/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/131024.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, October 24, 2013, Vol. 14, No. 211 Headlines A R G E N T I N A BANCO DE LA PROVINCIA: S&P Affirms 'CCC+' Issuer Credit Rating B R A Z I L BROOKFIELD INCORPORACOES: Discloses Internal Corp. Restructuring GOL LINHAS: Presents PRASK Growth of 23% in September 2013 JBS SA: Fitch Affirms Issuer Default Ratings at 'BB-' QGOG CONSTELLATION: Fitch Affirms Issuer Default Ratings at 'BB-' C A Y M A N I S L A N D S ALLIANCEBERNSTEIN: Shareholder to Hear Wind-Up Report on Nov. 15 BRIGANTINE HIGH: Shareholder to Receive Wind-Up Report on Nov. 15 CONFIDAS CONSULTANTS: Members' Final Meeting Set for Nov. 4 DALTON CDO: Shareholder to Receive Wind-Up Report on Nov. 15 EASTON ASIA: Shareholders' Final Meeting Set for Nov. 22 GUANAY FINANCE: Fitch to Rate New $450MM Sr. Notes at 'BB+' JAPAN NPL 1: Shareholder to Receive Wind-Up Report on Nov. 15 JAPAN NPL 2: Shareholder to Receive Wind-Up Report on Nov. 15 LIFE CAPITAL: Shareholders' Final Meeting Set for Nov. 6 LUMAX FINANCE: Shareholders' Final Meeting Set for Nov. 7 MIDAS INVESTMENTS: Shareholders' Final Meeting Set for Nov. 11 OLYMPIA (PTC): Shareholders' Final Meeting Set for Nov. 11 STRAUS HEALTHCARE: Shareholder to Hear Wind-Up Report on Nov. 5 THIRD COAST: Shareholder to Receive Wind-Up Report on Nov. 15 TRAXIS EMERGING: Shareholders' Final Meeting Set for Nov. 22 C H I L E INVERSIONES ALSACIA: Holders of 8% Notes Agree to Waive Default D O M I N I C A N R E P U B L I C CAP CANA: Foreclosures Stun Biggest Resort Complex DOMINICAN REPUBLIC: Fitch Rates US$500MM Bond Issue at 'B' * DOMINICAN REP: IMF Board Concludes 1st Post-Program Monitoring M E X I C O CEMENTOS PROGRESO: S&P Assigns 'BB' CCR & Rates $300MM Notes 'BB' SAN MIGUEL: Moody's Rates US$200MM Sr. Unsec. Notes at 'Ba2' SAN MIGUEL: Fitch Assigns 'BB' Foreign Currency IDR X X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= BANCO DE LA PROVINCIA: S&P Affirms 'CCC+' Issuer Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC+' global scale, issuer credit rating on Banco de La Provincia de Buenos Aires S.A. (BPBA). The outlook remains negative. The rating on BPBA reflects the bank's "strong" business position, "very weak" capital and earnings, "adequate" risk position, "above average" funding, and "strong" liquidity, as S&P's criteria define these terms. The bank's stand-alone credit profile is 'bb-'. S&P continues to view the likelihood of extraordinary support from the province of Buenos Aires (foreign currency rating: CCC+/Negative/--; local currency rating: B-/CreditWatch Negative/--) as "very high," in accordance with S&P's criteria for rating government-related entities. This is based on: -- BPBA's "very important" role in promoting the development of certain economic segments in the province, including the bank's important public policy role serving as a fiscal agent to the province and its status as a significant player in Argentina's financial system; and -- The "very strong" link between BPBA and the province, given the bank's ownership structure, under which the province directly guarantees the bank's liabilities. However, the issuer credit ratings on BPBA are constrained by the ratings on Buenos Aires Province and on the Republic of Argentina (unsolicited foreign and local currency ratings: CCC+/Negative/C; transfer and convertibility assessment: CCC+). S&P rarely rates financial institutions above the foreign currency ratings on the countries where they operate as it is unlikely that these institutions would remain unaffected by developments in their domestic economies. Also, all financial institutions operating in Argentina could face indirect effects from a sovereign downgrade. "We believe a sovereign downgrade is normally associated with, or could lead to, a weaker operating environment for financial institutions, which would very likely weaken their creditworthiness," said Standard & Poor's credit analyst Ivana Recalde. =========== B R A Z I L =========== BROOKFIELD INCORPORACOES: Discloses Internal Corp. Restructuring ---------------------------------------------------------------- Brookfield Incorporacoes S.A. disclosed to the market a notice it received from its controlling shareholder Brookfield Brasil LTDA., registered in the corporate roll of taxpayers (CNPJ/MF) under no. 34.268.326/0001-16 ("BRB"), controlling shareholder of Brookfield Brasil Participacoes LTDA ("BRB Participacoes"), pursuant to the terms of Article 12 of CVM Instruction 358/02: Due to an internal corporate restructuring, on this date [Oct. 15] BRB undertook a capital increase in BRB Participacoes through the contribution of 224,339,507 registered book-entry common shares with no par value issued by the Company and owned by BRB, representing thirty-eight and ninety-five hundredths of a percent (38.95%) of the total and voting capital of BRB Participacoes. Given that BRB and BRB Participacoes have the same final controlling shareholder -- Brookfield Asset Management Inc. -- and that said controlling shareholder has not altered its percentage interest in the Company by more than five percent (5%), the above operation has not resulted in any change in the Company's control or management structure, but only an internal reorganization of its assets. * * * As reported in the Troubled Company Reporter-Latin America on July 4, 2013, Fitch Ratings has downgraded the long-term foreign and local currency Issuer Default Ratings (IDRs) of Brookfield Incorporacoes S.A. (Brookfield Incorporacoes) and its full subsidiary Brookfield Sao Paulo Empreendimentos Imobiliarios S.A. (Brookfield SP) to 'B+' from 'BB-'. Fitch has also downgraded the companies' long-term national ratings to 'A(bra)' from 'A+(bra)'. GOL LINHAS: Presents PRASK Growth of 23% in September 2013 ---------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A. disclosed its