IDR) at 'B+'; -- Local currency IDR at 'B+' -- Senior unsecured notes at 'BB-/RR3' The Rating Outlook has been revised to Negative from Stable. The Negative Outlook reflects the deterioration in the company's capital structure and liquidity driven by negative free cash flow generation at levels not previously anticipated in the ratings. The company will need to better balance its capital structure against its ambitious capital expenditure plan in order to avoid further deterioration in its credit profile. The ratings also incorporate Maestro's leading market position, positive medium-term business growth prospects. The ratings also incorporate the company's high leverage, low liquidity, and, negative FCF trends driven by the execution of its capital expenditure (capex) plan. Maestro has limited business and geographic diversification, as the company's operations are concentrated in one retail business format, home improvement retail format, in Peru. The ratings also consider the sensitivity of the construction and home improvements industry to economic cycles. The 'BB-/RR3' ratings on the company's unsecured senior notes debt reflect good recovery prospects that are anticipated to be in the range of 50% - 70% in the event of a default. Key Rating Drivers Sustainable Market Position: The company is a leading local player in the Peruvian home improvement retail sector and is expected to continue benefiting from its solid business position. Maestro is one of the two largest modern home improvement retailers in Peru. It has an estimated market share of 41% of the modern retail channel. The company maintains an established and recognized brand and is well positioned as a low-price specialist. Maestro's ratings are supported by the solid fundamentals of Peru's home improvement industry reflected in increasing purchasing power of households and the industry's low penetration. The Peruvian economy is forecasted to post annual growth rates of around 5% during 2013-2015 after growing 6% in 2012. Low Liquidity, Negative FCF: The company's liquidity position has weakened and will rely in Maestro's ability to refinancing debt. Maestro ended June 2013 with cash position of S/.37 million (S/.144 million as December 31, 2012), and debt payments due during 2013 and 2014 of around S/.24 million and S/.28 million. In addition, the company is expected to continue to have negative FCF due to the execution of its capex plan. The company's free cash flow (FCF) is expected to be negative during 2013 and 2014 driven by its capex plan. During LTM June 2013, the company's FCF was negative S/.215 million with a negative FCF margin of 16%. FCF calculation for the period considers S/.86 million in cash flow from operations minus S/.301 million in capex. During LTM June 2013, the company opened 8 new stores increasing its total selling spaceby 44% and ending the period with a total number of 27 stores and a total selling space of 145,910 square meters (m2). Additionally during July 2013, 1 new store was opened and there are 2 new stores under construction. The company plans to continue to expand its operations through the execution of an aggressive capex. The company's store breakdown currently consists of 57% of owned stores and 43% of leased stores; this mix is not expected to materially change during the next few years. Margins Expected at 9%: EBITDA margins expected to remain stable around 9%. The company achieved revenues, EBITDA, and EBITDAR of S/.1,348 million, S/.119 million; and S/.145 million, respectively, during LTM June 30, 2013. This resulted in EBITDA and EBITDAR margins of 8.8% and 10.8%, with rentals of S/.26 million in the period. The increase in the company's cash flow generation, measured as EBITDA, has been below expectations and reflects the fact