preliminary air traffic figures for September 2013. PRASK, Yield and Fuel Prices Net PRASK presented a 23% growth over September/12, while domestic supply reduced by 8.5% in the period, both compared to the same month last year. This is the 18th consecutive monthly PRASK increase, and demonstrates GOL's efforts in continuously improving its products and focusing on the profitability of its routes. In 3Q13, PRASK recorded a 21% increase, leading to a 14% growth year- to-date in this same indicator. Net yield in September posted a 25% increase year-over-year, registering between R$21.7 and R$22.3 cents, result of the Company's strategy of increasingly attracting high value clients. In the third quarter of 2013, yield recorded growth of 29%, while year-to-date the increase was of 18% when compared to the same period in 2012. Fuel prices* moved up by 7% in the month when compared to September/12. T his is due to the depreciation of the Real against the Dollar in July and August reflected in the jet fuel price formation period, which carries a time lag. In 3Q13, fuel prices presented an increase of approximately 7%, to between R$2.43 and R$2.48, while year-to-date this increase was of approximately 5%. * * * 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 the Company's foreign and local currency long-term Issuer Default Ratings. JBS SA: Fitch Affirms Issuer Default Ratings at 'BB-' ----------------------------------------------------- Fitch Ratings has affirmed the foreign and local currency Issuer Default Ratings (IDRs) of JBS S.A. (JBS) at 'BB-' as well as its 'A-(bra)' national scale rating. Fitch has also affirmed at 'BB-' rating on the notes due in 2016 issued by JBS and the 'A-(bra)' rating of its debentures due in 2015. In conjunction with these rating actions, Fitch has also assigned an expected rating of 'BB-' to a proposed benchmark-size senior unsecured notes offering by JBS Investments GmbH (formerly ESAL GmbH), a wholly owned subsidiary of JBS based in Austria. These notes will be unconditionally guaranteed by JBS and JBS Hungary Holdings Kft. The proceeds are expected to be used to refinance shorter-maturity indebtedness and for general corporate purposes. Fitch has removed the ratings of JBS and its affiliates from Rating Watch Negative and has assigned a Stable Rating Outlook to JBS. These rating affirmations and the assignment of a Stable Outlook conclude the review of JBS, which was placed on Rating Watch Negative during June 2013 as a result of its acquisition of the Seara Brasil and Zenda leather businesses from Marfrig Alimentos S.A. for BRL5.8 billion (USD2.6 billion). The ratings build in an expectation that JBS's net leverage will organically improve to at or below 3.0x by the end of 2014. Key Rating Drivers High Leverage, But Deleveraging Fitch expects JBS's net debt to EBITDA ratio to organically fall to around 3.0x or lower by the end of 2014 due to the company's strong free cash flow (FCF) generation. Nevertheless, given the acquisitive nature of the company, the existing rating categories build in an expectation that debt-financed transactions could lead to this ratio being closer to 3.5x. Following the Seara Brazil acquisition, which was concluded at the end of September, JBS's net debt to EBITDA ratio was around 4.0x. In the second quarter of 2013, JBS reported a strong improvement in the performance of its U.S. Beef and U.S. Poultry businesses, with positive FCF before dividends of BRL563 million. Execution Risks of Seara Turnaround Execution risk as it relates to Seara is above average. JBS will have to make significant initial cash investments in working capital in order to strengthen Seara's operations, address its logistics issues and build upon the strength of the brand in order to turn the business into a positive FCF division in the medium term. However, JBS has demonstrated its capacity to integrate several acquisitions in the past. The Seara transaction will increase JBS's export capacity and its footprint in the protein business in Brazil from USD12 billion to about USD15 billion. Solid Business Profile JBS's credit ratings are supported by a strong business profile. The company is the world's largest beef and leather producer. With the acquisition of Seara Brasil, JBS has become the second largest processed meats producer in Brazil. The company's product and geographic diversification help to mitigate risks related to disease and trade restrictions. No Major Acquisitions Anticipated Fitch does not foresee any major acquisitions in the next 18 months as JBS's management will need to focus on the integration of Seara. However, Fitch does not exclude some bolt-on transactions in the future as JBS aims to reinforce its distribution capacity in export markets. While its business profile has benefited from improved diversification through past acquisitions, the Seara acquisition highlights JBS's acquisition appetite. Adequate Liquidity As of June 2013, about 35% of JBS debt - or BRL8.5billion - was classified as short-term. This figure compares with BRL7.2 billion of cash and cash equivalents and USD1.2 billion of available committed lines. JBS assumed BRL5.8 billion (USD2.6 billion) of Marfrig's bank debt in the aforementioned transactions and has successfully refinanced this debt with bank debt that have maturities up to five years. Rating Sensitivities: A downgrade could be precipitated by further increase of the group's leverage ratios, or a sharp contraction in the group's operating margin and FCF generation in the next 18 months. An upgrade could result from an increase in the group's capacity to generate strong FCF. Expanding operating margin over a sustained period of time and consistent leverage ratios in the range of 2.0x to 2.5x would also be viewed positively. Fitch has affirmed the following JBS ratings with a Stable Outlook JBS S.A.: -- Foreign & local currency IDR at 'BB-'; -- Notes due 2016 at 'BB-'; -- National scale rating at 'A-(bra)'. -- Debentures at 'A-'. JBS USA LLC: -- Foreign and local currency IDR at 'BB-'; -- Term loan B facility due in 2018 at 'BB' -- Notes due 2014, 2020, 2021 at 'BB-'. JBS USA Finance, Inc: -- Foreign and local currency IDR at 'BB-'; -- Notes due 2014 at 'BB-'; -- Bonds due 2020 at 'BB-'; -- Notes due 2021 at 'BB-'. JBS Investments GmbH (formerly ESAL GmbH): -- Notes due 2023 at 'BB-'. JBS Finance II Ltd: -- Foreign and local currency IDR at 'BB-'; -- Notes due 2018 at 'BB-'. The ratings are informed by 'Fitch Parent and Subsidiary Linkage Criteria'. QGOG CONSTELLATION: Fitch Affirms Issuer Default Ratings at 'BB-' ----------------------------------------------------------------- Fitch Ratings has affirmed QGOG Constellation S.A.'s foreign and local currency Issuer Default Ratings (IDRs) and USD700 million senior unsecured notes due 2019 at 'BB-'. The Rating Outlook is Stable. Key Rating Drivers Constellation's ratings reflect the company's high consolidated leverage and structural subordination to its operating subsidiaries' project finance debt, which at times may limit cash flow disbursements from the operating subsidiaries (Opcos) to the Holdco depending on various financial covenants. Positively, consolidated leverage is expected to rapidly decline as the project finance debt at the operating companies amortizes. Constellation's ratings also reflect the stable and predictable cash flow generation of the company's OpCos' offshore drilling assets, which are supported by long-term contracts with investment grade rated Petroleo Brasileiro S.A. (Petrobras; IDR 'BBB'). The ratings also incorporate the favorable demand prospects for oil and gas services in Brazil driven by Petrobras' aggressive capital expenditure program as well as new exploration and production entrants to the market. High Initial Leverage and Adequate Liquidity The company's consolidated leverage is considered high for the rating category and is expected to decrease over the near term as the debt at the OpCos rapidly amortize to levels more consistent with the rating category. As of the last 12 months (LTM) ended June 30, 2013, leverage as measured by total debt to EBITDA was approximately 6.0x. Fitch expects the company to lower its consolidated leverage ratio to below 4.0x within the next few years, which is more in line with the assigned ratings. Total debt as of June 30, 2013 reached approximately USD3.2 billion, while EBITDA was USD535 million. As of June 30, 2013, debt at the OpCo level amounted to USD2.4 billion, out of approximately USD3.2 billion of total consolidated debt. Constellation's liquidity is supported by a 12 months debt service reserve account and the company's cash on hand, which somewhat mitigates possible disruptions of cash flow to the Holdco from the OpCos due to debt restrictions at the OpCos. As of June 30, 2013, cash and cash equivalent amounted to USD421 million, of which approximately USD229 million were at the holding company level and the balance was at the operating companies. Also a positive factor for the company's liquidity was the equity injection of approximately USD300 million from its shareholders during September 2013, which the company expects to use to partially fund its approximately USD200 million equity contribution for a new ultra deep water (UDW) drilling rig it ordered in November of 2012. Structural Subordination to Operating Companies' Debt The potential retention of cash flows after debt service at the OpCo level makes cash flow to the Holdco somewhat less stable and unpredictable than the cash flow from operation of its subsidiaries. Most of the project finance debt at the OpCos have cash sweep provisions and minimum debt service coverage ratios (DSCR) (e.g. 1.2 or above) that must be met before cash flow distributions are allowed to be made to the Holdco. Specific assets (Lone and Gold Star) are not permitted to distribute excess cash to the holding company until all project finance debt is repaid. Cash distributions to Constellation are sensitive to the operating performance of the OpCos' (the rigs') uptime performance. For example, in the case of the Alaskan-Atlantic operating assets, a decline in the uptime rate to 95% or below from the combined 15 years historical average of 96.3% will likely prevent these assets from distributing cash to the Holdco. Gold and Lone Star financing are not expected to distribute any cash to the holding company until Gold Star is released from the associated financing and Lone Star until all debt is paid off, which is expected to fully amortize by 2017. Under Fitch's base case assumption of an average uptime rate of 95%, net cash flow distributions to Constellation from its OpCos is expected to average between USD50 million and USD70 million over the next four years. Net distributions to Constellation are expected to notably increase beyond 2017 as some project finance debt is fully amortized and should increase if uptime rates are higher than projected. Predictable Revenues and Strong Backlog Constellation's consolidated revenues and cash flow from operations are stable and predictable, reflective of its long-term contractual structure, for the most part with Petrobras. The company provides onshore and offshore oil and gas drilling services through its different subsidiaries. The average remaining contract life for its existing majority owned offshore drilling assets is approximately three and a half years. The company currently operates eight offshore drilling units under long-term contracts with Petrobras and has placed an order to build a new 100% owned UDW drillship yet to be contracted, which adds to risk. The company also operates nine onshore rigs, which are, for the most part, contracted with Petrobras. The bulk of the holding company's cash flow comes from its offshore services. Constellation's current