that the new stores recently opened - representing 44% of Maestro's total selling area - require a period of 3 to 4 years to mature and reach regular sales per square meter. The company reached average sales of S/.9,405 per square meter during 2012. Fitch's base scenario considers the company's total annual sales growth rate to be approximately 22% with an EBITDA margin around 9% during the 2013 - 2014 period. High Leverage: The ratings incorporate the company's high current leverage. Maestro's gross adjusted leverage, measured by total adjusted debt divided by EBITDAR, and net adjusted leverage ratios were 5.7x and 5.5x in latest 12 months (LTM) ended June 30, 2013. Maestro's company total debt increased during 2012 after the USD200 million bond issuance in September 2012; the resources were used primarily to refinance debt and to fund its capex plan. The company's total adjusted debt was approximately S/.829 million at the end of June 2013. This debt includes S/.645 million in on-balance-sheet debt, mostly compounded by the USD200 million unsecured notes, and S/.185 million in estimated off-balance-sheet obligations related to rental expenses. Total off-balance-sheet debt is calculated adjusting by 7x the company's rental payments of S/.26 million during LTM June 30, 2013. No Covenant Issues: The company's USD200 million bond indenture considers a limitation on additional indebtedness of a consolidated debt to consolidated EBITDA ratio no greater than 4.5x prior to year two after issuance, 4x in year two and prior to year three; and 3.5x thereafter. The indenture also includes carveouts that allow for additional new debt - up to USD40 million - despite being above the maximum financial leverage covenant. As of June 2013 the company's financial leverage ratio was 5.4x, level above the covenant maximum limit and the additional new debt incurred was S/.29 million (approximately USD10.4 million) below the maximum allowed for additional indebtedness. Rating Sensitivities The ratings are expected to be driven by the development - during the next quarters - by the company's liquidity, FCF generation, and gross adjusted leverage during the execution of its capex plan. A downgrade could be triggered by a continued deterioration of the company's credit protection measures and cash position due to weak operational results and/or more aggressive capex levels to those levels incorporated in the ratings. Expectations by Fitch of total adjusted debt to EBITDAR being consistently beyond 5x will likely result in a downgrade. Conversely, stable operational performance reflecting improving store performance combined with a balance between capex, liquidity and capital structure, which will result in the expectation that the company's gross adjusted leverage will moderately improve to below 5x can trigger a revision of the Rating Outlook to Stable. =============== X X X X X X X X =============== BOND PRICING: For the Week From Sept. 9 to Sept. 13, 2013 --------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Argentine Republic Government 7.82 12/31/2033 EUR 56 International Bond Argentine Republic Government International Bond 7.82 12/31/2033 EUR 55.5 Argentine Republic Government International Bond 8.28 12/31/2033 USD 55 Provincia de Buenos Aires/Argentina 10.9 1/26/2021 USD 69.8 Argentine Republic Government International Bond 8.28 12/31/2033 USD 57.5 Provincia de Buenos Aires/Argentina 9.38 9/14/2018 USD 68.4 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 51 Banco Macro SA 9.75 12/18/2036 USD 67.8 Provincia de Buenos Aires/Argentina 9.63 4/18/2028 USD 63 Capex SA 10 3/10/2018 USD 71 Cia Latinoamericana de Infraestructura & Servicios SA 9.5 12/15/2016 USD 63 Cia de Transporte de Energia Electrica en Alta 8.88 12/15/2016 USD 47.6 Tension Transe