contract backlog, excluding contract renewal options, of approximately USD10 billion bodes well for the company's credit profile as it supports cash flow predictability. Of the company's current backlog, approximately half relates to the offshore drilling assets where the company has majority participation. The balance of the backlog relates to other assets without majority participation as well as its onshore assets. Strong Demand for Drilling Rigs in Brazil Long term demand prospects for oil and gas services in Brazil, including demand for offshore drilling rigs and production equipment, are strong. Driven by a government initiative to increase the country's oil and gas production, Petrobras has embarked on an aggressive capital investment program of up to USD236 billion over the next four years. Further, the government has implemented requirement that a high percentage of the work and materials provided for these expenditures be from 'local' sources in order to boost economic activity. The combination of higher demand and the local content mandate for oil and gas related services support long-term demand prospects for the company as well as its ability to renew contracts at favorable rates. Rating Sensitivities Considerations that could lead to a negative rating action (Rating or Outlook) include: -- Failure to lower leverage to 4.0x or below; or -- An overly aggressive growth strategy that could pressure credit metrics (somewhat mitigated by the issuance's covenants). Considerations that could lead to a positive rating action (Rating or Outlook) include: -- Injection of new capital into the company, depending on how it invests the new funds and the lead time required for the new investments to generate cash flow from operations. ========================== C A Y M A N I S L A N D S ========================== ALLIANCEBERNSTEIN: Shareholder to Hear Wind-Up Report on Nov. 15 ---------------------------------------------------------------- The shareholder of Alliancebernstein Currency Alpha Master Fund Ltd will receive on Nov. 15, 2013, at 1:45 p.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 BRIGANTINE HIGH: Shareholder to Receive Wind-Up Report on Nov. 15 ----------------------------------------------------------------- The shareholder of Brigantine High Grade Funding, Ltd will receive on Nov. 15, 2013, at 1:30 p.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 CONFIDAS CONSULTANTS: Members' Final Meeting Set for Nov. 4 ----------------------------------------------------------- The members of Confidas Consultants Ltd. will hold their final meeting on Nov. 4, 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 DALTON CDO: Shareholder to Receive Wind-Up Report on Nov. 15 ------------------------------------------------------------ The shareholder of Dalton CDO Ltd. will receive on Nov. 15, 2013, at 1:15 p.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 EASTON ASIA: Shareholders' Final Meeting Set for Nov. 22 -------------------------------------------------------- The shareholders of Easton Asia Fund will hold their final meeting on Nov. 22, 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 Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands GUANAY FINANCE: Fitch to Rate New $450MM Sr. Notes at 'BB+' ----------------------------------------------------------- Fitch Ratings expects to assign a rating of 'BB+(exp)' with a Stable Outlook to Guanay Finance Limited's proposed $450 million issuance of senior notes. Guanay Finance Limited is a special purpose vehicle incorporated in the Cayman Islands and sponsored by LATAM Airlines Group S.A. (LATAM). Fitch's rating on the 2013-1 notes addresses the timely payment of interest and principal on a quarterly basis. The proposed issuance is backed by U.S. and Canadian dollar-denominated receivables from ticket and cargo sales generated by credit, debit or charge cards in the United States and Canada. This expected rating does not incorporate Fitch's full legal analysis as this process is currently ongoing and the final rating is contingent upon the receipt of final documents conforming to information already received. Key Rating Drivers The expected rating reflects (i) the credit quality of LATAM; (ii) the strategic and growing business that backs the pool of receivables; (iii) the expected quarterly debt service coverage ratio commensurate with the expected rating category; (iv) the level of future flow debt relative to LATAM's overall funding; and (v) moderate diversion risk. LATAM has a Fitch local currency (LC) Issuer Default Rating (IDR) of 'BB', Outlook Stable. Formed in 2012 through a business combination of LAN Airlines S.A. (LAN) and TAM Linhas Aereas, S.A. (TAM), LATAM maintains a solid market position in the domestic, regional and international (long-haul), and cargo markets. The majority of receivables will be for flights to and from North American gateways. The pool of receivables grew 21.45% CAGR from 2005-2012 driven by increased capacity and yield, improved load factors, the strength of the North American cargo business and growth in internet ticket sales. Many of the key North American gateways are more profitable than LATAM's overall and long-haul businesses. Fitch expects the average quarterly debt service coverage ratio (DSCR) to be approximately 3.78x. This is based on average quarterly receivables for the last 12 months and the average quarterly debt service for the life of the transaction. The proposed issuance represents approximately 4.4% of LATAM's consolidated debt and 6.8% of unconsolidated debt (excluding TAM). While these percentages are low relative to the balance sheet, the transaction size is large compared to the company's total unsecured debt, as most of company debt relates to leases and secured debt. While designated obligors to the transaction have signed notice and consent agreements (N&Cs), the transaction is exposed to potential diversion risk. Cash flows could be diverted from the transaction by changing designated obligors or rerouting sales through a different IATA code. This risk limits differentiation of issuance rating from the originator's IDR. Rating Sensitivities The rating is sensitive to changes in the credit quality of LATAM. A downgrade of LATAM's 'BB' IDR could lead to a downgrade of the notes. In addition, reductions in DSCRs could result in rating downgrades. Key Rating Drivers and Rating Sensitivities are further described in the accompanying pre-sale report. Transaction Summary The notes are backed by flows related to airline ticket sales and cargo charges by LATAM under IATA code 045 that are purchased using a qualified credit, debit or charge card in the U.S. and Canada. The originator and initial servicer to the transaction, LATAM is headquartered in Santiago, Chile with the largest operations in Chile and Brazil. LATAM's rating incorporates the company's diversified business model, strong regional market position, high gross adjusted leverage, and low liquidity. JAPAN NPL 1: Shareholder to Receive Wind-Up Report on Nov. 15 ------------------------------------------------------------- The shareholder of Japan NPL 1 Holdings will receive on Nov. 15, 2013, at 12:45 p.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 JAPAN NPL 2: Shareholder to Receive Wind-Up Report on Nov. 15 ------------------------------------------------------------- The shareholder of Japan NPL 2 Holdings will receive on Nov. 15, 2013, at 1:00 p.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 LIFE CAPITAL: Shareholders' Final Meeting Set for Nov. 6 -------------------------------------------------------- The shareholders of Life Capital SPV Limited will hold their final meeting on Nov. 6, 2013, at 12:15 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gordon McKie 40 Berkeley Square London W1J 5AL United Kingdom Telephone: +44 (20) 7451 4297 LUMAX FINANCE: Shareholders' Final Meeting Set for Nov. 7 --------------------------------------------------------- The shareholders of Lumax Finance Limited will hold their final meeting on Nov. 7, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michelle Bodden-Moxam/Kevin Gunther Telephone: (345) 946 6145 Facsimile: (345) 946 6146 Bridge Street Services Limited The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 30691 Grand Cayman KY1-1203 Cayman Islands MIDAS INVESTMENTS: Shareholders' Final Meeting Set for Nov. 11 -------------------------------------------------------------- The shareholders of Midas Investments Ltd. will hold their final meeting on Nov. 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: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1, Regatta Office Park Grand Cayman KY1-1103 Cayman Islands OLYMPIA (PTC): Shareholders' Final Meeting Set for Nov. 11 ---------------------------------------------------------- The shareholders of Olympia (PTC) Limited will hold their final meeting on Nov. 11, 2013, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1, Regatta Office Park Grand Cayman KY1-1103 Cayman Islands STRAUS HEALTHCARE: Shareholder to Hear Wind-Up Report on Nov. 5 --------------------------------------------------------------- The shareholder of Straus Healthcare Master Fund, Ltd will receive on Nov. 5, 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: Ogier c/o Jacqueline Haynes Telephone: (345) 815 1759 Facsimile: (345) 949 9877 THIRD COAST: Shareholder to Receive Wind-Up Report on Nov. 15 ------------------------------------------------------------- The shareholder of Third Coast Capital Offshore Fund, Ltd. will receive on Nov. 15, 2013, at 2:30 p.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 TRAXIS EMERGING: Shareholders' Final Meeting Set for Nov. 22 ------------------------------------------------------------ The shareholders of Traxis Emerging Markets Opportunities Offshore Fund, Ltd. will hold their final meeting on Nov. 22, 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 Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands ========= C H I L E ========= INVERSIONES ALSACIA: Holders of 8% Notes Agree to Waive Default --------------------------------------------------------------- Inversiones Alsacia S.A. on Oct. 21 disclosed that it received and accepted consents from the holders of approximately 89.7% of the outstanding principal balance of its 8.00% Senior Secured Notes due 2018, as well as 100% of its counterparties for foreign currency hedge agreements relating to such Notes. As a result, Alsacia successfully obtained approval for the waiver of the defaults, events of default, early amortization events and other covenants under the Indenture, dated as of February 18, 2011, as supplemented, described in the Amended and Restated Consent Solicitation Statement, dated September 25, 2013, as supplemented on October 3, 2013, October 10, 2013 and October 14, 2013. The waiver is now in full force and effect. BofA Merrill Lynch acted as the solicitation agent for the consent solicitation. Global Bondholder Services Corporation acted as the information and tabulation agent for the consent solicitation. Information regarding the consent solicitation may be obtained by contacting BofA Merrill Lynch, One Bryant Park, New York, New York 10036, Attention: Debt Advisory. The solicitation agent may be reached by telephone at (888) 292-0070 (toll-free) or (646) 855- 3401 (collect). About Alsacia Alsacia, together with its affiliate, Express de Santiago Uno S.A., are collectively the largest operator in the Transantiago Transportation System, transporting approximately 800,000 passengers every day, throughout 35 communities in Santiago, which accounts for more than 30% of the passengers in Transantiago. Alsacia and Express belong to an international holding company with interests in public passenger transportation, environmental solutions, outsourcing