Provincia de Mendoza Argentina 5.5 9/4/2018 USD 74 Argentine Republic Government International Bond 1.18 12/31/2038 ARS 43.7 Argentine Republic Government International Bond 8.28 12/31/2033 USD 55 Argentine Republic Government International Bond 7.82 12/31/2033 EUR 45 Cia de Transporte de Energia Electrica en 9.75 8/15/2021 USD 50 Alta Tension Transe Argentina Bocon 2 3/15/2014 ARS 32.5 Empresa Distribuidora Y Comercializadora Norte 9.75 10/25/2022 USD 50 Argentine Republic Government International Bond 4.33 12/31/2033 JPY 36.5 Argentine Republic Government International Bond 8.28 12/31/2033 USD 59.9 Cia de Transporte de Energia Electrica en 9.75 8/15/2021 USD 45.4 Alta Tension Transe MetroGas SA 8.88 12/31/2018 USD 65.5 Provincia de Buenos Aires/Argentina 10.9 1/26/2021 USD 70 Empresa Distribuidora Y Comercializadora Norte 10.5 10/9/2017 USD 51.3 Argentine Republic Government International Bond 4.33 12/31/2033 JPY 36 Banco Macro SA 9.75 12/18/2036 USD 67.8 City of Buenos Aires Argentina 3.98 3/15/2018 USD 68.6 Capex SA 10 3/10/2018 USD 67.6 Provincia de Buenos Aires/Argentina 9.38 9/14/2018 USD 68.8 Provincia de Buenos Aires/Argentina 9.63 4/18/2028 USD 63 MetroGas SA 8.88 12/31/2018 USD 63.4 Argentine Republic Government International Bond 0.45 12/31/2038 JPY 8 Banco Macro SA 9.75 12/18/2036 USD 67.8 Provincia de Mendoza Argentina 5.5 9/4/2018 USD 73.5 Provincia del Chaco 4 11/4/2023 USD 53.8 Provincia del Chaco 4 12/4/2026 USD 25.5 Formosa Province of Argentina 5 2/27/2022 USD 61.9 Argentine Republic Government International Bond 8.28 12/31/2033 USD 61.8 Cia Energetica de Sao Paulo 9.75 1/15/2015 BRL 64.6 Gol Finance 8.75 USD 60 Banco Bonsucesso SA 9.25 11/3/2020 USD 73.5 Sifco SA 11.5 6/6/2016 USD 50.3 Gol Finance 8.75 USD 58.3 Banco Bonsucesso SA 9.25 11/3/2020 USD 72.5 Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 69.8 Almendral Telecomunicaciones SA 3.5 12/15/2014 CLP 33 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 58.2 Aguas Andinas SA 4.15 12/1/2026 CLP 72.5 Quinenco SA 3.5 7/21/2013 CLP 12.9 Talca Chillan Sociedad Concesionaria SA 2.75 12/15/2019 CLP 60.8 Empresa de Transporte de Pasajeros Metro SA 5.5 7/15/2027 CLP 4.58 Hidili Industry International Development Ltd 8.63 11/4/2015 USD 71.5 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 62.8 Renhe Commercial Holdings Co Ltd 11.8 5/18/2015 USD 63.1 China Forestry Holdings Co Ltd 10.3 11/17/2015 USD 37 JinkoSolar Holding Co Ltd 4 5/15/2016 USD 66.3 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 56 Hidili Industry International Development Ltd 8.63 11/4/2015 USD 71.8 Renhe Commercial Holdings Co Ltd 11.8 5/18/2015 USD 63.8 China Forestry Holdings Co Ltd 10.3 11/17/2015 USD 37 BES Finance Ltd 5.58 EUR 65.5 Bank Austria Creditanstalt Finance Cayman Ltd 1.61 EUR 49.7 ERB Hellas Cayman Islands Ltd 1.8 6/8/2017 EUR 55.2 Bank Austria Creditanstalt Finance Cayman Ltd 2 1.84 EUR 49.9 BCP Finance Co Ltd 5.54 EUR 41.7 ESFG International Ltd 5.75 EUR 50.8 BCP Finance Co Ltd 4.24 EUR 42.8 BES Finance Ltd 3.03 EUR 74.3 Banco Finantia International Ltd 2.46 7/26/2017 EUR 44.1 BES Finance Ltd 4.5 EUR 56.4 Caixa Geral De Depositos Finance 1.02 EUR 34.7 BCP Finance Bank Ltd 5.31 12/10/2023 EUR 66.3 ERB Hellas Cayman Islands Ltd 9 3/8/2019 EUR 31.9 Banif Finance Ltd 1.58 EUR 44 BCP Finance Bank Ltd 5.01 3/31/2024 EUR 63.5 Banco BPI SA/Cayman Islands 4.15 11/14/2035 EUR 41.6 Petroleos de Venezuela SA 5.38 4/12/2027 USD 60.2 Venezuela Government International Bond 7 3/31/2038 USD 67.3 Petroleos de Venezuela SA 5.5 4/12/2037 USD 58.8 Venezuela Government International Bond 7.65 4/21/2025 USD 74.6 Venezuela Government International Bond 6 12/9/2020 USD 74.2 Bolivarian Republic of Venezuela 7 3/31/2038 USD 66.8 *********** 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 * * *