services and real estate development in Chile, Colombia, Panama, Peru and the United States of America. As reported by the Troubled Company Reporter-Latin America on Oct. 18, 2013, Moody's Investors Service downgraded the senior secured rating of Inversiones Alsacia S.A. to Caa2 from B2. Moody's said the rating continues on review for possible downgrade. =================================== D O M I N I C A N R E P U B L I C =================================== CAP CANA: Foreclosures Stun Biggest Resort Complex --------------------------------------------------- Dominican Today, citing Spanish media, reports that Dominican Republic's State-owned bank (Banreservas) foreclosed on 41 units in an upscale real estate development at the complex Cap Cana (east), built by the Spanish hotel chain NH Hoteles and the S&L Caja Duero. As a result of the developer Capredo Investment's failure to pay the US$24.8 million debt, Banreservas has seized the units built jointly with a local partner, according to Dominican Today. The report relates that the hotel chain and Caja Duero own 25% of Capredo Investment, Switzerland based company, which in 2006 launched the project to build luxury 90-room hotel and some 335 luxury homes in three phases. The report notes that the development called Sotogrande was built at Cap Cana to attract wealthy Spaniards who already had properties at the exclusive Bahia de San Roque, Cadiz. NH Hotels, seeking to replicate their success with a high end urban development such as Sotogrande, began construction of the first phase with 122 apartments on nearly 40,000 square meters of land on October 15, 2008, the report discloses. Dominican Today discloses that this first phase was completed at the end of November 2010, with the global financial crisis already in full swing. The report notes that the promoter managed to sell just 78 units, but finally handed over only 71, since seven were about to be handed to, or being renegotiated with the buyers. The remaining 44 were finished, empty, and without buyers, the report relates. The report discloses that after several rounds of negotiations with the Banreservas, the Dominican bank opted to foreclose on the apartments at Cap Cana, the country's biggest resort development. DOMINICAN REPUBLIC: Fitch Rates US$500MM Bond Issue at 'B' ---------------------------------------------------------- Fitch Ratings has assigned a 'B' rating to the Dominican Republic's USD500 million bond issuance maturing in January 2024. The bonds have a coupon rate of 6.6%. The proceeds will be used to cover general budgetary expenses and infrastructure projects included in the government's 2013 financing plan. Key Rating Drivers The rating is in line with The Dominican Republic's Long-term Foreign Currency Issuer Default Rating (IDR) of 'B' with a Stable Outlook. Rating Sensitivities The rating would be sensitive to any changes in the Dominican Republic's Long-term foreign currency IDR. Fitch affirmed Dominican Republic's ratings at 'B' and revised the Outlooks to Stable from Positive on Dec. 11 2012. * DOMINICAN REP: IMF Board Concludes 1st Post-Program Monitoring ---------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) concluded the First Post-Program Monitoring Discussion with the Dominican Republic. In early 2013, economic growth in the Dominican Republic decelerated further in the context of fiscal contraction and weak confidence. According to preliminary data, real GDP growth was 1.6 percent (year-on-year) in the first half of 2013, after growing by almost 4 percent in 2012 and by 4.5 percent in 2011. Inflation picked up in early 2013, following a significant decline in 2012, partly reflecting the impact of the increases in value- added tax (VAT) rates announced in November. In July 2013, headline inflation was 5.7 percent (y/y), within the central bank's target range of 4-6 percent. Fiscal consolidation began in late 2012. The tax measures adopted in November 2012, as well as one-off revenues related to a new fiscal amnesty law and the advancement of tax payments on financial assets, helped boost revenues in early 2013. On the expenditure side, public investment slowed sharply in the first half of 2013 following a large expansion in the previous year. As a result, the nonfinancial public sector deficit narrowed to 1.1 percent of GDP in the first half of 2013, down from 6.7 percent of GDP in 2012 as a whole. On current policies, the deficit of the consolidated public sector in 2013 is projected to decline to 4.3 percent of GDP, from 7.8 percent of GDP last year. In May, the central bank eased monetary policy to boost credit growth, responding to weak indicators of economic activity and stable inflation expectations. As of end-July, bank credit to the private sector grew by 14 percent (y/y); the easing of reserve requirements in May was a key factor for the pickup in credit. Foreign exchange market pressures intensified in August. The peso depreciated by close to 2 percent during the month. On August 28, the central bank approved a 200-basis point increase in the monetary policy rate to 6.25 percent. As of end-August, gross international reserves stood at US$3.7 billion. The outlook is for a gradual economic recovery with moderate inflation and a strengthening external position. However, downside risks will remain, mostly from challenges to economic recovery in the United States and Europe, oil price shocks, lower gold prices, and large public sector external financing needs. Executive Board Assessment Executive Directors commended the authorities' efforts to restore macroeconomic stability, including revenue and expenditure measures to reduce the fiscal deficit. They noted, nonetheless, downside risks associated with the uncertain global environment and the large fiscal and external financing requirements. Accordingly, Directors underscored the need to address remaining vulnerabilities to restore investor confidence and sustain the economic recovery. Directors welcomed the authorities' commitment to fiscal consolidation and their intention to target a zero balance for the nonfinancial public sector by end-2016, which would boost the sustainability of the fiscal position. In this regard, they emphasized the need to reform the electricity sector to limit its drain on the budget. Directors agreed that monetary policy should be geared at keeping inflation low and protecting the external position, and supported the intention of the authorities to increase international reserves to about 3 months of imports. They welcomed the increased exchange rate flexibility and the tighter monetary stance in response to recent pressures in the foreign exchange market. Directors noted with satisfaction the recent improvements in short-term liquidity management, and encouraged the authorities to continue to upgrade the monetary framework, including its transparency. Directors generally stressed the importance of continuing the recapitalization of the central bank in line with the 2007 law. Directors observed that indicators of financial sector soundness are broadly satisfactory. They nonetheless encouraged the authorities to redress the large increase in banks' exposure to the public sector and improve the governance of the largest commercial bank. Directors welcomed the authorities' plans to remedy the structural shortcomings in the electricity sector. In this regard, they highlighted the need for a comprehensive strategy to improve efficiency in the sector without undermining the public finances. =========== M E X I C O =========== CEMENTOS PROGRESO: S&P Assigns 'BB' CCR & Rates $300MM Notes 'BB' ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' corporate credit ratings to Cementos Progreso S.A. (Cempro). The outlook is stable. At the same time, S&P assigned its 'BB' issue-level rating to its proposed $300 million senior unsecured notes due 2023. The company plans to use the proceeds to refinance existing debt and, to a lesser extent, fund capital expenditures. The ratings on Cempro reflect its "fair" business risk profile and "significant" financial risk profile. The company benefits from a leading market position in Guatemala and cost-efficient operations, which result in higher profitability than those of its rated global peers. The partly offsetting factors are the company's concentration on the slow-growth cement industry in Guatemala and negative free operating cash flow (FOCF) during the next three years due to the construction of its new plant. Although exchange rate in Guatemala has remained stable in the last few years, S&P believes the company is exposed to currency mismatches, as 75% of the company's debt is denominated in dollars, whereas revenues are mostly in Quetzales. ======= P E R U ======= SAN MIGUEL: Moody's Rates US$200MM Sr. Unsec. Notes at 'Ba2' ------------------------------------------------------------ Moody's Investors Service ("Moody's") has assigned a first-time Ba2 Global Scale rating to San Miguel Industrias PET S.A's ("SMI") USD 200 million Senior Unsecured Notes due 2020. At the same time, Moody's assigned a first-time Corporate Family Rating of Ba2 on its Global Scale to SMI. The outlook for the ratings is stable. Ratings Rationale: "The Ba2 ratings reflect SMI's strong dominant position as a leading player in the production of diversified PET preforms and bottles for the food & beverage and consumer markets, mainly in Peru," said Moody's VP-Senior Analyst Veronica Amendola. "The ratings are also based on the company's limited exposure to commodity price volatility, as historically it has been able to pass through costs to its customers, as well as its concentration on the food industry, which is relatively more resilient to potential external shocks," said Amendola. Finally, the Ba2 ratings are supported by Moody's expectation that SMI will be able to continue expanding its footprint across the region, while preserving its strong credit metrics and financial profile, and also by the fact that it is part of a large conglomerate and diversified group, Intercorp Peru Ltd. (rated Ba3, stable), which also owns one of the largest bank in Peru, Interbank (Baa3/ stable). The Ba2 ratings are mainly constrained by the SMI's small size and scale as compared to its global industry peers and its production reliance on a limited number of raw materials, especially resin, which potentially exposes it to downside risks in a shortage scenario. While the company could benefit from expected growth in Peru over the next few years, Moody's notes that the overall uncertain global macroeconomic environment could negatively affect Peru's economic growth. The Ba2 ratings consider SMI's advantages from its intensive use of modern technology and strong business model, which is based on existing long-term contract agreements with large bottlers and in- house operations. These contracts increase switching costs and secure a sizeable channel of sales. In line with consumption trends in the region, the Peruvian middle class is growing at a fast pace, which fosters soft drinks consumption and, as a consequence, demand for PET. Additionally, SMI owns one of the few new recycling "bottle-to-bottle" PET resin plants in LatAm and the only one in Peru. Once the regulatory framework for recycling is passed in every country - which is estimated to occur shortly -, Moody's expects the company to benefit from the use of recycled resin in its food and beverage product lines. The stable outlook reflects Moody's expectations that SMI will be able to protect its dominant market position in Peru while expanding and consolidating its international footprint. As part of a well-known and well-established group, Intercorp Peru Ltd, Moody's expects the company to continue to strengthen its business model while increasing its size and scale. The outlook also takes into account the positive trends in consumption for the food industry, especially beverages, snacks and packaged goods, which is mainly driven by a growing middle class in the relevant markets. Although unlikely in the near to intermediate time period, the rating could experience upward pressure if the company were to largely increase its size and scale while sustaining its market position and maintaining its operating margins. Quantitatively, upward momentum could result if SMI's adjusted leverage, measured by Total Debt to EBITDA, were to decrease to below 1.5 times and EBIT/Interest expense ratio were to be above 10 times on a sustained basis. Moody's cautions that a rating downgrade could be triggered if the company fails to reduce leverage as projected or if its credit metrics deteriorate materially whether due to operating difficulties or further potential deterioration in its market- leading position. Specifically, a downgrade could result if adjusted leverage remains above 4 times and EBIT/Interest expense ratio below 5 times for an extended period. SAN MIGUEL: Fitch Assigns 'BB' Foreign Currency IDR --------------------------------------------------- Fitch Ratings has assigned the following ratings to San Miguel Industrias PET S.A. (SMI): -- Foreign currency Issuer Default Rating (IDR) 'BB'; -- Proposed senior unsecured guaranteed notes 'BB'. The proposed issuance will be up to USD200 million. Proceeds from the proposed issuance will be used primarily to refinance the company's existing bridge facility and for general corporate purposes. The Rating Outlook is Stable. Key Rating Drivers: Leading Position in Peru: SMI is the leading manufacturer and distributor of PET preforms and bottles in Peru with a market share of about 70%. The group's performance is driven by the growing middle class and soft drink consumption in Peru. Competition risk is mitigated by barriers to entry. The company generates about 80% of sales from Peru, including exports. SMI also operates in Ecuador, Panama, El Salvador and Colombia. Concentration Risk and Long-Term Supply Agreement: The group has longstanding contracts with international bottlers such as Lindley and SABMiller. It also sells to B-brands. The top eight customers accounted for approximately 66.9% of the group's 2012 sales by volume. This exposes SMI to concentration risks, notably if these bottlers do not renew their contracts or start to further integrate their own operations vertically (injection and blowing). About 67% of SMI was based on contracted agreements in 2012. SMI has demonstrated its capacity to renew its long-term contracts over the years with its main customers. High Initial Leverage and Deleveraging: Fitch expects SMI to increase capex over the next two years but project positive free cash flow and therefore a rapid deleveraging. Fitch expects SMI's net leverage to trend to below 3x by fiscal year end (FYE) 2015 from a net debt/EBITDA at about 4x estimated at end-2013 (5x on gross leverage). SMI is expanding its operations in Colombia with a new injection plant that will start operation in the first quarter of 2014 (1Q'14). Fitch expects that the ramp-up of this plant to positively contribute to the group's profitability from late 2014- 2015 onwards. Pro forma the bond transaction, most of the debt will be represented by the bond issuance. There are no material debt maturities before the maturity of the bond. Post issuance of the bond, the group's debt will be at USD208.5 million for a latest 12 months (LTM) EBITDA of around USD42.5 million (at end-June 2013) and a cash balance of about USD36.5 million. Stable Profitability: SMI has been able to maintain steady EBITDA margin at about 18%- 20% because of its operating model based on highly contracted revenues, its pass-through model that gives margin protection against price volatility of the resin and the natural hedges against currency fluctuation (equipment and client contracts are in USD). However, the company is not fully immune to a rapid rise in resin price due to delays to pass on the actual price increases to its customers. Resin represents 80.9% of total costs and SMI's resin purchases are concentrated with two main providers. The group owns one of the few recycling 'bottle-to-bottle' PET resin plants in Latin America, and the only one in Peru after having made an initial investment of USD15 million. Fitch sees the recycling activity as a positive factor for the group's profitability in the future and a way for the company to strengthen its product offering by manufacturing preforms and bottles with recycled resin. However, the company still needs to get the approval from the Peruvian authorities in order to further develop this activity. Corporate Governance: SMI is a private company fully owned by Nexus Group SA. Fitch factors in its rating positive support from the shareholder who recently injected USD22 million via a capital injection. Fitch understands that the group's financial policy is to operate under a target gross debt/EBITDA below 3x with an incurrence debt covenant at 3.5x and then maintain a dividend payout at a maximum level of 50% of annual net income. Management indicated that the company will not pay dividend over the next two or three years. Rating Sensitivities: A positive rating action could result from some combination of the following factors: a sustained strengthening of the company's adjusted gross leverage, improve geographical and client diversification while sustaining an EBITDA margin above 20%. A negative rating action could be triggered by the group not deleveraging rapidly in the next 18 months, as sharp contraction of group's EBITDA margin and the company not generating positive free cash flow. ================= X X X X X X X X X ================= * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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